Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
245. (1) The portion of subsection 116(5.2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Certificates for dispositions
(5.2) If a non-resident person has, in respect of a disposition, or a proposed disposition, in a taxation year to a taxpayer of property (other than excluded property) that is a life insurance policy in Canada, a Canadian resource property, a property (other than capital property) that is real property, or an immovable, situated in Canada, a timber resource property, depreciable property that is a taxable Canadian property, eligible capital property that is a taxable Canadian property or any interest in, or for civil law any right in, or any option in respect of, a property to which this subsection applies (whether or not that property exists),
(2) Paragraph 116(6)(f) of the Act is replaced by the following:
(f) property of an authorized foreign bank that carries on a Canadian banking business;
(3) Subsection (1) is deemed to have come into force on December 24, 1998.
(4) Subsection (2) is deemed to have come into force on June 28, 1999.
246. (1) Paragraph (a) of the definition “pension income” in subsection 118(7) of the Act is amended by adding the following after subparagraph (iii):
(iii.1) a payment (other than a payment described in subparagraph (i)) payable on a periodic basis under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of a registered pension plan,
(2) Subsection (1) applies to the 2004 and subsequent taxation years.
247. (1) The definition “qualified Canadian transit organization” in subsection 118.02(1) of the Act is replaced by the following:
“qualified Canadian transit organization”
« organisme de transport canadien admissible »
“qualified Canadian transit organization” means a person authorised, under a law of Canada or a province, to carry on in Canada a business that is the provision of public commuter transit services, which is carried on through a permanent establishment (as defined by regulation) in Canada.
(2) Subsection (1) applies to the 2009 and subsequent taxation years.
248. (1) The definition “total charitable gifts” in subsection 118.1(1) of the Act is replaced by the following:
“total charitable gifts”
« total des dons de bienfaisance »
“total charitable gifts”, of an individual for a taxation year, means the total of all amounts each of which is the eligible amount of a gift (other than a gift described in the definition “total Crown gifts”, “total cultural gifts” or “total ecological gifts”) made by the individual in the year or in any of the five preceding taxation years (other than in a year for which a deduction under subsection 110(2) was claimed in computing the individual’s taxable income) to
(a) a registered charity,
(b) a registered Canadian amateur athletic association,
(c) a housing corporation resident in Canada and exempt from tax under this Part because of paragraph 149(1)(i),
(d) a municipality in Canada,
(d.1) a municipal or public body performing a function of government in Canada,
(e) the United Nations or an agency thereof,
(f) a university outside Canada that is prescribed to be a university the student body of which ordinarily includes students from Canada,
(g) a charitable organization outside Canada to which her Majesty in right of Canada has made a gift during the individual’s taxation year or the 12 months immediately preceding that taxation year, or
(g.1) Her Majesty in right of Canada or a province,
to the extent that those amounts were
(h) not deducted in computing the individual’s taxable income for a taxation year ending before 1988, and
(i) not included in determining an amount that was deducted under this section in computing the individual’s tax payable under this Part for a preceding taxation year;
(2) The definition “total charitable gifts” in subsection 118.1(1) of the Act, as enacted by subsection (1), is replaced by the following:
“total charitable gifts”
« total des dons de bienfaisance »
“total charitable gifts”, of an individual for a taxation year, means the total of all amounts each of which is the eligible amount of a gift (other than a gift the eligible amount of which is included in the total Crown gifts, the total cultural gifts or the total ecological gifts of the individual for the year) made by the individual in the year or in any of the five preceding taxation years (other than in a year for which a deduction under subsection 110(2) was claimed in computing the individual’s taxable income) to a qualified donee, to the extent that the amount was not included in determining an amount that was deducted under this section in computing the individual’s tax payable under this Part for a preceding taxation year;
(3) Paragraph (a) of the definition “total ecological gifts” in subsection 118.1(1) of the Act is replaced by the following:
(a) Her Majesty in right of Canada or of a province, a municipality in Canada or a municipal or public body performing a function of government in Canada, or
(4) The definition “total ecological gifts” in subsection 118.1(1) of the Act, as amended by subsection (3), is replaced by the following:
“total ecological gifts”
« total des dons de biens écosensibles »
“total ecological gifts”, of an individual for a taxation year, means the total of all amounts each of which is the eligible amount of a gift (other than a gift described in the definition “total cultural gifts”) of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real servitude) if
(a) the fair market value of the gift is certified by the Minister of the Environment,
(b) the land is certified by that Minister, or by a person designated by that Minister, to be ecologically sensitive land, the conservation and protection of which is, in the opinion of that Minister or the designated person, important to the preservation of Canada’s environmental heritage, and
(c) the gift was made by the individual in the year or in any of the five preceding taxation years to
(i) Her Majesty in right of Canada or of a province,
(ii) a municipality in Canada,
(iii) a municipal or public body performing a function of government in Canada, or
(iv) a registered charity one of the main purposes of which is, in the opinion of that Minister, the conservation and protection of Canada’s environmental heritage, and that is approved by that Minister or the designated person in respect of the gift,
to the extent that those amounts were not included in determining an amount that was deducted under this section in computing the individual’s tax payable under this Part for a preceding taxation year;
(5) The portion of the definition “total Crown gifts” in subsection 118.1(1) of the Act before paragraph (a) is replaced by the following:
“total Crown gifts”
« total des dons à l’État »
“total Crown gifts”, of an individual for a taxation year, means the total of all amounts each of which is the eligible amount of a gift (other than a gift described in the definition “total cultural gifts” or “total ecological gifts”) made by the individual in the year or in any of the five preceding taxation years to Her Majesty in right of Canada or of a province, to the extent that those amounts were
(6) The portion of the definition “total cultural gifts” in subsection 118.1(1) of the Act before paragraph (a) is replaced by the following:
“total cultural gifts”
« total des dons de biens culturels »
“total cultural gifts”, of an individual for a taxation year, means the total of all amounts each of which is the eligible amount of a gift
(7) The description of B in subparagraph (a)(iii) of the definition “total gifts” in subsection 118.1(1) of the Act is replaced by the following:
- B
- is the total of all amounts, each of which is that proportion of the individual’s taxable capital gain for the taxation year in respect of a gift made by the individual in the taxation year (in respect of which gift an eligible amount is included in the individual’s total charitable gifts for the taxation year) that the eligible amount of the gift is of the individual’s proceeds of disposition in respect of the gift,
(8) Clause (B) in the description of D in subparagraph (a)(iii) of the definition “total gifts” in subsection 118.1(1) of the Act is replaced by the following:
(B) the total of all amounts each of which is determined in respect of a disposition that is the making of a gift of property of the class made by the individual in the year (in respect of which gift an eligible amount is included in the individual’s total charitable gifts for the taxation year) equal to the lesser of
(I) that proportion, of the amount by which the proceeds of disposition of the property exceed any outlays and expenses, to the extent that they were made or incurred by the individual for the purpose of making the disposition, that the eligible amount of the gift is of the individual’s proceeds of disposition in respect of the gift, and
(II) that proportion, of the capital cost to the individual of the property, that the eligible amount of the gift is of the individual’s proceeds of disposition in respect of the gift, and
(9) The portion of subsection 118.1(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Proof of gift
(2) An eligible amount of a gift shall not be included in the total charitable gifts, total Crown gifts, total cultural gifts or total ecological gifts of an individual unless the making of the gift is evidenced by filing with the Minister
(10) Subsection 118.1(6) of the Act is replaced by the following:
Marginal note:Where subsection (6) applies
(5.4) Subsection (6) applies in circumstances where
(a) an individual
(i) makes a gift (by the individual’s will or otherwise) at any time of capital property to a donee described in the definition “total charitable gifts”, “total Crown gifts” or “total ecological gifts” in subsection (1), or
(ii) who is non-resident, makes a gift (by the individual’s will or otherwise) at any time of real or immovable property situated in Canada to a prescribed donee who provides an undertaking, in a form satisfactory to the Minister, to the effect that the property will be held for use in the public interest; and
(b) the fair market value of the property otherwise determined at that time exceeds
(i) in the case of depreciable property of a prescribed class, the lesser of the undepreciated capital cost of that class at the end of the taxation year of the individual that includes that time (determined without reference to proceeds of disposition designated in respect of the property under subsection (6)) and the adjusted cost base to the individual of the property immediately before that time, and
(ii) in any other case, the adjusted cost base to the individual of the property immediately before that time.
Marginal note:Gifts of capital property
(6) If this subsection applies in respect of a gift by an individual of property, and the individual or the individual’s legal representative designates an amount in respect of the gift in the individual’s return of income under section 150 for the year in which the gift is made, the amount so designated is deemed to be the individual’s proceeds of disposition of the property and, for the purpose of subsection 248(31), the fair market value of the gift, but the amount so designated may not exceed the fair market value of the property otherwise determined and may not be less than the greater of
(a) in the case of a gift made after December 20, 2002, the amount of the advantage, if any, in respect of the gift, and
(b) the amount determined under subparagraph (5.4)(b)(i) or (ii), as the case may be, in respect of the property.
(11) Subparagraph 118.1(5.4)(a)(i) of the Act, as enacted by subsection (10), is replaced by the following:
(i) makes a gift (by the individual’s will or otherwise) at any time of capital property to a qualified donee, or
(12) Paragraph 118.1(7)(b) of the French version of the Act is replaced by the following:
b) le montant indiqué par le particulier ou par son représentant légal dans la déclaration de revenu du particulier produite conformément à l’article 150 pour l’année du don est réputé correspondre à la fois au produit de disposition de l’oeuvre d’art pour le particulier et, pour l’application du paragraphe 248(31), à la juste valeur marchande de l’oeuvre d’art; toutefois, il ne peut ni excéder la juste valeur marchande de l’oeuvre d’art, déterminée par ailleurs, ni être inférieur au plus élevé des montants suivants :
(i) le montant de l’avantage au titre du don,
(ii) le coût indiqué de l’oeuvre d’art pour le particulier.
(13) Paragraph 118.1(7)(d) of the English version of the Act is replaced by the following:
(d) the amount that the individual or the individual’s legal representative designates in the individual’s return of income under section 150 for the year in which the gift is made is deemed to be the individual’s proceeds of disposition of the work of art and, for the purpose of subsection 248(31), the fair market value of the work of art, but the amount so designated may not exceed the fair market value otherwise determined of the work of art and may not be less than the greater of
(i) the amount of the advantage, if any, in respect of the gift, and
(ii) the cost amount to the individual of the work of art.
(14) Paragraph 118.1(7.1)(b) of the French version of the Act is replaced by the following:
b) le particulier est réputé avoir reçu, au moment donné pour l’oeuvre d’art, un produit de disposition égal au coût indiqué de l’oeuvre d’art pour lui à ce moment ou, s’il est plus élevé, au montant de l’avantage au titre du don.
(15) Paragraph 118.1(7.1)(d) of the English version of the Act is replaced by the following:
(d) the individual is deemed to have received at the particular time proceeds of disposition in respect of the work of art equal to the greater of its cost amount to the individual at that time and the amount of the advantage, if any, in respect of the gift.
(16) Subsection 118.1(8) of the Act is replaced by the following:
Marginal note:Gifts made by partnership
(8) If at the end of a fiscal period of a partnership an individual is a member of the partnership, the individual’s share of any amount that would, if the partnership were a person, be the eligible amount of a gift made by the partnership to any donee is, for the purpose of this section, deemed to be the eligible amount of a gift made to that donee by the individual in the individual’s taxation year in which the fiscal period of the partnership ends.
(17) Paragraphs 118.1(13)(b) and (c) of the Act are replaced by the following:
(b) if the security ceases to be a non-qualifying security of the individual at a subsequent time that is within 60 months after the particular time and the donee has not disposed of the security at or before the subsequent time, the individual is deemed to have made a gift to the donee of property at the subsequent time and the fair market value of that property is deemed to be the lesser of the fair market value of the security at the subsequent time and the fair market value of the security at the particular time that would, if this Act were read without reference to this subsection, have been included in calculating the individual’s total charitable gifts or total Crown gifts for a taxation year;
(c) if the security is disposed of by the donee within 60 months after the particular time and paragraph (b) does not apply to the security, the individual is deemed to have made a gift to the donee of property at the time of the disposition and the fair market value of that property is deemed to be the lesser of the fair market value of any consideration (other than a non-qualifying security of the individual or a property that would be a non-qualifying security of the individual if the individual were alive at that time) received by the donee for the disposition and the fair market value of the security at the particular time that would, if this Act were read without reference to this subsection, have been included in calculating the individual’s total charitable gifts or total Crown gifts for a taxation year; and
(18) Paragraph 118.1(13)(c) of the Act, as enacted by subsection (17), is replaced by the following:
(c) if the security is disposed of by the donee within 60 months after the particular time and paragraph (b) does not apply to the security, the individual is deemed to have made a gift to the donee of property at the time of the disposition and the fair market value of that property is deemed to be the lesser of the fair market value of any consideration (other than a non-qualifying security of any person) received by the donee for the disposition and the fair market value of the security at the particular time that would, if this Act were read without reference to this subsection, have been included in calculating the individual’s total charitable gifts or total Crown gifts for a taxation year; and
(19) Subsections (1), (4), (5) to (9) and (12) to (17) apply to gifts made after December 20, 2002.
(20) Subsections (2) and (11) are deemed to have come into force on January 1, 2012.
(21) Subsection (3) applies to gifts made after May 8, 2000.
(22) Subsection (10) applies to gifts made after 1999, except that, for gifts made before December 21, 2002, the reference to “subsection 248(31)” in subsection 118.1(6) of the Act, as enacted by subsection (10), is to be read as a reference to “subsection (1)”.
(23) Subsection (18) is deemed to have come into force on March 22, 2011.
- Date modified: