Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
306. (1) The definition versement admissible in subsection 148.1(1) of the French version of the Act is replaced by the following:
« versement admissible »
“relevant contribution”
versement admissible Est un versement admissible effectué pour un particulier dans le cadre d’un arrangement donné :
a) le versement effectué dans le cadre de l’arrangement donné en vue du financement de services de funérailles ou de cimetière relatifs au particulier, à l’exception d’un versement effectué au moyen d’un transfert d’un arrangement de services funéraires;
b) la partie d’un versement effectué dans le cadre d’un arrangement de services funéraires (à l’exception d’un tel versement effectué au moyen d’un transfert d’un arrangement de services funéraires) qu’il est raisonnable de considérer comme ayant ultérieurement servi à effectuer un versement dans le cadre de l’arrangement donné au moyen d’un transfert d’un arrangement de services funéraires en vue du financement de services de funérailles ou de cimetière relatifs au particulier.
(2) The description of C in subsection 148.1(3) of the Act is replaced by the following:
- C
- is the amount determined by the formula
D – E
where
- D
- is the total of all relevant contributions made before the particular time in respect of the individual under the arrangement (other than contributions in respect of the individual that were in a cemetery care trust), and
- E
- is the total of all amounts each of which is the amount, if any, by which
(a) an amount relating to the balance in respect of the individual under the arrangement that is deemed by subsection (4) to have been distributed before the particular time from the arrangement
exceeds
(b) the portion of the amount referred to in paragraph (a) that is added, because of this subsection, in computing a taxpayer’s income.
(3) Section 148.1 of the Act is amended by adding the following after subsection (3):
Marginal note:Deemed distribution on transfer
(4) If at a particular time an amount relating to the balance in respect of an individual (referred to in this subsection and in subsection (5) as the “transferor”) under an eligible funeral arrangement (referred to in this subsection and in subsection (5) as the “transferor arrangement”) is transferred, credited or added to the balance in respect of the same or another individual (referred to in this subsection and in subsection (5) as the “recipient”) under the same or another eligible funeral arrangement (referred to in this subsection and in subsection (5) as the “recipient arrangement”),
(a) the amount is deemed to be distributed to the transferor (or, if the transferor is deceased at the particular time, to the recipient) at the particular time from the transferor arrangement and to be paid from the balance in respect of the transferor under the transferor arrangement; and
(b) the amount is deemed to be a contribution made (other than by way of a transfer from an eligible funeral arrangement) at the particular time under the recipient arrangement for the purpose of funding funeral or cemetery services with respect to the recipient.
Marginal note:Non-application of subsection (4)
(5) Subsection (4) does not apply if
(a) the transferor and the recipient are the same individual;
(b) the amount that is transferred, credited or added to the balance in respect of the individual under the recipient arrangement is equal to the balance in respect of the individual under the transferor arrangement immediately before the particular time; and
(c) the transferor arrangement is terminated immediately after the transfer.
(4) Subsections (2) and (3) apply to amounts that are transferred, credited or added after December 20, 2002.
307. (1) Paragraph 149(1)(d.5) of the Act is replaced by the following:
Marginal note:Income within boundaries of entities
(d.5) subject to subsections (1.2) and (1.3), a corporation, commission or association not less than 90% of the capital of which was owned by one or more entities each of which is a municipality in Canada, or a municipal or public body performing a function of government in Canada, if the income for the period of the corporation, commission or association from activities carried on outside the geographical boundaries of the entities does not exceed 10% of its income for the period;
(2) Subparagraphs 149(1)(d.6)(i) and (ii) of the Act are replaced by the following:
(i) if paragraph (d.5) applies to the other corporation, commission or association, the geographical boundaries of the entities referred to in that paragraph in its application to that other corporation, commission or association, or
(ii) if this paragraph applies to the other corporation, commission or association, the geographical boundaries of the entities referred to in subparagraph (i) in its application to that other corporation, commission or association,
(3) Paragraph 149(1)(d.6) of the Act, as amended by subsection (2), is replaced by the following:
Marginal note:Subsidiaries of municipal corporations
(d.6) subject to subsections (1.2) and (1.3), a particular corporation all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more entities (referred to in this paragraph as “qualifying owners”) each of which is, for the period, a corporation, commission or association to which paragraph (d.5) applies, a corporation to which this paragraph applies, a municipality in Canada, or a municipal or public body performing a function of government in Canada, if no more than 10% of the particular corporation’s income for the period is from activities carried on outside
(i) if a qualifying owner is a municipality in Canada, or a municipal or public body performing a function of government in Canada, the geographical boundaries of each such qualifying owner,
(ii) if paragraph (d.5) applies to a qualifying owner, the geographical boundaries of the municipality, or municipal or public body, referred to in that paragraph in its application to each such qualifying owner, and
(iii) if this paragraph applies to a qualifying owner, the geographical boundaries of the municipality, or municipal or public body, referred to in subparagraph (i) or paragraph (d.5), as the case may be, in their respective applications to each such qualifying owner;
(4) Clause 149(1)(o.2)(iii)(B) of the Act is replaced by the following:
(B) that had not accepted deposits or issued bonds, notes, debentures or similar obligations, and
(5) Section 149 of the Act is amended by adding the following after subsection (1.11):
Marginal note:Deemed election
(1.12) If at any time there is an amalgamation (within the meaning assigned by subsection 87(1)) of a corporation (in this subsection referred to as the “parent”) and one or more other corporations (each of which in this subsection is referred to as the “subsidiary”) each of which is a subsidiary wholly-owned corporation of the parent, and immediately before that time the parent is a person to which subsection (1) does not apply by reason of the application of subsection (1.11), the new corporation is deemed, for the purposes of subsection (1.11), to be the same corporation as, and a continuation of, the parent.
(6) The portion of subsection 149(1.2) of the Act before paragraph (b) is replaced by the following:
Marginal note:Income test
(1.2) For the purposes of paragraphs (1)(d.5) and (d.6), income of a corporation, a commission or an association from activities carried on outside the geographical boundaries of a municipality or of a municipal or public body does not include income from activities carried on
(a) under an agreement in writing between
(i) the corporation, commission or association, and
(ii) a person who is Her Majesty in right of Canada or of a province, a municipality, a municipal or public body or a corporation to which any of paragraphs (1)(d) to (d.6) applies and that is controlled by Her Majesty in right of Canada or of a province, by a municipality in Canada or by a municipal or public body in Canada
within the geographical boundaries of,
(iii) if the person is Her Majesty in right of Canada or a corporation controlled by Her Majesty in right of Canada, Canada,
(iv) if the person is Her Majesty in right of a province or a corporation controlled by Her Majesty in right of a province, the province,
(v) if the person is a municipality in Canada or a corporation controlled by a municipality in Canada, the municipality, and
(vi) if the person is a municipal or public body performing a function of government in Canada or a corporation controlled by such a body, the area described in subsection (11) in respect of the person; or
(7) Subsection 149(1.3) of the Act is replaced by the following:
Marginal note:Votes or de facto control
(1.3) Paragraphs (1)(d) to (d.6) do not apply in respect of a person’s taxable income for a period in a taxation year if at any time during the period
(a) the person is a corporation shares of the capital stock of which are owned by one or more other persons that, in total, give them more than 10% of the votes that could be cast at a meeting of shareholders of the corporation, other than shares that are owned by one or more persons each of which is
(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 corporation, a commission or an association, to which any of paragraphs (1)(d) to (d.6) apply; or
(b) the person is, or would be if the person were a corporation, controlled, directly or indirectly in any manner whatever, by a person, or by a group of persons that includes a person, who is not
(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 corporation, a commission or an association, to which any of paragraphs (1)(d) to (d.6) apply.
(8) Paragraph 149(10)(c) of the Act is replaced by the following:
(c) for the purposes of applying sections 37, 65 to 66.4, 66.7, 111 and 126, subsections 127(5) to (36) and section 127.3 to the corporation, the corporation is deemed to be a new corporation the first taxation year of which began at that time; and
(9) Section 149 of the Act is amended by adding the following after subsection (10):
Marginal note:Geographical boundaries — body performing government functions
(11) For the purpose of this section, the geographical boundaries of a municipal or public body performing a function of government are
(a) the geographical boundaries that encompass the area in respect of which an Act of Parliament or an agreement given effect by an Act of Parliament recognizes or grants to the body a power to impose taxes; or
(b) if paragraph (a) does not apply, the geographical boundaries within which that body has been authorized by the laws of Canada or of a province to exercise that function.
(10) Subsections (1), (2), (6), (7) and (9) apply to taxation years that begin after May 8, 2000, except that, for those taxation years that began before December 21, 2002, subsection 149(1.3) of the Act, as enacted by subsection (7), is to be read as follows:
(1.3) For the purposes of paragraph (1)(d.5) and subsection (1.2), 90% of the capital of a corporation that has issued share capital is owned by one or more entities, each of which is a municipality or a municipal or public body, only if the entities own shares of the capital stock of the corporation that give the entities 90% or more of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation.
(11) Subsection (3) applies in respect of taxation years that end after April 2004.
(12) Subsection (4) applies to taxation years that end after February 21, 1994.
(13) Subsection (5) applies to amalgamations that occur after October 4, 2004.
(14) Subsection (8) applies to each corporation that after 2006 becomes or ceases to be exempt from tax on its taxable income under Part I of the Act.
(15) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax payable under the Act for any taxation year that began before October 24, 2012 is to be made that is necessary to give effect to the provisions of the Act enacted by subsections (1), (2), (6), (7) and (9).
- Date modified: