Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
- HTMLFull Document: Technical Tax Amendments Act, 2012 (Accessibility Buttons available) |
- PDFFull Document: Technical Tax Amendments Act, 2012 [3313 KB]
Assented to 2013-06-26
PART 5OTHER AMENDMENTS TO THE INCOME TAX ACT AND RELATED LEGISLATION
R.S., c. 1 (5th Supp.)Income Tax Act
340. (1) Section 207.31 of the Act is replaced by the following:
Marginal note:Tax payable by recipient of an ecological gift
207.31 Any charity, municipality in Canada or municipal or public body performing a function of government in Canada (referred to in this section as the “recipient”) that at any time in a taxation year, without the authorization of the Minister of the Environment or a person designated by that Minister, disposes of or changes the use of a property described in paragraph 110.1(1)(d) or in the definition “total ecological gifts” in subsection 118.1(1) and given to the recipient shall, in respect of the year, pay a tax under this Part equal to 50% of the amount that would be determined for the purposes of section 110.1 or 118.1, if this Act were read without reference to subsections 110.1(3) and 118.1(6), to be the fair market value of the property if the property were given to the recipient immediately before the disposition or change.
(2) Subsection (1) applies in respect of dispositions of or changes of use of property after July 18, 2005.
341. (1) Sections 210 and 210.1 of the Act are replaced by the following:
Marginal note:Definitions
210. (1) The following definitions apply in this Part.
“designated beneficiary”
« bénéficiaire étranger ou assimilé »
“designated beneficiary”, under a particular trust at any time, means a beneficiary, under the particular trust, who is at that time
(a) a non-resident person;
(b) a non-resident-owned investment corporation;
(c) a person who is, because of subsection 149(1), exempt from tax under Part I on all or part of their taxable income and who acquired an interest as a beneficiary under the particular trust after October 1, 1987 directly or indirectly from a beneficiary under the particular trust except if
(i) the interest was, at all times after the later of October 1, 1987 and the day on which the interest was created, held by persons who were exempt from tax under Part I on all of their taxable income because of subsection 149(1), or
(ii) the person is a trust, governed by a registered retirement savings plan or a registered retirement income fund, who acquired the interest, directly or indirectly, from an individual or the spouse or common-law partner, or former spouse or common-law partner, of the individual who was, immediately after the interest was acquired, a beneficiary under the trust governed by the fund or plan;
(d) another trust (referred to in this paragraph as the “other trust”) that is not a testamentary trust, a mutual fund trust or a trust that is exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income, if any beneficiary under the other trust is at that time
(i) a non-resident person,
(ii) a non-resident-owned investment corporation,
(iii) a trust that is not
(A) a testamentary trust,
(B) a mutual fund trust,
(C) a trust that is exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income, or
(D) a trust
(I) whose interest, at that time, in the other trust was held, at all times after the day on which the interest was created, either by it or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income, and
(II) none of the beneficiaries under which is, at that time, a designated beneficiary under it, or
(iv) a person or partnership that
(A) is a designated beneficiary under the other trust because of paragraph (c) or (e), or
(B) would be a designated beneficiary under the particular trust because of paragraph (c) or (e) if, instead of being a beneficiary under the other trust, the person or partnership were at that time a beneficiary, under the particular trust, whose interest as a beneficiary under the particular trust were
(I) identical to its interest (referred to in this clause as the “particular interest”) as a beneficiary under the other trust,
(II) acquired from each person or partnership from whom it acquired the particular interest, and
(III) held, at all times after the later of October 1, 1987 and the day on which the particular interest was created, by the same persons or partnerships that held the particular interest at those times; or
(e) a particular partnership any of the members of which is at that time
(i) another partnership, except if
(A) each such other partnership is a Canadian partnership,
(B) the interest of each such other partnership in the particular partnership is held, at all times after the day on which the interest was created, by the other partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income,
(C) the interest of each member, of each such other partnership, that is a person exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income was held, at all times after the day on which the interest was created, by that member or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income, and
(D) the interest of the particular partnership in the particular trust was held, at all times after the day on which the interest was created, by the particular partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income,
(ii) a non-resident person,
(iii) a non-resident-owned investment corporation,
(iv) another trust that is, under paragraph (d), a designated beneficiary of the particular trust or that would, under paragraph (d), be a designated beneficiary of the particular trust if the other trust were at that time a beneficiary under the particular trust whose interest as a beneficiary under the particular trust were
(A) acquired from each person or partnership from whom the particular partnership acquired its interest as a beneficiary under the particular trust, and
(B) held, at all times after the later of October 1, 1987 and the day on which the particular partnership’s interest as a beneficiary under the particular trust was created, by the same persons or partnerships that held that interest of the particular partnership at those times, or
(v) a person exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income except if the interest of the particular partnership in the particular trust was held, at all times after the day on which the interest was created, by the particular partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income.
“designated income”
« revenu de distribution »
“designated income”, of a trust for a taxation year, means the amount that would be the income of the trust for the year determined under section 3 if
(a) this Act were read without reference to subsections 104(6), (12) and (30);
(b) the trust had no income other than taxable capital gains from dispositions described in paragraph (c) and incomes from
(i) real or immovable properties in Canada (other than Canadian resource properties),
(ii) timber resource properties,
(iii) Canadian resource properties (other than properties acquired by the trust before 1972), and
(iv) businesses carried on in Canada;
(c) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were from
(i) dispositions of taxable Canadian property, and
(ii) dispositions of particular property (other than property described in any of subparagraphs 128.1(4)(b)(i) to (iii)), or property for which the particular property is substituted, that was transferred at any particular time to a particular trust in circumstances in which subsection 73(1) or 107.4(3) applied, if
(A) it is reasonable to conclude that the property was so transferred in anticipation that a person beneficially interested at the particular time in the particular trust would subsequently cease to reside in Canada, and a person beneficially interested at the particular time in the particular trust did subsequently cease to reside in Canada, or
(B) when the property was so transferred, the terms of the particular trust satisfied the conditions in subparagraph 73(1.01)(c)(i) or (iii), and it is reasonable to conclude that the transfer was made in connection with the cessation of residence, on or before the transfer, of a person who was, at the time of the transfer, beneficially interested in the particular trust and a spouse or common-law partner, as the case may be, of the transferor of the property to the particular trust; and
(d) the only losses referred to in paragraph 3(d) were losses from sources described in any of subparagraphs (b)(i) to (iv).
Marginal note:Tax not payable
(2) No tax is payable under this Part for a taxation year by a trust that was throughout the year
(a) a testamentary trust;
(b) a mutual fund trust;
(c) exempt from tax under Part I because of subsection 149(1);
(d) a trust to which paragraph (a), (a.1) or (c) of the definition “trust” in subsection 108(1) applies; or
(e) non-resident.
(2) Subsection (1) applies to the 1996 and subsequent taxation years, except that paragraph (c) of the definition “designated income” in subsection 210(1) of the Act, as enacted by subsection (1), is to be read
(a) in respect of dispositions that occur after October 1, 1996 and before December 21, 2002, as follows:
(c) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were from dispositions of taxable Canadian property; and
(b) in respect of dispositions that occur in a 1996 taxation year and before October 2, 1996, as follows:
(c) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were from dispositions of property that would have been taxable Canadian property if, at no time in the year, the trust had been resident in Canada; and
342. (1) Subsections 210.2(1.1) and (2) of the Act are replaced by the following:
Marginal note:Amateur athlete trusts
(2) Notwithstanding subsection 210(2), a trust shall pay a tax under this Part in respect of a particular taxation year of the trust equal to 56.25% of the amount that is required by subsection 143.1(2) to be included in computing the income under Part I for a taxation year of a beneficiary under the trust, if
(a) the beneficiary is at any time in the particular taxation year a designated beneficiary under the trust; and
(b) the particular taxation year ends in that taxation year of the beneficiary.
(2) The portion of subsection 210.2(3) of the French version of the Act before the formula is replaced by the following:
Marginal note:Crédit d’impôt remboursable aux bénéficiaires résidant au Canada
(3) Dans le cas où une partie du revenu d’une fiducie pour une année d’imposition est incluse, en application du paragraphe 104(13) ou 105(2), dans le calcul du revenu en vertu de la partie I d’une personne qui n’a été bénéficiaire étranger ou assimilé de la fiducie à aucun moment de l’année ou dans la partie du revenu d’une personne non-résidente qui est soumise, par application du paragraphe 2(3), à l’impôt payable en vertu de la partie I et n’en est pas exonérée par un traité fiscal — sauf s’il s’agit d’une personne qui, à un moment de l’année, serait un bénéficiaire étranger ou assimilé de la fiducie si l’article 210 s’appliquait compte non tenu de l’alinéa a) de la définition de bénéficiaire étranger ou assimilé à cet article —, le montant, calculé selon la formule ci-après, attribué à la personne par la fiducie dans sa déclaration pour l’année en vertu de la présente partie est réputé payé le quatre-vingt-dixième jour suivant la fin de l’année d’imposition de la fiducie au titre de l’impôt payable en vertu de la partie I par cette personne pour l’année d’imposition de celle-ci au cours de laquelle l’année d’imposition de la fiducie se termine :
(3) Paragraph 210.2(3)(b) of the English version of the Act is replaced by the following:
(b) the income of a non-resident person (other than a person who, at any time in the year, would be a designated beneficiary under the trust if section 210 were read without reference to paragraph (a) of the definition “designated beneficiary” in that section) that is subject to tax under Part I by reason of subsection 2(3) and is not exempt from tax under Part I by reason of a provision contained in a tax treaty,
(4) Subsections (1) to (3) apply to the 1996 and subsequent taxation years, except that
(a) in applying the portion of subsection 210.2(3) of the French version of the Act before the formula, as enacted by subsection (2), for the 1996 and 1997 taxation years, the reference to “un traité fiscal” is to be read as a reference to “un accord ou une convention fiscal ayant force de loi au Canada et conclu entre le gouvernement du Canada et le gouvernement d’un pays étranger”; and
(b) in applying paragraph 210.2(3)(b) of the English version of the Act, as enacted by subsection (3), for the 1996 and 1997 taxation years the reference to “treaty” is to be read as a reference to “convention or agreement with another country that has the force of law in Canada”.
343. (1) Subsection 211.7(1) of the Act is amended by adding the following in alphabetical order:
“qualifying exchange”
« échange admissible »
“qualifying exchange” means an exchange by a taxpayer of an approved share, that is part of a series of Class A shares of the capital stock of a corporation, for another approved share, that is part of another series of Class A shares of the capital stock of the corporation, if
(a) the only consideration received by the taxpayer on the exchange is the other share; and
(b) the rights in respect of the series are identical except for the portion of the reserve (within the meaning assigned by subsection 204.8(1)) of the corporation that is attributable to each series.
(2) Section 211.7 of the Act is amended by adding the following after subsection (2):
Marginal note:Exchangeable shares
(3) For the purposes of this Part and Part X.3, if an approved share of the capital stock of a corporation (referred to in this subsection as the “new share”) has been issued in exchange for another approved share (referred to in this subsection as the “original share”) in a qualifying exchange, the new share is deemed not to have been issued on the exchange and is deemed to have been issued at the time the corporation issued the original share.
(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2004.
344. (1) The portion of subsection 211.8(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Disposition of approved share
211.8 (1) If an approved share of the capital stock of a registered labour-sponsored venture capital corporation or a revoked corporation is, before the first discontinuation of its venture capital business, redeemed, acquired or cancelled by the corporation less than eight years after the day on which the share was issued (other than in circumstances described in subclause 204.81(1)(c)(v)(A)(I) or (III) or clause 204.81(1)(c)(v)(B) or (D) or other than if the share is a Class A share of the capital stock of the corporation that is exchanged for another Class A share of the capital stock of the corporation as part of a qualifying exchange) or any other share that was issued by any other labour-sponsored venture capital corporation is disposed of, the person who was the shareholder immediately before the redemption, acquisition, cancellation or disposition shall pay a tax under this Part equal to the lesser of
(2) Subparagraph (i) of the description of B in paragraph 211.8(1)(a) of the Act is amended by striking out “or” at the end of clause (A) and by replacing clause (B) with the following:
(B) more than five years after its issuance, or
(C) if the day that is five years after its issuance is in February or March of a calendar year, in February or on March 1st of that calendar year but not more than 31 days before that day,
(3) The description of B in paragraph 211.8(1)(a) of the Act is amended by adding the following after subparagraph (i):
(i.1) nil, where the share was issued by a registered labour-sponsored venture capital corporation or a revoked corporation, the original acquisition of the share was after March 5, 1996 and the redemption, acquisition or cancellation is in February or on March 1st of a calendar year but is not more than 31 days before the day that is eight years after the day on which the share was issued,
(4) Subsection (1) applies in respect of shares redeemed, acquired or cancelled after 2003.
(5) Subsections (2) and (3) apply to redemptions, acquisitions, cancellations and dispositions that occur after November 15, 1995.
345. (1) The Act is amended by adding the following after section 211.8:
Marginal note:Tax for failure to re-acquire certain shares
211.81 If a particular amount is payable under a prescribed provision of a provincial law for a taxation year of an individual as determined for the purposes of that provincial law (referred to in this section as the “relevant provincial year”), and an amount has been included in the computation of the labour-sponsored funds tax credit of the individual under subsection 127.4(6) in respect of an approved share that has been disposed of by a qualifying trust in respect of the individual, the individual shall pay a tax for the taxation year in which the relevant provincial year ends equal to the particular amount.
Marginal note:Return
211.82 (1) Every person that is liable to pay tax under this Part for a taxation year shall, not later than the day on or before which the person is required by section 150 to file a return of income for the year under Part I, file with the Minister a return for the year under this Part in prescribed form containing an estimate of the tax payable by the person for the year.
Marginal note:Provisions applicable to this Part
(2) Subsections 150(2) and (3), sections 152, 158 and 159, subsections 161(1) and (11), sections 162 to 167 and Division J of Part I apply to this Part, with any modifications that the circumstances require.
(2) Section 211.81 of the Act, as enacted by subsection (1), is deemed to have come into force on October 24, 2012.
(3) Section 211.82 of the Act, as enacted by subsection (1), applies to taxation years that end after October 24, 2012.
Page Details
- Date modified: