Jobs and Economic Growth Act (S.C. 2010, c. 12)
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Assented to 2010-07-12
PART 2AMENDMENTS IN RESPECT OF EXCISE DUTIES AND SALES AND EXCISE TAXES
R.S., c. E-15Excise Tax Act
Marginal note:1997, c. 10, s. 179(1)
60. (1) Subsection 185(1) of the Act is replaced by the following:
Marginal note:Financial services — input tax credits
185. (1) If tax in respect of property or a service acquired, imported or brought into a participating province by a registrant becomes payable by the registrant at a time when the registrant is neither a listed financial institution nor a person that is a financial institution because of paragraph 149(1)(b), for the purpose of determining an input tax credit of the registrant in respect of the property or service and for the purposes of Subdivision d, to the extent (determined in accordance with subsections 141.01(2) and 141.02(6)) that the property or service was acquired, imported or brought into the province, as the case may be, for consumption, use or supply in the course of making supplies of financial services that relate to commercial activities of the registrant,
(a) if the registrant is a financial institution because of paragraph 149(1)(c), the property or service is deemed, despite subsections 141.01(2) and 141.02(6), to have been so acquired, imported or brought into the province for consumption, use or supply in the course of those commercial activities except to the extent that the property or service was so acquired, imported or brought into the province for consumption, use or supply in the course of activities of the registrant that relate to
(i) credit cards or charge cards issued by the registrant, or
(ii) the making of any advance, the lending of money or the granting of any credit; and
(b) in any other case, the property or service is deemed, despite subsections 141.01(2) and 141.02(6), to have been so acquired, imported or brought into the province for consumption, use or supply in the course of those commercial activities.
(2) Subsection (1) is deemed to have come into force on April 1, 2007.
Marginal note:1997, c. 10, s. 42(1); 1999, c. 31, s. 86(F)
61. (1) The portion of section 217 of the Act before paragraph (a) is replaced by the following:
Marginal note:Definitions
217. The following definitions apply in this Division.
“imported taxable supply”
« fourniture taxable importée »
“imported taxable supply” means
(2) Section 217 of the Act is amended by adding the following in alphabetical order:
“Canadian activity”
« activité au Canada »
“Canadian activity” of a person means an activity of the person carried on, engaged in or conducted in Canada.
“duty”
« tâche »
“duty” means anything done by an employee in the course of, or in relation to, the office or employment of the employee.
“employee”
« salarié »
“employee” includes an individual who agrees to become an employee.
“external charge”
« frais externes »
“external charge” for a specified year of a qualifying taxpayer in respect of an outlay or expense described in any of paragraphs 217.1(2)(a) to (c) means the amount in respect of the outlay or expense determined by the formula
A – B
where
- A
- is the amount of the outlay or expense that
(a) is allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year, or would be so allowed if
(i) the qualifying taxpayer’s income were computed in accordance with that Act,
(ii) the qualifying taxpayer carried on a business in Canada, and
(iii) that Act applied to the qualifying taxpayer, and
(b) may reasonably be regarded as being applicable to a Canadian activity of the qualifying taxpayer; and
- B
- is the total of all amounts, each of which is included in the amount determined under the description of A and is a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer.
“loading”
« chargement »
“loading” means any part of the value of the consideration for a supply of a financial service that is attributable to administrative expenses, an error or profit margin, business handling costs, commissions, communications expenses, claims handling costs, employee compensation or benefits, execution or clearing costs, management fees, marketing or advertising costs, occupancy or equipment expenses, operating expenses, acquisition costs, premium collection costs, processing costs or any other costs or expenses of a person that makes the supply, other than commissions for a specified financial service or the part of the value of the consideration that is equal to
(a) if the financial service includes the issuance, renewal, variation or transfer of ownership of an insurance policy but not of any other qualifying instrument, the estimate of the net premium of the insurance policy;
(b) if the financial service includes the issuance, renewal, variation or transfer of ownership of a qualifying instrument (other than an insurance policy), the estimate of the default risk premium that is directly associated with the qualifying instrument; and
(c) if the financial service includes the issuance, renewal, variation or transfer of ownership of an insurance policy and a qualifying instrument (other than an insurance policy), the amount determined by the formula
A + B
where
- A
- is the estimate of the net premium of the insurance policy, and
- B
- is the estimate of the default risk premium that is directly associated with the qualifying instrument.
“permitted deduction”
« déduction autorisée »
“permitted deduction” for a specified year of a qualifying taxpayer means an amount that is
(a) consideration for a supply of property or a service, or the value of imported goods, upon which tax under this Part (other than section 218.01 or subsection 218.1(1.2)) became payable during the specified year by the qualifying taxpayer;
(b) tax referred to in paragraph (a) in respect of a supply or importation referred to in that paragraph;
(c) a provincial levy that is prescribed for the purposes of section 154 and is in respect of a supply referred to in paragraph (a);
(d) an amount that is deemed, under subsection 248(18) or (18.1) of the Income Tax Act, to be assistance repaid by the qualifying taxpayer in respect of property or a service referred to in paragraph (a);
(e) consideration for a supply of property or a service (other than a financial service) made to the qualifying taxpayer as part of a transaction or series of transactions in which all participants deal at arm’s length with the qualifying taxpayer, unless
(i) that consideration is included in paragraph (a), or
(ii) an activity carried on, engaged in or conducted outside Canada, through a qualifying establishment of the qualifying taxpayer or of a person related to the qualifying taxpayer, relates in any manner to the supply;
(f) qualifying compensation of an employee of the qualifying taxpayer that is paid in the specified year by the qualifying taxpayer if the employee was primarily in Canada while performing its duties during the specified year;
(g) interest that is paid or payable by the qualifying taxpayer as the consideration for a supply of a financial service made to the qualifying taxpayer (other than an amount paid or credited by the qualifying taxpayer, or deemed by Part I of the Income Tax Act to have been paid or credited in the specified year by the qualifying taxpayer, to a person as, on account or in lieu of payment of, or in satisfaction of, a management or administration fee or charge (within the meaning of subsection 212(4) of that Act));
(h) dividends;
(i) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified arm’s length supply made to the qualifying taxpayer;
(j) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a supply (other than a specified derivative supply) of a specified financial service made to the qualifying taxpayer;
(k) consideration (other than interest referred to in paragraph (g), dividends referred to in paragraph (h) or loading) for a specified non-arm’s length supply made to the qualifying taxpayer;
(l) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified derivative supply made to the qualifying taxpayer; or
(m) a prescribed amount.
“qualifying compensation”
« rétribution admissible »
“qualifying compensation” of an employee means any salary, wages and other remuneration of the employee and any other amount that is required to be included as income from an office or employment in computing the income of the employee for the purposes of the Income Tax Act.
“qualifying consideration”
« contrepartie admissible »
“qualifying consideration” for a specified year of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada means the amount in respect of the outlay or expense determined by the formula
A – B
where
- A
- is the amount of the outlay or expense that
(a) is allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year, or would be so allowed if
(i) the qualifying taxpayer’s income were computed in accordance with that Act,
(ii) the qualifying taxpayer carried on a business in Canada, and
(iii) that Act applied to the qualifying taxpayer, and
(b) may reasonably be regarded as being applicable to a Canadian activity of the qualifying taxpayer; and
- B
- is the total of all amounts each of which is included in the amount determined under the description of A and is
(a) an amount (other than an amount included in paragraph (b)) that is a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer, or
(b) an amount that represents a cost to a qualifying establishment of the qualifying taxpayer in a country other than Canada, or a share of a profit of the qualifying taxpayer that is redistributed from a qualifying establishment of the qualifying taxpayer in Canada to a qualifying establishment of the qualifying taxpayer in a country other than Canada, that is solely attributable to the issuance, renewal, variance or transfer of ownership by the qualifying taxpayer of a financial instrument that is a derivative, provided that all or substantially all of the amount is
(i) an error or profit margin, or employee compensation or benefits, that is reasonably attributable to the issuance, renewal, variance or transfer of ownership, or
(ii) the estimate of the default risk premium that is directly associated with the derivative.
“qualifying establishment”
« établissement admissible »
“qualifying establishment” means a permanent establishment as defined in subsection 123(1) or a permanent establishment as defined in subsection 132.1(2).
“qualifying instrument”
« instrument admissible »
“qualifying instrument” means money, a credit card voucher, a charge card voucher or a financial instrument.
“qualifying service”
« service admissible »
“qualifying service” means a service or duty.
“specified arm’s length supply”
« fourniture déterminée entre personnes sans lien de dépendance »
“specified arm’s length supply” means a supply (other than a specified derivative supply) of a financial service (other than a specified financial service) made to a qualifying taxpayer as part of a transaction or series of transactions in which all participants deal at arm’s length with the qualifying taxpayer.
“specified derivative supply”
« fourniture déterminée d’instrument dérivé »
“specified derivative supply” means a supply
(a) that is a supply of a financial service of issuing, renewing, varying or transferring the ownership of a financial instrument that is a derivative, or that is a supply made by an agent, salesperson or broker of arranging for the issuance, renewal, variance or transfer of ownership of a financial instrument that is a derivative; and
(b) for which all or substantially all of the value of the consideration is attributable to
(i) any error or profit margin, or employee compensation or benefits, reasonably attributable to the supply, and
(ii) amounts that are not loading.
“specified financial service”
« service financier déterminé »
“specified financial service” means a financial service supplied to a qualifying taxpayer by an agent, salesperson or broker of arranging for the issuance, renewal, variation or transfer of ownership of a financial instrument that is property of a person other than the agent, salesperson or broker.
“specified non-arm’s length supply”
« fourniture déterminée entre personnes ayant un lien de dépendance »
“specified non-arm’s length supply” means a supply (other than a specified derivative supply) of a financial service (other than a specified financial service) that includes the issuance, renewal, variation or transfer of ownership of a qualifying instrument, made to a qualifying taxpayer as part of a transaction or series of transactions in which any participant does not deal at arm’s length with the qualifying taxpayer.
“specified year”
« année déterminée »
“specified year” of a person means
(a) in the case of a person that is described in paragraph (a) or (b) of the definition “taxation year” in subsection 123(1), the taxation year of the person;
(b) in the case of a person that is a registrant but is not described in paragraph (a) or (b) of the definition “taxation year” in subsection 123(1), the fiscal year of the person; and
(c) in any other case, the calendar year.
“taxing statute”
« loi fiscale »
“taxing statute” of a country means a statute of the country, or of a state, province or other political subdivision of the country, that imposes a levy or charge of general application that is an income or profits tax.
“transaction”
« opération »
“transaction” includes an arrangement or event.
(3) Subsections (1) and (2) apply to any specified year of a person that ends after November 16, 2005, except that, for the purposes of applying the definition “permitted deduction” in section 217 of the Act, as enacted by subsection (2), in respect of an amount of consideration for a specified non-arm’s length supply that became due, or was paid without having become due, on or before that day, paragraph (k) of that definition shall be read without reference to the words “or loading”.
62. (1) The Act is amended by adding the following after section 217:
Marginal note:Qualifying taxpayer
217.1 (1) For the purposes of this Division, a person is a qualifying taxpayer throughout a specified year of the person if
(a) the person is a financial institution at any time in the specified year; and
(b) the person, at any time in the specified year
(i) is resident in Canada,
(ii) has a qualifying establishment in Canada,
(iii) where a majority of the persons having beneficial ownership of the person’s property in Canada are resident in Canada, carries on, engages in or conducts an activity in Canada, or
(iv) is a prescribed person or a person of a prescribed class.
Marginal note:Outlay made, or expense incurred, outside Canada
(2) For the purposes of this Division, an outlay made, or expense incurred, outside Canada includes any amount representing
(a) an outlay made, or expense incurred, by a qualifying taxpayer in respect of
(i) property that is, in whole or in part, transferred outside Canada to the qualifying taxpayer,
(ii) property, the possession or use of which is, in whole or in part, given or made available outside Canada to the qualifying taxpayer, or
(iii) a service that is performed, in whole or in part, outside Canada for the benefit of the qualifying taxpayer or is rendered, in whole or in part, outside Canada to the qualifying taxpayer;
(b) an adjustment (within the meaning of subsection 247(2) of the Income Tax Act) to an outlay or expense described in paragraph (a);
(c) an expenditure or purchase in respect of a reportable transaction (as defined in section 233.1 of the Income Tax Act) in respect of which a qualifying taxpayer is required under that section to file with the Minister a return in prescribed form containing prescribed information, or would be so required if the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer;
(d) in the case of a qualifying taxpayer that is resident in Canada, qualifying compensation of an employee paid in a specified year by the qualifying taxpayer if
(i) in the specified year, a duty is performed by the employee outside Canada (in this subsection referred to as a “duty performed outside Canada”) at a qualifying establishment of the qualifying taxpayer or of a person related to the qualifying taxpayer, and
(ii) it is not the case that all or substantially all of the duties performed outside Canada by the employee in the specified year are performed elsewhere than at such qualifying establishments; and
(e) in the case of a qualifying taxpayer that is not resident in Canada,
(i) an allocation by the qualifying taxpayer of an outlay or expense as an amount in respect of a business carried on in Canada by the qualifying taxpayer for the purpose of computing the qualifying taxpayer’s income under the Income Tax Act, or an amount that would be such an allocation if
(A) the qualifying taxpayer’s income were computed in accordance with that Act,
(B) anything done by the qualifying taxpayer through a qualifying establishment in Canada of the qualifying taxpayer were the carrying on of a business in Canada by the qualifying taxpayer, and
(C) that Act applied to the qualifying taxpayer,
(ii) an outlay or expense that may reasonably be regarded under the Income Tax Act as an amount that is applicable to a qualifying establishment in Canada of the qualifying taxpayer, or that would reasonably be so regarded if the qualifying establishment were a permanent establishment for purposes of that Act, the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer, and
(iii) qualifying compensation of an employee paid in a specified year by the qualifying taxpayer.
Marginal note:Series of transactions
(3) For the purposes of this Division, if there is a reference to a series of transactions, the series is deemed to include any related transactions completed in contemplation of the series.
Marginal note:Internal charge
(4) For the purposes of this Division, any part of an amount in respect of a transaction or dealing between a particular qualifying establishment of a qualifying taxpayer in Canada and another qualifying establishment of the qualifying taxpayer in a particular country other than Canada is an internal charge for a specified year of the qualifying taxpayer if
(a) the amount meets the following criteria:
(i) the amount would be allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the income of the particular qualifying establishment for the specified year if
(A) that Act applied to the particular qualifying establishment,
(B) the income of the particular qualifying establishment were computed in accordance with that Act, and
(C) for the purposes of that Act,
(I) anything done by the qualifying taxpayer through the particular qualifying establishment were the carrying on of a business in Canada,
(II) the particular qualifying establishment were a permanent establishment, and
(III) the specified year were the particular qualifying establishment’s taxation year,
(ii) where the qualifying taxpayer has not specified pursuant to paragraph 217.2(2)(c) that subparagraph (iii) is to apply in all cases in determining the internal charges for the specified year and the particular country is a taxing country (as defined in subsection 126(7) of the Income Tax Act) that has a tax treaty (as defined in subsection 248(1) of that Act) with Canada, the amount would be required to be included in computing, under a taxing statute of the particular country that applies to the qualifying taxpayer, or that would apply if the other qualifying establishment were a permanent establishment for the purposes of that statute, the other qualifying establishment’s income or profits for any period (in this paragraph referred to as a “taxing period”) that ends during the specified year if
(A) the taxing statute applied to the other qualifying establishment,
(B) the other qualifying establishment’s income or profits were computed in accordance with the taxing statute, and
(C) for the purposes of the taxing statute,
(I) anything done by the qualifying taxpayer through the other qualifying establishment were the carrying on of a business in the particular country, and
(II) the other qualifying establishment were a permanent establishment and had the same taxing periods that the qualifying taxpayer would have under the taxing statute, and
(iii) where subparagraph (ii) does not apply, the amount would be required to be included in computing under the Income Tax Act the other qualifying establishment’s income for the specified year if
(A) the laws of Canada, and not the laws of the particular country, applied, with any modifications that the circumstances require, in the particular country,
(B) that Act applied to the other qualifying establishment,
(C) the other qualifying establishment’s income were computed in accordance with that Act, and
(D) for the purposes of that Act,
(I) anything done by the qualifying taxpayer through the other qualifying establishment were the carrying on of a business in the particular country,
(II) the other qualifying establishment were a permanent establishment, and
(III) the specified year were the other qualifying establishment’s taxation year; and
(b) the part of the amount is not
(i) an amount determined under the description of A in the formula in the definition “external charge” in section 217 in calculating an external charge of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer,
(ii) a permitted deduction of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer, other than a permitted deduction of the qualifying taxpayer that is included in determining an amount under the description of B in the formula in the definition “external charge” in section 217 in calculating an external charge of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer,
(iii) an amount that represents a cost to the other qualifying establishment, or a share of a profit of the qualifying taxpayer that is redistributed from the particular qualifying establishment to the other qualifying establishment, that is solely attributable to the issuance, renewal, variance or transfer of ownership by the qualifying taxpayer of a financial instrument that is a derivative, provided that all or substantially all of the amount is
(A) an error or profit margin, or employee compensation or benefits, that is reasonably attributable to the issuance, renewal, variance or transfer of ownership, or
(B) the estimate of the default risk premium that is directly associated with the derivative, or
(iv) a prescribed amount.
Marginal note:Separate entities
(5) For the purposes of applying paragraph (4)(a) in respect of a particular qualifying establishment of a qualifying taxpayer in a country other than Canada and another qualifying establishment of the qualifying taxpayer in Canada, the following rules apply:
(a) the particular qualifying establishment is deemed to be a distinct and separate enterprise from the qualifying taxpayer, engaged in the same or similar activities under the same or similar conditions as the particular qualifying establishment and dealing wholly independently with the other qualifying establishment and with the part (in this subsection referred to as the “remainder of the qualifying taxpayer”) of the qualifying taxpayer, if any, that is neither the particular qualifying establishment nor the other qualifying establishment;
(b) the other qualifying establishment is deemed to be a distinct and separate enterprise from the qualifying taxpayer, engaged in the same or similar activities under the same or similar conditions as the other qualifying establishment and dealing wholly independently with the particular qualifying establishment and with the remainder of the qualifying taxpayer; and
(c) any transactions or dealings between any of the particular qualifying establishment, the other qualifying establishment and the remainder of the qualifying taxpayer are deemed to be supplies made on such terms as would have been agreed upon between parties dealing at arm’s length.
Marginal note:Qualifying rule for credits
(6) If an amount (in this subsection referred to as a “qualifying expenditure”) of qualifying consideration, or of an external charge, of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada is greater than zero and, during a reporting period of the qualifying taxpayer during which the qualifying taxpayer is a registrant, tax under section 218.01 or subsection 218.1(1.2) in respect of the qualifying expenditure becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable, the following rules apply for the purpose of determining an input tax credit of the qualifying taxpayer:
(a) the whole or part of property (in this subsection and subsection (8) referred to as “attributable property”) or of a qualifying service (in this subsection and subsection (8) referred to as an “attributable service”) to which the qualifying expenditure is attributable is deemed to have been acquired by the qualifying taxpayer at the time at which the outlay was made or the expense was incurred;
(b) the tax is deemed to be tax in respect of a supply of the attributable property or attributable service; and
(c) the extent to which the qualifying taxpayer acquired the attributable property or attributable service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the whole or part of the outlay or expense, which corresponds to the qualifying expenditure, was made or incurred to consume, use or supply the attributable property or attributable service in the course of commercial activities of the qualifying taxpayer.
Marginal note:Qualifying rule for credits — internal charge
(7) If tax (in this subsection referred to as “internal tax”) under section 218.01 or subsection 218.1(1.2) in respect of an internal charge becomes payable by a qualifying taxpayer, or is paid by the qualifying taxpayer without having become payable, and the internal charge is determined based in whole or in part on the inclusion of an outlay made, or an expense incurred, outside Canada by the qualifying taxpayer, the following rules apply for the purpose of determining an input tax credit of the qualifying taxpayer:
(a) the whole or part of property (in this subsection and subsection (8) referred to as “internal property”) or of a qualifying service (in this subsection and subsection (8) referred to as an “internal service”) to which the outlay or expense is attributable is deemed to have been supplied to the qualifying taxpayer at the time the outlay was made or the expense was incurred;
(b) the amount of the internal tax that can reasonably be attributed to the outlay or expense is deemed to be tax (in this paragraph referred to as “attributed tax”) in respect of the supply of the internal property or the internal service, and the attributed tax is deemed to have become payable at the time the internal tax becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable; and
(c) the extent to which the qualifying taxpayer acquired the internal property or internal service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the outlay or expense was made or incurred to consume, use or supply the internal property or internal service in the course of commercial activities of the qualifying taxpayer.
Marginal note:Input tax credits
(8) For the purpose of determining an input tax credit of a qualifying taxpayer under section 169
(a) in respect of attributable property or an attributable service, the reference in that section to “property or a service” is to be read as a reference to “attributable property or an attributable service, within the meaning of those terms in paragraph 217.1(6)(a)”; and
(b) in respect of internal property or an internal service, the reference in that section to “property or a service” is to be read as a reference to “internal property or an internal service, within the meaning of those terms in paragraph 217.1(7)(a)”.
Marginal note:Election
217.2 (1) A qualifying taxpayer that is resident in Canada may elect to determine tax under section 218.01 in accordance with paragraph 218.01(a) and tax under subsection 218.1(1.2) in accordance with paragraph 218.1(1.2)(a) for each specified year of the qualifying taxpayer during which the election is in effect.
Marginal note:Form and contents of election
(2) An election made under subsection (1) by a qualifying taxpayer shall
(a) be made in prescribed form containing prescribed information;
(b) set out the first specified year of the qualifying taxpayer during which the election is to be in effect;
(c) specify if subparagraph 217.1(4)(a)(iii) is to apply in all cases in determining the internal charges for all specified years of the qualifying taxpayer during which the election is to be in effect; and
(d) be filed with the Minister in prescribed manner on or before the day on or before which the qualifying taxpayer’s return under section 219 in respect of tax under section 218.01 or subsection 218.1(1.2) for the first specified year is required to be filed.
Marginal note:Effective date
(3) An election made under subsection (1) by a qualifying taxpayer shall become effective on the first day of the specified year set out in the form.
Marginal note:Cessation
(4) An election made under subsection (1) by a qualifying taxpayer ceases to have effect on the earlier of
(a) the first day of the specified year of the qualifying taxpayer in which the qualifying taxpayer ceases to be resident in Canada; and
(b) the day on which a revocation of the election becomes effective.
Marginal note:Revocation
(5) A qualifying taxpayer that has made an election under subsection (1) may revoke the election, effective on the first day of a specified year of the qualifying taxpayer that begins at least two years after the election became effective, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective.
Marginal note:Restriction
(6) If a revocation of an election made under subsection (1) becomes effective on a particular date, any subsequent election under that subsection is not a valid election unless the first day of the specified year set out in the subsequent election is at least two years after the day on which the revocation became effective.
(2) Subsection (1) applies to any specified year of a person that ends after November 16, 2005.
(3) If a return under section 219 of the Act, as amended by subsection 66(1), in respect of tax under section 218.01 of the Act, as enacted by section 63, or tax under subsection 218.1(1.2) of the Act, as enacted by subsection 64(2), for a specified year of a qualifying taxpayer is required to be filed on or before the day on which this Act is assented to, the qualifying taxpayer may, despite paragraph 217.2(2)(d) of the Act, as enacted by subsection (1), make an election under subsection 217.2(1) of the Act, as enacted by subsection (1), that becomes effective on the first day of the specified year, provided that the qualifying taxpayer files the election with the Minister of National Revenue in prescribed manner on or before the day that is sixty days after the day on which this Act is assented to.
(4) If a qualifying taxpayer makes an election under subsection 217.2(1) of the Act, as enacted by subsection (1), that is in effect for a specified year of the qualifying taxpayer that ends before the day on which this Act is assented to,
(a) if an amount (in this paragraph referred to as the “paid amount”) was paid on or before that day by the qualifying taxpayer to the Receiver General as or on account of tax for the specified year under section 218.01 of the Act, as enacted by section 63, or under subsection 218.1(1.2) of the Act, as enacted by subsection 64(2), and, by reason of the election being in effect for the specified year, the total amount of tax payable for the specified year under those provisions is less than the paid amount,
(i) the qualifying taxpayer may request in writing on or before the day that is two years after the day on which this Act is assented to that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the election was in effect for the specified year, and
(ii) on receipt of a request under subparagraph (i), the Minister shall, with all due dispatch,
(A) consider the request, and
(B) despite section 298 of the Act, as amended by section 79, assess, reassess or make an additional assessment under section 296 of the Act of tax payable by the qualifying taxpayer for the specified year under section 218.01 of the Act, as enacted by section 63, or under subsection 218.1(1.2) of the Act, as enacted by subsection 64(2), and of any interest, penalty or other obligation of the qualifying taxpayer, but only to the extent that the assessment, reassessment or additional assessment may reasonably be regarded as being for the purpose of taking into account that the election was in effect for the specified year; and
(b) despite paragraph 298(1)(d) of the Act, as amended by section 79, the Minister of National Revenue may assess, reassess or make an additional assessment under section 296 of the Act of tax payable by the qualifying taxpayer for the specified year under section 218.01 of the Act, as enacted by section 63, or under subsection 218.1(1.2) of the Act, as enacted by subsection 64(2), on or before the day that is seven years after the later of
(i) the day on which the election is filed with the Minister,
(ii) the day on or before which the qualifying taxpayer was required to file the return in which that tax payable was required to be reported, and
(iii) the day on which that return was filed.
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