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Income Tax Regulations (C.R.C., c. 945)

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Regulations are current to 2022-08-08 and last amended on 2022-06-23. Previous Versions

PART XXXVIIRegistered Charities

[
  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/94-686, s. 51(F)
]

 [Repealed, 2010, c. 25, s. 83]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/87-632, s. 1
  • SOR/94-686, ss. 51(F), 73(F)
  • 2007, c. 35, s. 75
  • 2010, c. 25, s. 83

Disbursement Quota

  •  (1) For the purposes of the description of B in the definition disbursement quota in subsection 149.1(1) of the Act, the prescribed amount for a taxation year of a registered charity is determined as follows:

    • (a) choose a number, not less than two and not more than eight, of equal and consecutive periods that total twenty-four months and that end immediately before the beginning of the year;

    • (b) aggregate for each period chosen under paragraph (a) all amounts, each of which is the value, determined in accordance with section 3702, of a property, or a portion of a property, owned by the registered charity, and not used directly in charitable activities or administration, on the last day of the period;

    • (c) aggregate all amounts, each of which is the aggregate of values determined for each period under paragraph (b); and

    • (d) divide the aggregate amount determined under paragraph (c) by the number of periods chosen under paragraph (a).

  • (2) For the purposes of subsection (1) and subject to subsection (3),

    • (a) the number of periods chosen by a registered charity under paragraph (1)(a) shall, unless otherwise authorized by the Minister, be used for the taxation year and for all subsequent taxation years; and

    • (b) a registered charity is deemed to have existed on the last day of each of the periods chosen by it.

  • (3) The number of periods chosen under paragraph (1)(a) may be changed by the registered charity for its first taxation year commencing after 1986 and the new number shall, unless otherwise authorized by the Minister, be used for that taxation year and all subsequent taxation years.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/87-632, s. 1
  • SOR/94-686, s. 51(F)
  • 2010, c. 25, s. 84

Determination of Value

  •  (1) For the purposes of subsection 3701(1), the value of a property, or a portion of a property, owned by a registered charity, and not used directly in charitable activities or administration, on the last day of a period is determined as of that day to be

    • (a) in the case of a non-qualified investment of a private foundation, the greater of its fair market value on that day and its cost amount to the private foundation;

    • (b) subject to paragraph (c), in the case of property other than a non-qualified investment that is

      • (i) a share of a corporation that is listed on a designated stock exchange, the closing price or the average of the bid and asked prices of that share on that day or, if there is no closing price or bid and asked prices on that day, on the last preceding day for which there was a closing price or bid and asked prices,

      • (ii) a share of a corporation that is not listed on a designated stock exchange, the fair market value of that share on that day,

      • (iii) an interest in real property or a real right in an immovable, the fair market value on that day of the interest or right less the amount of any debt of the registered charity incurred in respect of the acquisition of the interest or right and secured by the interest or right, where the debt bears a reasonable rate of interest,

      • (iv) a contribution that is the subject of a pledge, nil,

      • (v) an interest, or for civil law a right, in property where the registered charity does not have the present use or enjoyment of the interest or right, nil,

      • (vi) a life insurance policy, other than an annuity contract, that has not matured, nil, and

      • (vii) a property not described in any of subparagraphs (i) to (vi), the fair market value of the property on that day; and

    • (c) in the case of any property described in paragraph (b) that is owned in connection with the charitable activities of the registered charity and is a share of a limited-dividend housing company referred to in paragraph 149(1)(n) of the Act or a loan, that has ceased to be used for charitable purposes and is being held pending disposition or for use in charitable activities, or that has been acquired for use in charitable activities, the lesser of the fair market value of the property on that day and an amount determined by the formula

      (A / 0.035) x (12 / B)

      where

      A
      is the income earned on the property in the period, and
      B
      is the number of months in the period.
  • (2) For the purposes of subsection (1), a method that the Minister may accept for the determination of the fair market value of property or a portion thereof on the last day of a period is an independent appraisal made

    • (a) in the case of property described in subparagraph (1)(b)(ii) or (iii), not more than three years before that day; and

    • (b) in the case of property described in paragraph (1)(a), subparagraph (1)(b)(vii) or paragraph (1)(c), not more than one year before that day.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/87-632, s. 1
  • SOR/94-686, ss. 22(F), 51(F), 73(F), 79(F)
  • 2007, c. 35, s. 76
  • 2010, c. 25, s. 85

Information Returns

 For the purpose of subsection 149.1(14) of the Act, the following is prescribed information for the public information return of a charity in a taxation year:

  • (a) in respect of each grantee organization that received total qualifying disbursements from the charity in excess of $5,000 in the taxation year, the name of the grantee organization;

  • (b) the purpose of each qualifying disbursement made to a grantee organization referred to in paragraph (a) in the taxation year; and

  • (c) the total amount disbursed by the charity to each grantee organization referred to in paragraph (a) in the taxation year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2022, c. 10, s. 40

PART XXXVIIISocial Insurance Number Applications

 Every individual who is required by subsection 237(1) of the Act to apply to the Minister of National Health and Welfare for assignment to him of a Social Insurance Number shall do so by delivering or mailing to the local office of the Canada Employment and Immigration Commission nearest to the individual’s residence, a completed application in the form prescribed by the Minister for that purpose.

PART XXXIXMining Taxes

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

    income

    income of a taxpayer for a taxation year from mining operations in a province means the income, for the taxation year, that is derived from mining operations in the province as computed under the laws of the province that impose an eligible tax described in subsection (3). (revenu)

    mine

    mine includes any work or undertaking in which a mineral ore is extracted or produced and includes a quarry. (mine)

    mineral ore

    mineral ore includes an unprocessed mineral or mineral-bearing substance. (minerai)

    mining operations

    mining operations means

    • (a) the extraction or production of mineral ore from or in a mine;

    • (b) the transportation of mineral ore to the point of egress from the mine; and

    • (c) the processing of

      • (i) mineral ore (other than iron ore) to the prime metal stage or its equivalent, and

      • (ii) iron ore to a stage that is not beyond the pellet stage or its equivalent. (exploitation minière)

    non-Crown royalty

    non-Crown royalty means a royalty contingent on production of a mine or computed by reference to the amount or value of production from mining operations in a province but does not include a royalty that is payable to the Crown in right of Canada or a province. (redevance non gouvernementale)

    processing

    processing includes all forms of beneficiation, smelting and refining. (transformation)

  • (2) For the purpose of paragraph 20(1)(v) of the Act, the amount allowed in respect of taxes on income from mining operations of a taxpayer for a taxation year is the total of all amounts each of which is an eligible tax paid or payable by the taxpayer

    • (a) on the income of the taxpayer for the taxation year from mining operations; or

    • (b) on a non-Crown royalty included in computing the income of the taxpayer for the taxation year.

  • (3) An eligible tax referred to in subsection (2) is

    • (a) a tax, on the income of a taxpayer for a taxation year from mining operations in a province, that is

      • (i) levied under a law of the province,

      • (ii) imposed only on persons engaged in mining operations in the province, and

      • (iii) paid or payable to

        • (A) the province,

        • (B) an agent of Her Majesty in right of the province, or

        • (C) a municipality in the province, in lieu of taxes on property or on any interest, or for civil law any right, in property (other than in lieu of taxes on residential property or on any interest, or for civil law any right, in residential property); and

    • (b) a tax, on an amount received or receivable by a person as a non-Crown royalty, that is

      • (i) levied under a law of a province,

      • (ii) imposed specifically on persons who hold a non-crown royalty on mining operations in the province, and

      • (iii) paid or payable to the province or to an agent of Her Majesty in right of the province.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/78-377, s. 12
  • SOR/94-686, s. 23(F)
  • SOR/2006-207, s. 1
  • SOR/2007-212, s. 1

PART XLBorrowed Money Costs

 [Repealed, SOR/81-251, s. 1]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/81-251, s. 1

Interest on Insurance Policy Loans

 For the purposes of subsection 20(2.1) of the Act, the amount of interest to be verified by the insurer in respect of a taxpayer shall be verified in prescribed form no later than the last day on which the taxpayer is required to file his return of income under section 150 of the Act for the taxation year in respect of which the interest was paid.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/79-142, s. 2
  • SOR/79-488, s. 1
  • SOR/84-224, s. 1

PART XLIRepresentation Expenses

 For the purposes of subsection 20(9) of the Act, an election shall be made by filing with the Minister the following documents in duplicate:

  • (a) a letter from the taxpayer specifying the amount in respect of which the election is being made; and

  • (b) where the taxpayer is a corporation, a certified copy of the resolution of the directors authorizing the election to be made.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/94-686, s. 79(F)

PART XLIIValuation of Annuities and Other Interests

 For the purposes of subparagraph 115E(f)(i) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), the value of any income right, annuity, term of years, life or other similar estate or interest in expectancy shall be determined in accordance with the rules and standards, including standards as to mortality and interest, as are prescribed by the Estate Tax Regulations pursuant to the provisions of subparagraph 58(1)(s)(i) of the Estate Tax Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/94-686, s. 48

PART XLIIIInterest Rates

Interpretation

 For the purposes of this Part, quarter means any of the following periods in a calendar year:

  • (a) the period beginning on January 1 and ending on March 31;

  • (b) the period beginning on April 1 and ending on June 30;

  • (c) the period beginning on July 1 and ending on September 30; and

  • (d) the period beginning on October 1 and ending on December 31. (trimestre)

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/78-63, s. 1
  • SOR/78-909, s. 2
  • SOR/79-958, s. 1
  • SOR/80-931, s. 1
  • SOR/82-20, s. 1
  • SOR/82-322, s. 1
  • SOR/82-598, s. 1
  • SOR/82-1097, s. 1
  • SOR/83-237, s. 1
  • SOR/83-496, s. 1
  • SOR/84-372, s. 1
  • SOR/85-696, s. 11
  • SOR/86-488, s. 7
  • SOR/87-639, s. 1

Prescribed Rate of Interest

 Subject to section 4302, for the purposes of

  • (a) every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and

    • (ii) 4 per cent;

  • (b) every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a taxpayer, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate determined under subparagraph (a)(i) in respect of the particular quarter, and

    • (ii) if the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent;

  • (b.1) subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and

  • (c) every other provision of the Act in which reference is made to a prescribed rate of interest or to interest at a prescribed rate, the prescribed rate in effect during any particular quarter is the rate determined under subparagraph (a)(i) in respect of the particular quarter.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/84-372, s. 2
  • SOR/87-639, s. 1
  • SOR/89-462, s. 1
  • SOR/95-285, s. 1
  • SOR/97-557, s. 4
  • 2010, c. 12, s. 23
  • 2012, c. 31, s. 65
 
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