Fall Economic Statement Implementation Act, 2023 (S.C. 2024, c. 15)

Marginal note:Definitions

• 127.47 (1) The following definitions apply in this section.

  at-risk amount

  at-risk amount has the meaning assigned by subsection 96(2.2). (fraction à risques)

  clean economy allocation provision

  clean economy allocation provision means

  • (a) subsection 127.44(11); or

  • (b) subsection 127.45(8). (disposition d’allocation pour l’économie propre)

  clean economy expenditure

  clean economy expenditure means

  • (a) a qualified CCUS expenditure as determined under section 127.44; or

  • (b) the capital cost of clean technology property as determined under section 127.45. (dépense pour l’économie propre)

  clean economy provision

  clean economy provision means

  • (a) this section;

  • (b) section 127.44 and Part XII.7;

  • (c) section 127.45; or

  • (d) section 127.46. (disposition pour l’économie propre)

  clean economy tax credit

  clean economy tax credit means

  • (a) a CCUS tax credit (as defined in subsection 127.44(1)); or

  • (b) a clean technology investment tax credit (as defined in subsection 127.45(1)). (crédit d’impôt pour l’économie propre)

  limited partner

  limited partner has the meaning assigned by subsection 96(2.4) if that subsection were read without reference to “if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and”. (commanditaire)

• Marginal note:Credits in unreasonable proportions

  (2) If the members of a partnership agree to share the amount of a clean economy tax credit of the partnership and the share of any member of that amount is not reasonable in the circumstances having regard to the capital invested in or work performed for the partnership by the members of the partnership or such other factors as may be relevant, that share shall, notwithstanding any agreement, be deemed to be the amount that is reasonable in the circumstances.

• Marginal note:Limited partners

  (3) Notwithstanding subsection (2), if a taxpayer is a limited partner of a partnership at the end of a fiscal period of the partnership, the total of all clean economy tax credits allocated to the taxpayer by the partnership in respect of that fiscal period shall not exceed the taxpayer’s at-risk amount in respect of the partnership at the end of that fiscal period.

• Marginal note:Apportionment rule

  (4) The amount required by any clean economy allocation provision to be added in computing a particular clean economy tax credit of a taxpayer in respect of a partnership for the taxation year in which the partnership’s fiscal period ends is deemed to be the portion of the amount otherwise determined under this section in respect of the taxpayer that is reasonably attributable to each particular clean economy tax credit.

• Marginal note:Assistance received by member of partnership

  (5) For the purposes of computing a clean economy tax credit, if, at a particular time, a taxpayer that is a member of a partnership has received, is entitled to receive or can reasonably be expected to receive government assistance or non-government assistance (as defined in subsection 127(9)), the amount of that assistance that may reasonably be considered to be in respect of a clean economy expenditure of the partnership shall be deemed to have been received at that time by the partnership as government assistance or non-government assistance, as the case may be, in respect of the expenditure.

• Marginal note:Credit received by member of partnership

  (6) For the purposes of subsection 13(7.1), if, pursuant to an allocation from a partnership under a clean economy allocation provision, an amount is added in computing a clean economy tax credit of a taxpayer at the end of the taxpayer’s taxation year, the amount shall be deemed to have been received by the partnership at the end of its fiscal period in respect of which the allocation was made as assistance from a government for the acquisition of depreciable property.

• Marginal note:Tiered partnerships

  (7) For the purposes of each clean economy provision, a person or partnership that is (or is deemed by this subsection to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership.

• (d.3) where, by reason of paragraph (d), a taxation year of the individual is not a calendar year,

  • (i) for the purposes of the application of subsection 146.6(1) and the definition excess FHSA amount in subsection 207.01(1) to each taxation year ending in the calendar year, references to “taxation year” are to be read as references to “calendar year”, and

  • (ii) for the purposes of the application of subsection 146.6(5) to each taxation year ending in the calendar year, the description of A in paragraph 146.6(5)(a) is to be read as follows:

    “A

    is the total of all amounts each of which is the taxpayer’s annual FHSA limit for the calendar year that includes the taxation year and each preceding calendar year, and”

• (b) shall, with all due dispatch, make the dividend refund after sending the notice of assessment if an application for it has been made in writing by the corporation within the period within which the Minister would be allowed

  • (i) under subsection 152(4) to assess tax payable under this Part by the corporation for the year if that subsection were read without reference to paragraph 152(4)(a), or

  • (ii) under subsection 152(4.31) to assess tax payable under Part IV by the corporation for the year if the Minister has assessed the corporation’s tax payable under that Part for the year under subsection 152(4.31).

eligible portion

eligible portion of a corporation’s taxable capital gains or allowable capital losses for a taxation year is the total of all amounts each of which is the portion of a taxable capital gain or an allowable capital loss, as the case may be, of the corporation for the year from a disposition of a property that, except where the property was a designated property (within the meaning assigned by subsection 89(1)), cannot reasonably be regarded as having accrued while the property, or a property for which it was substituted, was property of a corporation other than a Canadian-controlled private corporation, a substantive CCPC, an investment corporation, a mortgage investment corporation or a mutual fund corporation. (fraction admissible)

• (a) if the corporation was a Canadian-controlled private corporation throughout the year or a substantive CCPC at any time in the year, the least of

• (f) any security (in this paragraph and paragraph (g), as defined in subsection 122.1(1)) of the trust that is held by a trust governed by a deferred profit sharing plan, FHSA, RDSP, RESP, RRIF, RRSP or TFSA (referred to in this paragraph and paragraph (g) as the “registered plan trust”) is deemed not to be a qualified investment for the registered plan trust;

• (g) if a registered plan trust governed by a TFSA or FHSA acquires at any time a security of the trust, Part XI.01 applies in respect of the security as though the acquisition is an advantage

  • (i) in relation to the TFSA or the FHSA, as the case may be, that is extended at that time to the controlling individual of the registered plan trust, and

• (a) it is

  • (i) a federal credit union, or

  • (ii) a provider of financial services that is organized on cooperative principles and incorporated by or under an Act of the legislature of a province,

• (i) incorporated as credit unions or cooperative credit societies, each of which is described in paragraph (a), or all or substantially all of the members of which were credit unions, cooperatives or a combination of those entities,

• (b) a registered retirement savings plan, a registered retirement income fund, a TFSA, a FHSA or a registered education savings plan, the annuitant, holder or subscriber under which is a person described in paragraph (a). (membre)

• (b) was an amount transferred directly from a FHSA, registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan,

• (c) was an amount transferred directly from a FHSA, registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan; or

• (c) an individual who is a qualifying family member in relation to the beneficiary if

  • (i) at or before that time, the beneficiary has attained the age of majority and, other than for the purposes of paragraph (4)(b.1), is not a beneficiary under a disability savings plan,

• Marginal note:Beneficiary replacing holder

  (1.5) Any holder of a disability savings plan who was a qualifying person in relation to the beneficiary under the plan at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1), or who was a successor holder because of paragraph (4)(b.1), ceases to be a holder of the plan and the beneficiary becomes the holder of the plan if

• Marginal note:Entity replacing holder

  (1.6) If an entity described in subparagraph (a)(ii) or (iii) of the definition qualifying person in subsection (1) is appointed in respect of a beneficiary of a disability savings plan and a holder of the plan was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of that definition, or was a successor holder because of paragraph (4)(b.1),

• Marginal note:Rules applicable in case of dispute

  (1.7) If a dispute arises as a result of an issuer’s acceptance of a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1), or who was a successor holder because of paragraph (4)(b.1), as a holder of a disability savings plan, from the time the dispute arises until the time that the dispute is resolved or an entity becomes the holder of the plan under subsection (1.5) or (1.6), the holder of the plan shall use their best efforts to avoid any reduction in the fair market value of the property held by the plan trust, having regard to the reasonable needs of the beneficiary under the plan.

• (iv) a qualifying person (other than a person described in paragraph (c) of the definition qualifying person in subsection (1)) in relation to the beneficiary at the time the rights are acquired, or

• (b.1) before 2027, as a consequence of the death of a qualifying family member who was the remaining holder of the plan immediately before death, the plan may allow one qualifying family member — in respect of which the conditions set out in paragraph (c) of the definition qualifying person in subsection (1) are met — to acquire rights as a successor of the holder of the plan;

• (e) if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1), or who was a successor holder because of paragraph (4)(b.1),

• Marginal note:Issuer’s liability

  (14) If, after reasonable inquiry, an issuer of a disability savings plan is of the opinion that an individual’s contractual competence to enter into a disability savings plan is in doubt, no action lies against the issuer for

  • (a) entering into a plan, under which the individual is the beneficiary, with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1); or

  • (b) allowing a qualifying family member to acquire rights as a successor of the holder of the plan under paragraph (4)(b.1).