Income Tax Amendments Act, 2000 (S.C. 2001, c. 17)
Full Document:
Assented to 2001-06-14
139. (1) Paragraph (b) of the definition “qualified investment” in subsection 146(1) of the Act is replaced by the following:
(b) a bond, debenture, note or similar obligation
(i) issued by a corporation the shares of which are listed on a prescribed stock exchange in Canada, or
(ii) issued by an authorized foreign bank and payable at a branch in Canada of the bank,
(2) Subsection (1) applies after June 27, 1999.
140. (1) Paragraph (b) of the definition “qualified investment” in subsection 146.1(1) of the Act is replaced by the following:
(b) a bond, debenture, note or similar obligation
(i) issued by a corporation the shares of which are listed on a prescribed stock exchange in Canada, or
(ii) issued by an authorized foreign bank and payable at a branch in Canada of the bank,
(2) Subsection (1) applies after June 27, 1999.
141. (1) Paragraph (b) of the definition “qualified investment” in subsection 146.3(1) of the Act is replaced by the following:
(b) a bond, debenture, note or similar obligation
(i) issued by a corporation the shares of which are listed on a prescribed stock exchange in Canada, or
(ii) issued by an authorized foreign bank and payable at a branch in Canada of the bank,
(2) Subsection (1) applies after June 27, 1999.
142. (1) Subsection 147(10.5) of the Act is repealed.
(2) Subsection (1) applies to shares acquired, but not disposed of, before February 28, 2000 and to shares acquired after February 27, 2000.
143. (1) Paragraph 147.2(4)(a) of the Act is replaced by the following:
Marginal note:Service after 1989
(a) the total of all amounts each of which is a contribution (other than a prescribed contribution) made by the individual in the year to a registered pension plan that is in respect of a period after 1989 or that is a prescribed eligible contribution, to the extent that the contribution was made in accordance with the plan as registered,
(2) Subsection (1) applies to contributions made after 1990.
144. (1) Paragraph 147.3(5)(a) of the Act is replaced by the following:
(a) is a single amount no portion of which relates to an actuarial surplus;
(2) Section 147.3 of the Act is amended by adding the following after subsection (7):
Marginal note:Transfer where money purchase plan replaces money purchase plan
(7.1) An amount is transferred from a registered pension plan (in this subsection referred to as the “transferor plan”) in accordance with this subsection if
(a) the amount is a single amount;
(b) the amount is transferred in respect of the surplus (as defined by regulation) under a money purchase provision (in this subsection referred to as the “former provision”) of the transferor plan;
(c) the amount is transferred directly to another registered pension plan to be held in connection with a money purchase provision (in this subsection referred to as the “current provision”) of the other plan;
(d) the amount is transferred in conjunction with the transfer of amounts from the former provision to the current provision on behalf of all or a significant number of members of the transferor plan whose benefits under the former provision are replaced by benefits under the current provision; and
(e) the transfer is acceptable to the Minister and the Minister has so notified the administrator of the transferor plan in writing.
(3) Paragraphs 147.3(8)(b) and (c) of the Act are replaced by the following:
(b) the amount is transferred in respect of the actuarial surplus under a defined benefit provision of the transferor plan;
(c) the amount is transferred directly to another registered pension plan to be held in connection with a money purchase provision of the other plan;
(4) Subsection (1) applies to transfers that occur after November 1999.
(5) Subsection (2) applies to transfers that occur after 1998.
(6) Subsection (3) applies to transfers that occur after 1990.
145. (1) Paragraphs 149(1)(d) to (d.2) of the Act are replaced by the following:
Marginal note:Corporations owned by the Crown
(d) a corporation, commission or association all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is Her Majesty in right of Canada or Her Majesty in right of a province;
Marginal note:Corporations 90% owned by the Crown
(d.1) a corporation, commission or association not less than 90% of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is Her Majesty in right of Canada or Her Majesty in right of a province;
Marginal note:Wholly-owned corporations
(d.2) a corporation all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is a corporation, commission or association to which this paragraph or paragraph (d) applies for the period;
(2) Subparagraph 149(1)(d.3)(i) of the Act is replaced by the following:
(i) one or more persons each of which is Her Majesty in right of Canada or a province or a person to which paragraph (d) or (d.2) applies for the period, or
(3) Paragraph 149(1)(d.4) of the Act is replaced by the following:
Marginal note:Combined ownership
(d.4) a corporation all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is a corporation, commission or association to which this paragraph or any of paragraphs (d) to (d.3) applies for the period;
(4) The portion of paragraph 149(1)(d.6) of the Act before subparagraph (i) is replaced by the following:
Marginal note:Subsidiaries of municipal corporations
(d.6) subject to subsections (1.2) and (1.3), a particular corporation all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is a corporation, commission or association to which paragraph (d.5) or this paragraph applies for the period if the income for the period of the particular corporation from activities carried on outside
(5) Clause 149(1)(o.2)(ii)(A) of the Act is replaced by the following:
(A) limited its activities to
(I) acquiring, holding, maintaining, improving, leasing or managing capital property that is real property or an interest in real property owned by the corporation, another corporation described by this subparagraph and subparagraph (iv) or a registered pension plan, and
(II) investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is real property or an interest in real property owned by the partnership,
(6) Subsection 149(1.1) of the Act is replaced by the following:
Marginal note:Exception
(1.1) Where at a particular time
(a) a corporation, commission or association (in this subsection referred to as “the entity”) would, but for this subsection, be described in any of paragraphs (1)(d) to (d.6),
(b) one or more other persons (other than Her Majesty in right of Canada or a province, a municipality in Canada or a person which, at the particular time, is a person described in any of subparagraphs (1)(d) to (d.6)) have at the particular time one or more rights in equity or otherwise, either immediately or in the future and either absolutely or contingently to, or to acquire, shares or capital of the entity, and
(c) the exercise of the rights referred to in paragraph (b) would result in the entity not being a person described in any of paragraphs (1)(d.1) to (d.6) at the particular time,
the entity is deemed not to be, at the particular time, a person described in any of paragraphs (1)(d) to (d.6).
Marginal note:Election
(1.11) Subsection (1) does not apply in respect of a person’s taxable income for a particular taxation year that begins after 1998 where
(a) paragraph (1)(d) did not apply in respect of the person’s taxable income for the person’s last taxation year that began before 1999;
(b) paragraph (1)(d.2), (d.3) or (d.4) would, but for this subsection, have applied in respect of the person’s taxable income for the person’s first taxation year that began after 1998;
(c) there has been no change in the direct or indirect control of the person during the period that
(i) began at the beginning of the person’s first taxation year that began after 1998, and
(ii) ends at the end of the particular year;
(d) the person elects in writing before 2002 that this subsection apply; and
(e) the person has not notified the Minister in writing before the particular year that the election has been revoked.
(7) Subsection 149(1.2) of the Act is replaced by the following:
Marginal note:Income test
(1.2) For the purposes of paragraphs (1)(d.5) and (d.6), income of a corporation, commission or association from activities carried on outside the geographical boundaries of a municipality does not include income from activities carried on
(a) under an agreement in writing between
(i) the corporation, commission or association, and
(ii) a person who is Her Majesty in right of Canada or a province or a municipality or corporation to which any of paragraphs (1)(d) to (d.6) applies and that is controlled by Her Majesty in right of Canada or a province or by a municipality in Canada
within the geographical boundaries of,
(iii) where the person is Her Majesty in right of Canada or a corporation controlled by Her Majesty in right of Canada, Canada,
(iv) where the person is Her Majesty in right of a province or a corporation controlled by Her Majesty in right of a province, the province, and
(v) where the person is a municipality in Canada or a corporation controlled by a municipality in Canada, the municipality; or
(b) in a province as
(i) a producer of electrical energy or natural gas, or
(ii) a distributor of electrical energy, heat, natural gas or water,
where the activities are regulated under the laws of the province.
(8) Subsections (1) to (4), (6) and (7) apply to taxation years and fiscal periods that begin after 1998 except that,
(a) where a corporation, commission or association so elects in writing and files the election with the Minister of National Revenue on or before the day that is six months after the end of the month in which this Act receives royal assent, the reference to “at a particular time” in subsection 149(1.1) of the Act, as enacted by subsection (6), shall be read as a reference to “at any time after November 1999”; and
(b) an election referred to in subsection 149(1.11) of Act, as enacted by subsection (6), filed with the Minister of National Revenue on or before the day that is six months after the end of the month in which this Act receives royal assent, is deemed to have been filed in accordance with that subsection of the Act.
(9) Subsection (5) applies to taxation years that end after 2000.
- Date modified: