Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
10. (1) The portion of subsection 104(6) of the Act before paragraph (a) is replaced by the following:
Marginal note:Deduction in computing income of trust
(6) Subject to subsections (7) to (7.1), for the purposes of this Part, there may be deducted in computing the income of a trust for a taxation year
(2) Section 104 of the Act is amended by adding the following after subsection (7):
Marginal note:Trusts deemed to be resident in Canada
(7.01) If a trust is deemed by subsection 94(3) to be resident in Canada for a taxation year for the purpose of computing the trust’s income for the year, the maximum amount deductible under subsection (6) in computing its income for the year is the amount, if any, by which
(a) the maximum amount that, if this Act were read without reference to this subsection, would be deductible under subsection (6) in computing its income for the year,
exceeds
(b) the total of
(i) the portion of the trust’s designated income for the year (within the meaning assigned by section 210) that became payable in the year to a non-resident beneficiary under the trust in respect of an interest of the non-resident as a beneficiary under the trust, and
(ii) all amounts each of which is determined by the formula
A × B
where
- A
- is an amount (other than an amount described in subparagraph (i)) that
(A) is paid or credited (having the meaning assigned by Part XIII) in the year to the trust,
(B) would, if this Act were read without reference to subparagraph 94(3)(a)(viii), paragraph 212(2)(b) and sections 216 and 217, be an amount as a consequence of the payment or crediting of which the trust would have been liable to tax under Part XIII, and
(C) becomes payable in the year by the trust to a non-resident beneficiary under the trust in respect of an interest of the non-resident as a beneficiary under the trust, and
- B
- is
(A) 0.35, if the trust can establish to the satisfaction of the Minister that the non-resident beneficiary to whom the amount described in the description of A is payable is resident in a country with which Canada has a tax treaty under which the income tax that Canada may impose on the beneficiary in respect of the amount is limited, and
(B) 0.6, in any other case.
(3) Subsection 104(24) of the Act is replaced by the following:
Marginal note:Amount payable
(24) For the purposes of subsections (6), (7), (7.01), (13), (16) and (20), subparagraph 53(2)(h)(i.1) and subsections 94(5.2) and (8), an amount is deemed not to have become payable to a beneficiary in a taxation year unless it was paid in the year to the beneficiary or the beneficiary was entitled in the year to enforce payment of it.
(4) Subsections (1) to (3) apply to taxation years that end after 2006. Those subsections also apply to each earlier taxation year of a trust to which subsection 94(1) of the Act, as enacted by section 7, applies and each taxation year of a beneficiary under the trust in which one of those earlier taxation years of the trust ends, except that subsection 104(24) of the Act, as enacted by subsection (3), is to be read as follows in its application before October 31, 2006:
(24) For the purposes of subsections (6), (7), (7.01), (13) and (20), subparagraph 53(2)(h)(i.1) and subsections 94(5.2) and (8), an amount is deemed not to have become payable to a beneficiary in a taxation year unless it was paid in the year to the beneficiary or the beneficiary was entitled in the year to enforce payment of it.
11. (1) The portion of paragraph 107(4.1)(b) of the Act before subparagraph (i) is replaced by the following:
(b) subsection 75(2) was applicable, or would have been applicable if subsection 75(3) were read without reference to its paragraph (c.2), at a particular time in respect of any property of
(2) Subsection (1) applies to distributions made after August 27, 2010.
12. (1) The portion of subsection 108(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Income of a trust in certain provisions
(3) For the purposes of the definitions “income interest” in subsection (1), “lifetime benefit trust” in subsection 60.011(1) and “exempt foreign trust” in subsection 94(1), the income of a trust is its income computed without reference to the provisions of this Act and, for the purposes of the definition “pre-1972 spousal trust” in subsection (1) and paragraphs 70(6)(b) and (6.1)(b), 73(1.01)(c) and 104(4)(a), the income of a trust is its income computed without reference to the provisions of this Act, minus any dividends included in that income
(2) The portion of subsection 108(7) of the Act before paragraph (a) is replaced by the following:
Marginal note:Interests acquired for consideration
(7) For the purposes of paragraph 53(2)(h), subparagraph (c)(i) of the definition “exempt amount” in subsection 94(1), subsection 107(1), paragraph (j) of the definition “excluded right or interest” in subsection 128.1(10) and paragraph (b) of the definition “personal trust” in subsection 248(1),
(3) Subsection (1) applies to trust taxation years that begin after 2000.
(4) Subsection (2) applies to taxation years that end after 2006. That subsection also applies to each earlier taxation year of a trust to which subsection 94(1) of the Act, as enacted by section 7, applies and each taxation year of a beneficiary under the trust in which one of those earlier taxation years of the trust ends.
13. (1) Subsection 122(2) of the Act is amended by adding the following after paragraph (d):
(d.1) was not a trust to which a contribution (as defined by section 94 as it reads for taxation years that end after 2006) was made after June 22, 2000;
(2) Subsection (1) applies to trust taxation years that begin after 2002.
14. (1) Section 128.1 of the Act is amended by adding the following after subsection (1):
Marginal note:Trusts subject to subsection 94(3)
(1.1) Paragraph (1)(b) does not apply, at a time in a trust’s particular taxation year, to the trust if the trust is resident in Canada for the particular taxation year for the purpose of computing its income.
(2) Subsection (1) applies to trust taxation years that end after 2006. Subsection (1) also applies to each earlier taxation year of a trust to which subsection 94(1) of the Act, as enacted by section 7, applies.
15. (1) Paragraph 152(4)(b) of the Act is amended by striking out “or” at the end of subparagraph (v), by adding “or” at the end of subparagraph (vi) and by adding the following after subparagraph (vi):
(vii) is made to give effect to the application of any of sections 94, 94.1 and 94.2;
(2) Subsection (1) applies to taxation years that end after March 4, 2010.
16. (1) Section 160 of the Act is amended by adding the following after subsection (2):
Marginal note:Assessment
(2.1) The Minister may at any time assess a taxpayer in respect of any amount payable because of paragraph 94(3)(d) or (e) or subsection 94(17) and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.
(2) The portion of subsection 160(3) of the Act before paragraph (b) is replaced by the following:
Marginal note:Discharge of liability
(3) If a particular taxpayer has become jointly and severally 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,
(a) a payment by the particular taxpayer on account of that taxpayer’s liability shall to the extent of the payment discharge their liability; but
(3) Subsections (1) and (2) apply to assessments made after 2006, except that
(a) subsection 160(2.1) of the Act, as enacted by subsection (1), and the portion of subsection 160(3) of the Act before its paragraph (a), as enacted by subsection (2), are to be read without reference to “or subsection 94(17)” in their application to taxation years that end before March 5, 2010; and
(b) if subsection 94(1) of the Act, as enacted by section 7, applies to a taxation year of a taxpayer that ends before 2007, subsection (1) applies to assessments made on or after the first day of the first such taxation year of the taxpayer to which that subsection 94(1) applies.
17. (1) Paragraph (c) of the description of A in subsection 162(10.1) of the French version of the Act is replaced by the following:
c) si la déclaration est à produire en application de l’article 233.2 à l’égard d’une fiducie, 5% du total des montants représentant chacun la juste valeur marchande, au moment où il a été fait, d’un apport que la personne ou la société de personnes a fait à la fiducie avant la fin de la dernière année d’imposition de celle-ci pour laquelle la déclaration doit être produite,
(2) Paragraph (d) of the description of A in subsection 162(10.1) of the English version of the Act is replaced by the following:
(d) if the return is required to be filed under section 233.2 in respect of a trust, 5% of the total of all amounts each of which is the fair market value, at the time it was made, of a contribution of the person or partnership made to the trust before the end of the last taxation year of the trust in respect of which the return is required,
(3) Section 162 of the Act is amended by adding the following after subsection (10.1):
Marginal note:Application to trust contributions
(10.11) In paragraph (d) of the description of A in subsection (10.1), subsections 94(1), (2) and (9) apply.
(4) Subsections (1) to (3) apply to returns in respect of taxation years that end after 2006. Those subsections also apply to returns in respect of an earlier taxation year of a taxpayer if subsection 94(1) of the Act, as enacted by section 7, applies to that earlier taxation year of the taxpayer.
- Date modified: