Keeping Canada’s Economy and Jobs Growing Act (S.C. 2011, c. 24)
Full Document:
Assented to 2011-12-15
94. (1) Paragraph 8501(1)(e) of the Regulations is replaced by the following:
(e) there is no reason to expect that the plan may become a revocable plan under subsection 147.1(8) or (9) of the Act or subsections 8503(15) or (26) or 8506(4).
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
95. (1) Paragraph 8502(d) of the Regulations is amended by striking out “or” at the end of subparagraph (viii), by adding “or” at the end of subparagraph (ix) and by adding the following after subparagraph (ix):
(x) the portion of the IPP minimum amount for an individual that is not described in subparagraph (i).
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
96. (1) Section 8503 of the Regulations is amended by adding the following after subsection (25):
IPP — Minimum Withdrawal
(26) An individual pension plan becomes a revocable plan at the end of a year if
(a) a person who is a member or a beneficiary, in respect of the plan, who was, at the time of the member’s death, a spouse or common-law partner of the member, is in receipt of retirement benefits under the terms of the plan;
(b) the person has attained 71 years of age before the year; and
(c) the plan has not paid in the year an amount to the person equal to the greater of the retirement benefits payable to the person for the year and the IPP minimum amount for the person for the year.
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
97. (1) Subsection 8517(3) of the Regulations and the heading before it are replaced by the following:
Underfunded Pension
(3) Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan if
(a) the individual is an employee or a former employee of an employer (or a predecessor employer of the employer);
(b) the employer
(i) was a participating employer under the provision,
(ii) is the subject of proceedings commenced under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act, and
(iii) has ceased making regular contributions under the provision;
(c) after the commencement of the proceedings, lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered;
(d) the plan is not a designated plan; and
(e) the Minister has approved the application of subsection (3.01) in respect of the transfer.
(3.01) If this subsection applies, the description of A in subsection (1) shall be read as follows in respect of the transfer:
- A
- is the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), but without reference to the benefit reduction referred to in paragraph (3)(c); and
(3.02) If a particular amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and subsection (3.01) had applied in respect of a transfer (in this subsection referred to as the “initial transfer”) of an amount on behalf of the individual under the provision, for the purpose of paragraph 147.3(4)(c) of the Act the prescribed amount in respect of the transfer of the particular amount is the lesser of
(a) the particular amount, and
(b) the amount, if any, by which the prescribed amount in respect of the initial transfer exceeds the total of all amounts each of which is the amount of a previous transfer to which this subsection or subsection (3.01) applied in respect of the individual’s entitlement to benefits under the provision.
(2) Subsection (1) applies after 2010.
98. (1) The heading “PRESCRIBED PROGRAMS OF PHYSICAL ACTIVITY” before section 9400 of the Regulations is replaced by the following:
PRESCRIBED CHILDREN’S PROGRAMS
(2) Subsection (1) applies to the 2011 and subsequent taxation years.
99. (1) The Regulations are amended by adding the following after section 9400:
Program of Artistic, Cultural, Recreational or Developmental Activity
Definition of “artistic, cultural, recreational or developmental activity”
9401. (1) In this section, “artistic, cultural, recreational or developmental activity” means a supervised activity, including an activity adapted for children in respect of whom an amount is deductible under section 118.3 of the Act, suitable for children (other than a physical activity), that
(a) is intended to contribute to a child’s ability to develop creative skills or expertise, acquire and apply knowledge, or improve dexterity or coordination, in an artistic or cultural discipline including
(i) literary arts,
(ii) visual arts,
(iii) performing arts,
(iv) music,
(v) media,
(vi) languages,
(vii) customs, and
(viii) heritage;
(b) provides a substantial focus on wilderness and the natural environment;
(c) assists with the development and use of intellectual skills;
(d) includes structured interaction among children where supervisors teach or assist children to develop interpersonal skills; or
(e) provides enrichment or tutoring in academic subjects.
Marginal note:Prescribed program of artistic, cultural, recreational or developmental activity
(2) For the purpose of the definition “eligible expense” in subsection 118.031(1) of the Act, a prescribed program of artistic, cultural, recreational or developmental activity is
(a) a weekly program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks in which all or substantially all the activities include a significant amount of artistic, cultural, recreational or developmental activity;
(b) a program, that is not part of a school’s curriculum, of a duration of five or more consecutive days of which more than 50% of the daily activities include a significant amount of artistic, cultural, recreational or developmental activity;
(c) a program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks, offered to children by a club, association or similar organization (in this section referred to as an “organization”) in circumstances where a participant in the program may select amongst a variety of activities if
(i) more than 50% of those activities offered to children by the organization are activities that include a significant amount of artistic, cultural, recreational or developmental activity, or
(ii) more than 50% of the time scheduled for activities offered to children in the program is scheduled for activities that include a significant amount of artistic, cultural, recreational or developmental activity; or
(d) a membership in an organization, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks if more than 50% of all the activities offered to children by the organization include a significant amount of artistic, cultural, recreational or developmental activity.
Marginal note:Mixed-use facility
(3) For the purpose of the definition “eligible expense” in subsection 118.031(1) of the Act, a prescribed program of artistic, cultural, recreational or developmental activity is that portion of a program, which program does not meet the requirements of paragraph (2)(c) and is not part of a school’s curriculum, of a duration of eight or more consecutive weeks, offered to children by an organization in circumstances where a participant in the program may select amongst a variety of activities
(a) that is the percentage of those activities offered to children by the organization that are activities that include a significant amount of artistic, cultural, recreational or developmental activity; or
(b) that is the percentage of the time scheduled for activities in the program that is scheduled for activities that include a significant amount of artistic, cultural, recreational or developmental activity.
Marginal note:Membership
(4) For the purpose of the definition “eligible expense” in subsection 118.031(1) of the Act, a prescribed program of artistic, cultural, recreational or developmental activity is that portion of a membership in an organization, which membership does not meet the requirements of paragraph (2)(d) and is not part of a school’s curriculum, of a duration of eight or more consecutive weeks that is the percentage of all the activities offered to children by the organization that are activities that include a significant amount of artistic, cultural, recreational or developmental activity.
(2) Subsection (1) applies to the 2011 and subsequent taxation years.
100. (1) The portion of subparagraph (c)(iii) of Class 29 in Schedule II to the Regulations before clause (A) is replaced by the following:
(iii) after March 18, 2007 and before 2014 if the property is machinery, or equipment,
(2) Subsection (1) applies after 2011.
101. (1) The portion of paragraph (c) of Class 43.1 in Schedule II to the French version of the Regulations before clause (i)(A) is replaced by the following:
c) qui, selon le cas :
(i) font partie d’un système, sauf un système à cycles combinés amélioré, qui, à la fois :
(2) Clause (c)(ii)(A) of Class 43.1 in Schedule II to the Regulations is replaced by the following:
(A) is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy using only a combination of natural gas and thermal waste from one or more natural gas compressor systems located on a natural gas pipeline,
(3) Paragraph (c) of Class 43.1 in Schedule II to the Regulations is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):
(iii) equipment that is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy in a process all or substantially all of the energy input of which is thermal waste, other than
(A) equipment that uses heat produced by a gas turbine that is part of the first stage of a combined cycle system, and
(B) equipment that, on the date of its acquisition, uses chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs), within the meaning assigned by the Ozone-Depleting Substances Regulations, 1998,
(4) Subsections (1) to (3) apply to property acquired on or after March 22, 2011.
- Date modified: