Budget Implementation Act, 2003 (S.C. 2003, c. 15)
Full Document:
Assented to 2003-06-19
80. (1) Subsection 125.5(3) of the Act is replaced by the following:
Marginal note:Tax credit
(3) An eligible production corporation in respect of an accredited production for a taxation year is deemed to have paid on its balance-due day for the year an amount on account of its tax payable under this Part for the year equal to 16% of its qualified Canadian labour expenditure for the year in respect of the production, if
(a) the corporation files with its return of income for the year
(i) a prescribed form containing prescribed information in respect of the production,
(ii) an accredited film or video production certificate in respect of the production, and
(iii) each other document prescribed in respect of the production; and
(b) the principal filming or taping of the production began before the end of the year.
(2) Subsection (1) applies in respect of Canadian labour expenditures incurred after February 18, 2003.
81. (1) Paragraph (a) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act is replaced by the following:
(a) that is a Canadian exploration expense incurred after October 17, 2000 and before 2005 by a corporation in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1),
(2) The definition “flow-through mining expenditure” in subsection 127(9) of the Act is amended by adding the word “and” at the end of paragraph (c), by striking out the word “and” at the end of paragraph (d) and by repealing paragraph (e).
(3) Subsection 127(10.2) of the Act is replaced by the following:
Marginal note:Expenditure limit determined
(10.2) For the purpose of subsection (10.1), a corporation’s expenditure limit for a particular taxation year is the amount determined by the formula
($5,000,000 - 10A) x B/C
where
- A
- is the greater of $300,000 and either
(a) if the corporation is associated with one or more other corporations in the particular year and the particular year ends in a calendar year, the total of all amounts each of which is the taxable income of the corporation, or of such an associated corporation, for its last taxation year that ended in the preceding calendar year (determined before taking into consideration the specified future tax consequences for that last taxation year), or
(b) if paragraph (a) does not apply, the corporation’s taxable income for its immediately preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding year),
- B
- is the total of the business limits under section 125 for the particular year of the corporation and any such other corporations for the particular year, and
- C
- is
(a) if the corporation is associated with one or more other corporations in the particular year, the total of all amounts each of which would be the business limit for the particular year of the corporation or of such an associated corporation, if this Act were read without reference to subsections 125(5) and (5.1), or
(b) if paragraph (a) does not apply, the amount that would, if this Act were read without reference to subsections 125(5) and (5.1), be the corporation’s business limit for the particular year.
Marginal note:Expenditure limits — associated CCPCs
(10.21) Notwithstanding subsection (10.2), the expenditure limit for a taxation year of a corporation that is associated in the taxation year with one or more other Canadian-controlled private corporations is, except as otherwise provided in this section, nil.
(4) Subsections (1) and (2) apply after February 18, 2003.
(5) Subsection (3) applies to taxation years that end after 2002 except that, for taxation years that immediately follow taxation years that ended before 2003, the reference in the formula in subsection 127(10.2) of the Act, as enacted by subsection (3), to “$5,000,000” is to be read as a reference to “$4,000,000” and the reference to “$300,000” in the description of A is to be read as a reference to “$200,000”.
82. (1) The definition “refund of premiums” in subsection 146(1) of the Act is replaced by the following:
“refund of premiums”
« remboursement de primes »
“refund of premiums” means any amount paid out of or under a registered retirement savings plan (other than a tax-paid amount in respect of the plan) as consequence of the death of the annuitant under the plan,
(a) to an individual who was, immediately before the death, a spouse or common-law partner of the annuitant, where the annuitant died before the maturity of the plan, or
(b) to a child or grandchild of the annuitant who was, immediately before the death, financially dependent on the annuitant for support;
(2) Paragraphs (a) and (b) of the definition “RRSP dollar limit” in subsection 146(1) of the Act are replaced by the following:
(a) for years other than 1996 and 2003, the money purchase limit for the preceding year,
(b) for 1996, $13,500, and
(c) for 2003, $14,500;
(3) Section 146 of the Act is amended by adding the following after subsection (1):
Marginal note:Restriction — financially dependent
(1.1) For the purpose of paragraph (b) of the definition “refund of premiums” in subsection (1), clause 60(l)(v)(B.01) and subparagraph 104(27)(e)(i), it is assumed, unless the contrary is established, that an individual’s child or grandchild was not financially dependent on the individual for support immediately before the individual’s death if the income of the child or grandchild for the taxation year preceding the taxation year in which the individual died exceeded the amount determined by the formula
A + B
where
- A
- is the amount used under paragraph (c) of the description of B in subsection 118(1) for that preceding taxation year; and
- B
- is nil, unless the financial dependency was because of mental or physical infirmity, in which case it is $6,180 adjusted for each such preceding taxation year that is after 2002 in the manner set out in section 117.1.
(4) Subsections (1) and (3) apply in respect of deaths that occur after 2002.
(5) Subsection (2) applies after 2002.
83. (1) Paragraph 146.3(2)(a) of the Act is replaced by the following:
(a) the fund provides that the carrier shall make only those payments described in any of paragraphs (d) and (e), the definition “retirement income fund” in subsection (1), and subsections (14) and (14.1);
(2) The portion of paragraph 146.3(2)(e.1) of the Act before subparagraph (i) is replaced by the following:
(e.1) where the fund does not govern a trust or the fund governs a trust created before 1998 that does not hold an annuity contract as a qualified investment for the trust, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to a person who has agreed to be a carrier of another registered retirement income fund of the annuitant or to a registered pension plan in accordance with subsection (14.1), the transferor shall retain an amount equal to the lesser of
(3) The portion of paragraph 146.3(2)(e.2) of the Act before subparagraph (i) is replaced by the following:
(e.2) where paragraph (e.1) does not apply, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to a person who has agreed to be a carrier of another registered retirement income fund of the annuitant or to a registered pension plan in accordance with subsection (14.1), the transferor shall retain property in the fund sufficient to ensure that the total of
(4) Subsection 146.3(14) of the Act is replaced by the following:
Marginal note:Transfer on breakdown of marriage or common-law partnership
(14) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount
(a) is transferred on behalf of an individual who is a spouse or common-law partner or former spouse or common-law partner of the annuitant and who is entitled to the amount under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between the annuitant and the individual in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership; and
(b) is transferred directly to
(i) a registered retirement income fund under which the individual is the annuitant, or
(ii) a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)).
Marginal note:Transfer to money purchase RPP
(14.1) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount is transferred at the direction of the annuitant directly to a registered pension plan of which, at any time before the transfer, the annuitant was a member (within the meaning assigned by subsection 147.1(1)) or to a prescribed registered pension plan and allocated to the annuitant under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of the plan.
Marginal note:Taxation of amount transferred
(14.2) An amount transferred on behalf of an individual in accordance with paragraph (2)(e) or subsection (14) or (14.1)
(a) is not, solely because of that transfer, to be included in computing the income of any taxpayer; and
(b) is not to be deducted in computing the income of any taxpayer.
(5) Subsections (1) to (4) apply after 2003.
- Date modified: