• 62. (1) Subsection 2900(4) of the Regulations is replaced by the following:

  • (4) For the purposes of the definition “qualified expenditure” in subsection 127(9) of the Act, the prescribed proxy amount of a taxpayer for a taxation year, in respect of a business, in respect of which the taxpayer elects under clause 37(8)(a)(ii)(B) of the Act is 55% of the total of all amounts each of which is that portion of the amount incurred in the year by the taxpayer in respect of salary or wages of an employee of the taxpayer who is directly engaged in scientific research and experimental development carried on in Canada that can reasonably be considered to relate to the scientific research and experimental development having regard to the time spent by the employee on the scientific research and experimental development.

• (2) Subsection (1) applies to taxation years that end after 2012, except that for taxation years that begin before 2014 the reference to “55%” in subsection 2900(4) of the Regulations, as enacted by subsection (1), is to be read as a reference to the percentage that is the total of

  • (a) 65% multiplied by the proportion that the number of days that are in the taxation year and before 2013 is of the number of days in the taxation year,

  • (b) 60% multiplied by the proportion that the number of days that are in the taxation year and in 2013 is of the number of days in the taxation year, and

  • (c) 55% multiplied by the proportion that the number of days that are in the taxation year and after 2013 is of the number of days in the taxation year.

• 63. (1) Subparagraph 2902(b)(ii) of the Regulations is replaced by the following:

  • (ii) the acquisition of property that is qualified property or qualified resource property within the meaning assigned by subsection 127(9) of the Act, or

• (2) Paragraph 2902(b) of the Regulations, as amended by subsection (1), is replaced by the following:

  • (b) an expenditure incurred by a taxpayer in respect of

    • (i) the acquisition of property that is qualified property or qualified resource property within the meaning assigned by subsection 127(9) of the Act, or

    • (ii) the acquisition of property that has been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer;

• (3) The portion of paragraph 2902(e) of the Regulations before subparagraph (i) is replaced by the following:

  • (e) an expenditure of a taxpayer, to the extent that the taxpayer has received or is entitled to receive a reimbursement in respect of it from

• (4) Subsection (1) applies in respect of expenditures incurred after March 28, 2012.

• (5) Subsections (2) and (3) apply in respect of expenditures incurred after 2013.

• 64. (1) Section 2903 of the Regulations is repealed.

• (2) Subsection (1) applies after 2013.

• 65. (1) Section 4301 of the Regulations is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (b.1) subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and

• (2) Subsection (1) is deemed to have come into force on March 29, 2012.

• 66. (1) The portion of subsection 4600(1) of the Regulations before paragraph (a) is replaced by the following:

  • 4600. (1) Property is a prescribed building for the purposes of the definitions “qualified property” and “qualified resource property” in subsection 127(9) of the Act if it is depreciable property of the taxpayer that is a building or grain elevator and it is erected on land owned or leased by the taxpayer,

• (2) The portion of subsection 4600(2) of the Regulations before paragraph (a) is replaced by the following:

  • (2) Property is prescribed machinery and equipment for the purposes of the definitions “qualified property” and “qualified resource property” in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that is

• (3) Section 4600 of the Regulations is amended by adding the following after subsection (2):

  • (3) Property is prescribed energy generation and conservation property for the purposes of the definition “qualified property” in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1) or (2)) that is a property included in any of subparagraph (a.1)(i) of Class 17 and Classes 43.1, 43.2 and 48 in Schedule II.

• (4) Subsections (1) to (3) are deemed to have come into force on March 29, 2012.

• 67. (1) Subsection 4802(1) of the Regulations is amended by adding the following after paragraph (c.2):

  • (c.3) a pooled registered pension plan;

• (2) Paragraph 4802(1.1)(e) of the Regulations is replaced by the following:

  • (e) each of the beneficiaries of the trust was a trust governed by a deferred profit sharing plan, a pooled registered pension plan or a registered pension plan.

• (3) Subsections (1) and (2) 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.

• 68. (1) The portion of section 8201 of the Regulations before paragraph (a) is replaced by the following:

  8201. For the purposes of subsection 16.1(1), the definition “outstanding debts to specified non-residents” in subsection 18(5), the definition “excluded income” and “excluded revenue” in subsection 95(2.5), subsections 100(1.3), 112(2), 125.4(1) and 125.5(1), the definition “taxable supplier” in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), the definition “Canadian banking business” in subsection 248(1) and paragraph 260(5)(a) of the Act, a “permanent establishment” of a person or partnership (either of whom is referred to in this section as the “person”) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, if the person does not have any fixed place of business, the principal place at which the person’s business is conducted, and

• (2) Subsection (1) applies to the 2012 and subsequent taxation years.

• 69. (1) Subparagraph 8502(b)(iv) of the Regulations is replaced by the following:

  • (iv) is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (8) and 147.5(21) of the Act, or

• (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.

• 70. (1) Subparagraph (d)(ix) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

  • (ix) equipment used by the taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, primarily from the consumption of eligible waste fuel and not using any fuel other than eligible waste fuel or fossil fuel, including such equipment that consists of fuel handling equipment used to upgrade the combustible portion of the fuel and control, feedwater and condensate systems, and other ancillary equipment, but not including equipment used for the purpose of producing heat energy to operate electrical generating equipment, buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), fuel storage facilities, other fuel handling equipment and property otherwise included in Class 10 or 17,

• (2) Clause (d)(xv)(B) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

  • (B) is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv) or (ix) or would be described in those subparagraphs if owned by the taxpayer, and

• (3) Subsections (1) and (2) are deemed to have come into force on March 29, 2012.

SOR/2008-186Canada Disability Savings Regulations

71. Paragraph 4(g) of the Canada Disability Savings Regulations is replaced by the following:

• 72. (1) Subsections 5(1) and (2) of the Regulations are replaced by the following:

  • 5. (1) Subject to sections 5.1 and 5.2, an issuer of an RDSP shall repay to the Minister, within the period set out in the issuer agreement, the amount referred to in subsection (2) if

    • (a) the RDSP is terminated;

    • (b) the plan ceases to be an RDSP as a result of the application of paragraph 146.4(10)(a) of the Income Tax Act;

    • (c) the beneficiary ceases to be a DTC-eligible individual, unless they are the subject of an election made under subsection 146.4(4.1) of the Income Tax Act; or

    • (d) the beneficiary dies.

  • (2) The amount that must be repaid as a result of the occurrence of an event described in subsection (1) is the lesser of

    • (a) the fair market value, immediately before the occurrence, of the property held by the RDSP, and

    • (b) the assistance holdback amount of the RDSP immediately before the occurrence.

• (2) Subsection (1) comes into force on January 1, 2014.