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Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)

Assented to 2013-06-26

  •  (1) Subsection 138(4.4) of the Act is replaced by the following:

    • Marginal note:Income inclusion

      (4.4) If, for a period of time in a taxation year, a life insurer

      • (a) owned land (other than land referred to in paragraph (c) or (d)) or an interest, or for civil law a right, therein that was not held primarily for the purpose of gaining or producing income from the land for the period,

      • (b) had an interest, or for civil law a right, in a building that was being constructed, renovated or altered,

      • (c) owned land subjacent to the building referred to in paragraph (b) or an interest, or for civil law a right, therein, or

      • (d) owned land immediately contiguous to the land referred to in paragraph (c) or an interest, or for civil law a right, therein that was used or was intended to be used for a parking area, driveway, yard, garden or other use necessary for the use or intended use of the building referred to in paragraph (b),

      there shall be included in computing the insurer’s income for the year, where the land, building, or interest or right, was designated insurance property of the insurer for the year, or property used or held by it in the year in the course of carrying on an insurance business in Canada, the total of all amounts each of which is the amount prescribed in respect of the insurer’s cost or capital cost, as the case may be, of the land, building, or interest or right, for the period, and the amount prescribed shall, at the end of the period, be included in computing

      • (e) where the land, or interest or right therein, is property described in paragraph (a), the cost to the insurer of the land, or of the interest or right therein, and

      • (f) where the land, building, or interest or right therein, is property described in paragraphs (b) to (d), the capital cost to the insurer of the interest or right in the building described in paragraph (b).

  • (2) Clauses 138(4.5)(b)(ii)(A) and (B) of the French version of the Act are replaced by the following:

    • (A) si le bien est un fonds de terre, ou un intérêt ou, pour l’application du droit civil, un droit sur un fonds de terre du cessionnaire, visé à l’alinéa (4.4)a), dans le calcul du coût de ce bien pour le cessionnaire,

    • (B) si le bien est un fonds de terre, un bâtiment, ou un intérêt ou, pour l’application du droit civil, un droit sur un fonds de terre ou un bâtiment, visé aux alinéas (4.4)b) à d), dans le calcul du coût en capital, pour le cessionnaire, de l’intérêt ou, pour l’application du droit civil, du droit sur le bâtiment visé à l’alinéa (4.4)b).

  • (3) Clauses 138(4.5)(e)(ii)(A) and (B) of the English version of the Act are replaced by the following:

    • (A) where the property is land or an interest, or for civil law a right, therein of the transferee described in paragraph (4.4)(a), the cost to the transferee of the land, or of the interest or right therein, and

    • (B) where the property is land or a building, or an interest therein or for civil law a right therein, described in paragraphs (4.4)(b) to (d), the capital cost to the transferee of the interest or of the right in the building described in paragraph (4.4)(b).

  •  (1) Subparagraph 142.7(7)(a)(ii) of the Act is replaced by the following:

    • (ii) the entrant bank assumes an obligation of the Canadian affiliate that is an instrument or commitment described in paragraph 20(1)(l.1) or an obligation in respect of goods, services, land, or chattels or movable property, described in subparagraph 20(1)(m)(i), (ii) or (iii),

  • (2) Subparagraph 142.7(7)(f)(ii) of the Act is replaced by the following:

    • (ii) in applying paragraph 20(1)(m), an amount in respect of the goods, services, land, chattels or movable property, that was included under paragraph 12(1)(a) in computing the Canadian affiliate’s income from a business is deemed to have been so included in computing the entrant bank’s income from its Canadian banking business for a preceding taxation year,

  •  (1) Subparagraph (a)(iii) of the definition “earned income” in subsection 146(1) of the Act is replaced by the following:

    • (iii) property, where the income is derived from the rental of real or immovable property or from royalties in respect of a work or invention of which the taxpayer was the author or inventor,

  • (2) Subparagraph (e)(ii) of the definition “earned income” in subsection 146(1) of the Act is replaced by the following:

    • (ii) property, where the loss is sustained from the rental of real or immovable property,

 Clauses 149(1)(o.2)(ii)(A) to (C) of the Act are replaced by the following:

  • (A) limited its activities to

    • (I) acquiring, holding, maintaining, improving, leasing or managing capital property that is real property or an interest in real property — or immovables or a real right in immovables — owned by the corporation, another corporation described by this subparagraph and subparagraph (iv) or a registered pension plan, and

    • (II) investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is real property or an interest in real property — or immovables or a real right in immovables — owned by the partnership,

  • (B) made no investments other than in real property or an interest in real property — or immovables or a real right in immovables — or investments that a pension plan is permitted to make under the Pension Benefits Standards Act, 1985 or a similar law of a province, and

  • (C) borrowed money solely for the purpose of earning income from real property or an interest in real property or from immovables or a real right in immovables,

 Paragraph 153(6)(c) of the Act is replaced by the following:

  • (c) is authorized under the laws of Canada or a province to accept deposits from the public and carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or of hypothecs on immovables.

 The portion of paragraph 159(1)(a) of the English version of the Act before subparagraph (i) is replaced by the following:

  • (a) the legal representative is jointly and severally, or solidarily, liable with the taxpayer

  •  (1) Paragraph 160(1)(d) of the English version of the Act is replaced by the following:

    • (d) the transferee and transferor are jointly and severally, or solidarily, liable to pay a part of the transferor’s tax under this Part for each taxation year equal to the amount by which the tax for the year is greater than it would have been if it were not for the operation of sections 74.1 to 75.1 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, in respect of any income from, or gain from the disposition of, the property so transferred or property substituted for it, and

  • (2) The portion of paragraph 160(1)(e) of the English version of the Act before subparagraph (i) is replaced by the following:

    • (e) the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Act an amount equal to the lesser of

  • (3) The portion of subsection 160(1.1) of the English version of the Act before the formula is replaced by the following:

    • Marginal note:Joint and several, or solidary, liability — subsection 69(11)

      (1.1) If a particular person or partnership is deemed by subsection 69(11) to have disposed of a property at any time, the person referred to in that subsection to whom a benefit described in that subsection was available in respect of a subsequent disposition of the property or property substituted for the property is jointly and severally, or solidarily, liable with each other taxpayer to pay a part of the other taxpayer’s liabilities under this Act in respect of each taxation year equal to the amount determined by the formula

  • (4) The portion of subsection 160(1.2) of the English version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Joint and several, or solidary, liability — tax on split income

      (1.2) A parent of a specified individual is jointly and severally, or solidarily, liable with the individual for the amount required to be added because of subsection 120.4(2) in computing the specified individual’s tax payable under this Part for a taxation year if, during the year, the parent

  • (5) The portion of subsection 160(3) of the English version of the Act before paragraph (a), as enacted by subsection 16(2), is replaced by the following:

    • Marginal note:Discharge of liability

      (3) If a particular taxpayer has become jointly and severally, or solidarily, liable with another taxpayer under this section or because of paragraph 94(3)(d) or (e) or subsection 94(17) in respect of part or all of a liability under this Act of the other taxpayer,

  • (6) Subsection 160(3)(b) of the English version of the Act is replaced by the following:

    • (b) a payment by the other taxpayer on account of that taxpayer’s liability discharges the particular taxpayer’s liability only to the extent that the payment operates to reduce that other taxpayer’s liability to an amount less than the amount in respect of which the particular taxpayer is, by this section, made jointly and severally, or solidarily, liable.

  • (7) Subsection 160(3.1) of the Act is replaced by the following:

    • Marginal note:Fair market value of undivided interest or right

      (3.1) For the purposes of this section and section 160.4, the fair market value at any time of an undivided interest, or for civil law an undivided right, in a property, expressed as a proportionate interest or right in that property, is, subject to subsection (4), deemed to be equal to the same proportion of the fair market value of that property at that time.

 Subsections 160.1(2.1) and (2.2) of the English version of the Act are replaced by the following:

  • Marginal note:Liability for refunds by reason of section 122.61

    (2.1) If a person was a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) of an individual at the end of a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay any excess described in subsection (1) that was refunded in respect of the year to, or applied to a liability of, the individual as a consequence of the operation of section 122.61 if the person was the individual’s cohabiting spouse or common-law partner at the time the excess was refunded, but nothing in this subsection is deemed to limit the liability of any person under any other provision of this Act.

  • Marginal note:Liability for excess refunds under section 126.1 to partners

    (2.2) Every taxpayer who, on the day on which an amount has been refunded to, or applied to the liability of, a member of a partnership as a consequence of the operation of subsection 126.1(7) or (13) in excess of the amount to which the member was so entitled, is a member of that partnership is jointly and severally, or solidarily, liable with each other taxpayer who on that day is a member of the partnership to pay the excess and to pay interest on the excess, but nothing in this subsection is deemed to limit the liability of any person under any other provision of this Act.

 
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