Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)

• 107 (1) The Act is amended by adding the following after section 130:

  Marginal note:Arrangements deemed to be trusts

  130.1 If an arrangement is deemed to be a trust under paragraph 248(3)(b) or (c) of the Income Tax Act, the following rules apply for the purposes of this Part:

  • (a) the arrangement is deemed to be a trust;

  • (b) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise;

  • (c) in the case of an arrangement referred to in paragraph 248(3)(b) of that Act, a person that has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in that paragraph is deemed to be beneficially interested in the trust; and

  • (d) in the case of an arrangement referred to in paragraph 248(3)(c) of that Act, any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor.

• (2) Subsection (1) is deemed to have come into force on July 23, 2016.

• 108 (1) The portion of subsection 141.01(1.2) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Primes et subventions

    (1.2) Pour l’application du présent article, le montant d’aide — prime, subvention, prêt à remboursement conditionnel ou autre montant semblable — qu’un inscrit reçoit d’une des personnes suivantes et qui n’est pas la contrepartie d’une fourniture, mais qu’il est raisonnable de considérer comme étant accordé en vue de financer une activité de l’inscrit comportant la réalisation de fournitures taxables sans contrepartie, est réputé être la contrepartie de ces fournitures :

• (2) The portion of subsection 141.01(4) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Fournitures gratuites

    (4) Lorsqu’un fournisseur effectue, dans le cadre de son initiative, la fourniture taxable (appelée « fourniture gratuite » au présent paragraphe) d’un bien ou d’un service sans contrepartie ou pour une contrepartie symbolique et qu’il est raisonnable de considérer que la fourniture gratuite a pour objet notamment de faciliter, de favoriser ou de promouvoir soit une initiative, soit l’acquisition, la consommation ou l’utilisation d’autres biens ou services par une autre personne, les présomptions suivantes s’appliquent :

• (3) Subsections 141.01(6) and (7) of the French version of the Act are replaced by the following:

  • Marginal note:Présomption de faits ou de circonstances

    (6) Lorsqu’une présomption de faits ou de circonstances prévue par une disposition de la présente partie, sauf les paragraphes (2) à (4), s’applique à la condition qu’un bien ou un service soit, ou ait été, consommé ou utilisé, ou acquis, importé ou transféré dans une province participante pour consommation ou utilisation, dans une certaine mesure dans le cadre des activités, commerciales ou autres, d’une personne, ou hors de ce cadre, cette mesure est déterminée en conformité avec les paragraphes (2) ou (3) en vue d’établir si la condition est remplie. Toutefois, si cette condition est ainsi remplie et que les autres conditions d’application de la disposition sont réunies, la présomption prévue par cette disposition s’applique malgré les paragraphes (2) et (3).

  • Marginal note:Exception

    (7) Les dispositions de la présente partie portant que la contrepartie d’une fourniture est réputée ne pas en être une, qu’une fourniture est réputée effectuée sans contrepartie ou qu’une personne est réputée ne pas avoir effectué une fourniture ne s’appliquent pas aux paragraphes (1) à (4).

• 109 (1) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (iv):

  • (iv.1) a TFSA,

• (2) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (vi):

  • (vi.1) a registered disability savings plan,

• (3) Subparagraph 149(5)(a)(xi) of the Act is repealed.

• (4) Paragraphs 149(5)(b) to (e) of the French version of the Act are replaced by the following:

  • b) la société de placement, au sens de cette loi;

  • c) la société de placement hypothécaire, au sens de cette loi;

  • d) la société de placement à capital variable, au sens de cette loi;

  • e) la société de placement appartenant à des non-résidents, au sens de cette loi;

• (5) Paragraph 149(5)(g) of the Act is replaced by the following:

  • (g) a prescribed person or a person of a prescribed class.

• (6) Subsections (1) to (3) and (5) apply in respect of any taxation year of a person that begins after July 22, 2016.

• (7) Subsection (4) is deemed to have come into force on March 1, 1994.

110 Subsection 155(1) of the French version of the Act is replaced by the following:

• 111 (1) Section 157 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Election for nil consideration — master pension entity

    (2.1) A person that is a participating employer of a pension plan and a master pension entity of the pension plan may jointly make an election in respect of taxable supplies made by the person to the master pension entity if

    A ≥ 90%

    where

    A

    is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year of the master pension entity that includes the day on which the election becomes effective.

  • Marginal note:Effect of subsection (2.1) election

    (2.2) For the purposes of this Part, every taxable supply made by a participating employer to a master pension entity at a time when a joint election made under subsection (2.1) by the participating employer and the master pension entity is in effect is deemed to have been made for no consideration.

• (2) Subsection 157(4) of the Act is replaced by the following:

  • Marginal note:Non-application of subsection (2.2)

    (3.1) Subsection (2.2) does not apply to

    • (a) a supply deemed under section 172.1 to have been made;

    • (b) a supply of property or a service that is not acquired by a master pension entity of a pension plan for consumption, use or supply by the master pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan;

    • (c) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer;

    • (d) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; or

    • (e) a supply made in prescribed circumstances or made by a prescribed person.

  • Marginal note:Joint revocation

    (4) The persons that have jointly made an election under subsection (2) or (2.1) may jointly revoke the election.

• (3) The portion of subsection 157(5) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Form of election and revocation

    (5) An election under subsection (2) or (2.1) and a revocation of an election under subsection (4) must

• (4) Subsections 157(6) to (10) of the Act are replaced by the following:

  • Marginal note:Cessation

    (6) An election made jointly under subsection (2) or (2.1) by a person that is a participating employer of a pension plan and by another person that is a pension entity of the pension plan or a master pension entity of the pension plan ceases to have effect on the earliest of

    • (a) the day on which the person ceases to be a participating employer of the pension plan,

    • (b) the day on which the other person ceases to be a pension entity of the pension plan or a master pension entity of the pension plan, as the case may be,

    • (c) the day on which a joint revocation of the election under subsection (4) becomes effective,

    • (d) the day specified in a notice of revocation of the election sent to the person under subsection (9), and

    • (e) in the case of an election under subsection (2.1), the first day of a fiscal year of the other person for which

      A < 90%

      where

      A

      is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year.

  • Marginal note:Notice of intent

    (7) If an election made jointly under subsection (2) or (2.1) by a participating employer of a pension plan and by a pension entity of the pension plan or a master pension entity of the pension plan is in effect at any time in a fiscal year of the participating employer and if the participating employer fails to account for, as and when required under this Part, any tax deemed to have been collected by the participating employer on the last day of the fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the participating employer and to the pension entity or the master pension entity, as the case may be, that the Minister proposes to revoke the election as of the first day of the fiscal year.

  • Marginal note:Representations to Minister

    (8) Upon receipt of a notice of intent, a participating employer must establish to the satisfaction of the Minister that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer under any of subsections 172.1(5) to (6.1) in respect of the pension plan.

  • Marginal note:Notice of revocation

    (9) If, after 60 days after the day on which the notice of intent was sent by the Minister to the participating employer, the Minister is not satisfied that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer on the last day of a particular fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of revocation”) to the participating employer and to the pension entity or master pension entity with which the participating employer made the election that the election is revoked as of the day specified in the notice of revocation, and that day is not to be earlier than the day specified in the notice of intent and must be the first day of any particular fiscal year.

  • Marginal note:Revocation — effect

    (10) For the purposes of this Part, an election under subsection (2) or (2.1) that has been revoked by the Minister under subsection (9) is deemed never to have been in effect on any day on or after the day specified in the notice of revocation.

• (5) Subsections (1) to (4) apply in respect of supplies made after July 21, 2016, other than

  • (a) a supply made by a person of all or part of property or a service, if the person acquired the property or service before the first fiscal year of the person that begins after July 21, 2016; and

  • (b) a supply made by a person of property or a service, if the person, before the first fiscal year of the person that begins after July 21, 2016, consumes or uses an employer resource, as defined in subsection 172.1(1) of the Act, of the person for the purpose of making the supply.