Budget Implementation Act, 2009 (S.C. 2009, c. 2)

Assented to 2009-03-12

  •  (1) For the purposes of the Income Tax Act and the Canada Disability Savings Act, specified RDSP events are deemed to have occurred, in the order that they actually occurred, on December 31, 2008 and not on the day or days that they actually occurred.

  • (2) For the purposes of subsection (1), “specified RDSP event” means an event occurring after 2008 and before March 3, 2009 that

    • (a) establishes a “disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act;

    • (b) satisfies conditions in subsection 146.4(2) of the Income Tax Act;

    • (c) establishes a “registered disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act for a beneficiary who is, in respect of the 2008 taxation year, a “DTC-eligible individual” as defined in subsection 146.4(1) of the Income Tax Act and who was resident in Canada at the end of that year;

    • (d) is the making of any contribution to the registered disability savings plan;

    • (e) satisfies the requirement in paragraph 3(b) of the Canada Disability Savings Regulations; or

    • (f) is the taking of any other action to ensure that the registered disability savings plan is validly established and contributions to the plan are validly made.

2008, c. 28Budget Implementation Act, 2008

 The descriptions of A and B in subsection 19(5) of the Budget Implementation Act, 2008 are replaced by the following:

A 
is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Income Tax Act as that subsection read in its application to a taxation year that ended immediately before February 26, 2008;
B 
is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Income Tax Act, as that subsection would apply to a taxation year that ended on February 26, 2008;

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

  •  (1) Paragraph 202(2)(h) of the Income Tax Regulations is replaced by the following:

    • (h) a payment to which paragraph 212(1)(p) of the Act applies,

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 204(3) of the Regulations is amended by striking out “or” at the end of paragraph (d.1), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e):

    • (f) governed by a TFSA or by an arrangement that is deemed by paragraph 146.2(9)(a) of the Act to be a TFSA.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 209(1) of the Regulations is replaced by the following:

    • 209. (1) A person who is required by section 200, 201, 202, 204, 208, 212, 214, 215, 217 or 218, subsection 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Section 214 of the Regulations is amended by adding the following after subsection (5):

    • (6) Where an amount may be deducted under subsection 146(8.92) of the Act in computing the income of a deceased annuitant under a registered retirement savings plan, the issuer of the plan shall make an information return in prescribed form in respect of the amount.

  • (2) Subsection (1) applies after 2008.

  •  (1) Section 215 of the Regulations is amended by adding the following after subsection (5):

    • (6) Where an amount may be deducted under subsection 146.3(6.3) of the Act in computing the income of a deceased annuitant under a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the amount.

  • (2) Subsection (1) applies after 2008.

  •  (1) Subsection 221(2) of the Regulations is replaced by the following:

    • (2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 204, 205 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Section 223 of the Regulations and the heading before it are replaced by the following:

    TFSAs

    • 223. (1) An issuer of a TFSA shall make an information return for each calendar year in prescribed form in respect of the TFSA.

    • (2) An issuer of a TFSA who makes a payment of an amount that is required because of paragraph 146.2(9)(b) of the Act to be included in computing the income of a taxpayer for a taxation year shall make an information return in prescribed form.

    • (3) An issuer of a TFSA that governs a trust shall notify the holder of the TFSA in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year,

      • (a) the trust acquires or disposes of property that is a non-qualified investment for the trust; or

      • (b) property held by the trust becomes or ceases to be a non-qualified investment for the trust.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Paragraph 304(1)(a) of the Regulations is replaced by the following:

    • (a) an annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to (b.2) and (d) of the Act;

  • (2) Subsection (1) applies to annuity contracts issued after 2008.

  •  (1) Subsection 400(1) of the Regulations is replaced by the following:

    • 400. (1) In applying the definition “taxable income earned in the year in a province” in subsection 124(4) of the Act for a corporation’s taxation year

      • (a) the prescribed rules referred to in that definition are the rules in this Part; and

      • (b) the amount determined under those prescribed rules means the total of all amounts each of which is the taxable income of the corporation earned in the taxation year in a particular province as determined under this Part.

    • (1.1) In this Part, a corporation’s taxable income for a taxation year is equal to the total of

      • (a) the corporation’s taxable income for the taxation year (determined without reference to this subsection) or the corporation’s taxable income earned in Canada for the taxation year, as the case may be, and

      • (b) the positive or negative amount determined by the formula

        A – B

        where

        A 
        is the total of all amounts that are, because of the application of section 33.1 of the Act, not required to be added in computing the corporation’s income for the taxation year, and
        B 
        is the total of all amounts that are, because of the application of section 33.1 of the Act, not allowed to be deducted in computing the corporation’s income for the taxation year.
  • (2) Subsection 400(2) of the Regulations is amended by adding the following after paragraph (e):

    • (e.1) if, but for this paragraph, a corporation would not have a permanent establishment, the corporation is deemed to have a permanent establishment at the place designated in its incorporating documents or bylaws as its head office or registered office;

  • (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

  •  (1) Section 401 of the Regulations is replaced by the following:

    401. This Part applies to determine the amount of taxable income of a corporation earned in a taxation year in a particular province.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The heading before section 402.1 and sections 402.1 and 402.2 of the Regulations are replaced by the following:

    Central Paymaster

    • 402.1 (1) In this Part, if an individual (referred to in this section as the “employee”) is employed by a person (referred to in this section as the “employer”) and performs a service in a particular province for the benefit of or on behalf of a corporation that is not the employer, an amount that may reasonably be regarded as equal to the amount of salary or wages earned by the employee for the service (referred to in this section as the “particular salary”) is deemed to be salary paid by the corporation to an employee of the corporation in the corporation’s taxation year in which the particular salary is paid if

      • (a) at the time the service is performed,

        • (i) the corporation and the employer do not deal at arm’s length, and

        • (ii) the corporation has a permanent establishment in the particular province;

      • (b) the service

        • (i) is performed by the employee in the normal course of the employee’s employment by the employer,

        • (ii) is performed for the benefit of or on behalf of the corporation in the ordinary course of a business carried on by the corporation, and

        • (iii) is of a type that could reasonably be expected to be performed by employees of the corporation in the ordinary course of the business referred to in subparagraph (ii); and

      • (c) the amount is not otherwise included in the aggregate, determined for the purposes of this Part, of the salaries and wages paid by the corporation.

    • (2) In this Part, an amount deemed under subsection (1) to be salary paid by a corporation to an employee of the corporation for a service performed in a particular province is deemed to have been paid,

      • (a) if the service was performed at one or more permanent establishments of the corporation in the particular province, to an employee of the permanent establishment or establishments; or

      • (b) if paragraph (a) does not apply, to an employee of any other permanent establishment (as is reasonably determined in the circumstances) of the corporation in the particular province.

    • (3) In determining under this Part the amount of salaries and wages paid in a year by an employer, there shall be deducted the total of all amounts each of which is a particular salary paid by the employer in the year.

    • (4) Despite subparagraph (1)(a)(i), this section applies to a corporation and an employer that deal at arm’s length if the Minister determines that the corporation and the employer have entered into an arrangement the purpose of which is to reduce, through the provision of services as described in subsection (1), the total amount of income tax payable by the corporation under a law of the particular province referred to in subsection (1).

    • (5) For the purposes of this section, a partnership is deemed to be a corporation and the corporation’s taxation year is deemed to be the partnership’s fiscal period.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

 
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