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
10. (1) Clause 56(1)(a)(i)(C) of the Act is replaced by the following:
(C) the amount of any payment out of or under a specified pension plan, and
(2) Subsection 56(2) of the Act is replaced by the following:
Marginal note:Indirect payments
(2) A payment or transfer of property made pursuant to the direction of, or with the concurrence of, a taxpayer to another person for the benefit of the taxpayer or as a benefit that the taxpayer desired to have conferred on the other person (other than by an assignment of any portion of a retirement pension under section 65.1 of the Canada Pension Plan or a comparable provision of a provincial pension plan as defined in section 3 of that Act) shall be included in computing the taxpayer’s income to the extent that it would be if the payment or transfer had been made to the taxpayer.
(3) Section 56 of the Act is amended by adding the following after subsection (3):
Marginal note:Limitations of scholarship exemption
(3.1) For the purpose of determining the total in paragraph (3)(a) for a taxation year,
(a) a scholarship, fellowship or bursary (in this subsection referred to as an “award”) is not considered to be received in connection with the taxpayer’s enrolment in an educational program described in subparagraph (3)(a)(i) except to the extent that it is reasonable to conclude that the award is intended to support the taxpayer’s enrolment in the program, having regard to all the circumstances, including the terms and conditions that apply in respect of the award, the duration of the program and the period for which support is intended to be provided; and
(b) if an award is received in connection with an educational program in respect of which the taxpayer may deduct an amount by reason of paragraph (b) of the description of B in subsection 118.6(2) for the taxation year, for the immediately preceding taxation year or for the following taxation year (in this paragraph referred to as the “claim year”), the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of the award may not exceed the amount that is the total of amounts, each of which is the cost of materials related to the program or a fee paid to a designated educational institution in respect of the program, as defined in subsection 118.6(1), in respect of the claim year.
(4) Subsection (1) applies to payments made after 2009.
(5) Subsection (2) applies to payments and transfers made after 2010.
(6) Subsection (3) applies to the 2010 and subsequent taxation years.
11. (1) Clause 60(l)(v)(B.01) of the Act is replaced by the following:
(B.01) the amount included in computing the taxpayer’s income for the year as a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a registered pension plan or a specified pension plan as a consequence of the death of an individual of whom the taxpayer was a child or grandchild, if the taxpayer was, immediately before the death, financially dependent on the individual for support because of mental or physical infirmity,
(2) Sub-subclause 60(l)(v)(B.1)(II)1 of the Act is replaced by the following:
1. a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a registered pension plan or a specified pension plan,
(3) Paragraph 60(v) of the Act is repealed.
(4) Subsections (1) to (3) apply to taxation years that begin after 2009.
12. (1) The definition “eligible individual” in subsection 60.02(1) of the Act is replaced by the following:
“eligible individual”
« particulier admissible »
“eligible individual” means a child or grandchild of a deceased annuitant under a registered retirement savings plan or registered retirement income fund, or of a deceased member of a registered pension plan or a specified pension plan, who was financially dependent on the deceased for support, at the time of the deceased’s death, by reason of mental or physical infirmity.
(2) Paragraph (c) of the definition “eligible proceeds” in subsection 60.02(1) of the Act is replaced by the following:
(c) a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) out of or under a registered pension plan or a specified pension plan.
(3) Subsections (1) and (2) are deemed to have come into force on March 4, 2010.
13. (1) Subparagraph (b)(ii) of the definition “Canadian resource property” in subsection 66(15) of the Act is replaced by the following:
(ii) prospect, explore, drill or mine for minerals in a mineral resource in Canada other than a bituminous sands deposit or an oil shale deposit,
(2) Paragraph (c) of the definition “Canadian resource property” in subsection 66(15) of the Act is replaced by the following:
(c) any oil or gas well in Canada or any real property or immovable in Canada the principal value of which depends on its petroleum, natural gas or related hydrocarbon content (not including any depreciable property),
(3) Paragraphs (d) and (e) of the definition “Canadian resource property” in subsection 66(15) of the Act are replaced by the following:
(d) any right to a rental or royalty computed by reference to the amount or value of production from an oil or a gas well in Canada, or from a natural accumulation of petroleum, natural gas or a related hydrocarbon in Canada, if the payer of the rental or royalty has an interest in, or for civil law a right in, the well or accumulation, as the case may be, and 90% or more of the rental or royalty is payable out of, or from the proceeds of, the production from the well or accumulation,
(e) any right to a rental or royalty computed by reference to the amount or value of production from a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, if the payer of the rental or royalty has an interest in, or for civil law a right in, the mineral resource and 90% or more of the rental or royalty is payable out of, or from the proceeds of, the production from the mineral resource,
(4) Paragraphs (f) and (g) of the definition “Canadian resource property” in subsection 66(15) of the Act are replaced by the following:
(f) any real property or immovable in Canada (not including any depreciable property) the principal value of which depends on its mineral resource content other than where the mineral resource is a bituminous sands deposit or an oil shale deposit,
(g) any right to or interest in — or, for civil law, any right to or in — any property described in any of paragraphs (a) to (e), other than a right or an interest that the taxpayer has because the taxpayer is a beneficiary under a trust or a member of a partnership, or
(h) an interest in real property described in paragraph (f) or a real right in an immovable described in that paragraph, other than an interest or a right that the taxpayer has because the taxpayer is a beneficiary under a trust or a member of a partnership;
(5) Subsections (1), (2) and (4) apply in respect of properties and rights acquired after March 21, 2011 except that, in respect of a property or right acquired by a person or partnership before 2012 if the person or partnership was obligated to acquire the property or right pursuant to an agreement in writing entered into by the person or partnership before March 22, 2011,
(a) subparagraph (b)(ii) of the definition “Canadian resource property” in subsection 66(15) of the Act, as enacted by subsection (1), is to be read without reference to “other than a bituminous sands deposit or an oil shale deposit”;
(b) the reference to “petroleum, natural gas or related hydrocarbon content” in paragraph (c) of the definition “Canadian resource property” in subsection 66(15) of the Act, as enacted by subsection (2), is to be read as a reference to “petroleum or natural gas content”; and
(c) paragraph (f) of the definition “Canadian resource property” in subsection 66(15) of the Act, as enacted by subsection (4), is to be read without reference to “other than where the mineral resource is a bituminous sands deposit or an oil shale deposit”.
(6) Subsection (3) applies in respect of rights acquired after December 20, 2002 except that, in respect of a right acquired before March 22, 2011 or in respect of a right that is acquired by a person or partnership after March 21, 2011 and before 2012 and that the person or partnership is obligated to acquire pursuant to an agreement in writing entered into by the person or partnership before March 22, 2011,
(a) the reference to “petroleum, natural gas or a related hydrocarbon” in paragraph (d) of the definition “Canadian resource property” in subsection 66(15) of the Act, as enacted by subsection (3), is to be read as a reference to “petroleum or natural gas”; and
(b) paragraph (e) of the definition “Canadian resource property” in subsection 66(15) of the Act, as enacted by subsection (3), is to be read without reference to “, other than a bituminous sands deposit or an oil shale deposit,”.
14. (1) Paragraph (f) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act is amended by striking out “or” at the end of subparagraph (v) and by replacing subparagraph (vi) with the following:
(v.1) any expense described in subparagraph (i), (iii) or (iv) in respect of the mineral resource, incurred before a new mine in the mineral resource comes into production in reasonable commercial quantities, that results in revenue or can reasonably be expected to result in revenue earned before the new mine comes into production in reasonable commercial quantities, except to the extent that the total of all such expenses exceeds the total of those revenues, or
(vi) any expense that may reasonably be considered to be related to a mine in the mineral resource that has come into production in reasonable commercial quantities or to be related to a potential or actual extension of the mine,
(2) Paragraph (g) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act is replaced by the following:
(g) any expense incurred by the taxpayer after November 16, 1978 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production, in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft or constructing an adit or other underground entry, but not including any expense that results in revenue or can reasonably be expected to result in revenue earned before the new mine comes into production in reasonable commercial quantities, except to the extent that the total of all such expenses exceeds the total of those revenues,
(3) The definition “Canadian exploration expense” in subsection 66.1(6) of the Act is amended by adding the following after paragraph (g.1):
(g.2) any expense incurred by the taxpayer after March 21, 2011, that is
(i) a specified oil sands mine development expense, or
(ii) an eligible oil sands mine development expense,
(4) Paragraph (k.2) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act is repealed.
(5) Subsection 66.1(6) of the Act is amended by adding the following in alphabetical order:
“bitumen mine development project”
« projet de mise en valeur d’une mine de bitume »
“bitumen mine development project”, of a taxpayer, means an undertaking for the sole purpose of developing a new mine to extract and process tar sands from a mineral resource of the taxpayer to produce bitumen or a similar product;
“bitumen upgrading development project”
« projet de valorisation du bitume »
“bitumen upgrading development project”, of a taxpayer, means an undertaking for the sole purpose of constructing an upgrading facility to process bitumen or a similar feedstock (all or substantially all of which is from a mineral resource of the taxpayer) from a new mine to the crude oil stage or its equivalent;
“completion”
« achèvement »
“completion”, of a specified oil sands mine development project, means the first attainment of a level of average output, measured over a 60-day period, equal to at least 60% of the planned level of average daily output (as determined in paragraph (b) of the definition “specified oil sands mine development project”) for the specified oil sands mine development project;
“designated asset”
« bien désigné »
“designated asset”, in respect of an oil sands mine development project of a taxpayer, means a property that is a building, a structure, machinery or equipment and is, or is an integral and substantial part of,
(a) in the case of a bitumen mine development project,
(i) a crusher,
(ii) a froth treatment plant,
(iii) a primary separation unit,
(iv) a steam generation plant,
(v) a cogeneration plant, or
(vi) a water treatment plant, or
(b) in the case of a bitumen upgrading development project,
(i) a gasifier unit,
(ii) a vacuum distillation unit,
(iii) a hydrocracker unit,
(iv) a hydrotreater unit,
(v) a hydroprocessor unit, or
(vi) a coker;
“eligible oil sands mine development expense”
« frais d’aménagement admissibles relatifs à une mine de sables bitumineux »
“eligible oil sands mine development expense”, of a taxpayer, means an expense incurred by the taxpayer after March 21, 2011 and before 2016, the amount of which is determined by the formula
A × B
where
- A
- is an expense that would be a Canadian exploration expense of the taxpayer described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “other than a bituminous sands deposit or an oil shale deposit”, but does not include an expense that is a specified oil sands mine development expense, and
- B
- is
(a) 100% if the expense is incurred before 2013,
(b) 80% if the expense is incurred in 2013,
(c) 60% if the expense is incurred in 2014, and
(d) 30% if the expense is incurred in 2015;
“oil sands mine development project”
« projet de mise en valeur d’une mine de sables bitumineux »
“oil sands mine development project”, of a taxpayer, means a bitumen mine development project or a bitumen upgrading development project of the taxpayer;
“preliminary work activity”
« travaux préliminaires »
“preliminary work activity”, in respect of an oil sands mine development project, means activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of designated assets in respect of the taxpayer’s oil sands mine development project including, without limiting the generality of the foregoing, the following activities:
(a) obtaining permits or regulatory approvals,
(b) performing design or engineering work,
(c) conducting feasibility studies,
(d) conducting environmental assessments, and
(e) entering into contracts;
“specified oil sands mine development expense”
« frais d’aménagement déterminés relatifs à une mine de sables bitumineux »
“specified oil sands mine development expense”, of a taxpayer, means an expense that
(a) would be a Canadian exploration expense described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “other than a bituminous sands deposit or an oil shale deposit”,
(b) is incurred by the taxpayer after March 21, 2011 and before 2015, and
(c) is incurred by the taxpayer to achieve completion of a specified oil sands mine development project of the taxpayer;
“specified oil sands mine development project”
« projet déterminé de mise en valeur d’une mine de sables bitumineux »
“specified oil sands mine development project”, of a taxpayer, means an oil sands mine development project (not including any preliminary work activity) in respect of which
(a) one or more designated assets was, before March 22, 2011,
(i) acquired by the taxpayer, or
(ii) in the process of being constructed, fabricated or installed, by or on behalf of the taxpayer, and
(b) the planned level of average daily output (where that output is bitumen or a similar product in the case of a bitumen mine development project, or synthetic crude oil or a similar product in the case of a bitumen upgrading development project) that can reasonably be expected, is the lesser of
(i) the level that was the demonstrated intention of the taxpayer as of March 21, 2011 to produce from the oil sands mine development project, and
(ii) the maximum level of output associated with the design capacity, as of March 21, 2011, of the designated asset referred to in paragraph (a);
(6) Subsections (1), (2) and (4) apply to expenses incurred after November 5, 2010 except that in respect of expenses incurred before March 22, 2011 paragraph (g) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act, as enacted by subsection (2), is to be be read without reference to “, other than a bituminous sands deposit or an oil shale deposit,”.
(7) Subsection (3) applies to expenses incurred after March 21, 2011.
(8) Subsection (5) is deemed to have come into force on March 22, 2011.
- Date modified: