Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2016-11-21 and last amended on 2016-07-01. Previous Versions

Extended meaning of child

  •  (1) In this Act, words referring to a child of a taxpayer include

    • (a) a person of whom the taxpayer is the legal parent;

    • (b) a person who is wholly dependent on the taxpayer for support and of whom the taxpayer has, or immediately before the person attained the age of 19 years had, in law or in fact, the custody and control;

    • (c) a child of the taxpayer’s spouse or common-law partner; and

    • (d) [Repealed, 2005, c. 33, s. 12]

    • (e) a spouse or common-law partner of a child of the taxpayer.

  • Marginal note:Relationships

    (2) In this Act, words referring to

    • (a) a parent of a taxpayer include a person

      • (i) whose child the taxpayer is,

      • (ii) whose child the taxpayer had previously been within the meaning of paragraph 252(1)(b), or

      • (iii) who is a parent of the taxpayer’s spouse or common-law partner;

    • (b) a brother of a taxpayer include a person who is

      • (i) the brother of the taxpayer’s spouse or common-law partner, or

      • (ii) the spouse or common-law partner of the taxpayer’s sister;

    • (c) a sister of a taxpayer include a person who is

      • (i) the sister of the taxpayer’s spouse or common-law partner, or

      • (ii) the spouse or common-law partner of the taxpayer’s brother;

    • (d) a grandparent of a taxpayer include a person who is

      • (i) the grandfather or grandmother of the taxpayer’s spouse or common-law partner, or

      • (ii) the spouse or common-law partner of the taxpayer’s grandfather or grandmother;

    • (e) an aunt or uncle of a taxpayer include the spouse or common-law partner of the taxpayer’s aunt or uncle, as the case may be;

    • (f) a great-aunt or great-uncle of a taxpayer include the spouse or common-law partner of the taxpayer’s great-aunt or great-uncle, as the case may be; and

    • (g) a niece or nephew of a taxpayer include the niece or nephew, as the case may be, of the taxpayer’s spouse or common-law partner.

  • Extended meaning of spouse and former spouse

    (3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) and (j), section 60.1, subsections 70(6) and (6.1), 73(1) and (5) and 104(4), (5.1) and (5.4), the definition pre-1972 spousal trust in subsection 108(1), subsection 146(16), the definition survivor in subsection 146.2(1), subparagraph 146.3(2)(f)(iv), subsections 146.3(14), 147(19) and 147.3(5) and (7), section 147.5, subsections 148(8.1) and (8.2), the definition qualifying transfer in subsection 207.01(1), and subsections 210(1) and 248(22) and (23), spouse and former spouse of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.

  • (4) [Repealed, 2000, c. 12, s. 141(2)]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 252;
  • 1994, c. 7, Sch. II, s. 196, Sch. VIII, s. 140, c. 21, s. 112;
  • 1998, c. 19, s. 244;
  • 2000, c. 12, ss. 141, 142, c. 19, s. 69;
  • 2003, c. 15, s. 89;
  • 2005, c. 33, s. 12;
  • 2008, c. 28, s. 35;
  • 2012, c. 31, s. 56;
  • 2013, c. 34, s. 362.
Marginal note:Union employer

 All the structural units of a trade union, including each local, branch, national and international unit, shall be deemed to be a single employer and a single entity for the purposes of the provisions of this Act and the regulations relating to

  • (a) pension adjustments and past service pension adjustments for years after 1994;

  • (b) the determination of whether a pension plan is, in a year after 1994, a multi-employer plan or a specified multi-employer plan (within the meanings assigned by subsection 147.1(1));

  • (c) the determination of whether a contribution made under a plan or arrangement is a resident’s contribution (within the meaning assigned by subsection 207.6(5.1)); and

  • (d) the deduction or withholding and the remittance of any amount as required by subsection 153(1) in respect of a contribution made after 1991 under a retirement compensation arrangement.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 21, s. 113.

Extended meaning of carrying on business

 For the purposes of this Act, where in a taxation year a person who is a non-resident person or a trust to which Part XII.2 applies

  • (a) produces, grows, mines, creates, manufactures, fabricates, improves, packs, preserves or constructs, in whole or in part, anything in Canada whether or not the person exports that thing without selling it before exportation,

  • (b) solicits orders or offers anything for sale in Canada through an agent or servant, whether the contract or transaction is to be completed inside or outside Canada or partly in and partly outside Canada, or

  • (c) disposes of

    • (i) Canadian resource property, except where an amount in respect of the disposition is included under paragraph 66.2(1)(a) or 66.4(1)(a),

    • (ii) property (other than depreciable property) that is a timber resource property, an option in respect of a timber resource property or an interest in, or for civil law a right in, a timber resource property, or

    • (iii) property (other than capital property) that is real or immovable property situated in Canada, including an option in respect of such property or an interest in, or for civil law a real right in, such property, whether or not the property is in existence,

the person shall be deemed, in respect of the activity or disposition, to have been carrying on business in Canada in the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 253;
  • 1994, c. 7, Sch. II, s. 197;
  • 2013, c. 34, s. 168.
Marginal note:Investments in limited partnerships
  •  (1) For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 146.1(2.1)(c), subsection 146.2(6), paragraph 146.4(5)(b), subsection 147.5(8), paragraph 149(1)(o.2), the definition private holding corporation in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

  • Marginal note:Investments in limited partnerships

    (2) For the purposes of section 149.1 and subsections 188.1(1) and (2), if a registered charity or a registered Canadian amateur athletic association holds an interest as a member of a partnership, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business of the partnership if

    • (a) by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited;

    • (b) the member deals at arm’s length with each general partner of the partnership; and

    • (c) the member, or the member together with persons and partnerships with which it does not deal at arm’s length, holds interests in the partnership that have a fair market value of not more than 20% of the fair market value of the interests of all members in the partnership.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2001, c. 17, s. 193;
  • 2007, c. 35, s. 124;
  • 2008, c. 28, s. 36;
  • 2009, c. 2, s. 77;
  • 2012, c. 31, s. 57;
  • 2013, c. 34, ss. 363, 426;
  • 2016, c. 7, s. 49.
Marginal note:Contract under pension plan

 Where a document has been issued or a contract has been entered into before July 31, 1997 purporting to create, to establish, to extinguish or to be in substitution for, a taxpayer’s right to an amount or amounts, immediately or in the future, out of or under a superannuation or pension fund or plan,

  • (a) if the rights provided for in the document or contract are rights provided for by the superannuation or pension plan or are rights to a payment or payments out of the superannuation or pension fund, and the taxpayer acquired an interest under the document or in the contract before that day, any payment under the document or contract is deemed to be a payment out of or under the superannuation or pension fund or plan and the taxpayer is deemed not to have received, by the issuance of the document or entering into the contract, an amount out of or under the superannuation or pension fund or plan; and

  • (b) if the rights created or established by the document or contract are not rights provided for by the superannuation or pension plan or a right to payments out of the superannuation or pension fund, an amount equal to the value of the rights created or established by the document or contract shall be deemed to have been received by the taxpayer out of or under the superannuation or pension fund or plan when the document was issued or the contract was entered into.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 254;
  • 1998, c. 19, s. 245.
 
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