Sustaining Canada’s Economic Recovery Act (S.C. 2010, c. 25)
Full Document:
Assented to 2010-12-15
6. (1) Subsection 20(1) of the Act is amended by adding the following after paragraph (r):
Marginal note:Employer’s contributions under employee life and health trust
(s) such amount in respect of employer contributions paid to a trustee under an employee life and health trust as is permitted by subsections 144.1(4) to (7);
(2) Subsection (1) applies after 2009.
7. Subsection 33.1(6) of the Act is replaced by the following:
Marginal note:Election
(6) For the purposes of subsections (4) and (5), where a taxpayer so elects in the taxpayer’s return of income for a taxation year or in a prescribed form filed with the Minister within 90 days after the day of sending of a notice of assessment for the year or a notification that no tax is payable for the year, an eligible deposit recorded in the books of account of an international banking centre business of the taxpayer at the end of a day in the year is deemed not to have been recorded at any time in the day in the books of account of that business and is deemed to have been recorded throughout that day in the books of account of another international banking centre business of the taxpayer designated by the taxpayer in the election.
8. (1) Section 40 of the Act is amended by adding the following after subsection (3.2):
Marginal note:Deemed capital gain under section 180.01
(3.21) If, in respect of a taxation year, a taxpayer has made an election under subsection 180.01(1), the amount deemed to be a capital gain under paragraph 180.01(2)(b) is deemed to be a gain from the disposition of property for the taxation year.
(2) Subsection (1) is deemed to have come into force on March 4, 2010.
9. (1) Subsection 56(1) of the Act is amended by striking-out “and” at the end of paragraph (z), by renumbering paragraph (aa) as paragraph (z.1), by adding “and” at the end of paragraph (z.1) and by adding the following after paragraph (z.1):
Marginal note:Employee life and health trust
(z.2) the total of all amounts, each of which is an amount received in the year by the taxpayer that is required to be included in income under subsection 144.1(11) except to the extent that the amount was required under subsection 70(2) to be included in computing the income for the year by the taxpayer or other person resident in Canada.
(2) Subsection (1) applies after 2009.
10. (1) Paragraph 60(m) of the Act is replaced by the following:
(m) such amount in respect of payments to a registered disability savings plan as is permitted under section 60.02;
(2) Subsection (1) applies after March 3, 2010.
11. (1) Section 60.02 of the Act is replaced by the following:
Marginal note:Definitions
60.02 (1) The definitions in this subsection apply in this section and section 146.4,
“eligible individual”
« particulier admissible »
“eligible individual” means a child or grandchild of a deceased annuitant under a registered retirement savings plan or a registered retirement income fund, or of a deceased member of a registered pension plan, who was financially dependent on the deceased for support, at the time of the deceased’s death, by reason of mental or physical infirmity.
“eligible proceeds”
« produit admissible »
“eligible proceeds” means an amount (other than an amount that was deducted under paragraph 60(l) in computing the eligible individual’s income) received by an eligible individual as a consequence of the death after March 3, 2010 of a parent or grandparent of the eligible individual that is
(a) a refund of premiums (as defined in subsection 146(1));
(b) an eligible amount under subsection 146.3(6.11); or
(c) a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) out of or under a registered pension plan.
“specified RDSP payment”
« paiement de REEI déterminé »
“specified RDSP payment” in respect of an eligible individual means a payment that
(a) is made to a registered disability savings plan under which the eligible individual is the beneficiary;
(b) complies with the conditions set out in paragraphs 146.4(4)(f) to (h);
(c) is made after June 2011; and
(d) has been designated in prescribed form for a taxation year by the holder of the plan and the eligible individual at the time that the payment is made.
“transitional eligible proceeds”
« produit admissible transitoire »
“transitional eligible proceeds” of a taxpayer means
(a) any amount (other than an amount that is eligible proceeds or an amount that was deducted under paragraph 60(l) in computing the taxpayer’s income) that is received by the taxpayer as a consequence of the death of an individual after 2007 and before 2011 out of or under
(i) a registered retirement savings plan or registered retirement income fund, or
(ii) a registered pension plan (other than an amount that is received as part of a series of periodic payments or that relates to an actuarial surplus); or
(b) an amount withdrawn from the taxpayer’s registered retirement savings plan or a registered retirement income fund (in this subsection referred to as the “RRSP withdrawal”) if
(i) the taxpayer previously deducted an amount under paragraph 60(l) in respect of an amount that would be described by paragraph (a) if it were read without reference to “other than an amount that is eligible proceeds or an amount that was deducted under paragraph 60(l) in computing the taxpayer’s income”,
(ii) the RRSP withdrawal is included in computing the taxpayer’s income for the year of the withdrawal, and
(iii) the RRSP withdrawal does not exceed the amount deducted under subparagraph (i).
Marginal note:Rollover to RDSP on death
(2) There may be deducted in computing the income for a taxation year of a taxpayer who is an eligible individual an amount that
(a) does not exceed the lesser of
(i) the total specified RDSP payments made in the year or within 60 days after the end of the year (or within any longer period after the end of the year that is acceptable to the Minister) in respect of the taxpayer; and
(ii) the total amount of eligible proceeds that is included in computing the taxpayer’s income in the year; and
(b) was not deducted in computing the taxpayer’s income for a preceding taxation year.
Marginal note:Application of subsections (4) and (5)
(3) Subsections (4) and (5) do not apply unless
(a) a taxpayer who was the annuitant under a registered retirement savings plan or a registered retirement income fund or was a member of a registered pension plan died after 2007 and before 2011;
(b) the taxpayer was, immediately before the taxpayer’s death, the parent or grandparent of an eligible individual;
(c) transitional eligible proceeds were received from the plan or fund by
(i) an eligible individual in respect of the taxpayer,
(ii) a person who was the spouse or common-law partner of the taxpayer immediately before the taxpayer’s death, or
(iii) a person who is a beneficiary of the taxpayer’s estate or who directly received transitional eligible proceeds as a consequence of the death of the taxpayer; and
(d) the transitional eligible proceeds were included in computing the income of a person for a taxation year.
Marginal note:Transitional rule
(4) There may be deducted in computing the income of a taxpayer described in paragraph (3)(c) for a taxation year an amount approved by the Minister that does not exceed the lesser of
(a) the total specified RDSP payments made by the taxpayer before 2012, and
(b) the amount of transitional eligible proceeds included in computing the taxpayer’s income for the year.
Marginal note:Transitional rule — deceased taxpayer
(5) There may be deducted in computing the income of a taxpayer for the taxation year in which the taxpayer died an amount approved by the Minister that does not exceed the lesser of
(a) the total specified RDSP payments made before 2012 by an individual described in subparagraph (3)(c)(iii), and
(b) the amount by which the total of all amounts that were included in computing the taxpayer’s income for the year under subsection 146(8.8) or 146.3(6) exceeds the total of all amounts, if any, that were deducted in computing the taxpayer’s income for the year under subsection 146(8.92) or 146.3(6.3).
Marginal note:Limitation
(6) The total amounts that may be deducted under subsections (4) and (5) in respect of transitional eligible proceeds received in respect of the death of a taxpayer shall not exceed the total transitional eligible proceeds received in respect of the deceased taxpayer.
(2) Subsection (1) applies after March 3, 2010.
12. (1) Paragraphs (h) and (i) of the definition “principal-business corporation” in subsection 66(15) of the Act are replaced by the following:
(h) the generation or distribution of energy, or the production of fuel, using property described in Class 43.1 or 43.2 of Schedule II to the Income Tax Regulations, and
(i) the development of projects for which it is reasonable to expect that at least 50% of the capital cost of the depreciable property to be used in each project would be the capital cost of property described in Class 43.1 or 43.2 of Schedule II to the Income Tax Regulations,
(2) Subsection (1) applies to 2004 and subsequent taxation years.
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