Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)
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Assented to 2017-12-14
PART 1Amendments to the Income Tax Act and to Related Legislation (continued)
2013, c. 40Economic Action Plan 2013 Act, No. 2
82 If an individual has filed the election referred to in subsection 60(4) of the Economic Action Plan 2013 Act, No. 2, as and when allowed under that subsection, then for the individual
(a) the reference in paragraph 60(4)(a) of that Act to “2006” is to be read as “2003”; and
(b) the references in paragraph 60(4)(b) of that Act to “2005” and “2006” are to be read as “2002” and “2003”, respectively.
C.R.C., c. 945Income Tax Regulations
83 (1) Subsection 221(2) of the Income Tax Regulations is replaced by the following:
(2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 146.4, 204 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form.
(2) Subsection (1) is deemed to have come into force on March 23, 2017.
84 (1) The Regulations are amended by adding the following after section 221:
222 The issuer of a RDSP, or the promoter of a RESP, that governs a trust shall notify the holders of the RDSP, or subscribers of the RESP, in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year,
(2) Subsection (1) is deemed to have come into force on March 23, 2017.
85 (1) The portion of paragraph 306(3)(a) of the Regulations before subparagraph (i) is replaced by the following:
(a) in the case of a life insurance policy issued before 2017, a separate exemption test policy is deemed, subject to subsection (7), to be issued in respect of the life insurance policy
(2) The portion of subparagraph 306(3)(a)(ii) of the Regulations before clause (A) is replaced by the following:
(ii) on each policy anniversary of the life insurance policy on which
(3) The portion of paragraph 306(3)(b) of the Regulations before clause (i)(A) is replaced by the following:
(4) The portion of subparagraph 306(3)(b)(ii) of the Regulations before clause (A) is replaced by the following:
(ii) on each policy anniversary of the life insurance policy on which
(5) The portion of subparagraph 306(3)(b)(iii) of the Regulations before clause (A) is replaced by the following:
(iii) on each policy anniversary of the life insurance policy — except to the extent that another exemption test policy has been issued on that date under this subparagraph in respect of a coverage under the life insurance policy — on which
(6) The portion of subsection 306(4) of the Regulations before paragraph (a) is replaced by the following:
(4) For the purpose of determining whether the condition in paragraph (1)(a) is met on a policy anniversary of a life insurance policy, each exemption test policy issued in respect of the life insurance policy, or in respect of a coverage under the life insurance policy, is deemed
(7) The portion of subsection 306(5) of the Regulations before paragraph (a) is replaced by the following:
(5) For the purpose of determining the amount of a benefit on death under an exemption test policy,
(8) Paragraph 306(6)(b) of the Regulations is replaced by the following:
(b) the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy at that time exceeds 250% of
(i) in the case where the particular time at which the policy is issued is determined under subsection 148(11) of the Act and the policy’s third preceding policy anniversary is before the particular time, the accumulating fund (computed without regard to any amount payable in respect of a policy loan and as though the policy were issued after 2016) in respect of the policy on that third preceding policy anniversary, and
(ii) in any other case, the accumulating fund (computed without regard to any amount payable in respect of a policy loan) in respect of the policy on its third preceding policy anniversary; and
(9) Subparagraph 306(7)(a)(ii) of the Regulations is replaced by the following:
(ii) the date on which it was deemed by subsection (3) or (10), as the case may be, to be issued (determined immediately before that time); and
(10) Subsection 306(10) of the Regulations is replaced by the following:
(10) Notwithstanding subsections (3) and (4), if a life insurance policy is issued for any purpose at a particular time determined under subsection 148(11) of the Act, then for the purposes of applying this section (other than this subsection and subsection (9)) and section 307 in respect of the life insurance policy at and after the particular time,
(a) in respect of each coverage issued before the particular time under the life insurance policy, a separate exemption test policy is deemed to be issued in respect of a coverage under the life insurance policy
(i) on the date of issue of the life insurance policy, and
(ii) on each policy anniversary that ends before the particular time of the life insurance policy on which
(A) the amount of the benefit on death under the life insurance policy
exceeds
(B) 108% of the amount of the benefit on death under the life insurance policy on the later of the life insurance policy’s date of issue and the date of the life insurance policy’s preceding policy anniversary, if any;
(b) in respect of each coverage issued before the particular time under the life insurance policy, subsection (3) does not apply to deem an exemption test policy to be issued in respect of the policy, or in respect of a coverage under the policy, at any time before the particular time;
(c) in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(i), the references in subparagraph (4)(a)(iii) and paragraph (5)(b) to “subparagraph (3)(b)(i)” are to be read as references to “subparagraph (10)(a)(i)”;
(d) in respect of each exemption test policy the date of issuance of which is determined under subparagraph (a)(ii), subparagraph (4)(a)(iv) is to be read as follows:
(iv) if the date on which the exemption test policy is issued is determined by subparagraph (10)(a)(ii) at a time before a particular time, the portion of the amount – that amount being the amount that would be determined, at the time immediately before the particular time, under subparagraph (a)(ii), if the exemption test policy were issued in respect of the policy on the same date as the date determined for it under subparagraph (10)(a)(ii) – that can be reasonably allocated to the coverage in the circumstances (and for these purposes, an allocation is considered not to be reasonable if the total of the amounts determined for A and B in subparagraph (a)(iii) is less than the amount determined for C in that subparagraph in respect of the exemption test policy the date of issuance of which is determined under subparagraph (10)(a)(i) in respect of the coverage), and
and
(e) in applying paragraph (5)(b), the reference in that paragraph to “any time” is to be read as “any time at or after the particular time referred to in subsection (10) in respect of the life insurance policy”.
- Date modified: