Economic Action Plan 2013 Act, No. 2 (S.C. 2013, c. 40)
Full Document:
Assented to 2013-12-12
57. (1) The definition “non-government assistance” in subsection 127(9) of the Act is replaced by the following:
“non-government assistance”
« aide non gouvernementale »
“non-government assistance” means an amount that would be included in income under paragraph 12(1)(x) if that paragraph were read without reference to subparagraphs 12(1)(x)(v) to (vii);
(2) Paragraphs (j) and (k) of the definition “investment tax credit” in subsection 127(9) of the Act are replaced by the following:
(j) if the taxpayer is subject to a loss restriction event at any time before the end of the year, the amount determined under subsection (9.1) in respect of the taxpayer, and
(k) if the taxpayer is subject to a loss restriction event at any time after the end of the year, the amount determined under subsection (9.2) in respect of the taxpayer,
(3) The definition “pre-production mining expenditure” in subsection 127(9) of the Act is amended by striking out “or” at the end of subparagraph (a)(i) and by replacing subparagraph (a)(ii) with the following:
(ii) described in paragraph (g), (g.3) or (g.4) and not in paragraph (f), of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in paragraph (g) of that definition were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, and
(4) Clause (k)(iii)(B) of the definition “specified percentage” in subsection 127(9) of the Act is replaced by the following:
(B) in 2015, 5% if the expense is described in paragraph (a)(ii) of the definition “pre-production mining expenditure” because of paragraph (g.4) of the definition “Canadian exploration expense” in subsection 66.1(6), and 4% otherwise, and
(5) The portion of subsection 127(9.1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Loss restriction event before end of year
(9.1) If a taxpayer is subject to a loss restriction event at any time (in this subsection referred to as “that time”) before the end of a taxation year of the taxpayer, the amount determined for the purposes of paragraph (j) of the definition “investment tax credit” in subsection (9) with respect to the taxpayer is the amount, if any, by which
(6) Subparagraph 127(9.1)(d)(i) of the Act is replaced by the following:
(i) if throughout the year the taxpayer carried on a particular business in the course of which a property was acquired, or an expenditure was made, before that time in respect of which an amount is included in computing its investment tax credit at the end of the year, the amount, if any, by which the total of all amounts each of which is
(A) its income for the year from the particular business, or
(B) its income for the year from any other business substantially all the income of which was derived from the sale, leasing, rental or development of properties or the rendering of services similar to the properties sold, leased, rented or developed, or the services rendered, as the case may be, by the taxpayer in carrying on the particular business before that time
exceeds
(C) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or (d) for the year by the taxpayer in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of the particular business or the other business,
(7) The portion of subsection 127(9.2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Loss restriction event after end of year
(9.2) If a taxpayer is subject to a loss restriction event at any time (in this subsection referred to as “that time”) after the end of a taxation year of the taxpayer, the amount determined for the purposes of paragraph (k) of the definition “investment tax credit” in subsection (9) is the amount, if any, by which
(8) Subparagraph 127(9.2)(d)(i) of the Act is replaced by the following:
(i) if the taxpayer acquired a property or made an expenditure, in the course of carrying on a particular business throughout the portion of a taxation year that is after that time, in respect of which an amount is included in computing its investment tax credit at the end of the year, the amount, if any, by which the total of all amounts each of which is
(A) its income for the year from the particular business, or
(B) if the taxpayer carried on a particular business in the year, its income for the year from any other business substantially all the income of which was derived from the sale, leasing, rental or development of properties or the rendering of services similar to the properties sold, leased, rented or developed, or the services rendered, as the case may be, by the taxpayer in carrying on the particular business before that time
exceeds
(C) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or (d) for the year by the taxpayer in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of the particular business or the other business
(9) Subsection (1) is deemed to have come into force on December 21, 2012.
(10) Subsections (2) to (8) are deemed to have come into force on March 21, 2013.
58. (1) The definition “qualifying corporation” in subsection 127.1(2) of the Act is replaced by the following:
“qualifying corporation”
« société admissible »
“qualifying corporation”, for a particular taxation year that ends in a calendar year, means a particular corporation that is a Canadian-controlled private corporation in the particular taxation year the taxable income of which for its immediately preceding taxation year — together with, if the particular corporation is associated in the particular taxation year with one or more other corporations (in this subsection referred to as “associated corporations”), the taxable income of each associated corporation for its last taxation year that ended in the preceding calendar year (determined before taking into consideration the specified future tax consequences for that last year) — does not exceed the qualifying income limit, if any, of the particular corporation for the particular taxation year;
(2) Subsection (1) applies to taxation years that begin after December 21, 2012.
59. (1) Subsection 127.4(2) of the Act is repealed.
(2) Paragraph 127.4(5)(a) of the Act is replaced by the following:
(a) $500, and
(3) Paragraph 127.4(5)(a) of the Act, as enacted by subsection (2), is replaced by the following:
(a) $250, and
(4) Subsection 127.4(5) of the Act, as amended by subsection (3), is repealed.
(5) Paragraph 127.4(6)(a) of the Act is replaced by the following:
(a) 10% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is 2015,
(a.1) 5% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is 2016,
(6) Subsection 127.4(6) of the Act, as amended by subsection (5), is repealed.
(7) Subsections (1), (4) and (6) apply to the 2017 and subsequent taxation years.
(8) Subsection (2) applies to the 2015 taxation year.
(9) Subsection (3) applies to the 2016 taxation year.
(10) Subsection (5) applies to the 2015 and 2016 taxation years.
60. (1) The portion of paragraph 127.52(1)(c.1) of the Act before subparagraph (i) is replaced by the following:
(c.1) if, during a partnership’s fiscal period that ends in the year (other than a fiscal period that ends because of subsection 99(1)), the individual’s interest in the partnership is an interest for which an identification number is required to be, or has been, obtained under section 237.1,
(2) Clause 127.52(1)(i)(i)(B) of the Act is amended by striking out “and” at the end of subclause (I) and by replacing subclause (II) with the following:
(II) paragraphs (b) to (c.3), (e) and (e.1) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years, and
(III) paragraphs (b) to (c.3), (e) and (e.1) of this subsection applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any taxation year that ends after 2011, and
(3) Clause 127.52(1)(i)(ii)(B) of the Act is amended by striking out “and” at the end of subclause (I) and by replacing subclause (II) with the following:
(II) paragraphs (c.1) and (d) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s net capital loss for any of those years, and
(III) paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011; and
(4) Subsections (1) to (3) apply to the 2012 and subsequent taxation years and, if an individual files an election in writing with the Minister of National Revenue before the day that is 90 days after the day on which this Act receives royal assent, for the individual
(a) subsections (1) to (3) also apply to the 2006 to 2011 taxation years; and
(b) the references in clauses 127.52(1)(i)(i)(B) and (ii)(B) of the Act, as amended by subsections (2) and (3), to “2011” and “2012” are to be read as “2005” and “2006”, respectively.
(5) Notwithstanding subsection 152(4) of the Act, the Minister of National Revenue may make such assessments, reassessments and determinations under Part I of the Act as are necessary to give effect to an election under subsection (4).
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