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

Regulations are current to 2014-04-02 and last amended on 2013-12-12. Previous Versions

Income Tax Regulations

C.R.C., c. 945

INCOME TAX ACT

Income Tax Regulations

[Note: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.]

SHORT TITLE

 These Regulations may be cited as the Income Tax Regulations.

INTERPRETATION

 In these Regulations, “Act” means the Income Tax Act.

PART ITAX DEDUCTIONS

Interpretation

  •  (1) In this Part and in Schedule I,

    “employee”

    “employee” means any person receiving remuneration; (employé)

    “employer”

    “employer” means any person paying remuneration; (employeur)

    “estimated deductions”

    “estimated deductions” means, in respect of a taxation year, the total of the amounts estimated to be deductible by an employee for the year under any of paragraphs 8(1)(f), (h), (h.1), (i) and (j) of the Act and determined by the employee for the purpose of completing the form referred to in subsection 107(2); (déductions estimatives)

    “exemptions”

    “exemptions”[Repealed, SOR/89-508, s. 1]

    “pay period”

    “pay period” includes

    • (a) a day,

    • (b) a week,

    • (c) a two week period,

    • (d) a semi-monthly period,

    • (e) a month,

    • (f) a four week period,

    • (g) one tenth of a calendar year, or

    • (h) one twenty-second of a calendar year; (période de paie)

    “personal credits”

    “personal credits” means, in respect of a particular taxation year, the greater of

    • (a) the amount referred to in paragraph 118(1)(c) of the Act, and

    • (b) the aggregate of the credits which the employee would be entitled to claim for the year under

      • (i) subsections 118(1), (2) and (3) of the Act if the description of A in those subsections were read as “is equal to one”,

      • (ii) subsections 118.3(1) and (2) of the Act if the description of A in subsection 118.3(1) of the Act were read as “is equal to one” and if subsection 118.3(1) of the Act were read without reference to paragraph (c) thereof,

      • (iii) subsections 118.5(1) and 118.6(2) of the Act if subsection 118.5(1) of the Act were read without reference to “the product obtained when the appropriate percentage for the year is multiplied by” and the description of A in subsection 118.6(2) of the Act were read as “is equal to one”, and after deducting from the aggregate of the amounts determined under those subsections the excess over $3,000 of the aggregate of amounts that the employee claims to expect to receive in the year on account of a scholarship, fellowship or bursary,

      • (iv) section 118.8 of the Act if the formula A + B - C in that section were read as

        (A + B) / C

        where

        A 
        is the value of A in that section,
        B 
        is the value of B in that section, and
        C 
        is the appropriate percentage for the year.
      • (v) section 118.9 of the Act if the formula A - B in section 118.81 of the Act were read as

        A / B

        where

        A 
        is the value of A set out in that section, and
        B 
        is the appropriate percentage for the year. (crédits d’impôts personnels)
    “remuneration”

    “remuneration” includes any payment that is

    • (a) in respect of

      • (i) salary or wages, or

      • (ii) commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated (referred to as “commissions” in this Part)

    paid to an officer or employee or former officer or employee,

    • (a.1) in respect of an employee’s gratuities required under provincial legislation to be declared to the employee’s employer,

    • (b) a superannuation or pension benefit (including an annuity payment made pursuant to or under a superannuation or pension fund or plan) other than a distribution

      • (i) that is made from a pooled registered pension plan and is not required to be included in computing a taxpayer’s income under paragraph 56(1)(z.3) of the Act, or

      • (ii) that subsection 147.5(14) of the Act deems to have been made,

    • (b.1) an amount of a distribution out of or under a retirement compensation arrangement,

    • (c) a retiring allowance,

    • (d) a death benefit,

    • (e) a benefit under a supplementary unemployment benefit plan,

    • (f) a payment under a deferred profit sharing plan or a plan referred to in section 147 of the Act as a “revoked plan”, reduced, if applicable, by amounts determined under subsections 147(10.1), (11) and (12) of the Act,

    • (g) a benefit under the Employment Insurance Act,

    • (g.1) an amount that is required by paragraph 56(1)(a.3) of the Act to be included in computing a taxpayer’s income,

    • (h) an amount that is required by paragraph 56(1)(r) of the Act to be included in computing a taxpayer’s income, except the portion of the amount that relates to child care expenses and tuition costs,

    • (i) a payment made during the lifetime of an annuitant referred to in the definition “annuitant” in subsection 146(1) of the Act out of or under a registered retirement savings plan of that annuitant, other than

      • (i) a periodic annuity payment, or

      • (ii) a payment made by a person who has reasonable grounds to believe that the payment may be deducted under subsection 146(8.2) of the Act in computing the income of any taxpayer,

    • (j) a payment out of or under a plan referred to in subsection 146(12) of the Act as an “amended plan” other than

      • (i) a periodic annuity payment, or

      • (ii) where paragraph 146(12)(a) of the Act applied to the plan after May 25, 1976, a payment made in a year subsequent to the year in which that paragraph applied to the plan,

    • (j.1) a payment made during the lifetime of an annuitant referred to in the definition “annuitant” in subsection 146.3(1) of the Act under a registered retirement income fund of that annuitant, other than a particular payment to the extent that

      • (i) the particular payment is in respect of the minimum amount (in this paragraph having the meaning assigned by subsection 146.3(1) of the Act) under the fund for a year, or

      • (ii) where the fund governs a trust, the particular payment would be in respect of the minimum amount under the fund for a year if each amount that, at the beginning of the year, is scheduled to be paid after the time of the particular payment and in the year to the trust under an annuity contract that is held by the trust both at the beginning of the year and at the time of the particular payment, is paid to the trust in the year,

    • (k) a benefit described in section 5502,

    • (l) an amount as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation or redemption of an income-averaging annuity contract;

    • (m) in respect of an amount that can reasonably be regarded as having been received, in whole or in part, as consideration or partial consideration for entering into a contract of service, where the service is to be performed in Canada, or for an undertaking not to enter into such a contract with another party; or

    • (n) a payment out of a registered education savings plan other than

      • (i) a refund of payments,

      • (ii) an educational assistance payment, or

      • (iii) an amount, up to $50,000, of an accumulated income payment that is made to a subscriber, as defined in subsection 204.94(1) of the Act, or if there is no subscriber at that time, that is made to a person that has been a spouse or common-law partner of an individual who was a subscriber, if

        • (A) that amount is transferred to an RRSP in which the annuitant is either the recipient of the payment or the recipient’s spouse or common-law partner, and

        • (B) it is reasonable for the person making the payment to believe that that amount is deductible for the year by the recipient of the payment within the limits provided for in subsection 146(5) or (5.1) of the Act; (rémunération)

    “total remuneration”

    “total remuneration” means, in respect of a taxation year, the total of all amounts each of which is an amount referred to in paragraph (a) or (a.1) of the definition “remuneration”. (rémunération totale)

  • (2) Where the amount of any credit referred to in paragraph (a) or (b) of the definition “personal credits” in subsection (1) is subject to an annual adjustment under section 117.1 of the Act, such amount shall, in a particular taxation year, be subject to that annual adjustment.

  • (3) For the purposes of this Part, where an employer deducts or withholds from a payment of remuneration to an employee one or more amounts each of which is

    • (a) a contribution to or under a pooled registered pension plan, a registered pension plan or a specified pension plan, or

    • (b) dues described in subparagraph 8(1)(i)(iv), (v) or (vi) of the Act paid on account of the employee,

    • (b.1) a contribution by the employee under subparagraph 8(1)(m.2) of the Act,

    • (c) a premium under a registered retirement savings plan, to the extent that the employer believes on reasonable grounds that the premium is deductible under paragraph 60(j.1) or subsection 146(5) or (5.1) of the Act in computing the employee’s income for the taxation year in which the payment of remuneration is made, or

    • (d) an amount that is deductible under paragraph 60(b) of the Act,

    the balance remaining after deducting or withholding this amount, as the case may be, shall be deemed to be the amount of that payment of remuneration.

  • (3.1) For the purposes of this Part, where an employee has claimed a deduction for a taxation year under paragraph 110.7(1)(b) of the Act as shown on the return most recently filed by the employee with the employee’s employer pursuant to subsection 227(2) of the Act, the amount of remuneration otherwise determined, including the amount deemed by subsection (3) to be the amount of that payment of remuneration, paid to the employee for a pay period shall be reduced by an amount equal to the amount of the deduction divided by the maximum number of pay periods in the year in respect of the appropriate pay period.

  • (3.2) [Repealed, SOR/2001-209, s. 1]

  • (4) For the purposes of this Part, where an employee is not required to report for work at any establishment of the employer, he shall be deemed to report for work

    • (a) in respect of remuneration that is salary, wages or commissions, at the establishment of the employer from which the remuneration is paid; or

    • (b) in respect of remuneration other than salary, wages or commissions, at the establishment of the employer in the province where the employee resides at the time the remuneration is paid but, if the employer does not have an establishment in that province at that time, he shall, for the purposes of this paragraph, be deemed to have an establishment in that province.

  • (5) For the purposes of this Part, where an employer deducts or withholds from a payment of remuneration to an employee an amount in respect of the acquisition by the employee of an approved share, as defined in subsection 127.4(1) of the Act, there shall be deducted from the amount determined under paragraph 102(1)(e) or (2)(e), as the case may be, in respect of that payment the lesser of

    • (a) $750, and

    • (b) 15% of the amount deducted or withheld in respect of the acquisition of an approved share.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/78-2, s. 1;
  • SOR/78-331, s. 1;
  • SOR/80-382, s. 1;
  • SOR/80-502, s. 1;
  • SOR/80-683, s. 1;
  • SOR/80-901, s. 1;
  • SOR/80-941, s. 1;
  • SOR/81-471, s. 1;
  • SOR/83-349, s. 1;
  • SOR/83-692, s. 1;
  • SOR/86-629, s. 1;
  • SOR/87-471, s. 1;
  • SOR/87-638, s. 1;
  • SOR/88-312, s. 1;
  • SOR/89-147, s. 1;
  • SOR/89-508, s. 1;
  • SOR/92-51, ss. 1, 8;
  • SOR/94-238, s. 1;
  • SOR/95-298, s. 1;
  • SOR/97-470, s. 1;
  • SOR/98-259, s. 1;
  • SOR/99-17, s. 1;
  • SOR/99-22, s. 1;
  • SOR/2000-63, s. 1;
  • SOR/2001-188, s. 14;
  • SOR/2001-209, s. 1;
  • SOR/2001-216, s. 10(F);
  • SOR/2001-221, s. 1;
  • SOR/2005-185, s. 1;
  • 2012, c. 27, s. 30, c. 31, s. 58.