Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)
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Assented to 2018-12-13
PART 1Amendments to the Income Tax Act and to Other Legislation (continued)
R.S., c. C-46Criminal Code
28 Paragraph 462.48(2)(c) of the Criminal Code is replaced by the following:
(c) the type of information or book, record, writing, return or other document obtained by or on behalf of the Minister of National Revenue for the purposes of the Income Tax Act, Part IX of the Excise Tax Act or the Excise Act, 2001 to which access is sought or that is proposed to be examined or communicated; and
R.S., c. 30 (4th Supp.)Mutual Legal Assistance in Criminal Matters Act
29 The definition agreement in subsection 2(1) of the Mutual Legal Assistance in Criminal Matters Act is replaced by the following:
- agreement
agreement means
(a) a treaty, convention or other international agreement that is in force, to which Canada is a party and that contains a provision respecting mutual legal assistance in criminal matters, or
(b) to the extent of their application to criminal investigations or prosecutions and except for the purposes of Parts II and III of this Act, the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol or other international instrument, as ratified by Canada, or a comprehensive tax information exchange agreement that has effect and to which Canada is a party or a tax treaty, as defined in subsection 248(1) of the Income Tax Act; (accord)
30 Subsection 5(1) of the Act is replaced by the following:
Marginal note:Publication in Canada Gazette
5 (1) Unless the agreement has been published under subsection (2), an agreement referred to in paragraph (a) of the definition agreement in subsection 2(1) — or the provisions respecting mutual legal assistance in criminal matters contained in a convention or other international agreement — must be published in the Canada Gazette no later than 60 days after it comes into force.
31 Section 7 of the Act is replaced by the following:
Marginal note:Functions of Minister
7 (1) The Minister is responsible for the implementation of every agreement referred to in paragraph (a) of the definition agreement in subsection 2(1) and for the administration of this Act.
Marginal note:How request dealt with
(2) When a request is made to the Minister under an agreement referred to in paragraph (a) of the definition agreement in subsection 2(1) by a state or entity or a Canadian competent authority, the Minister shall deal with the request in accordance with the agreement and this Act.
Marginal note:How request dealt with
(3) When a request made by a state or entity under an agreement referred to in paragraph (b) of the definition agreement in subsection 2(1) is presented to the Minister by the Minister of National Revenue, the Minister shall deal with the request in accordance with the agreement and this Act.
32 Subsection 8(1) of the Act is replaced by the following:
Marginal note:Limitation — requests under agreements
8 (1) If a request for mutual legal assistance is made under an agreement, the Minister may not give effect to the request by means of the provisions of this Part unless the agreement provides for assistance with respect to the subject-matter of the request.
33 The Act is amended by adding the following after section 22.05:
Marginal note:Orders to gather tax information
22.06 (1) A judge of the province to whom an application is made under subsection 17(2) with respect to an investigation or prosecution relating to an act or omission that, if it had occurred in Canada, would have constituted an offence referred to in subsection 462.48(1.1) of the Criminal Code may make an order for the gathering of the information or documents referred to in paragraph 462.48(2)(c) of that Act.
Marginal note:Criminal Code applies
(2) Subject to subsection (3), an order made under subsection (1) may be obtained and made in accordance with subsections 462.48(1) to (5) of the Criminal Code and executed in the manner provided for in that Act, with any necessary modifications.
Marginal note:Provisions applicable to order
(3) Paragraphs 18(2)(b) and (c), subsections 18(3) to (9) and sections 19 to 22, other than paragraph 19(1)(a), apply, with any necessary modifications, in respect of an order made under subsection (1) and prevail over any provisions of the Criminal Code that are inconsistent with them.
2016, c. 14An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act
34 Subsection 66(1) of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act is
(a) amended by replacing the clause 60(e)(ii)(A) that it enacts with the following:
(A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.1) or (1.2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and
(b) amended by replacing the subparagraph 60(e.1)(i) that it enacts with the following:
(i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.1) or (1.2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and
C.R.C., c. 945Income Tax Regulations
35 (1) The Income Tax Regulations are amended by adding the following after section 202:
Marginal note:Requirement to file
203 Every institution that is a designated educational institution (as defined in subsection 118.6(1) of the Act) because of paragraph (a) of that definition shall make an information return in prescribed form in respect of each individual enrolled at that institution who is a qualifying student (as defined in subsection 118.6(1)) for a month in a taxation year.
(2) Subsection (1) applies to the 2019 and subsequent taxation years.
36 (1) Subsection 205(3) of the Regulations is amended by adding the following in alphabetical order:
Tuition and Enrolment Certificate (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2019.
37 (1) Subsection 205.1(1) of the Regulations is amended by adding the following in alphabetical order:
Tuition and Enrolment Certificate (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2019.
38 (1) Subsection 209(1) of the Regulations is replaced by the following:
209 (1) A person who is required by section 200, 201, 202, 203, 204, 212, 214, 215, 217 or 218, subsection 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer.
(2) Subsection 209(5) of the Regulations is replaced by the following:
(5) A person may provide a Statement of Remuneration Paid (T4) information return or a Tuition and Enrolment Certificate, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless
(a) the specified criteria referred to in section 221.01 of the Act are not met;
(b) the taxpayer has requested that the information return be provided in paper format; or
(c) at the time the return is required to be issued,
(i) if the return is a T4, the taxpayer is on extended leave or is no longer an employee of the person, or
(ii) the taxpayer cannot reasonably be expected to have access to the information return in electronic format.
(3) Subsections (1) and (2) come into force or are deemed to have come into force on January 1, 2019.
39 (1) The definition designated person or partnership in subsection 5907(1) of the Regulations is replaced by the following:
- designated person or partnership
designated person or partnership, in respect of a taxpayer at any time, means
(a) the taxpayer,
(b) a person or partnership that is at that time
(i) a person (other than a partnership) that does not, at that time, deal at arm’s length with the taxpayer, or
(ii) a partnership a member of which is, at that time, a designated person or partnership in respect of the taxpayer under this definition, and
(c) if a foreign affiliate of the taxpayer is an original corporation that undergoes a division in respect of which subsection 15(1.5) of the Act applies, a new corporation in respect of the division; (personne ou société de personnes désignée)
(2) The portion of subparagraph 5907(2)(f)(ii) of the Regulations before clause (A) is replaced by the following:
(ii) subject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,
(3) The portion of subparagraph 5907(2)(j)(iii) of the Regulations before clause (A) is replaced by the following:
(iii) subject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,
(4) Section 5907 of the Regulations is amended by adding the following after subsection (2.01):
(2.011) Subparagraphs (2)(f)(ii) and (j)(iii) and subsection (5.1) do not apply to a particular disposition of property (referred to in this subsection as the “affiliate property”) by a particular foreign affiliate of a taxpayer to another foreign affiliate of the taxpayer if
(a) the particular disposition is a disposition referred to in subparagraph 15(1.5)(c)(i) of the Act;
(b) all of the shares of the capital stock of the other affiliate are owned, at a particular time that is within 180 days after the day that includes the time of the particular disposition, by a person or partnership that at the particular time is not a designated person or partnership in respect of the taxpayer; and
(c) the affiliate property is not disposed of by the other affiliate as part of a series of transactions or events that includes the particular disposition.
(5) Subsection (1) is deemed to have come into force on July 27, 2018.
(6) Subsections (2) to (4) apply in respect of dispositions that occur after October 23, 2012.
Coordinating Amendments
Marginal note:2016, c. 14
40 (1) If subsection 66(1) of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (in this section referred to as the “other Act”) comes into force before section 34 of this Act, then
(a) that section 34 is deemed never to have come into force and is repealed;
(b) clause 60(e)(ii)(A) of the Income Tax Act is replaced by the following:
(A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.1) or (1.2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and
(c) subparagraph 60(e.1)(i) of the Act is replaced by the following:
(i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.1) or (1.2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and
(2) If subsection 66(1) of the other Act comes into force on the same day as section 34 of this Act, that section 34 is deemed to have come into force before that subsection 66(1).
PART 2Amendments to the Excise Tax Act (GST/HST Measures) and to Related Legislation
R.S., c. E-15Excise Tax Act
41 (1) Subsection 123(1) of the Excise Tax Act is amended by adding the following in alphabetical order:
- emission allowance
emission allowance means
(a) an allowance, credit or similar instrument (other than a prescribed allowance, credit or instrument) that
(i) is issued or created by, or on behalf of,
(A) a government, a government of a foreign country, a government of a political subdivision of a country, a supranational organization or an international organization (each of which is in this definition referred to as a “regulator”),
(B) a board, commission or other body established by a regulator, or
(C) an agency of a regulator,
(ii) can be used to satisfy a requirement under
(A) a scheme or arrangement implemented by, or on behalf of, a regulator to regulate greenhouse gas emissions, or
(B) a prescribed scheme or arrangement, and
(iii) represents a specific quantity of greenhouse gas emissions expressed as carbon dioxide equivalent, or
(b) a prescribed property; (unité d’émission)
- investment limited partnership
investment limited partnership means a limited partnership, the primary purpose of which is to invest funds in property consisting primarily of financial instruments, if
(a) the limited partnership is, or forms part of an arrangement or structure that is, represented or promoted as a hedge fund, investment limited partnership, mutual fund, private equity fund, venture capital fund or other similar collective investment vehicle, or
(b) the total value of all interests in the limited partnership held by listed financial institutions is 50% or more of the total value of all interests in the limited partnership; (société en commandite de placement)
(2) The definition emission allowance, as enacted by subsection (1), is deemed to have come into force on June 27, 2018 but also applies in respect of any supply made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day.
(3) The definition investment limited partnership, as enacted by subsection (1), is deemed to have come into force on September 8, 2017.
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