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)
C.R.C., c. 945Income Tax Regulations (continued)
93 The portion of paragraph 1401(5)(b) of the Regulations before subparagraph (i) is replaced by the following:
(b) if the policy is issued before 2017 and at a particular time after 2016 life insurance — in respect of a life, or two or more lives jointly insured, and in respect of which a particular schedule of premium or cost of insurance rates applies — is added to the policy or is term insurance that is converted into permanent life insurance within the policy, then that insurance is deemed to be a separate life insurance policy issued at the particular time unless
94 The definitions official receipt and other recipient of a gift in section 3500 of the Regulations are replaced by the following:
- official receipt
official receipt means a receipt for the purposes of paragraph 110.1(2)(a) or 118.1(2)(a) of the Act, containing information required by section 3501 or 3502; (reçu officiel)
- other recipient of a gift
other recipient of a gift means a person, to whom a gift is made by a taxpayer, referred to in any of paragraph 110.1(1)(c), subparagraph 110.1(2.1)(a)(ii) and paragraphs (a) and (d) of the definition qualified donee in subsection 149.1(1) of the Act; (autre bénéficiaire d’un don)
95 (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following:
4900 (1) For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act, paragraph (h) of the definition qualified investment in section 204 of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is
(2) The portion of paragraph 4900(1)(g) of the Regulations before subparagraph (i) is replaced by the following:
(g) a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by
(3) Subsection 4900(5) of the Regulations is replaced by the following:
(5) For the purposes of paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered disability savings plan, a registered education savings plan or a TFSA at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year.
(4) The portion of subsection 4900(6) of the Regulations before paragraph (b) is replaced by the following:
(6) Subject to subsection (9), for the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act and paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered retirement savings plan, a registered education savings plan and a registered retirement income fund at any time if at that time the property is not a prohibited investment for the trust and is
(a) a share of the capital stock of an eligible corporation (as defined in subsection 5100(1));
(5) Subsection 4900(8) of the Regulations is repealed.
(6) Subsections 4900(12) and (13) of the Regulations are repealed.
(7) The portion of subsection 4900(14) of the Regulations before paragraph (a) is replaced by the following:
(14) For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a RESP, RRIF, RRSP or TFSA at any time if, at the time the property was acquired by the trust, the property
(8) Subparagraph 4900(14)(a)(iii) of the Regulations is replaced by the following:
(iii) a qualifying share in respect of a specified cooperative corporation and the RESP, RRIF, RRSP or TFSA; and
(9) Subsection 4900(15) of the Regulations is replaced by the following:
(15) For the purposes of the definition prohibited investment in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a RESP, RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii).
(10) Subsections (1) and (3) are deemed to have come into force on March 23, 2017.
(11) Subsections (2) and (4) to (9) apply in respect of
96 Section 5600 of the Regulations is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i) and by adding the following after paragraph (i):
(j) the distribution by BHP Billiton Limited, on May 24, 2015 to its common shareholders, of common shares of South32 Limited.
97 (1) Subsection 5907(1.07) of the Regulations is replaced by the following:
(1.07) For the purposes of paragraph (1.03)(a), a specified owner in respect of the particular corporation is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of another corporation that are considered to be owned for the purposes of the Act solely because the specified owner or the other corporation is not treated as a corporation under the relevant foreign tax law.
(2) Subsection 5907(8) of the Regulations is replaced by the following:
(8) For the purposes of computing the various amounts referred to in this section,
(a) the first taxation year of a foreign affiliate, of a corporation resident in Canada, that is formed as a result of a foreign merger (within the meaning assigned by subsection 87(8.1) of the Act) is deemed to have commenced at the time of the merger, and a taxation year of a predecessor corporation (within the meaning assigned by subsection 5905(3)) that would otherwise have ended after that time is deemed to have ended immediately before that time; and
(b) if subsection 91(1.2) of the Act applies at any particular time in respect of a foreign affiliate of a corporation, the various amounts are to be computed, in respect of attributed amounts for the stub period in respect of the particular time, as if
(i) the affiliate’s taxation year that would have included the particular time ended at the stub-period end time in respect of the particular time, and
(ii) all transactions or events, giving rise to attributed amounts, that occurred at the particular time, occurred at the stub-period end time in respect of the particular time.
(8.1) The following definitions apply in paragraph 5907(8)(b).
- attributed amounts
attributed amounts, for a stub period, in respect of a particular time referred to in paragraph (8)(b), of a foreign affiliate of a corporation, means
(a) the amounts of any income, gain or loss of the affiliate for the stub period that are relevant in determining amounts that are to be included or may be deducted under section 91 of the Act in respect of the affiliate for the particular stub period, in computing the income of the corporation;
(b) any portion of the affiliate’s capital gain or capital loss – from a disposition, in the stub period or at the particular time referred to in paragraph (8)(b), of a property that is not an excluded property – that is not described in paragraph (a); and
(c) any income or profits tax paid to the government of a country, in respect of amounts described in paragraph (a) or (b). (sommes attribuées)
- stub period
stub period, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means a period that ends at the stub-period end time in respect of the particular time and begins immediately after the later of
- stub-period end time
stub-period end time, in respect of a particular time at which subsection 91(1.2) of the Act applies in respect of a foreign affiliate of a corporation, means the time that is immediately before the particular time. (fin de la période tampon)
(3) Subsection (1) applies to income or profits tax paid, and amounts referred to in subsections 5907(1.1) and (1.2) of the Regulations, in respect of the income of a foreign affiliate of a corporation for taxation years of the foreign affiliate that end in taxation years of the corporation that end after October 24, 2012.
(4) Subsection (2) is deemed to have come into force on July 12, 2013, except that if at any time in the period that begins on July 12, 2013 and ends on September 7, 2017, subsection 91(1.2) of the Act (as enacted by subsection 28(1)) applies in respect of a taxpayer, and the taxpayer and all corporations that are connected persons (within the meaning assigned by paragraph (a) of the definition connected person in subsection 91(1.3) of the Act (as enacted by subsection 28(1))) to the taxpayer at the time file with the Minister an election in prescribed manner on or before the earliest of the filing-due date of the taxpayer and those corporations for their taxation year that includes the day on which this Act receives royal assent, for the taxpayer and those corporations, subsection (2) is deemed to have come into force on September 8, 2017 and not on July 12, 2013.
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