Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

Full Document:  

Regulations are current to 2022-11-16 and last amended on 2022-06-23. Previous Versions

PART LXXV[Repealed, 2013, c. 33, s. 36]

 [Repealed, 2013, c. 33, s. 36]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/2008-49, s. 1
  • 2013, c. 33, s. 36
  • SOR/2013-22, s. 1

PART LXXVICarved-out Property Exclusion

 For the purposes of paragraph (g) of the definition carved-out property in subsection 209(1) of the Act, a prescribed property at any time is

  • (a) any right, licence or privilege to prospect, explore, drill or mine for minerals in a mineral resource (other than a bituminous sands deposit, oil sands deposit or oil shale deposit) in Canada;

  • (b) any rental or royalty computed by reference to the amount or value of production of minerals from a mineral resource (other than a bituminous sands deposit, oil sands deposit or oil shale deposit) in Canada;

  • (c) any real property in Canada the principal value of which depends on its mineral resource content (other than a bituminous sands deposit, oil sands deposit or oil shale deposit);

  • (d) any right to or interest in any property described in any of paragraphs (a) to (c); or

  • (e) a property acquired before that time by a taxpayer in the circumstances described in paragraph (c) of the definition carved-out property in subsection 209(1) of the Act, except where it is reasonable to consider that one of the main reasons for the acquisition of the property, or any series of transactions or events in which the property was acquired by the taxpayer was to reduce or postpone tax that would, but for this paragraph, be payable by another taxpayer under Part XII.1 of the Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/89-463, s. 2

PART LXXVIIPrescribed Prizes

 For the purposes of subparagraph 56(1)(n)(i) of the Act, a prescribed prize is any prize that is recognized by the general public and that is awarded for meritorious achievement in the arts, the sciences or service to the public but does not include any amount that can reasonably be regarded as having been received as compensation for services rendered or to be rendered.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/89-473, s. 2

PART LXXVIIISpecified Pension Plans

 For the purposes of the definition specified pension plan in subsection 248(1) of the Act, a prescribed arrangement is the Saskatchewan Pension Plan established under The Saskatchewan Pension Plan Act, chapter S-32.2 of the Statutes of Saskatchewan, 1986, as amended from time to time.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/89-474, s. 1
  • SOR/2001-295, s. 8
  • 2011, c. 24, s. 89

PART LXXIXPrescribed Financial Institutions

 For the purposes of the definitions excluded income and excluded revenue and specified deposit in subsection 95(2.5) of the Act, each of the following is a prescribed financial institution:

  • (a) a member of the Canadian Payments Association; and

  • (b) a credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of the Canadian Payments Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/90-285, s. 2
  • SOR/94-686, s. 79(F)
  • SOR/97-505, s. 10
  • SOR/2009-302, s. 11
  • 2013, c. 33, s. 37

PART LXXXPrescribed Reserve Amount and Recovery Rate

 For the purpose of clause 20(1)(l)(ii)(C) of the Act, the prescribed reserve amount for a taxation year means the aggregate of

  • (a) where the taxpayer is a bank, an amount equal to the lesser of

    • (i) the amount of the reserve reported in its annual report for the year that is filed with and accepted by the relevant authority or, where the taxpayer was throughout the year subject to the supervision of the relevant authority but was not required to file an annual report for the year with the relevant authority, in its financial statements for the year, as general provisions or as specific provisions, in respect of exposures to designated countries in respect of loans or lending assets of the taxpayer made or acquired by it in the ordinary course of its business, and

    • (ii) an amount in respect of the loans or lending assets of the taxpayer at the end of the year that were made or acquired by the taxpayer in the ordinary course of its business and reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as part of the taxpayer’s total exposure to designated countries for the purposes of determining the taxpayer’s general provisions or specific provisions referred to in subparagraph (i) or that were acquired by the taxpayer after August 16, 1990 and reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country (in this subparagraph referred to as the “loans”) equal to the positive or negative amount, as the case may be, determined by the formula

      45% (A + B) - (B + C)

      where

      A
      is the aggregate of all amounts each of which is the amount that would be the amortized cost of a loan to the taxpayer at the end of the year if the definition amortized cost in section 248 of the Act were read without reference to paragraphs (e) and (i) thereof,
      B
      is the aggregate of all amounts each of which is the amount, if any, by which the principal amount of a loan outstanding at the time it was acquired by the taxpayer exceeds the amortized cost of the loan to the taxpayer immediately after the time it was acquired by the taxpayer, and
      C
      is the aggregate of all amounts each of which is
      • (A) an amount deducted in respect of a loan under clause 20(1)(l)(ii)(B) of the Act in computing the taxpayer’s income for the year, or

      • (B) an amount in respect of a loan determined as the amount, if any, by which

        • (I) the aggregate of all amounts in respect of the loan deducted under paragraph 20(1)(p) of the Act in computing the taxpayer’s income for the year or a preceding taxation year

        exceeds

        • (II) the aggregate of all amounts in respect of the loan included under paragraph 12(1)(i) of the Act in computing the taxpayer’s income for the year or a preceding taxation year, and

  • (a.1) where the taxpayer is a bank, the positive or negative amount that would be determined under the formula in subparagraph (a)(ii) in respect of the specified loans owned by the taxpayer at the end of the year if that subparagraph applied to those loans.

  • (b) [Repealed, SOR/99-91, s. 2]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-78, s. 4
  • SOR/92-681, s. 3(F)
  • SOR/94-686, s. 40(F)
  • SOR/99-91, s. 2

 [Repealed, SOR/99-91, s. 3]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/99-91, s. 3

 For the purposes of paragraph 8000(a),

  • (a) the principal amount outstanding at any time of a lending asset of a taxpayer that is a share of the capital stock of a corporation is the part of the consideration received by the corporation for the issue of the share that is outstanding at that time;

  • (b) where

    • (i) a taxpayer realizes a loss from the disposition of a loan or lending asset described in subparagraph 8000(a)(ii) or a specified loan described in paragraph 8000(a.1) (in this paragraph referred to as the “former loan”) for consideration that included another loan or lending asset that was a loan or lending asset described in subparagraph 8000(a)(ii) or paragraph 8000(a.1) (in this paragraph referred to as the “new loan”), and

    • (ii) in the case of a former loan that is not a specified loan, the loss is included in computing the taxpayer’s provisionable assets as reported for the year to the relevant authority, in accordance with the guidelines established by the relevant authority, for the purpose of determining the taxpayer’s general provisions or specific provisions in respect of exposures to designated countries,

    the principal amount of the new loan outstanding at the time it was acquired by the taxpayer is deemed to be equal to the principal amount of the former loan outstanding immediately before that time; and

  • (c) where at the end of a particular taxation year a taxpayer owns a specified loan that, at the end of the preceding taxation year, was described in an inventory of the taxpayer, the amortized cost of the specified loan to the taxpayer at the end of the particular year is its value determined under section 10 of the Act at the end of the preceding year for the purpose of computing the taxpayer’s income for the preceding year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-78, s. 4
  • SOR/94-686, s. 79(F)
  • SOR/99-91, s. 4

 Where a taxpayer elects to have this section apply by notifying the Minister in writing within 90 days after the day on which this section is published in the Canada Gazette, the loans or lending assets of the taxpayer that are described in subparagraph 8000(a)(ii) shall not include any loan or lending asset acquired by the taxpayer before November 1988 from a person with whom the taxpayer was dealing at arm’s length.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-78, s. 4

 [Repealed, SOR/99-91, s. 5]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/99-91, s. 5

 For the purposes of subparagraph 8000(a)(ii), where a loan or lending asset of a person (in this section referred to as the “holder”) related to a taxpayer

  • (a) was reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country,

  • (b) was acquired by the holder or another person related to the taxpayer after August 16, 1990 as part of a series of transactions or events in which the taxpayer or a person related to the taxpayer disposed of a loan or lending asset that

    • (i) for the taxation year immediately preceding the particular year in which it was disposed of, was a loan or lending asset that was reported by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country, and

    • (ii) was a loan or lending asset a loss arising on the disposition of which would be a loss in respect of which a deduction is permitted under Part I of the Act to the taxpayer or a person related to the taxpayer, and

  • (c) had an amortized cost to the holder, immediately after the time it was acquired by the holder, that was less than 55 per cent of its principal amount,

the following rules apply:

  • (d) the loan or lending asset shall be deemed

    • (i) to be a loan or lending asset of the taxpayer at the end of the year,

    • (ii) to be a loan or lending asset of the taxpayer that was acquired by the taxpayer at the time it was acquired by the holder, and

    • (iii) to have an amortized cost to the taxpayer, at any time, that is equal to its amortized cost to the holder at that time, and

  • (e) any amount in respect of the loan or lending asset deducted under paragraph 20(1)(p) of the Act or included under paragraph 12(1)(i) of the Act in computing the holder’s income for a particular year shall be deemed to have been so deducted or included, as the case may be, in computing the income of the taxpayer for the year in which the particular year ends.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-78, s. 4

 For the purposes of this Part,

designated country

designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (pays désigné)

exposure to a designated country

exposure to a designated country has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (risque que représente un pays désigné)

general provisions

general provisions has the same meaning as the expression general country risk provisions in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (provisions générales)

provisionable assets

provisionable assets has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time; (actifs ouvrant droit à provision)

relevant authority

relevant authority means the Superintendent of Financial Institutions; (autorité compétente)

specific provisions

specific provisions has the same meaning as in the Guidelines for banks established pursuant to section 175 of the Bank Act, as that section read on May 31, 1992, and issued by the Office of the Superintendent of Financial Institutions, as amended from time to time. (provisions spécifiques)

specified loan

specified loan means

  • (a) a United Mexican States Collateralized Par Bond due in 2019, or

  • (b) a United Mexican States Collateralized Discount Bond due in 2019; (prêt désigné)

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/92-681, s. 3
  • SOR/99-91, s. 6

 [Repealed, SOR/99-91, s. 7]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/99-91, s. 7

PART LXXXI[Repealed, 2013, c. 34, s. 406]

 [Repealed, 2013, c. 34, s. 406]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-78, s. 4
  • SOR/94-686, ss. 78(F), 79(F), 81(F)
  • SOR/96-443, s. 3
  • 2013, c. 34, s. 406

 [Repealed, 2013, c. 34, s. 406]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-78, s. 4
  • SOR/94-686, s. 78(F)
  • SOR/96-443, s. 3
  • 2013, c. 34, s. 406
 
Date modified: