• 29. (1) Paragraph 249(1)(a) of the Act is replaced by the following:

  • (a) in the case of a corporation or Canadian resident partnership, a fiscal period, and

• (2) Subsection (1) is deemed to have come into force on October 31, 2006.

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

• 30. (1) The portion of subsection 229(1) of the Income Tax Regulations before paragraph (a) is replaced by the following:

  • 229. (1) Every member of a partnership that carries on a business in Canada, or that is a Canadian partnership or a SIFT partnership, at any time in a fiscal period of the partnership shall make for that period an information return in prescribed form containing the following information:

• (2) Subsection (1) is deemed to have come into force on October 31, 2006.

• 31. (1) Part XXVI of the Regulations is amended by adding the following after section 2607:

  Sift Trusts

  2608. For the purposes of this Part, if the individual is a SIFT trust, a reference to income earned in a taxation year shall be read as a reference to the amount that would, if this Part were read without reference to this section, be the amount, if any, by which its income for the taxation year exceeds its taxable SIFT trust distributions for the taxation year.

• (2) Subsection (1) is deemed to have come into force on October 31, 2006.

• 32. (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following:

  • 4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act and paragraph (h) of the definition “qualified investment” in section 204 of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is

• (2) Paragraph 4900(1)(d.1) of the Regulations is repealed.

• (3) Paragraph 4900(1)(e.01) of the Regulations is repealed.

• (4) Paragraphs 4900(1)(m) to (n.1) of the Regulations are repealed.

• (5) Paragraphs 4900(1)(p) and (p.1) of the Regulations are repealed.

• (6) Subsection 4900(2) of the Regulations is replaced by the following:

  • (2) For the purposes of paragraph (c.1) of the definition “qualified investment” in section 204 of the Act, each of the following is a prescribed credit rating agency:

    • (a) A.M. Best Company, Inc.;

    • (b) Dominion Bond Rating Service Limited;

    • (c) Fitch, Inc.;

    • (d) Moody’s Investors Service, Inc.; and

    • (e) the Standard and Poor’s Division of the McGraw-Hill Companies, Inc.

• (7) Subsection 4900(3) of the Regulations is replaced by the following:

  • (3) For the purpose of paragraph (h) of the definition “qualified investment” in section 204 of the Act, a contract with a licensed annuities provider for an annuity payable to an employee who is a beneficiary under a deferred profit sharing plan beginning not later than the end of the year in which the employee attains 71 years of age, the guaranteed term of which, if any, does not exceed 15 years, is prescribed as a qualified investment for a trust governed by such a plan or revoked plan.

• (8) The portion of subsection 4900(7) of the Regulations before paragraph (a) is replaced by the following:

  • (7) Subject to subsection (11), for the purposes of paragraph (h) of the definition “qualified investment” in section 204 of the Act, a property is prescribed as a qualified investment for a trust governed by a deferred profit sharing plan or revoked plan at any time if at that time the property is an interest

• (9) Subsections (1) to (6) and (8) apply in determining whether a property is, at any time after March 18, 2007, a qualified investment.

• (10) Subsection (7) applies after 2006 except that, for the period before March 19, 2007, the reference in subsection 4900(3) of the Regulations, as enacted by subsection (7), to “paragraph (h)” shall be read as a reference to “paragraph (i)”.

• 33. (1) Paragraph 8308.3(1)(c) of the Regulations is replaced by the following:

  • (c) a plan or arrangement that does not provide in any circumstances for payments to be made to or for the benefit of the individual after the later of the last day of the calendar year in which the individual attains 71 years of age and the day that is 5 years after the day of termination of the individual’s employment with the employer;

• (2) Subsection (1) applies after 2006.

• 34. (1) Subparagraph 8502(e)(i) of the Regulations is replaced by the following:

  • (i) requires that the retirement benefits of a member under each benefit provision of the plan begin to be paid not later than the end of the calendar year in which the member attains 71 years of age except that,

    • (A) in the case of benefits provided under a defined benefit provision, the benefits may begin to be paid at any later time that is acceptable to the Minister, if the amount of benefits (expressed on an annualized basis) payable does not exceed the amount of benefits that would be payable if payment of the benefits began at the end of the calendar year in which the member attains 71 years of age, and

    • (B) in the case of benefits provided under a money purchase provision in accordance with paragraph 8506(1)(e.1), the benefits may begin to be paid not later than the end of the calendar year in which the member attains 72 years of age, and

• (2) Subsection (1) applies after 2006.

• 35. (1) Clause 8503(2)(f)(iii)(B) of the Regulations is replaced by the following:

  • (B) the end of the calendar year in which the beneficiary attains 71 years of age,

• (2) Section 8503 of the Regulations is amended by adding the following after subsection (11):

  Special Rules for Member Aged 70 or 71 in 2007

  •  (11.1) Where

    • (a) a member of a registered pension plan attained 69 years of age in 2005 or 2006,

    • (b) the member’s retirement benefits under a defined benefit provision of the plan commenced to be paid to the member in the year in which the member attained 69 years of age,

    • (c) the member’s retirement benefits are suspended as of any particular time in 2007, and

    • (d) the member was employed with a participating employer from the time the member’s retirement benefits commenced to be paid to the particular time,

    the following rules apply:

    • (e) subsections (9) and (11) shall apply with respect to the member as though the member became an employee of the participating employer at the particular time, and

    • (f) for the purpose of subsection (10), retirement benefits paid under the provision to the member before the particular time shall be disregarded.

• (3) Subsections (1) and (2) apply after 2006.

• 36. (1) Subparagraph 8506(1)(e)(iii) of the Regulations is replaced by the following:

  • (iii) the retirement benefits are payable to the beneficiary beginning no later than on the later of one year after the day of death of the member and the end of the calendar year in which the beneficiary attains 71 years of age;

• (2) The portion of paragraph 8506(2)(c.1) of the Regulations before subparagraph (i) is replaced by the following:

  • (c.1) no contribution is made under the provision with respect to a member, and no amount is transferred for the benefit of a member to the provision from another benefit provision of the plan, at any time after the calendar year in which the member attains 71 years of age, other than an amount that is transferred for the benefit of the member to the provision

• (3) Paragraph 8506(7)(b) of the Regulations is replaced by the following:

  • (b) that individual had not attained 71 years of age at the end of the preceding calendar year.

• (4) Subsections (1) to (3) apply after 2006.

2004, c. 26Canada Education Savings Act

• 37. (1) Subparagraph 5(2)(b)(i) of the Canada Education Savings Act is replaced by the following:

  • (i) $1,000, unless the particular year is any of 1998 to 2006, in which case, $800, and

• (2) Paragraph 5(3)(b) of the Act is replaced by the following:

  • (b) in any other case, determined by the formula

    $400A + $500B - C

    where

    A

    is the number of years after 1997 and before 2007 in which the beneficiary was alive, other than a year throughout which the beneficiary was

    • (i) an ineligible beneficiary in accord-ance with the regulations, or

    • (ii) not resident in Canada,

    B

    is the number of years after 2006 in which the beneficiary was alive, up to and including the particular year, other than a year throughout which the beneficiary was

    • (i) an ineligible beneficiary in accord-ance with the regulations, or

    • (ii) not resident in Canada, and

    C

    is the total of all CES grants paid before that time — other than those amounts paid under subsection (4) — in respect of contributions made in a preceding year in respect of the beneficiary.