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
74. (1) Subsection 250(7) of the Act is repealed.
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
75. (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Proportional holdings in trust property
259. (1) For the purposes of designated provisions, if at any time a specified taxpayer acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,
(2) Subsection 259(5) of the Act is amended by adding the following in alphabetical order:
“designated provisions”
« dispositions désignées »
“designated provisions” means sections 146 and 146.1 to 146.4 and Parts X and XI to XI.1, as they apply in respect of investments that are not qualified investments for a trust, and Part X.2;
“specified taxpayer”
« contribuable déterminé »
“specified taxpayer” means a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2) and (x).
(3) Subsections (1) and (2) apply after 1999, except that
(a) the definition “designated provisions” in subsection 259(5) of the Act, as enacted by subsection (2),
(i) in its application to taxation years that begin before 2005, is to be read as follows:
- “designated provisions”
“designated provisions” means subsections 146(6), (10) and (10.1), 146.1(2.1), 146.3(7), (8) and (9), and Parts X, X.2, XI and XI.1;
(ii) in its application to taxation years that begin after 2004 and before 2008, is to be read as follows:
- “designated provisions”
“designated provisions” means subsections 146(6), (10) and (10.1), 146.1(2.1), 146.3(7), (8) and (9), and Parts X, X.2 and XI.1;
(iii) in its application to taxation years that begin after 2007 and before 2009, is to be read as follows:
- “designated provisions”
“designated provisions” means subsections 146(6), (10) and (10.1), 146.1(2.1), 146.3(7), (8) and (9), and 146.4(5), and Parts X, X.2, XI and XI.1;
(iv) in its application to taxation years that begin after 2008 and end before March 23, 2011, is to be read as follows:
- “designated provisions”
“designated provisions” means subsections 146(6), (10) and (10.1), 146.1(2.1), 146.2(6), 146.3(7), (8) and (9), and 146.4(5), and Parts X, X.2 and XI to XI.1;
(b) the definition “specified taxpayer” in subsection 259(5) of the Act, as enacted by subsection (2),
(i) in its application to taxation years that begin before 2005, is to be read as follows:
- “specified taxpayer”
“specified taxpayer” means a taxpayer described in section 205.
(ii) in its application to taxation years that begin after 2004 and before 2008, is to be read as follows:
- “specified taxpayer”
“specified taxpayer” means a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) and (x).
(iii) in its application to taxation years that begin after 2007 and before 2009, is to be read as follows:
- “specified taxpayer”
“specified taxpayer” means a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u), (u.1) and (x).
C.R.C., c. 945Income Tax Regulations
76. (1) Subsection 214(2) of the Income Tax Regulations is replaced by the following:
(2) If, in a taxation year, subsection 146(7), (9) or (10) of the Act or, in relation to a non-qualified investment, subsection 207.04(1) or (4) of the Act applies in respect of a trust governed by a registered retirement savings plan, the trustee of the plan shall make an information return in prescribed form.
(2) Subsection (1) applies in respect of investments acquired after March 22, 2011.
77. (1) Subsection 215(3) of the Regulations is replaced by the following:
(3) If subsection 146.3(4), (7) or (10) of the Act or, in relation to a non-qualified investment, subsection 207.04(1) or (4) of the Act applies in respect of any transaction or event with respect to property of a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the transaction or event.
(2) Subsection (1) applies in respect of investments acquired after March 22, 2011.
78. (1) Section 216 of the Regulations and the heading before it are repealed.
(2) Subsection (1) applies to fiscal periods of registered Canadian amateur athletic associations that begin on or after the later of the day on which this Act receives royal assent and January 1, 2012.
79. (1) The definition “thermal waste” in subsection 1104(13) of the Regulations is replaced by the following:
- “thermal waste”
“thermal waste” means waste heat energy extracted from a distinct point of rejection in an industrial process that would otherwise
(a) be vented to the atmosphere or transferred to a liquid; and
(b) not be used for a useful purpose. (déchets thermiques)
(2) Subsection (1) applies in respect of property acquired on or after March 22, 2011.
80. (1) The heading “RECEIPTS FOR DONATIONS AND GIFTS” before section 3500 of the Regulations is replaced by the following:
GIFTS
(2) Subsection (1) is deemed to have come into force on March 23, 2011.
81. (1) The definition “other recipient of a gift” in section 3500 of the Regulations is replaced by the following:
- “other recipient of a gift”
“other recipient of a gift” means a person, to whom a gift is made by a taxpayer, referred to in any of paragraphs (a) and (d) of the definition “qualified donee” in subsection 149.1(1), paragraph 110.1(1)(c) and subparagraph 110.1(3)(a)(ii) of the Act; (autre bénéficiaire d’un don)
(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2012.
82. (1) The Regulations are amended by adding the following after section 3501:
Contents of Information Returns
3501.1 Every information return required to be filed under subsection 110.1(16) or 118.1(27) of the Act in respect of a transfer of property must contain
(a) a description of the transferred property;
(b) the fair market value of the transferred property at the time of the transfer;
(c) the date on which the property was transferred;
(d) the name and address of the transferee of the property including, in the case of an individual, their first name and initial; and
(e) if the transferor of the property, or a person not dealing at arm’s length with the transferor, issued the receipt referred to in subsection 110.1(14) or 118.1(25) of the Act, the information contained in that receipt.
(2) Subsection (1) is deemed to have come into force on March 23, 2011.
83. (1) Section 3503 of the Regulations is replaced by the following:
3503. For the purposes of subparagraph (a)(iv) of the definition “qualified donee” in subsection 149.1(1) of the Act, the universities outside Canada named in Schedule VIII are prescribed to be universities the student body of which ordinarily includes students from Canada.
(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2012.
84. (1) The portion of subsection 4900(6) of the Regulations before paragraph (b) is replaced by the following:
(6) Subject to subsections (8) and (9), 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 and paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered retirement savings plan, a registered education savings plan and a registered retirement income fund at any time if at that time the property is not a prohibited investment for the trust and is
(a) a share of the capital stock of an eligible corporation (as defined in subsection 5100(1)) unless, in the case of a registered education savings plan, a beneficiary or subscriber under the plan is a designated shareholder of the corporation;
(2) Subsection 4900(8) of the Regulations is replaced by the following:
(8) For the purposes of subsection (6), a property that is held by a trust governed by a registered education savings plan ceases to be a qualified investment for the trust immediately before an amount is received if
(a) the property is a share referred to in paragraph (6)(a), an interest in a small business investment limited partnership that holds a small business security, or an interest in a small business investment trust that holds a small business security;
(b) a person who is a beneficiary or subscriber under the plan provides services to or for the issuer of the share or small business security, or to or for a person related to that issuer;
(c) the amount is received in respect of the share or small business security; and
(d) it can reasonably be considered, having regard to all the circumstances (including the terms and conditions of the share or small business security or of any related agreement, and the rate of interest or the dividend provided on the share or small business security), that the amount is on account, in lieu or in satisfaction of payment for the services.
(3) Subsection 4900(10) of the Regulations is repealed.
(4) Subsection 4900(12) of the Regulations is replaced by the following:
(12) For the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered education savings plan at any time if
(a) at the time the property was acquired by the trust,
(i) the property was a share of the capital stock of a specified small business corporation,
(ii) the property was a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2, or
(iii) the property was a qualifying share in respect of a specified cooperative corporation and the plan; and
(b) immediately after the time the property was acquired by the trust, each person who is a beneficiary or a subscriber under the plan was not a connected shareholder of the corporation.
(5) Paragraph 4900(13)(a) of the Regulations is replaced by the following:
(a) a share that is otherwise a qualified investment for the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act solely because of subsection (12) is held by a trust governed by a registered education savings plan,
(6) The portion of subsection 4900(14) of the Regulations before paragraph (a) is replaced by the following:
(14) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(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 RRIF, RRSP or TFSA at any time if, at the time the property was acquired by the trust, the property
(7) Subparagraph 4900(14)(a)(iii) of the Regulations is replaced by the following:
(iii) a qualifying share in respect of a specified cooperative corporation and the RRIF, RRSP or TFSA; and
(8) Subsections (1), (2) and (4) to (7) apply in respect of investments acquired after March 22, 2011.
- Date modified: