Economic Action Plan 2013 Act, No. 2 (S.C. 2013, c. 40)
Full Document:
Assented to 2013-12-12
31. (1) The definition “Canadian renewable and conservation expense” in subsection 66.1(6) of the Act is replaced by the following:
“Canadian renewable and conservation expense”
« frais liés aux énergies renouvelables et à l’économie d’énergie au Canada »
“Canadian renewable and conservation expense” has the meaning assigned by regulation, and for the purpose of determining whether an outlay or expense in respect of a prescribed energy conservation property is a Canadian renewable and conservation expense, the Technical Guide to Canadian Renewable and Conservation Expenses (CRCE), as amended from time to time and published by the Department of Natural Resources, shall apply conclusively with respect to engineering and scientific matters;
(2) Paragraph (g) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act is replaced by the following:
(g) any expense incurred by the taxpayer after November 16, 1978 and before March 21, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft or constructing an adit or other underground entry, but not including any expense that results in revenue or can reasonably be expected to result in revenue earned before the new mine comes into production in reasonable commercial quantities, except to the extent that the total of all such expenses exceeds the total of those revenues,
(3) The definition “Canadian exploration expense” in subsection 66.1(6) of the Act is amended by adding the following after paragraph (g.2):
(g.3) any expense incurred by the taxpayer that would be described in paragraph (g) if the reference to “March 21, 2013” in that paragraph were “2017” and that is incurred
(i) under an agreement in writing entered into by the taxpayer before March 21, 2013, or
(ii) as part of the development of a new mine, if
(A) the construction of the new mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or
(B) the engineering and design work for the construction of the new mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities),
(g.4) any expense incurred by the taxpayer, the amount of which is determined by the formula
A × B
where
- A
- is an expense that would be described in paragraph (g) if the reference to “March 21, 2013” in that paragraph were “2018” and that is not described in paragraph (g.3), and
- B
- is
(i) 100% if the expense is incurred before 2015,
(ii) 80% if the expense is incurred in 2015,
(iii) 60% if the expense is incurred in 2016, and
(iv) 30% if the expense is incurred in 2017,
(4) Paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act is replaced by the following:
(h) subject to section 66.8, the taxpayer’s share of any expense referred to in any of paragraphs (a) to (d) and (f) to (g.4) incurred by a partnership in a fiscal period of the partnership, if at the end of the period the taxpayer is a member of the partnership, or
(5) The description of A in the definition “eligible oil sands mine development expense” in subsection 66.1(6) of the Act is replaced by the following:
- A
- is an expense that would be a Canadian exploration expense of the taxpayer described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “and before March 21, 2013” and “other than a bituminous sands deposit or an oil shale deposit”, but does not include an expense that is a specified oil sands mine development expense, and
(6) Paragraph (a) of the definition “specified oil sands mine development expense” in subsection 66.1(6) of the Act is replaced by the following:
(a) would be a Canadian exploration expense described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “and before March 21, 2013” and “other than a bituminous sands deposit or an oil shale deposit”,
(7) Subsection (1) is deemed to have come into force on December 21, 2012.
(8) Subsections (2), (3), (5) and (6) are deemed to have come into force on March 21, 2013.
(9) Subsection (4) is deemed to have come into force on March 22, 2011, except that before March 21, 2013 paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act, as enacted by subsection (4), is to be read as follows:
(h) subject to section 66.8, the taxpayer’s share of any expense referred to in any of paragraphs (a) to (d) and (f) to (g.2) incurred by a partnership in a fiscal period of the partnership, if at the end of the period the taxpayer is a member of the partnership, or
32. (1) The definition “Canadian development expense” in subsection 66.2(5) of the Act is amended by adding the following after paragraph (c.1):
(c.2) any expense, or portion of any expense, that is not a Canadian exploration expense, incurred by the taxpayer after March 20, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft or constructing an adit or other underground entry,
(2) Subsection (1) is deemed to have come into force on March 21, 2013.
33. (1) Subparagraph 67.1(2)(e)(iii) of the Act is replaced by the following:
(iii) is paid or payable in respect of the taxpayer’s duties performed at a work site in Canada that is
(A) outside any population centre, as defined by the last Census Dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year, and
(B) at least 30 kilometres from the nearest point on the boundary of the nearest such population centre;
(2) Subsection (1) applies to the 2013 and subsequent taxation years.
34. (1) Section 70 of the Act is amended by adding the following after subsection (5.3):
Marginal note:Fair market value
(5.31) For the purposes of subsections (5) and 104(4), the fair market value at any time of any property deemed to have been disposed of at that time as a consequence of a particular individual’s death is to be determined as though the fair market value at that time of any annuity contract were the total of all amounts each of which is the amount of a premium paid on or before that time under the contract if
(a) the contract is, in respect of an LIA policy, a contract referred to in subparagraph (b)(ii) of the definition “LIA policy” in subsection 248(1); and
(b) the particular individual is the individual, in respect of the LIA policy, referred to in that subparagraph.
(2) Subsection (1) applies to taxation years that end after March 20, 2013.
35. (1) The portion of subsection 75(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Trusts
(2) If a trust, that is resident in Canada and that was created in any manner whatever since 1934, holds property on condition
(2) Paragraphs 75(3)(c) to (c.3) of the Act are replaced by the following:
(c) by a qualifying environmental trust; or
(3) Subsections (1) and (2) apply to taxation years that end after March 20, 2013.
36. (1) The definition “relevant loss balance” in subsection 80(1) of the Act is replaced by the following:
“relevant loss balance”
« solde de pertes applicable »
“relevant loss balance”, at a particular time for a commercial obligation and in respect of a debtor’s non-capital loss, farm loss, restricted farm loss or net capital loss, as the case may be, for a particular taxation year, is
(a) subject to paragraph (b), the amount of such loss that would be deductible in computing the debtor’s taxable income or taxable income earned in Canada, as the case may be, for the taxation year that includes that time if
(i) the debtor had sufficient incomes from all sources and sufficient taxable capital gains,
(ii) subsections (3) and (4) did not apply to reduce such loss at or after that time, and
(iii) paragraph 111(4)(a) and subsection 111(5) did not apply to the debtor, and
(b) nil if the debtor is a taxpayer that was at a previous time subject to a loss restriction event and the particular year ended before the previous time, unless
(i) the obligation was issued by the debtor before, and not in contemplation of, the loss restriction event, or
(ii) all or substantially all of the proceeds from the issue of the obligation were used to satisfy the principal amount of another obligation to which subparagraph (i) or this subparagraph would apply if the other obligation were still outstanding;
(2) The portion of the definition “unrecognized loss” in subsection 80(1) of the Act before paragraph (b) is replaced by the following:
“unrecognized loss”
« perte non constatée »
“unrecognized loss”, at a particular time, in respect of an obligation issued by a debtor, from the disposition of a property, is the amount that would, but for subparagraph 40(2)(g)(ii), be a capital loss from the disposition by the debtor at or before the particular time of a debt or other right to receive an amount, except that if the debtor is a taxpayer that is subject to a loss restriction event before the particular time and after the time of the disposition, the unrecognized loss at the particular time in respect of the obligation is nil unless
(a) the obligation was issued by the debtor before, and not in contemplation of, the loss restriction event, or
(3) Subparagraph 80(15)(c)(iv) of the Act is replaced by the following:
(iv) if the member is a taxpayer that was subject to a loss restriction event at a particular time that is before the end of that fiscal period and before the taxpayer became a member of the partnership, and the partnership obligation was issued before the particular time,
(A) subject to the application of this subparagraph to the taxpayer after the particular time and before the end of that fiscal period, the obligation referred to in subparagraph (i) is deemed to have been issued by the member after the particular time, and
(B) subparagraph (b)(ii) of the definition “relevant loss balance” in subsection (1), paragraph (f) of the definition “successor pool” in that subsection and paragraph (b) of the definition “unrecognized loss” in that subsection do not apply in respect of the loss restriction event, and
(4) Subsections (1) to (3) are deemed to have come into force on March 21, 2013.
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