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

8006 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)

8007 [Repealed, SOR/99-91, s. 7]

PART LXXXI[Repealed, 2013, c. 34, s. 406]

8100 [Repealed, 2013, c. 34, s. 406]

8101 [Repealed, 2013, c. 34, s. 406]

8102 [Repealed, 2013, c. 34, s. 406]

8103 [Repealed, 2013, c. 34, s. 406]

8104 [Repealed, 2013, c. 34, s. 406]

8105 [Repealed, 2013, c. 34, s. 406]

PART LXXXIIPrescribed Properties and Permanent Establishments

Prescribed Properties

8200 For the purposes of subsection 16.1(1) of the Act, prescribed property means

• (a) exempt property, within the meaning assigned by paragraph 1100(1.13)(a), other than property leased on or before February 2, 1990 that is

  • (i) a truck or tractor that is designed for use on highways and has a “gross vehicle weight rating” (within the meaning assigned that expression by the Motor Vehicle Safety Regulations) of 11,778 kilograms or more,

  • (ii) a trailer that is designed for use on highways and is of a type designed to be hauled under normal operating conditions by a truck or tractor described in subparagraph (i), or

  • (iii) a railway car,

• (b) property that is the subject of a lease where the tangible property, other than exempt property (within the meaning assigned by paragraph 1100(1.13)(a)), that was the subject of the lease had, at the time the lease was entered into, an aggregate fair market value not in excess of $25,000, and

• (c) intangible property.

8200.1 For the purposes of subsection 13(18.1), the definition Canadian renewable and conservation expense in subsection 66.1(6) and subparagraph 241(4)(d)(vi.1) of the Act, prescribed energy conservation property means property described in Class 43.1 or 43.2 in Schedule II.

Permanent Establishments

8201 For the purposes of subsection 16.1(1), the definition outstanding debts to specified non-residents in subsection 18(5), subsections 100(1.3) and 112(2), the definition qualified Canadian transit organization in subsection 118.02(1), subsections 125.4(1) and 125.5(1), the definition taxable supplier in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), section 233.8, the definitions Canadian banking business and tax-indifferent investor in subsection 248(1) and paragraph 260(5)(a) of the Act, a permanent establishment of a person or partnership (either of whom is referred to in this section as the person) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person’s business is conducted, and

• (a) where the person carries on business through an employee or agent, established in a particular place, who has general authority to contract for the person or who has a stock of merchandise owned by the person from which the employee or agent regularly fills orders, the person shall be deemed to have a permanent establishment at that place,

• (b) where the person is an insurance corporation, the person is deemed to have a permanent establishment in each country in which the person is registered or licensed to do business,

• (c) where the person uses substantial machinery or equipment at a particular place at any time in a taxation year, the person shall be deemed to have a permanent establishment at that place,

• (d) the fact that the person has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the person has a permanent establishment, and

• (e) where the person is a corporation, the fact that the person has a subsidiary controlled corporation at a place or a subsidiary controlled corporation engaged in trade or business at a place shall not of itself be held to mean that the person is operating a permanent establishment at that place,

except that, where the person is resident in a country with which the Government of Canada has concluded a tax treaty in which the expression permanent establishment is given a particular meaning, that meaning shall apply.

8201.1 [Repealed, SOR/2000-62, s. 5]

PART LXXXIIIPension Adjustments, Past Service Pension Adjustments, Pension Adjustment Reversals and Prescribed Amounts

Interpretation

• 8300 (1) In this Part,

  certifiable past service event

  certifiable past service event, with respect to an individual, means a past service event that is required, by reason of subsection 147.1(10) of the Act, to be disregarded, in whole or in part, in determining the benefits to be paid under a registered pension plan with respect to the individual until a certification of the Minister in respect of the event has been obtained; (fait à attester)

  complete period of reduced services

  complete period of reduced services of an individual means a period of reduced services of the individual that is not part of a longer period of reduced services of the individual; (période complète de services réduits)

  designated savings arrangement

  designated savings arrangement of an individual means a RRIF or RRSP under which the individual is the annuitant, or the individual’s account under a money purchase provision of a registered pension plan; (mécanisme d’épargne désigné)

  excluded contribution

  excluded contribution to a registered pension plan means an amount that is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (4) and 147.3(5) to (7) of the Act; (cotisation exclue)

  flat benefit provision

  flat benefit provision of a pension plan means a defined benefit provision of the plan under which the amount of lifetime retirement benefits provided to each member is based on the aggregate of all amounts each of which is the product of a fixed rate and either the duration of service of the member or the number of units of output of the member, and, for the purposes of this definition, where

  • (a) the amount of lifetime retirement benefits provided under a defined benefit provision to each member is subject to a limit based on the remuneration received by the member, and

  • (b) the limit may reasonably be considered to be included to ensure that the amount of lifetime retirement benefits provided to each member does not exceed the maximum amount of such benefits that may be provided by a registered pension plan,

  the limit shall be disregarded for the purpose of determining whether the provision is a flat benefit provision; (disposition à prestations forfaitaires)

  individual pension plan

  individual pension plan, in respect of a calendar year, means a registered pension plan that contains a defined benefit provision if, at any time in the year or a preceding year, the plan

  • (a) has fewer than four members and at least one of them is related to a participating employer in the plan, or

  • (b) is a designated plan and it is reasonable to conclude that the rights of one or more members to receive benefits under the plan exist primarily to avoid the application of paragraph (a); (régime de retraite individuel)

  member

  member, in relation to a deferred profit sharing plan or a benefit provision of a registered pension plan, means an individual who has a right (either immediate or in the future and either absolute or contingent) to receive benefits under the plan or the provision, as the case may be, other than an individual who has such a right only because of the participation of another individual in the plan or under the provision, as the case may be; (participant)

  PA offset

  PA offset for a calendar year means

  • (a) for years before 1997, $1,000, and

  • (b) for years after 1996, $600; (montant de réduction du FE)

  past service event

  past service event means any transaction, event or circumstance that occurs after 1989 and as a consequence of which

  • (a) retirement benefits become provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs,

  • (b) there is a change to the way in which retirement benefits provided to an individual under a defined benefit provision of a pension plan in respect of a period before the time the transaction, event or circumstance occurs are determined, including a change that is applicable only in specified circumstances, or

  • (c) there is a change in the value of an indexing or other automatic adjustment that enters into the determination of the amount of an individual’s retirement benefits under a defined benefit provision of a pension plan in respect of a period before the time the value of the adjustment changes; (fait lié aux services passés)

  period of reduced services

  period of reduced services of an individual means, in connection with a benefit provision of a registered pension plan, a period that consists of one or more periods each of which is

  • (a) an eligible period of reduced pay or temporary absence of the individual with respect to an employer who participates under the provision, or

  • (b) a period of disability of the individual; (période de services réduits)

  refund benefit

  refund benefit means

  • (a) with respect to an individual and a benefit provision of a pension plan, a return of contributions made by the individual under the provision, and

  • (b) with respect to an individual and a deferred profit sharing plan, a return of contributions made by the individual to the plan,

  and includes any interest (computed at a rate not exceeding a reasonable rate) payable in respect of those contributions. (prestation de remboursement)

  resident compensation

  resident compensation of an individual from an employer for a calendar year means the amount that would be the individual’s compensation from the employer for the year if the definition compensation in subsection 147.1(1) of the Act were read without reference to paragraphs (b) and (c) of that definition. (rétribution de résident)

• (1.1) The Minister may waive in writing the application of the definition individual pension plan in subsection (1) if is just and equitable to do so having regard to all the circumstances.

• (2) The definition past service event in subsection (1) is applicable for the purposes of subsection 147.1(1) of the Act.

• (3) All words and expressions used in this Part that are defined in sections 147 or 147.1 of the Act or in Part LXXXV have the meanings assigned in those provisions unless a definition in this Part is applicable.

• (4) For the purposes of this Part, an officer who receives remuneration for holding an office shall, for any period that the officer holds the office, be deemed to render services to, and to be in the service of, the person from whom the officer receives the remuneration.

• (5) For the purposes of this Part (other than the definition member in subsection (1)), where an individual has received an interest in an annuity contract in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a pension plan, any rights of the individual under the contract are deemed to be rights under the defined benefit provision.

• (6) For the purposes of this Part and subsection 147.1(10) of the Act, and subject to subsection 8308(1), the following rules apply in respect of the determination of the benefits that are provided to an individual under a defined benefit provision of a pension plan at a particular time:

  • (a) where a term of the defined benefit provision, or an amendment to a term of the provision, is not applicable with respect to the individual before a specified date, the term shall be considered to have been added to the provision, or the amendment shall be considered to have been made to the term, on the specified date;

  • (b) where an alteration to the benefits provided to the individual is conditional on the requirements of subsection 147.1(10) of the Act being met, those requirements shall be assumed to have been met;

  • (c) benefits that will be reinstated if the individual returns to employment with an employer who participates in the plan shall be considered not to be provided until the individual returns to employment; and

  • (d) where benefits under the provision depend on the individual’s job category or other circumstances, the only benefits provided to the individual are the benefits that are relevant to the individual’s circumstances at the particular time.

• (7) For the purposes of subsections 8301(3) and (8), paragraph 8302(3)(c), subsections 8302(5) and 8304(5) and (5.1), paragraphs 8304.1(10)(c) and (11)(c), subparagraph 8306(4)(a)(ii) and subsection 8308(3), the benefits to which an individual is entitled at any time under a deferred profit sharing plan or pension plan include benefits to which the individual has only a contingent right because a condition for the vesting of the benefits has not been satisfied.

• (8) For the purposes of this Part, such portion of an amount allocated to an individual at any time under a money purchase provision of a registered pension plan as

  • (a) is attributable to

    • (i) forfeited amounts under the provision or earnings of the plan that are reasonably attributable to those amounts,

    • (ii) a surplus under the provision,

    • (iii) property transferred to the provision in respect of the actuarial surplus under a defined benefit provision of the plan or another registered pension plan, or

    • (iv) property transferred to the provision in respect of the surplus under another money purchase provision of the plan or under a money purchase provision of another registered pension plan, and

  • (b) can reasonably be considered to be allocated in lieu of a contribution that would otherwise have been made under the provision by an employer in respect of the individual

  shall be deemed to be a contribution made under the provision by the employer with respect to the individual at that time and not to be an amount attributable to anything referred to in paragraph (a).

• (9) For the purposes of this Part and Part LXXXV, where property held in connection with a particular benefit provision of a pension plan is made available at any time to pay benefits under another benefit provision of the plan, the property is deemed to be transferred at that time from the particular benefit provision to the other benefit provision.

• (10) For the purposes of this Part and Parts LXXXIV and LXXXV, and subject to subsection (11), an individual is considered to have terminated from a deferred profit sharing plan or a benefit provision of a registered pension plan when the individual has ceased to be a member in relation to the plan or the provision, as the case may be.

• (11) Where the benefits provided with respect to an individual under a particular defined benefit provision of a registered pension plan depend on benefits provided with respect to the individual under one or more other defined benefit provisions of registered pension plans (each of the particular provision and the other provisions being referred to in this subsection as a “related provision”), for the purposes of this Part and Parts LXXXIV and LXXXV,

  • (a) if the individual ceases, at any particular time after 1996, to be a member in relation to a specific related provision and is, at the particular time, a member in relation to another related provision, the individual is deemed

    • (i) not to terminate from the specific provision at the particular time, and

    • (ii) to terminate from the specific provision at the earliest subsequent time when the individual is no longer a member in relation to any of the related provisions;

  • (b) if the conditions in subsection 8304.1(14) (read without reference to the words “after 1996 and”) are not satisfied with respect to the individual’s termination from a related provision, the conditions in that subsection are deemed not to be satisfied with respect to the individual’s termination from each of the other related provisions; and

  • (c) a specified distribution (as defined in subsection 8304.1(8)) made at any particular time in respect of the individual and a related provision is deemed, for the purpose of subsection 8304.1(5), also to be a specified distribution made at the particular time in respect of the individual and each of the other related provisions, except to the extent that the Minister has waived the application of this paragraph with respect to the distribution.

• (12) For the purposes of this Part, where

  • (a) all or any part of the amounts payable to an individual under a deferred profit sharing plan are paid by a trustee under the plan to a licensed annuities provider to purchase for the individual an annuity described in subparagraph 147(2)(k)(vi) of the Act, or

  • (b) an individual has acquired, in full or partial satisfaction of the individual’s entitlement to benefits under a benefit provision of a registered pension plan (other than benefits to which the individual was entitled only because of the participation of another individual under the provision), an interest in an annuity contract (other than as a consequence of a transfer of property from the provision to a registered retirement savings plan or a registered retirement income fund under which the individual is the annuitant),

  the individual is deemed to continue, from the time of the payment or acquisition, as the case may be, until the individual’s death, to be a member in relation to the plan or provision, as the case may be.

• (13) For the purposes of this Part and Part LXXXV, where a benefit is to be provided, or may be provided, to an individual under a defined benefit provision of a registered pension plan as a consequence of an allocation that is to be made, or may be made, to the individual of all or part of an actuarial surplus under the provision, the individual is considered not to have any right to receive the benefit under the provision until the time at which the benefit becomes provided under the provision.