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

Regulations are current to 2017-10-13 and last amended on 2017-07-01. Previous Versions

PART XVProfit Sharing Plans

DIVISION IEmployees Profit Sharing Plans

  •  (1) An election under subsection 144(4.1) of the Act by the trustee of a trust governed by an employees profit sharing plan shall be made by filing with the Minister the prescribed form in duplicate.

  • (2) An election under subsection 144(4.2) of the Act by the trustee of a trust governed by an employees profit sharing plan shall be made by filing with the Minister the prescribed form in duplicate on or before the last day of a taxation year of the trust in respect of any capital property deemed to have been disposed of in that taxation year by virtue of the election.

  • (3) An election under subsection 144(10) of the Act shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa:

    • (a) a letter from the employer stating that he elects to have the arrangement qualify as an employees profit sharing plan;

    • (b) if the employer is a corporation,

      • (i) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made, and

      • (ii) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation; and

    • (c) a copy of the agreement and any supplementary agreement setting out the plan.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, ss. 69(F), 79(F);
  • SOR/2007-116, s. 4.

DIVISION IIDeferred Profit Sharing Plans

Registration of Plans

 For the purpose of the definition deferred profit sharing plan in subsection 147(1) of the Act, an application for registration of a plan shall be made by sending the following documents by registered mail to the Commissioner of Revenue at Ottawa:

  • (a) a letter from the trustee and the employer whereby the trustee and the employer apply for the registration of the plan as a deferred profit sharing plan;

  • (b) if the employer is a corporation, a certified copy of a resolution of the directors authorizing the application to be made; and

  • (c) a copy of the agreement and any supplementary agreement setting out the plan.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/92-51, s. 4;
  • SOR/94-686, s. 79(F);
  • SOR/2007-116, s. 5.

 [Repealed, SOR/81-725, s. 1]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-725, s. 1.

DIVISION IIIElections in Respect of Certain Single Payments

 Any election by a beneficiary under subsection 147(10.1) of the Act shall be made by filing the prescribed form in duplicate as follows:

  • (a) one form shall be filed by the beneficiary with the trustee of the deferred profit sharing plan not later than 60 days after the end of the taxation year in which the beneficiary received the payment referred to in subsection 147(10.1) of the Act; and

  • (b) the other form shall be filed by the beneficiary with the Minister on or before the day on which the beneficiary is required to file a return of income pursuant to section 150 of the Act for the taxation year in which the beneficiary received the payment referred to in subsection 147(10.1) of the Act.

PART XVIPrescribed Countries

 For the purposes of subsection 10(4) of the Income Tax Application Rules, the following countries are hereby prescribed:

  • (a) Commonwealth of Australia;

  • (b) Kingdom of Denmark;

  • (c) Republic of Finland;

  • (d) French Republic;

  • (e) Federal Republic of Germany;

  • (f) Ireland;

  • (g) Jamaica;

  • (h) Japan;

  • (i) Kingdom of the Netherlands;

  • (j) New Zealand;

  • (k) Kingdom of Norway;

  • (l) Republic of South Africa;

  • (m) Kingdom of Sweden;

  • (n) Trinidad and Tobago;

  • (o) United Kingdom of Great Britain and Northern Ireland; and

  • (p) United States of America.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 48.

PART XVIICapital Cost Allowances, Farming and Fishing

[SOR/86-1092, s. 9(F)]

DIVISION IDeductions Allowed

Rates

  •  (1) For the purposes of paragraph 20(1)(a) of the Act, there is hereby allowed to a taxpayer, in computing his income from farming or fishing, as the case may be, a deduction for each taxation year in respect of each property that was used for the purpose of gaining or producing income from farming or fishing equal to such amount as he may claim, not exceeding in the case of

    • (a) a building or other structure, not described elsewhere in this subsection, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, 2 1/2 per cent,

    • (b) a building or other structure of

      construction including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, 5 per cent,

    • (c) a fence, 5 per cent,

    • (d) a scow or a vessel, including furniture, fittings or equipment attached thereto, but not including radiocommunication equipment, 7 1/2 per cent,

    • (e) nonautomotive equipment and machinery, 10 per cent,

    • (f) automotive equipment, a sleigh or a wagon, 15 per cent,

    • (g) radiocommunication equipment, 15 per cent,

    • (h) tile drainage acquired before the 1965 taxation year, 10 per cent,

    • (i) a water storage tank, 5 per cent,

    • (j) a gas well that is part of the equipment of a farm and from which the gas produced is not sold, 10 per cent, and

    • (k) a tool costing less than $100, 100 per cent,

    of the depreciable cost to the taxpayer of the property.

Taxation Years Less Than 12 Months

  • (2) Where a taxation year is less than 12 months, the amount allowed as a deduction under subsection (1) shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365.

Property Disposed of During Year

  • (3) Where a taxpayer has disposed of a property before the end of a taxation year, the amount allowed as a deduction under subsection (1) in respect of that property for the year shall not exceed that proportion of the maximum amount otherwise allowable that the number of months in the taxation year during which the property was owned by the taxpayer is of 12.

Leasehold Interest

  • (4) Where a taxpayer has property that was used for the purpose of gaining or producing income from farming or fishing and that would be included in Class 13 in Schedule II if he had claimed an allowance under Part XI, he may deduct, in computing his income from farming or fishing for a taxation year, an amount not exceeding the amount he could have deducted in respect of that property for the year under paragraph 1100(1)(b).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-377, s. 10.

DIVISION IIMaximum Deductions

  •  (1) The amount allowed as a deduction under section 1700 in respect of a property shall not exceed the amount by which the capital cost of the property to the taxpayer exceeds the aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years.

  • (2) In respect of the 1972 and subsequent taxation years, where subsection 20(5) of the Income Tax Application Rules, applies to a particular property, notwithstanding subsection (1), the amount allowed as a deduction under section 1700 in respect of the property shall not exceed the amount by which

    exceeds

    • (b) the aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years ending after 1971.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 48.
 
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