Budget Implementation Act, 2024, No. 1 (S.C. 2024, c. 17)

• 45 (1) Subparagraph (g)(i) of the definition excluded right or interest in subsection 128.1(10) of the English version of the Act is replaced by the following:

  • (i) the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act,

• (2) Subsection (1) is deemed to have come into force on August 4, 2023.

• 46 (1) The definition eligible refundable dividend tax on hand in subsection 129(4) of the Act is amended by striking out “and” at the end of subparagraph (a)(i) and by adding the following after subparagraph (a)(ii):

  • (iii) eligible dividends received by the particular corporation in a taxation year that began after 2018 from corporations (referred to in this subparagraph as “payer corporations”) that are connected with the particular corporation to the extent that such dividends

    • (A) caused a dividend refund to those payer corporations from their refundable dividend tax on hand at the end of their first taxation year that ended after 2018, and

    • (B) are not otherwise included in determining the particular corporation’s eligible refundable dividend tax on hand, and

• (2) Subsection (1) applies to taxation years beginning after 2018.

• 47 (1) Subsection 131(4.1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) if the old share and the new share are not shares of the same class but are shares of Capital régional et coopératif Desjardins,

    • (i) the old share and the new share derive their value in the same proportion from the same property or group of properties, and

    • (ii) the shares are recognized under securities legislation as or as part of the same investment fund.

• (2) Subsection (1) applies to the exchange or other disposition of a share on or after October 25, 2018.

• 48 (1) Subparagraph (a)(ii) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following:

  • (ii) d’une entreprise qu’il exploite soit seul, soit comme associé participant activement à l’exploitation de l’entreprise,

• (2) Paragraph (c) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following:

  • c) soit son revenu, sauf un montant visé à l’alinéa 12(1)z), pour une période de l’année tout au long de laquelle il ne résidait pas au Canada tiré, selon le cas, des fonctions d’une charge ou d’un emploi qu’il remplit au Canada, compte non tenu des alinéas 8(1)c), m) et m.2), ou d’une entreprise qu’il exploite au Canada, soit seul, soit comme associé participant activement à l’exploitation de l’entreprise, sauf dans la mesure où ce revenu est exonéré de l’impôt sur le revenu au Canada par l’effet d’une disposition d’un accord ou convention fiscal conclu avec un autre pays et ayant force de loi au Canada;

• (3) Subparagraph (e)(i) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following:

  • (i) d’une entreprise qu’il exploite soit seul, soit comme associé participant activement à l’exploitation de l’entreprise,

• (4) Paragraph (g) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following:

  • g) soit sa perte pour une période de l’année tout au long de laquelle il n’a pas résidé au Canada, provenant d’une entreprise qu’il exploite au Canada, soit seul, soit comme associé participant activement à l’exploitation de l’entreprise;

• (5) Subsection 146(8.1) of the Act is replaced by the following:

  • Marginal note:Deemed receipt of refund of premiums

    (8.1) An individual and the legal representative of a deceased annuitant of a registered retirement savings plan may jointly designate in prescribed form filed with the Minister that all or a portion of a payment made out of or under the plan to the legal representative is deemed to have been received by the individual at the time it was so paid as a benefit that is a refund of premiums, and not to have been paid to the legal representative, if

    • (a) a payment not less than the designated amount is made from the estate of the deceased annuitant to the individual who is entitled to receive the payment

      • (i) as a beneficiary (as defined in subsection 108(1)) under the estate, or

      • (ii) under a decree, order or judgment of a competent tribunal or under a written agreement, relating to the rights or interests of a spouse or common-law partner in respect of property as a result of marriage or common-law partnership; and

    • (b) the designated amount would have been a refund of premiums if it had been paid to the individual directly from the registered retirement savings plan.

• (6) The portion of subsection 146(8.93) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Application du paragraphe (8.92)

    (8.93) À moins que le ministre n’ait renoncé par écrit à appliquer le présent paragraphe à l’égard de tout ou partie de la somme déterminée selon le paragraphe (8.92) relativement à un régime enregistré d’épargne-retraite, ce paragraphe ne s’applique pas dans l’une des circonstances suivantes :

• (7) The portion of subsection 146(16) of the French version of the Act before paragraph (d) is replaced by the following:

  • Marginal note:Transfert de biens

    (16) Malgré les autres dispositions du présent article, un régime enregistré d’épargne-retraite peut, à un moment donné, être révisé ou modifié de façon à prévoir le versement ou le transfert, avant son échéance, par l’émetteur de biens accumulés pour le compte du rentier du régime (appelé « cédant » au présent paragraphe) :

    • a) soit à un régime de pension agréé, au profit du cédant, ou à un régime enregistré d’épargne-retraite ou un fonds enregistré de revenu de retraite dont le cédant est rentier;

    • a.1) soit à un fournisseur de rentes autorisé afin d’acquérir une rente viagère différée à un âge avancé au profit du cédant;

    • b) soit à un régime enregistré d’épargne-retraite ou un fonds enregistré de revenu de retraite dont l’époux ou le conjoint de fait ou l’ex-époux ou ancien conjoint de fait du cédant est rentier, si le cédant et son époux ou conjoint de fait ou ex-époux ou ancien conjoint de fait vivent séparément et si le versement ou le transfert est effectué en vertu d’une ordonnance ou d’un jugement rendus par un tribunal compétent ou en vertu d’un accord écrit de séparation, visant à partager des biens entre le cédant et son époux ou conjoint de fait ou ex-époux ou ancien conjoint de fait, en règlement des droits découlant du mariage ou de l’union de fait ou de son échec.

    Dans le cas où un tel versement ou transfert est effectué pour le compte du cédant avant l’échéance du régime, les règles suivantes s’appliquent :

    • c) le montant du versement ou du transfert ne peut, en raison seulement du versement ou du transfert, être inclus dans le calcul du revenu du cédant ou de son époux ou conjoint de fait ou ex-époux ou ancien conjoint de fait;

• (8) Subsection 146(21.2) of the Act is replaced by the following:

  • Marginal note:Specified pension plan — account

    (21.2) For the purposes of paragraph (8.2)(b), subsection (8.21), paragraphs (16)(a) and (b) and 18(1)(u), section 60.011, subparagraph (a)(i) of the definition excluded right or interest in subsection 128.1(10), 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), section 147.3 and paragraphs 147.5(21)(c) and 212(1)(j.1) and (m) and for the purposes of any regulations made under subsection 147.1(18), an individual’s account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant.

• (9) Subsection (5) is deemed to have come into force on January 1, 2020.

• (10) Subsection (8) is deemed to have come into force on August 4, 2023.

• 49 (1) Paragraph (h) of the definition regular eligible amount in subsection 146.01(1) of the Act is replaced by the following:

  • (h) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $60,000, and

• (2) Paragraph (g) of the definition supplemental eligible amount in subsection 146.01(1) of the Act is replaced by the following:

  • (g) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $60,000, and

• (3) The portion of subsection 146.01(4) of the Act before the formula is replaced by the following:

  • Marginal note:Portion of eligible amount not repaid

    (4) Subject to subsection (4.1), there shall be included in computing an individual’s income for a particular taxation year included in a particular participation period of the individual the amount determined by the formula

• (4) Section 146.01 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Temporary repayment relief — application

    (4.1) If the completion date in respect of an eligible amount received by an individual is after 2022 and before 2027

    • (a) subparagraphs (a)(i) and (ii) of the description of A in subsection (4) are to be read as follows:

      • “(i) the individual died or ceased to be resident in Canada in the particular year,

      • (ii) the completion date in respect of an eligible amount received by the individual was in the particular year, or

      • (iii) subsection (4.2) applies to the particular year and to an eligible amount received by the individual”;

    • (b) paragraph (a) of the description of B in subsection (4) is to be read as follows:

      • “(a) nil, if the amount determined for A, after the application of paragraph (4.1)(a), was nil in the preceding taxation year, and”;

    • (c) the reference to “first calendar year” in paragraph (b) of the description of D in subsection (4) is to be read as a reference to “fourth calendar year”; and

    • (d) paragraph (a) of the description of E in subsection (4) is to be read as follows:

      • “(a) if the preceding taxation year is the year that includes the completion date, or one of the three taxation years immediately following the year that includes the completion date, the total of all amounts each of which is designated under subsection (3) by the individual for the particular taxation year or any preceding taxation year included in the particular period, and”.

  • Marginal note:Temporary repayment relief — conditions

    (4.2) This subsection applies to a taxation year and to an eligible amount received by an individual if

    • (a) the year is 2024 and the completion date in respect of the amount was in 2023;

    • (b) the year is 2025 and the completion date in respect of the amount was in 2023 or 2024;

    • (c) the year is 2026 and the completion date in respect of the amount was in 2023, 2024 or 2025;

    • (d) the year is 2027 and the completion date in respect of the amount was in 2024, 2025 or 2026;

    • (e) the year is 2028 and the completion date in respect of the amount was in 2025 or 2026; and

    • (f) the year is 2029 and the completion date in respect of the amount was in 2026.

• (5) Subsections (1) and (2) apply to the 2024 and subsequent taxation years in respect of amounts received after April 16, 2024.

• (6) Subsections (3) and (4) apply to the 2024 and subsequent taxation years.

50 The portion of subsection 146.3(6.4) of the French version of the Act before paragraph (a) is replaced by the following:

• 51 (1) The portion of paragraph 146.4(4)(f) of the French version of the Act before subparagraph (i) is replaced by the following:

  • f) le régime ne permet pas que des cotisations y soient versées, à un moment donné, dans l’une des circonstances suivantes :

• (2) The portion of paragraph 146.4(4)(g) of the French version of the Act before subparagraph (i) is replaced by the following:

  • g) le régime ne permet pas qu’une cotisation y soit versée, à un moment donné, dans l’une des circonstances suivantes :

• 52 (1) Paragraph 147.4(1)(c) of the Act is replaced by the following:

  • (c) the contract does not permit premiums to be paid at or after that time, other than

    • (i) a premium paid at that time out of or under the plan to purchase the contract, or

    • (ii) a premium paid after that time to acquire additional benefits consequential to proceedings commenced under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act,

• (2) Subsection (1) is deemed to have come into force on January 1, 2018.

• 53 (1) 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), section 60.011, 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.

• (2) Subsection (1) is deemed to have come into force on August 4, 2023.

54 Subsection 149.1(14.1) of the French version of the Act is replaced by the following: