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

Regulations are current to 2016-05-12 and last amended on 2016-02-26. Previous Versions

PART XLBorrowed Money Costs

 [Repealed, SOR/81-251, s. 1]

Interest on Insurance Policy Loans

 For the purposes of subsection 20(2.1) of the Act, the amount of interest to be verified by the insurer in respect of a taxpayer shall be verified in prescribed form no later than the last day on which the taxpayer is required to file his return of income under section 150 of the Act for the taxation year in respect of which the interest was paid.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/79-142, s. 2;
  • SOR/79-488, s. 1;
  • SOR/84-224, s. 1.

PART XLIRepresentation Expenses

 For the purposes of subsection 20(9) of the Act, an election shall be made by filing with the Minister the following documents in duplicate:

  • (a) a letter from the taxpayer specifying the amount in respect of which the election is being made; and

  • (b) where the taxpayer is a corporation, a certified copy of the resolution of the directors authorizing the election to be made.

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

PART XLIIValuation of Annuities and other Interests

 For the purposes of subparagraph 115E(f)(i) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), the value of any income right, annuity, term of years, life or other similar estate or interest in expectancy shall be determined in accordance with the rules and standards, including standards as to mortality and interest, as are prescribed by the Estate Tax Regulations pursuant to the provisions of subparagraph 58(1)(s)(i) of the Estate Tax Act.

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

PART XLIIIInterest Rates

Interpretation

 For the purposes of this Part, quarter means any of the following periods in a calendar year:

  • (a) the period beginning on January 1 and ending on March 31;

  • (b) the period beginning on April 1 and ending on June 30;

  • (c) the period beginning on July 1 and ending on September 30; and

  • (d) the period beginning on October 1 and ending on December 31. (trimestre)

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-63, s. 1;
  • SOR/78-909, s. 2;
  • SOR/79-958, s. 1;
  • SOR/80-931, s. 1;
  • SOR/82-20, s. 1;
  • SOR/82-322, s. 1;
  • SOR/82-598, s. 1;
  • SOR/82-1097, s. 1;
  • SOR/83-237, s. 1;
  • SOR/83-496, s. 1;
  • SOR/84-372, s. 1;
  • SOR/85-696, s. 11;
  • SOR/86-488, s. 7;
  • SOR/87-639, s. 1.

Prescribed Rate of Interest

 Subject to section 4302, for the purposes of

  • (a) every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and

    • (ii) 4 per cent;

  • (b) every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a taxpayer, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate determined under subparagraph (a)(i) in respect of the particular quarter, and

    • (ii) if the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent;

  • (b.1) subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and

  • (c) every other provision of the Act in which reference is made to a prescribed rate of interest or to interest at a prescribed rate, the prescribed rate in effect during any particular quarter is the rate determined under subparagraph (a)(i) in respect of the particular quarter.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/84-372, s. 2;
  • SOR/87-639, s. 1;
  • SOR/89-462, s. 1;
  • SOR/95-285, s. 1;
  • SOR/97-557, s. 4;
  • 2010, c. 12, s. 23;
  • 2012, c. 31, s. 65.

 Notwithstanding section 4301, for the purposes of paragraph 16.1(1)(d) of the Act and subsection 1100(1.1), the interest rate in effect during any month is the rate that is one percentage point greater than the rate that was, during the month before the immediately preceding month, the average yield, expressed as a percentage per year rounded to two decimal points, prevailing on all outstanding domestic Canadian-dollar Government of Canada bonds on the last Wednesday of that month with a remaining term to maturity of over 10 years, as first published by the Bank of Canada.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/91-196, s. 4.

PART XLIVPublicly-traded Shares or Securities

  •  (1) For the purposes of section 24 and subsection 26(11) of the Income Tax Application Rules,

    • (a) a share or security named in Schedule VII is hereby prescribed to be a publicly-traded share or security; and

    • (b) for each such share or security, the amount set out in Column II of Schedule VII opposite that share or security is hereby prescribed as the amount, if any, prescribed in respect of that property.

  • (2) In Schedule VII, the abbreviation

    • (a) “Cl” means “Class”;

    • (b) “Com” means “Common”;

    • (c) “Cv” means “Convertible”;

    • (d) “Cu” means “Cumulative”;

    • (e) “Pc” means “Per Cent”;

    • (f) “Pr” means “Preferred” or “Preference” as the case may be;

    • (g) “Pt” means “Participating”;

    • (h) “Rt” means “Right”; and

    • (i) “Wt” means “Warrant”.

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

PART XLVElections in Respect of Expropriation Assets

 Any election by a taxpayer under subsection 80.1(1), (2), (4), (5), (6) or (9) of the Act shall be made on or before the day on or before which the return of income is required to be filed pursuant to section 150 of the Act for the taxation year in which the assets referred to in the particular election were acquired by him.

PART XLVIInvestment Tax Credit

Qualified Property

[SOR/80-131, s. 1]
  •  (1) Property is a prescribed building for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer that is a building or grain elevator and it is erected on land owned or leased by the taxpayer,

    • (a) that is included in Class 1, 3, 6, 20, 24 or 27 or paragraph (c), (d) or (e) of Class 8 in Schedule II; or

    • (b) that is included or would, but for Class 28, 41, 41.1 or 41.2 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II.

  • (2) Property is prescribed machinery and equipment for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that is

    • (a) a property included in paragraph (k) of Class 1 or paragraph (a) of Class 2 in Schedule II;

    • (b) an oil or water storage tank;

    • (c) a property included in Class 8 in Schedule II (other than railway rolling stock);

    • (d) a vessel, including the furniture, fittings and equipment attached thereto;

    • (e) a property included in paragraph (a) of Class 10 or Class 22 or 38 in Schedule II (other than a car or truck designed for use on highways or streets);

    • (f) notwithstanding paragraph (e), a logging truck acquired after March 31, 1977 to be used in the activity of logging and having a weight, including the weight of property the capital cost of which is included in the capital cost of the truck at the time of its acquisition (but for greater certainty not including the weight of fuel), in excess of 16,000 pounds;

    • (g) a property included in any of paragraphs (b) to (f), (h), (j), (k), (o), (r), (t) or (u) of Class 10 in Schedule II, or property included in paragraph (b) of Class 41 in Schedule II and that would otherwise be included in paragraph (j), (k), (r), (t) or (u) of Class 10 in Schedule II;

    • (h) a property included in paragraph (n) of Class 10, or Class 15, in Schedule II (other than a roadway);

    • (i) a property included in any of paragraphs (a) to (f) of Class 9 in Schedule II;

    • (j) a property included in Class 28, in paragraph (a), (a.1), (a.2) or (a.3) of Class 41 or in Class 41.1 or 41.2 in Schedule II that would, but for Class 28, 41, 41.1 or 41.2, as the case may be, be included in paragraph (k) or (r) of Class 10 of Schedule II;

    • (k) a property included in Class 21, 24, 27, 29, 34, 39, 40, 43, 45, 46, 50, 52 or 53 in Schedule II;

    • (l) a property included in paragraph (c) or (d) of Class 41 in Schedule II;

    • (m) property included in Class 43.1 in Schedule II because of paragraph (c) of that Class; or

    • (n) a property included in Class 43.2 in Schedule II because of paragraph (a) of that Class.

  • (3) Property is prescribed energy generation and conservation property for the purposes of the definition qualified property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1) or (2)) that is a property included in any of subparagraph (a.1)(i) of Class 17 and Classes 43.1, 43.2 and 48 in Schedule II.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/78-137, s. 5;
  • SOR/80-69, s. 1;
  • SOR/80-131, s. 2;
  • SOR/80-618, s. 7(E);
  • SOR/81-974, s. 13;
  • SOR/88-165, s. 19;
  • SOR/90-22, s. 6;
  • SOR/94-169, s. 3;
  • SOR/94-686, s. 66(F);
  • SOR/98-97, s. 4;
  • SOR/99-179, s. 10;
  • SOR/2005-371, s. 5;
  • SOR/2005-414, s. 4;
  • SOR/2006-117, s. 6;
  • SOR/2011-9, s. 5;
  • 2012, c. 31, s. 66;
  • 2013, c. 34, s. 395, c. 40, s. 106;
  • 2015, c. 36, s. 22.
 
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