Jobs and Growth Act, 2012 (S.C. 2012, c. 31)
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Assented to 2012-12-14
PART 1AMENDMENTS TO THE INCOME TAX ACT AND RELATED REGULATIONS
R.S., c. 1 (5th Supp.)Income Tax Act
37. (1) Subsection 148(1) of the Act is amended by adding the following after paragraph (b.2):
(b.3) a pooled registered pension plan,
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
38. (1) Subsection 149(1) of the Act is amended by adding the following after paragraph (u.2):
Marginal note:Pooled registered pension plan
(u.3) a trust governed by a pooled registered pension plan to the extent provided under section 147.5;
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
39. (1) Paragraph 152(6)(f.3) of the Act is replaced by following:
(f.3) a deduction (including for the purposes of this subsection a reduction of an amount otherwise required to be included in computing a taxpayer’s income) under subsection 146(8.9) or (8.92), 146.3(6.2) or (6.3) or 147.5(14) or (19),
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
40. (1) The description of A in the definition “net tax owing” in subsection 156.1(1) of the Act is replaced by the following:
- A
- is the total of the taxes payable under this Part and Parts I.2, X.5 and XI.4 by the individual for the year,
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
41. (1) Subsection 172(3) of the Act is amended by striking out “or” at the end of paragraph (f.1) and by adding the following after paragraph (g):
(h) refuses to accept for registration for the purposes of this Act any pooled pension plan or gives notice under subsection 147.5(24) to the administrator of a pooled registered pension plan that the Minister proposes to revoke its registration, or
(i) refuses to accept an amendment to a pooled registered pension plan,
(2) The portion of subsection 172(3) of the Act, as amended by subsection (1), after paragraph (i) is replaced by the following:
the person described in paragraph (a), (a.1) or (a.2), the applicant in a case described in paragraph (b), (e) or (g), a trustee under the plan or an employer of employees who are beneficiaries under the plan, in a case described in paragraph (c), the promoter in a case described in paragraph (e.1), the administrator of the plan or an employer who participates in the plan, in a case described in paragraph (f) or (f.1), or the administrator of the plan in a case described in paragraph (h) or (i), may appeal from the Minister’s decision, or from the giving of the notice by the Minister, to the Federal Court of Appeal.
(3) Paragraphs 172(5)(a) and (b) of the Act are replaced by the following:
(a) to register for the purposes of this Act any pension plan or pooled pension plan, or
(b) to accept an amendment to a registered pension plan or a pooled registered pension plan
(4) Subsections (1) to (3) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
42. (1) Subsection 180(1) of the Act is amended by striking out “or” at the end of paragraph (c.1) and by replacing paragraph (d) with the following:
(c.2) the mailing of notice to the administrator of the pooled registered pension plan under subsection 147.5(24), or
(d) the time the decision of the Minister to refuse the application for acceptance of the amendment to the registered pension plan or pooled registered pension plan was mailed, or otherwise communicated in writing, by the Minister to any person,
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
43. (1) The description of D in paragraph 204.2(1.1)(b) of the Act is replaced by the following:
- D
- is the group plan amount in respect of the individual at that time,
(2) Subparagraph (a)(iii) of the description of I in subsection 204.2(1.2) of the Act is replaced by the following:
(iii) an amount transferred to the plan on behalf of the individual in accordance with any of subsections 146(16), 147(19), 147.3(1) and (4) to (7) and 147.5(21) or in circumstances to which subsection 146(21) applies,
(3) The description of I in subsection 204.2(1.2) of the Act is amended by striking out “or” at the end of paragraph (a), by replacing “and” at the end of paragraph (b) with “or” and by adding the following after paragraph (b):
(c) an amount contributed in the year and before that time by an employer or former employer of the individual to an account of the individual under a pooled registered pension plan, and
(4) Paragraph (a) of the description of J in subsection 204.2(1.2) of the Act is replaced by following:
(a) the total of all amounts each of which is an amount (other than the portion of it that reduces the amount on which tax is payable by the individual under subsection 204.1(1)) received by the individual in the year and before that time out of or under a pooled registered pension plan, a registered retirement savings plan or a registered retirement income fund and included in computing the individual’s income for the year
(5) The portion of subsection 204.2(1.3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Group plan amount
(1.3) For the purposes of this section, the group plan amount in respect of an individual at any time in a taxation year is the lesser of
(6) Subparagraph (i) of the description F in paragraph 204.2(1.3)(a) of the Act is replaced by the following:
(i) the total of all amounts each of which is a qualifying group plan amount in respect of the individual, to the extent that the amount is included in determining the value of I in subsection (1.2) in respect of the individual at that time, and
(7) Subparagraph (ii) of the description K in paragraph 204.2(1.3)(a) of the Act is replaced by the following:
(ii) in any other case, the group plan amount in respect of the individual at the end of the preceding taxation year, and
(8) Subsection 204.2(1.31) of the Act is replaced by the following:
Marginal note:Qualifying group plan amount
(1.31) For the purposes of the description of F in paragraph (1.3)(a), a qualifying group plan amount in respect of an individual is a premium paid under a registered retirement savings plan or an amount contributed by an employer or former employer of the individual to an account of the individual under a pooled registered pension plan if
(a) the plan is part of a qualifying arrangement or is a pooled registered pension plan,
(b) the premium or contribution is an amount to which the individual is entitled for services rendered by the individual (whether or not as an employee), and
(c) the premium or contribution was remitted to the plan on behalf of the individual by the person or body of persons that is required to remunerate the individual for the services, or by an agent for that person or body,
but does not include the part, if any, of a premium or contribution that, by making (or failing to make) an election or exercising (or failing to exercise) any other right under the plan after beginning to participate in the plan and within 12 months before the time the premium was paid or the contribution was made, the individual could have prevented the premium or contribution and that would not as a consequence have been required to be remitted on behalf of the individual to another registered retirement savings plan or pooled registered pension plan or to a money purchase provision of a registered pension plan.
(9) Section 204.2 of the Act is amended by adding the following after subsection (4):
Marginal note:PRPP withdrawals
(5) Notwithstanding the Pooled Registered Pension Plans Act or any similar law of a province, a member of a PRPP may withdraw an amount from the member’s account under the PRPP to reduce the amount of tax that would otherwise be payable by the member under this Part, to the extent that the reduction cannot be achieved by withdrawals from plans other than PRPPs.
(10) Subsections (1) to (9) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
44. (1) Subsection 207.5(1) of the Act is amended by adding the following in alphabetical order:
“advantage”
« avantage »
“advantage”, in relation to a retirement compensation arrangement, means
(a) any benefit, loan or indebtedness that is conditional in any way on the existence of the arrangement, other than
(i) a benefit derived from the provision of administrative or investment services in respect of the arrangement,
(ii) a loan or an indebtedness the terms and conditions of which are terms and conditions that persons dealing at arm’s length with each other would have entered into, and
(iii) a payment out of or under the arrangement that is included in computing a taxpayer’s income under Part I, and
(b) a benefit that is an increase in the total fair market value of the subject property of the arrangement if it is reasonable to consider, having regard to all the circumstances, that the increase is attributable, directly or indirectly, to a transaction or event or a series of transactions or events one of the main purposes of which was to enable a person or a partnership to benefit from a provision of this Part, or from the exemption from tax under paragraph 149(1)(q.1), if the transaction, event or series
(i) would not have occurred in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, or
(ii) included a payment received as, on account or in lieu of, or in satisfaction of, a payment
(A) for services provided by a person who is, or does not deal at arm’s length with, a specified beneficiary of the arrangement, or
(B) of interest, of a dividend, of rent, of a royalty or of any other return on investment, or of proceeds of disposition, in respect of property (other than subject property of the arrangement) held by a person who is, or does not deal at arm’s length with, a specified beneficiary of the arrangement,
(c) a benefit that is income or a capital gain that is reasonably attributable, directly or indirectly, to
(i) a prohibited investment in respect of the arrangement,
(ii) an amount received by a specified beneficiary of the arrangement, or by a person who does not deal at arm’s length with the specified beneficiary, if it is reasonable to consider, having regard to all the circumstances, that the amount was paid in relation to, or would not have been paid but for, subject property of the arrangement and the amount was paid as, on account or in lieu of, or in satisfaction of, a payment
(A) for services provided by a person who is, or who does not deal at arm’s length with, the specified beneficiary, or
(B) of interest, of a dividend, of rent, of a royalty or of any other return on investment, or of proceeds of disposition,
(d) an RCA strip in respect of the arrangement, and
(e) a prescribed benefit;
“prohibited investment”
« placement interdit »
“prohibited investment”, for a retirement compensation arrangement at any time, means property (other than prescribed excluded property) that is at that time
(a) a debt of a specified beneficiary of the arrangement,
(b) a share of the capital stock of, an interest in, or a debt of
(i) a corporation, partnership or trust in which the specified beneficiary has a significant interest, or
(ii) a person or partnership that does not deal at arm’s length with, or is affiliated with, the specified beneficiary,
(c) an interest (or, for civil law, a right) in, or a right to acquire, a share, interest or debt described in paragraph (a) or (b), or
(d) prescribed property;
“RCA strip”
« somme découlant d’un dépouillement de CR »
“RCA strip”, in respect of a retirement compensation arrangement, means the amount of a reduction in the fair market value of subject property of the arrangement, if the value is reduced as part of a transaction or event or a series of transactions or events one of the main purposes of which is to enable a specified beneficiary of the arrangement, or a person or a partnership who does not deal at arm’s length with the specified beneficiary, to benefit from a provision of this Part or to obtain a benefit in respect of subject property of the arrangement or as a result of the reduction, but does not include an amount that is included in computing the income of the specified beneficiary or of an employer or former employer of the specified beneficiary;
“significant interest”
« participation notable »
“significant interest” has the same meaning as in subsection 207.01(4);
“specified beneficiary”
« bénéficiaire déterminé »
“specified beneficiary”, of a retirement compensation arrangement, means an individual who has an interest or a right in respect of the arrangement and who has or had a significant interest in an employer or former employer in respect of the arrangement;
(2) Section 207.5 of the Act is amended by adding the following after subsection (2):
Marginal note:Limitation on election
(3) Subsection (2) does not apply in respect of an RCA trust if any part of a decline in the fair market value of subject property of the retirement compensation arrangement is reasonably attributable to a prohibited investment for, or an advantage in relation to, the RCA trust unless the Minister is satisfied that it is just and equitable to allow the election to be made, having regard to all the circumstances, in which case, the Minister may adjust the amount deemed by subsection (2) to be the refundable tax of the arrangement to take into account all or part of the decline in the fair market value of the subject property.
(3) Subsection (1) applies after March 28, 2012, except that the definition “advantage” in subsection 207.5(1) of the Act, as enacted by subsection (1), does not apply in respect of transactions or events that relate to subject property of a retirement compensation arrangement acquired before March 29, 2012
(a) if the amount of what would otherwise be an advantage is included in computing the income of a beneficiary of the arrangement, or an employer in respect of the arrangement, for the taxation year in which the amount arose or the immediately following taxation year; or
(b) if the subject property is a promissory note or similar debt obligation, commercially reasonable payments of principal and interest are made at least annually after 2012 in respect of the note or obligation and no RCA strip arises after March 28, 2012 in respect of the arrangement. For the purposes of this paragraph, an amendment to the terms of the note or obligation to provide for such payments is deemed not to be a disposition or an acquisition of the note or obligation.
(4) Subsection (2) applies to elections in respect of tax paid under subsection 207.7(1) of the Act in respect of contributions made to a retirement compensation arrangement after March 28, 2012 and income earned, capital gains realized and losses incurred, in respect of such contributions.
- Date modified: