Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)

Assented to 2007-12-14

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

 Subsection 221(2) of the Income Tax Regulations is replaced by the following:

  • (2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 204 or 205 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form.

  •  (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following:

    • 4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act, paragraph (h) of the definition “qualified investment” in section 204 of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is

  • (2) Paragraph 4900(1)(c) of the Regulations is replaced by the following:

    • (c) a share of the capital stock of a mortgage investment corporation that does not hold as part of its property at any time during the calendar year in which the particular time occurs any indebtedness, whether by way of mortgage or otherwise, of a person who is a connected person under the governing plan of the plan trust;

  • (3) Subparagraph 4900(1)(e)(ii) of the Regulations is replaced by the following:

    • (ii) the issuer is not a connected person under the governing plan of the plan trust;

  • (4) The portion of paragraph 4900(1)(g) of the Regulations before subparagraph (i) is replaced by the following:

    • (g) a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by

  • (5) The portion of subparagraph 4900(1)(h)(iii) of the Regulations before clause (A) is replaced by the following:

    • (iii) that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by

  • (6) Paragraph 4900(1)(i.2) of the Regulations is replaced by the following:

    • (i.2) indebtedness of a Canadian corporation (other than a corporation that is a connected person under the governing plan of the plan trust) represented by a bankers’ acceptance;

  • (7) Subparagraph 4900(1)(j)(ii) of the Regulations is replaced by the following:

    • (ii) the debtor (and any partnership that does not deal at arm’s length with the debtor) is not a connected person under the governing plan of the plan trust;

  • (8) The portion of paragraph 4900(1)(q) of the Regulations before subparagraph (i) is replaced by the following:

    • (q) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) where

  • (9) The portion of paragraph 4900(1)(r) of the Regulations before subparagraph (i) is replaced by the following:

    • (r) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) if

  • (10) Subsection 4900(5) of the Regulations is replaced by the following:

    • (5) For the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered education savings plan or a trust governed by a registered disability savings plan at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year.