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Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)

Assented to 2019-06-21

PART 1Income Tax Act and Other Legislation (continued)

R.S., c. 1 (5th Supp.)Income Tax Act (continued)

  •  (1) The portion of subsection 253.1(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Investments in limited partnerships

      (2) For the purposes of section 149.1 and subsections 188.1(1) and (2), if a registered charity, a registered Canadian amateur athletic association or a registered journalism organization holds an interest as a member of a partnership, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business of the partnership if

  • (2) Subsection (1) comes into force on January 1, 2020.

R.S., c. C-8Canada Pension Plan

Amendments to the Act

 The Canada Pension Plan is amended by adding the following after section 21:

Marginal note:Excess payment — amount deemed not deducted

  • 21.01 (1) Subject to subsection (2), an amount deducted by an employer under subsection 21(1) for a year after 2015 in respect of an excess payment that was paid — as a result of a clerical, administrative or system error — as remuneration to an employee in respect of pensionable employment is deemed not to have been deducted for the purposes of this Act if

    • (a) before the end of the third year after the calendar year in which the amount was deducted,

      • (i) the employer elects to have this section apply in respect of the amount, and

      • (ii) the employee has repaid, or made an arrangement to repay, the employer;

    • (b) the employer has not filed an information return correcting for the excess payment before making the election referred to in subparagraph (a)(i); and

    • (c) any additional conditions specified by the Minister are met.

  • Marginal note:Determination of amount

    (2) For the purposes of subsection (1), the amount that is deemed not to have been deducted is the amount that was deducted by the employer or, if the amount determined by the following formula is less than the amount that was deducted by the employer, the amount determined by the formula

    A − B

    where

    A
    is the aggregate of all amounts that were deducted by the employer as the employee’s contributions for the year in question; and
    B
    is the aggregate of all amounts that would have been deducted by the employer as the employee’s contributions for that year had the employer not made the excess payment referred to in subsection (1).
  •  (1) Section 38 of the Act is amended by adding the following after subsection (3.2):

    • Marginal note:Refund — section 21.01 amounts

      (3.3) If an amount remitted by an employer is deemed under section 21.01 not to have been deducted, the Minister may refund that amount to the employer if the employer applies to the Minister for the refund within four years after the end of the year for which the amount was remitted.

  • (2) Section 38 of the Act is amended by adding the following after subsection (7):

    • Marginal note:Non-application — subsection (7)

      (8) Subsection (7) does not apply in respect of an amount referred to in subsection (3.3) that is refunded or applied under this Act to any other liability.

Coming into Force

Marginal note:Non-application — subsection 114(2) of Canada Pension Plan

  •  (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in sections 45 and 46 of this Act.

  • Marginal note:Order in council

    (2) Sections 45 and 46 come into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.

R.S., c. C-51Cultural Property Export and Import Act

Marginal note:1991, c. 49, s. 218(1)

  •  (1) Subsection 32(1) of the Cultural Property Export and Import Act is replaced by the following:

    Marginal note:Request for determination of Review Board

    • 32 (1) For the purposes of subparagraph 39(1)(a)(i.1), paragraph 110.1(1)(c), the definition total cultural gifts in subsection 118.1(1) and subsection 118.1(10) of the Income Tax Act, where a person disposes of or proposes to dispose of an object to an institution or a public authority designated under subsection (2), the person, institution or public authority may request, by notice in writing given to the Review Board, a determination by the Review Board as to whether the object meets the criterion set out in paragraph 29(3)(b) and a determination by the Review Board of the fair market value of the object.

  • (2) Subsection (1) is deemed to have come into force on March 19, 2019.

Marginal note:1995, c. 38, s. 2

  •  (1) Subsection 33(1) of the Act is replaced by the following:

    Marginal note:Income tax certificate

    • 33 (1) Where the Review Board determines or redetermines the fair market value of an object in respect of which a request was made under section 32 and determines that the object meets the criterion set out in paragraph 29(3)(b), it shall, where the object has been irrevocably disposed of to a designated institution or public authority, issue to the person who made the disposition a certificate attesting to the fair market value and to the meeting of that criterion , in such form as the Minister of National Revenue may specify.

  • (2) Subsection (1) is deemed to have come into force on March 19, 2019.

1996, c. 23Employment Insurance Act

 The Employment Insurance Act is amended by adding the following after section 82:

Marginal note:Excess payment — amount deemed not deducted

  • 82.01 (1) Subject to subsection (2), an amount deducted by an employer under subsection 82(1) for a year after 2015 in respect of an excess payment that was paid — as a result of a clerical, administrative or system error — as remuneration to an insured person is deemed not to have been deducted for the purposes of this Act if

    • (a) before the end of the third year after the calendar year in which the amount was deducted,

      • (i) the employer elects to have this section apply in respect of the amount, and

      • (ii) the insured person has repaid, or made an arrangement to repay, the employer;

    • (b) the employer has not filed an information return correcting for the excess payment before making the election referred to in subparagraph (a)(i); and

    • (c) any additional conditions specified by the Minister are met.

  • Marginal note:Determination of amount

    (2) For the purposes of subsection (1), the amount that is deemed not to have been deducted is the amount that was deducted by the employer or, if the amount determined by the following formula is less than the amount that was deducted by the employer, the amount determined by the formula

    A − B

    where

    A
    is the aggregate of all amounts that were deducted by the employer as the employee’s premiums for the year in question; and
    B
    is the aggregate of all amounts that would have been deducted by the employer as the employee’s premiums for that year had the employer not made the excess payment referred to in subsection (1).
  •  (1) Section 96 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Refund — section 82.01 amounts

      (3.1) If an amount remitted by an employer is deemed under section 82.01 not to have been deducted, the Minister may refund that amount to the employer if the employer applies to the Minister for the refund within three years after the end of the year for which the amount was remitted.

  • Marginal note:2014, c. 39, s. 225(2)

    (2) Subsection 96(13.1) of the Act is replaced by the following:

    • Marginal note:No interest payable

      (13.1) Despite subsection (13), no interest shall be paid on a refund payable under subsection (3.1), (8.7), (8.91), (8.94), (8.97) or (8.98) or on the amount of a refund payable under any of those subsections that is applied under this Act to any other liability.

 

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