Budget Implementation Act, 2016, No. 2 (S.C. 2016, c. 12)
Full Document:
Assented to 2016-12-15
31 (1) Clause 95(2)(d.1)(ii)(B) of the Act is replaced by the following:
(B) subsections 13(21.2), 18(15) and 40(3.4) in respect of any property that was disposed of, at any time before the merger, by a foreign affiliate predecessor, and
(2) Subclause 95(2)(e)(v)(A)(II) of the Act is replaced by the following:
(II) subsections 13(21.2), 18(15) and 40(3.4) in respect of any property that was disposed of, at any time before the liquidation and dissolution, by the disposing affiliate, and
(3) Clause 95(2)(f.11)(ii)(A) of the Act is replaced by the following:
(A) this Act is to be read without reference to subsections 17(1) and 18(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership,
(4) Subsections (1) to (3) come into force or are deemed to have come into force on January 1, 2017.
32 (1) The portion of subsection 96(1.7) of the Act before the formula is replaced by the following:
Marginal note:Gains and losses
(1.7) Notwithstanding subsection (1) or section 38, if in a particular taxation year of a taxpayer, the taxpayer is a member of a partnership with a fiscal period that ends in the particular year, the amount of a taxable capital gain, allowable capital loss or allowable business investment loss of the taxpayer for the particular year determined in respect of the partnership is the amount determined by the formula
(2) The description of A in subsection 96(1.7) of the Act is replaced by the following:
- A
- is the amount of the taxpayer’s taxable capital gain, allowable capital loss or allowable business investment loss, as the case may be, for the particular year otherwise determined under this section in respect of the partnership;
(3) The portion of subsection 96(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Agreement or election of partnership members
(3) If a taxpayer who was a member of a partnership at any time in a fiscal period has, for any purpose relevant to the computation of the taxpayer’s income from the partnership for the fiscal period, made or executed an agreement, designation or election under or in respect of the application of any of subsections 13(4), (4.2) and (16), section 15.2, subsections 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)(a)(ii)(B), subsections 44(1) and (6), 50(1) and 80(5) and (9) to (11), section 80.04, subsections 86.1(2), 88(3.1), (3.3) and (3.5) and 90(3), the definition relevant cost base in subsection 95(4) and subsections 97(2), 139.1(16) and (17) and 249.1(4) and (6) that, if this Act were read without reference to this subsection, would be a valid agreement, designation or election,
(4) Subsection 96(8) of the Act is amended by adding “and” at the end of paragraph (b), by striking out “and” at the end of paragraph (c) and by repealing paragraph (d).
(5) Subsections (1) to (4) come into force or are deemed to have come into force on January 1, 2017.
33 (1) The portion of subsection 97(2) of the Act before paragraph (a) is replaced by the following:
(2) Notwithstanding any other provision of this Act other than subsections (3) and 13(21.2), where a taxpayer at any time disposes of any property that is a capital property, Canadian resource property, foreign resource property or inventory of the taxpayer to a partnership that immediately after that time is a Canadian partnership of which the taxpayer is a member, if the taxpayer and all the other members of the partnership jointly so elect in prescribed form within the time referred to in subsection 96(4),
(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2017.
34 (1) Paragraph 98(3)(b) of the Act is amended by adding “and” at the end of subparagraph (i) and by repealing subparagraph (i.1).
(2) Subsection 98(3) of the Act is amended by adding “and” at the end of paragraph (e), by striking out “and” at the end of paragraph (f) and by repealing paragraph (g).
(3) Paragraph 98(5)(b) of the Act is amended by adding “and” at the end of subparagraph (i) and by repealing subparagraph (i.1).
(4) Subsection 98(5) of the Act is amended by adding “and” at the end of paragraph (f), by striking out “and” at the end of paragraph (g) and by repealing paragraph (h).
(5) Subsections (1) to (4) come into force or are deemed to have come into force on January 1, 2017.
35 (1) Subparagraph (i) of the description of B in paragraph 104(6)(b) of the Act is replaced by the following:
(i) if the trust is a trust for which a day is to be determined under paragraph (4)(a) or (a.4) by reference to a death or later death, as the case may be, that has not occurred before the beginning of the year, the total of
(A) the part of its income (determined without reference to this subsection and subsection (12)) for the year that became payable in the year to, or that was included under subsection 105(2) in computing the income of, a beneficiary (other than an individual whose death is that death or later death, as the case may be), and
(B) the total of all amounts each of which
(I) is included in its income (determined without reference to this subsection and subsection (12)) for the year — if the year is the year in which that death or later death, as the case may be, occurs and paragraph (13.4)(b) does not apply in respect of the trust for the year — because of the application of subsection (4), (5), (5.1) or (5.2) or 12(10.2), and
(II) is not included in the amount determined for clause (A) for the year, and
(2) The portion of paragraph 104(13.4)(b) of the Act before subparagraph (i) is replaced by the following:
(b) subject to paragraph (b.1), the trust’s income (determined without reference to subsections (6) and (12)) for the particular year is, notwithstanding subsection (24), deemed
(3) Subsection 104(13.4) of the Act is amended by striking out “and” at the end of paragraph (b) and by adding the following after that paragraph:
(b.1) paragraph (b) does not apply in respect of the trust for the particular year, unless
(i) the individual is resident in Canada immediately before the death,
(ii) the trust is, immediately before the death, a testamentary trust that
(iii) an election — made jointly between the trust and the legal representative administering the individual’s graduated rate estate in prescribed form — that paragraph (b) applies is filed with
(4) Subparagraph 104(13.4)(c)(i) of the Act is replaced by the following:
(i) the references in paragraph 150(1)(c) to “year” and in subparagraph (a)(ii) of the definition balance-due day in subsection 248(1) to “taxation year” are to be read as “calendar year in which the taxation year ends”, and
(5) Subsections (1) to (4) apply to the 2016 and subsequent taxation years.
- Date modified: