Economic Action Plan 2014 Act, No. 2 (S.C. 2014, c. 39)
Full Document:
Assented to 2014-12-16
93. (1) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (i):
(i.1) a pooled registered pension plan,
(2) Subsection (1) applies in respect of any taxation year of a person that ends on or after December 14, 2012.
94. (1) The definition “excluded activity” in subsection 172.1(1) of the Act is amended by striking out “or” at the end of paragraph (d) and by adding the following after that paragraph:
(d.1) if the pension plan is a pooled registered pension plan, compliance by a participating employer of the pension plan as a PRPP administrator of the pension plan with requirements under the Pooled Registered Pension Plans Act or a similar law of a province, provided the activity is undertaken exclusively for the purpose of making a taxable supply of a service to a pension entity of the pension plan that is to be made
(i) for consideration that is not less than the fair market value of the service, and
(ii) at a time when no election under subsection 157(2) made jointly by the participating employer and the pension entity is in effect; or
(2) Subsection (1) applies in respect of any fiscal year of a person ending on or after December 14, 2012.
Marginal note:1997, c. 10, s. 38(1)
95. (1) Paragraph 191.1(2)(e) of the Act is replaced by the following:
(e) the amount determined by the formula
A + B + C + D
where
- A
- is the total of all amounts each of which is an amount determined by the formula
E × (F/G)
where
- E
- is an amount of tax, calculated at a particular rate, that was payable under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition,
- F
- is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and
- G
- is the particular rate,
- B
- is the total of all amounts each of which is an amount determined by the formula
H × (I/J)
where
- H
- is an amount (other than an amount referred to in the description of E) that would have been payable as tax, calculated at a particular rate, under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired or imported for consumption, use or supply exclusively in the course of commercial activities of the builder,
- I
- is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and
- J
- is the particular rate,
- C
- is
(i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula
K × (L/M)
where
- K
- is an amount of tax, calculated at a particular rate, that was payable under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition,
- L
- is the tax rate for the participating province at the time referred to in paragraph (a), and
- M
- is the particular rate, and
(ii) in any other case, zero, and
- D
- is
(i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula
N × (O/P)
where
- N
- is an amount (other than an amount referred to in the description of K) that would have been payable as tax, calculated at a particular rate, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired, imported or brought into the participating province for consumption, use or supply exclusively in the course of commercial activities of the builder,
- O
- is the tax rate for the participating province at the time referred to in paragraph (a), and
- P
- is the particular rate, and
(ii) in any other case, zero.
(2) Subsection (1) applies in respect of any supply of a residential complex, or of an addition to a residential complex, deemed under any of subsections 191(1) to (4) of the Act to have been made on or after April 1, 2013 except that, if the construction or last substantial renovation of the complex or addition began on or before April 8, 2014, the amount determined under paragraph 191.1(2)(e) of the Act in respect of the supply is equal to the lesser of the amount determined under that paragraph as amended by subsection (1) and the amount that would be determined under that paragraph if subsection (1) had not come into force.
(3) If, in assessing the net tax of a person under section 296 of the Act for a reporting period of the person, an amount was taken into consideration as tax deemed to have been collected under any of subsections 191(1) to (4) of the Act in respect of a supply of a residential complex or of an addition to a residential complex and by reason of the application of paragraph 191.1(2)(e), as amended by subsection (1), the amount or part of the amount is not deemed, under whichever of subsections 191(1) to (4) of the Act is applicable, to have been collected as tax in respect of the supply, the person is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount or the part of the amount, as the case may be, is not deemed to have been collected by the person as tax and, on receipt of the request, the Minister must with all due dispatch
(a) consider the request; and
(b) under section 296 of the Act, assess, reassess or make an additional assessment of the net tax of the person for any reporting period of the person and of any interest, penalty or other obligation of the person, but only to the extent that the assessment, reassessment or additional assessment may reasonably be regarded as relating to the amount or the part of the amount, as the case may be.
96. (1) Section 259 of the Act is amended by adding the following after subsection (4.1):
Marginal note:Rebate for health care facility
(4.11) Despite subsections (3), (4) and (4.1), if a person (other than a person that is a qualifying non-profit organization or a selected public service body described in any of paragraphs (a) to (d) of the definition “selected public service body” in subsection (1)) is a charity for the purposes of this section only because the person is a non-profit organization that operates, otherwise than for profit, one or more health care facilities within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V, no amount in respect of property or a service is to be included in determining a rebate to be paid under this section to the person in respect of the property or service except to the extent to which the person intended, at the relevant time, to consume, use or supply the property or service
(a) in the course of activities engaged in by the person in the course of operating those health care facilities; or
(b) if the person is designated to be a municipality for the purposes of this section in respect of activities specified in the designation, in the course of those activities.
Marginal note:Extent of consumption, use or supply — relevant time
(4.12) Where reference is made to a relevant time in subsection (4.11) for the purposes of determining the extent to which a person intended to consume, use or supply property or a service in the course of certain activities in relation to an amount in respect of the property or service, the relevant time is
(a) in the case of an amount of tax in respect of a supply made to, or an importation or bringing into a participating province by, the person at any time, that time;
(b) in the case of an amount deemed to have been paid or collected at any time by the person, that time;
(c) in the case of an amount required to be added under subsection 129(7) in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division at any time, that time; and
(d) in the case of an amount required to be added under paragraph 171(4)(b) in determining the person’s net tax as a result of the person ceasing, at any time, to be a registrant, that time.
(2) Subsection (1) applies for the purposes of determining a rebate under section 259 of the Act for which an application is filed on or after April 8, 2004.
Marginal note:2010, c. 12, s. 75(2)
97. (1) The definition “pension contribution” in subsection 261.01(1) of the Act is repealed.
Marginal note:2010, c. 12, s. 75(2)
(2) The definition “pension rebate amount” in subsection 261.01(1) of the Act is replaced by the following:
“pension rebate amount”
« montant de remboursement de pension »
“pension rebate amount” of a pension entity of a pension plan for a claim period of the pension entity means the amount determined by the formula
A × B
where
- A
- is
(a) if the pension plan is a registered pension plan, 33%,
(b) if the pension plan is a pooled registered pension plan and either employer contributions or employee PRPP contributions were made to the pension plan in the particular calendar year that is the last calendar year ending on or before the last day of the claim period, the amount (expressed as a percentage) determined by the formula
33% × (C/D)
where
- C
- is the total of all amounts, each of which is determined for an employer that made employer contributions to the pension plan in the particular calendar year by the formula
C1 + C2
where
- C1
- is the total of all amounts, each of which is an employer contribution made by the employer to the pension plan in the particular calendar year, and
- C2
- is the total of all amounts, each of which is an employee PRPP contribution made by an employee of the employer to the pension plan in the particular calendar year, and
- D
- is the total of all amounts contributed to the pension plan in the particular calendar year,
(c) if the pension plan is a pooled registered pension plan, neither employer contributions nor employee PRPP contributions were made to the pension plan in the particular calendar year that is the last calendar year ending on or before the last day of the claim period and it is reasonable to expect that employer contributions will be made to the pension plan in a following calendar year, the amount (expressed as a percentage) determined for the first calendar year in which employer contributions are reasonably expected to be made to the pension plan following the particular calendar year by the formula
33% × (E/F)
where
- E
- is the total of all amounts, each of which is determined for an employer reasonably expected to make employer contributions to the pension plan in that first calendar year by the formula
E1 + E2
where
- E1
- is the total of all amounts, each of which is an employer contribution reasonably expected to be made by the employer to the pension plan in that first calendar year, and
- E2
- is the total of all amounts, each of which is an employee PRPP contribution reasonably expected to be made by an employee of the employer to the pension plan in that first calendar year, and
- F
- is the total of all amounts reasonably expected to be contributed to the pension plan in that first calendar year, or
(d) if the pension plan is a pooled registered pension plan and paragraphs (b) and (c) do not apply, 0%; and
- B
- is the total of all amounts, each of which is an eligible amount of the pension entity for the claim period.
Marginal note:2010, c. 12, s. 75(2)
(3) Paragraph (a) of the definition “qualifying employer” in subsection 261.01(1) of the Act is replaced by the following:
(a) if employer contributions were made to the pension plan in the immediately preceding calendar year, made employer contributions to the pension plan in that year; and
Marginal note:2010, c. 12, s. 75(2)
(4) Paragraphs (a) and (b) of the definition “qualifying pension entity” in subsection 261.01(1) of the Act are replaced by the following:
(a) listed financial institutions made 10% or more of the total employer contributions to the pension plan in the last preceding calendar year in which employer contributions were made to the pension plan; or
(b) it can reasonably be expected that listed financial institutions will make 10% or more of the total employer contributions to the pension plan in the next calendar year in which employer contributions will be required to be made to the pension plan.
(5) Subsection 261.01(1) of the Act is amended by adding the following in alphabetical order:
“employee PRPP contribution”
« cotisation RPAC de salarié »
“employee PRPP contribution” means a contribution by an employee of an employer to a pooled registered pension plan that
(a) may be deducted by the employee under paragraph 60(i) of the Income Tax Act in computing their income; and
(b) is remitted by the employer to the PRPP administrator of the plan under a contract with the PRPP administrator in respect of all or a class of the employees of the employer.
“employer contribution”
« cotisation d’employeur »
“employer contribution” means a contribution by an employer to a pension plan that may be deducted by the employer under paragraph 20(1)(q) of the Income Tax Act in computing its income.
Marginal note:2010, c. 12, s. 75(3)
(6) Subparagraph (i) of the description of C in paragraph 261.01(6)(a) of the Act is replaced by the following:
(i) in the case where employer contributions were made to the pension plan in the calendar year that immediately precedes the calendar year that includes the last day of the claim period (in this paragraph referred to as the “preceding calendar year”), the amount determined by the formula
D/E
where
- D
- is the total of all amounts, each of which is
(A) an employer contribution made by the qualifying employer to the pension plan in the preceding calendar year, or
(B) an employee PRPP contribution made by an employee of the qualifying employer to the pension plan in the preceding calendar year, if the qualifying employer made employer contributions to the pension plan in the preceding calendar year, and
- E
- is the total of all amounts, each of which is
(A) if the pension plan is a registered pension plan, an employer contribution made to the pension plan in the preceding calendar year, or
(B) if the pension plan is a pooled registered pension plan, an amount contributed to the pension plan in the preceding calendar year,
Marginal note:2010, c. 12, s. 75(3)
(7) Paragraph (a) of the description of C in subsection 261.01(9) of the Act is replaced by the following:
(a) in the case where employer contributions were made to the pension plan in the calendar year (in this subsection referred to as the “preceding calendar year”) that immediately precedes the calendar year that includes the last day of the claim period, the amount determined by the formula
E/F
where
- E
- is the total of all amounts, each of which is
(A) an employer contribution made by the qualifying employer to the pension plan in the preceding calendar year, or
(B) an employee PRPP contribution made by an employee of the qualifying employer to the pension plan in the preceding calendar year, if the qualifying employer made employer contributions to the pension plan in the preceding calendar year, and
- F
- is the total of all amounts, each of which is
(A) if the pension plan is a registered pension plan, an employer contribution made to the pension plan in the preceding calendar year, or
(B) if the pension plan is a pooled registered pension plan, an amount contributed to the pension plan in the preceding calendar year,
(8) Subsections (1) to (5) are deemed to have come into force on December 14, 2012.
(9) Subsections (6) and (7) apply in respect of any claim period of a person ending on or after December 14, 2012.
- Date modified: