Budget Implementation Act, 2007 (S.C. 2007, c. 29)
Full Document:
Assented to 2007-06-22
14. The definition “general rate reduction percentage” in subsection 123.4(1) of the Act is amended by striking out the word “and” at the end of paragraph (c) and by replacing paragraph (d) with the following:
(d) that proportion of 9% that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year, and
(e) that proportion of 9.5% that the number of days in the taxation year that are after 2010 is of the number of days in the taxation year.
15. (1) Section 126 of the Act is amended by adding the following after subsection (7):
Marginal note:Deemed dividend — partnership
(8) If an amount is deemed by subsection 96(1.11) to be a taxable dividend received by a person in a taxation year of the person in respect of a partnership, and it is reasonable to consider that all or part of the amount (in this subsection referred to as the “foreign-source portion”) is attributable to income of the partnership from a source in a country other than Canada, the person is deemed for the purposes of this section to have an amount of income from that source for that taxation year equal to the amount determined by the formula
A × B/C
where
- A
- is the total amount included under subsection 82(1) in computing the income of the person in respect of the taxable dividend for that taxation year;
- B
- is the foreign-source portion; and
- C
- is the amount of the taxable dividend deemed to be received by the person.
(2) Subsection (1) is deemed to have come into force on October 31, 2006.
16. (1) Paragraph 132(7)(a) of the Act is replaced by the following:
(a) at that time, all or substantially all of its property consisted of property other than property that would be taxable Canadian property if the definition “taxable Canadian property” in subsection 248(1) were read without reference to paragraph (b) of that definition; or
(2) Subsection (1) is deemed to have come into force on January 1, 2004.
17. (1) Paragraphs (a) and (b) of the definition “qualified investment” in subsection 146(1) of the Act are replaced by the following:
(a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered retirement savings plan” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”,
(2) Subparagraph (c.2)(iv) of the definition “qualified investment” in subsection 146(1) of the Act is replaced by the following:
(iv) the day on which the periodic payments began or are to begin (in this paragraph referred to as the “start date”) is not later than the end of the year in which the RRSP annuitant attains 72 years of age,
(3) Paragraph 146(2)(b.4) of the Act is replaced by the following:
(b.4) the plan does not provide for maturity after the end of the year in which the annuitant attains 71 years of age;
(4) Subsections 146(13.2) and (13.3) of the Act are repealed.
(5) Subsection (1) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment.
(6) Subsections (2) to (4) apply after 2006, except that subsection (4) does not apply to retirement savings plans under which the annuitant attained 69 years of age before 2007.
18. (1) The definition “RESP annual limit” in subsection 146.1(1) of the Act is repealed.
(2) Paragraphs (a) and (b) of the definition “qualified investment” in subsection 146.1(1) of the Act are replaced by the following:
(a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered education savings plan” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”,
(3) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order:
“specified educational program”
« programme de formation déterminé »
“specified educational program” means a program at a post-secondary school level of not less than three consecutive weeks duration that requires each student taking the program to spend not less than 12 hours per month on courses in the program;
(4) Subparagraphs 146.1(2)(g.1)(i) and (ii) of the Act are replaced by the following:
(i) either
(A) the individual is, at that time, enrolled as a student in a qualifying educational program at a post-secondary educational institution, or
(B) the individual has, before that time, attained the age of 16 years and is, at that time, enrolled as a student in a specified educational program at a post-secondary educational institution, and
(ii) either
(A) the individual satisfies, at that time, the condition set out in clause (i)(A), and
(I) has satisfied that condition throughout at least 13 consecutive weeks in the 12-month period that ends at that time, or
(II) the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the individual in the 12-month period that ends at that time does not exceed $5,000 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual, or
(B) the individual satisfies, at that time, the condition set out in clause (i)(B) and the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the individual in the 13-week period that ends at that time does not exceed $2,500 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual;
(5) Paragraph 146.1(2)(k) of the Act is repealed.
(6) Subsections (1) and (5) apply to contributions made after 2006.
(7) Subsection (2) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment.
(8) Subsections (3) and (4) apply to the 2007 and subsequent taxation years.
19. (1) The definition “retirement income fund” in subsection 146.3(1) of the Act is replaced by the following:
“retirement income fund”
« fonds de revenu de retraite »
“retirement income fund” means an arrangement between a carrier and an annuitant under which, in consideration for the transfer to the carrier of property, the carrier undertakes to pay amounts to the annuitant (and, where the annuitant so elects, to the annuitant’s spouse or common-law partner after the annuitant’s death), the total of which is, in each year in which the minimum amount under the arrangement for the year is greater than nil, not less than the minimum amount under the arrangement for that year, but the amount of any such payment does not exceed the value of the property held in connection with the arrangement immediately before the time of the payment.
(2) The portion of the definition “minimum amount” in subsection 146.3(1) of the Act before the formula is replaced by the following:
“minimum amount”
« minimum »
“minimum amount” under a retirement income fund for a year means, for the year in which the fund was entered into, a nil amount, and, for any other year, the amount determined by the formula
(3) Paragraphs (a) and (b) of the definition “qualified investment” in subsection 146.3(1) of the Act are replaced by the following:
(a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered retirement income fund” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”,
(4) Subsections (1) and (2) apply after 2006, except that
(a) in applying subsection (2) in 2007 (other than for the purposes of subsection 146.3(5.1) of the Act, regulations made under subsection 153(1) of the Act and the definition “periodic pension payment” in section 5 of the Income Tax Conventions Interpretation Act), the portion of the definition “minimum amount” in subsection 146.3(1) of the Act before the formula, as enacted by subsection (2), shall be read as follows:
- “minimum amount”
“minimum amount” under a retirement income fund for a year means, for the year in which the fund was entered into (and for 2007, if the individual who was the annuitant under the fund on January 1, 2007 attained 69 or 70 years of age in 2006), a nil amount, and, for any other year, the amount determined by the formula”
(b) in applying subsection (2) in 2008 (other than for the purposes of subsection 146.3(5.1) of the Act, regulations made under subsection 153(1) of the Act and the definition “periodic pension payment” in section 5 of the Income Tax Conventions Interpretation Act), the portion of the definition “minimum amount” in subsection 146.3(1) of the Act before the formula, as enacted by subsection (2), shall be read as follows:
- “minimum amount”
“minimum amount” under a retirement income fund for a year means, for the year in which the fund was entered into (and for 2008, if the individual who was the annuitant under the fund on January 1, 2008 attained 70 years of age in 2007), a nil amount, and, for any other year, the amount determined by the formula”
(5) Subsection (3) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment.
(6) For the purpose of applying clause 60(l)(v)(B.2) of the Act for the 2007 and 2008 taxation years, an eligible amount of a taxpayer for a taxation year in respect of a registered retirement income fund (within the meaning assigned by subsection 146.3(6.11) of the Act) is deemed to include
(a) if the taxation year is 2007, the taxpayer was the annuitant under the fund on January 1, 2007 and the taxpayer attained 69 or 70 years of age in 2006, the lesser of
(i) the total amounts included because of subsection 146.3(5) of the Act in computing the income of the taxpayer for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or a registered retirement savings plan), and
(ii) the amount that would, but for paragraph (4)(a), be the minimum amount under the fund for 2007; and
(b) if the taxation year is 2008, the taxpayer was the annuitant under the fund on January 1, 2008 and the taxpayer attained 70 years of age in 2007, the lesser of
(i) the total amounts included because of subsection 146.3(5) of the Act in computing the income of the taxpayer for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or a registered retirement savings plan), and
(ii) the amount that would, but for paragraph (4)(b), be the minimum amount under the fund for 2008.
- Date modified: