Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)
Full Document:
- HTMLFull Document: Budget Implementation Act, 2023, No. 1 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2023, No. 1 [3565 KB]
Assented to 2023-06-22
PART 1Amendments to the Income Tax Act and Other Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
44 (1) Paragraph 147.2(1)(a) of the Act is replaced by the following:
(a) in the case of a contribution in respect of a money purchase provision of a plan, the contribution was made in respect of periods before the end of the taxation year
(i) in accordance with the plan as registered, or
(ii) under subsection 147.1(20);
(2) Paragraph 147.2(4)(a) of the Act is replaced by the following:
Marginal note:Service after 1989
(a) the total of all amounts each of which is a contribution (other than a prescribed contribution) made by the individual in the year
(i) to a registered pension plan that is in respect of a period after 1989 or that is a prescribed eligible contribution, to the extent that the contribution was made in accordance with the plan as registered, or
(ii) under subsection 147.1(20);
(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2021.
45 (1) Paragraph 147.5(2)(f) of the Act is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):
(iii) a surrender of benefits payable to a qualifying survivor of a member after the member’s death, to the extent permitted under the Pooled Registered Pension Plans Act or a similar law of a province;
(2) Subsection 147.5(12) of the Act is replaced by the following:
Marginal note:Member’s account
(12) For the purposes of paragraph 18(1)(u), subparagraph (a)(i) of the definition excluded right or interest in subsection 128.1(10), paragraph 146(8.2)(b), subsection 146(8.21), paragraphs 146(16)(a) and (b), subparagraph 146(21)(a)(i), paragraph (b) of the definition excluded premium in subsection 146.01(1), paragraph (c) of the definition excluded premium in subsection 146.02(1), subsections 146.3(14) and 147(19) to (21), sections 147.3 and 160.2 and paragraphs 212(1)(j.1) and (m), and of regulations made under subsection 147.1(18), a member’s account under a PRPP is deemed to be a registered retirement savings plan under which the member is the annuitant.
(3) Subparagraph (b)(ii) of the description of B in subsection 147.5(18) of the Act is replaced by the following:
(ii) an amount distributed from the account to, or on behalf of, a qualifying survivor in relation to the member as a consequence of the death of the member.
(4) Subsections (1) to (3) are deemed to have come into force on August 9, 2022.
46 (1) Subsection 149(1) of the Act is amended by adding the following after paragraph (o.4):
Marginal note:Pension Benefits Guarantee Fund
(o.5) the Pension Benefits Guarantee Fund under the Pension Benefits Act, R.S.O. 1990, c. P.8, and any corporation established solely for investing the assets of the Pension Benefits Guarantee Fund;
(2) Paragraph 149(1.2)(a) of the Act is replaced by the following:
(a) under an agreement that meets the following conditions:
(i) the agreement is in writing between
(A) the corporation, commission or association, and
(B) a person who is His Majesty in right of Canada or of a province, a municipality, a municipal or public body or a corporation to which any of paragraphs (1)(d) to (d.6) applies and that is controlled by His Majesty in right of Canada or of a province, by a municipality in Canada or by a municipal or public body in Canada,
(ii) the agreement is applicable within the geographical boundaries of
(A) if the person is His Majesty in right of Canada or a corporation controlled by His Majesty in right of Canada, Canada,
(B) if the person is His Majesty in right of a province or a corporation controlled by His Majesty in right of a province, the province,
(C) if the person is a municipality in Canada or a corporation controlled by a municipality in Canada, the municipality, and
(D) if the person is a municipal or public body or a corporation controlled by such a body, the area described in subsection (11) in respect of the person,
(iii) the income earned from the activities carried on under the agreement is paid from the party described in clause (i)(B) to the party described in clause (i)(A), and
(iv) the activities under the agreement are activities normally carried out by a local government; or
(3) Subsection (1) applies to the 2022 and subsequent taxation years.
(4) Subsection (2) is deemed to have come into force on August 9, 2022.
47 (1) Paragraph 149.1(15)(a) of the Act is replaced by the following:
(a) the information contained in a public information return referred to in subsection (14) or (14.1), and the filing status of information returns required by that subsection, shall be communicated or otherwise made available to the public by the Minister in such manner as the Minister considers appropriate;
(2) Subparagraph 149.1(15)(b)(iii) of the Act is replaced by the following:
(iii) the effective date of any suspension, revocation, annulment or termination of registration; and
(3) Subsection (1) applies in respect of information returns required to be filed for taxation years that end after August 9, 2022.
(4) Subsection (2) is deemed to have come into force on August 9, 2022.
48 (1) Subsections 150.1(2.2) and (2.3) of the Act are replaced by the following:
Marginal note:Definition of tax preparer
(2.2) In this section and subsection 162(7.3), tax preparer, for a calendar year, means a person or partnership who, in the year, accepts consideration to prepare more than five returns of income of corporations, more than five returns of income of individuals (other than trusts) or more than five returns of income of estates or trusts, but does not include an employee who prepares returns of income in the course of performing their duties of employment.
Marginal note:Electronic filing — tax preparer
(2.3) A tax preparer shall file any return of income prepared by the tax preparer for consideration by way of electronic filing, except that five of the returns of corporations, five of the returns of individuals (other than trusts) and five of the returns of estates or trusts may be filed other than by way of electronic filing.
(2) Subsection 150.1(4) of the Act is replaced by the following:
Marginal note:Declaration
(4) If a return of income of a taxpayer for a taxation year is filed by way of electronic filing by a particular person (in this subsection referred to as the “filer”) other than the person who is required to file the return, the person who is required to file the return shall make an information return in prescribed form containing prescribed information, retain a copy of it and provide the filer with the information return, and that return and the copy shall be deemed to be a record referred to in section 230 in respect of the filer and the other person.
(3) Section 150.1 of the Act is amended by adding the following after subsection (4):
Marginal note:Electronic notice of assessment
(4.1) Notwithstanding subsection 244(14.1), a notice of assessment in respect of a return of income for a taxation year of an individual is presumed to have been sent to the individual and received by the individual on the day that it is made available, using electronic means, to the individual, if
(a) the return of income is filed by way of electronic filing; and
(b) the individual has authorized that notices or other communications may be made available in that manner and has not before that date revoked that authorization in a manner specified by the Minister.
(4) Subsections (1) and (3) come into force on January 1, 2024.
49 (1) Paragraph 152(1)(b) of the Act is replaced by the following:
(b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(2) Paragraph 152(1.2)(d) of the Act is replaced by the following:
(d) the Minister determines the amount deemed by any of subsections 122.5(3) to (3.003), 122.72(1) or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.
(3) Subparagraph 152(4)(b)(ii) of the French version of the Act is replaced by the following:
(ii) est établie par suite de l’établissement, en application du présent alinéa ou du paragraphe (6), d’une cotisation ou d’une nouvelle cotisation concernant l’impôt payable par un autre contribuable,
(4) Paragraph 152(4)(b.1) of the Act is replaced by the following:
(b.1) an information return described in subsection 237.1(7) that is required to be filed in respect of a deduction or claim made by the taxpayer in relation to a tax shelter is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the information return is filed;
(5) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.4):
(b.5) an information return that is required to be filed under subsection 237.3(2) in respect of a reportable transaction (as defined in subsection 237.3(1)) entered into by the taxpayer, or by a person for the benefit of the taxpayer, is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is
(i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the information return is filed, or
(ii) in any other case, three years after the day on which the information return is filed;
(b.6) an information return that is required to be filed under subsection 237.4(4) in respect of a notifiable transaction (as defined in subsection 237.4(1)) entered into by the taxpayer, or by a person for the benefit of the taxpayer, is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is
(i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the information return is filed, or
(ii) in any other case, three years after the day on which the information return is filed;
(b.7) an information return that is required to be filed under subsection 237.5(2) in respect of a reportable uncertain tax treatment (as defined in subsection 237.5(1)) of the taxpayer is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is
(i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the information return is filed, or
(ii) in any other case, three years after the day on which the information return is filed;
(6) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following:
Marginal note:Extended period of assessment
(4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which any of paragraphs (4)(a) to (b.1) or (b.3) to (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,
(7) The portion of paragraph 152(4.01)(b) of the Act before subparagraph (i) is replaced by the following:
(b) if any of paragraphs (4)(b), (b.1) or (b.5) to (c) applies to the assessment, reassessment or additional assessment,
(8) Paragraph 152(4.01)(b) of the Act is amended by striking out “or” at the end of subparagraph (vi) and by replacing subparagraph (vii) with the following:
(vii) the deduction or claim referred to in paragraph (4)(b.1),
(viii) the reportable transaction referred to in paragraph (4)(b.5),
(ix) the notifiable transaction referred to in paragraph (4)(b.6), or
(x) any transaction, or series of transactions, to which the reportable uncertain tax treatment referred to in paragraph (4)(b.7) relates;
(9) Paragraph 152(4.2)(b) of the Act is replaced by the following:
(b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.
(10) Subsections (4) to (8) apply to taxation years that begin after 2022.
- Date modified: