Sustaining Canada’s Economic Recovery Act (S.C. 2010, c. 25)
Full Document:
Assented to 2010-12-15
35. (1) Subsection 146.2(6) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) the trust’s income shall be computed without reference to subsection 104(6).
(2) Subsection (1) applies to the 2010 and subsequent taxation years.
36. (1) The definition “contribution” in subsection 146.4(1) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) other than for the purposes of paragraphs (4)(f) to (h) and (n), a specified RDSP payment as defined in subsection 60.02(1).
(2) Subsection (1) applies after June 2011.
37. (1) The definitions “capital gains pool”, “enduring property” and “specified gift” in subsection 149.1(1) of the Act are repealed.
(2) The definition “disbursement quota” in subsection 149.1(1) of the Act is replaced by the following:
“disbursement quota”
« contingent des versements »
“disbursement quota”, for a taxation year of a registered charity, means the amount determined by the formula
A × B × 0.035/365
where
- A
- is the number of days in the taxation year, and
- B
- is
(a) the prescribed amount for the year, in respect of all or a portion of a property owned by the charity at any time in the 24 months immediately preceding the taxation year that was not used directly in charitable activities or administration, if that amount is greater than
(i) if the registered charity is a charitable organization, $100,000, and
(ii) in any other case, $25,000, and
(b) in any other case, nil;
(3) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:
“designated gift”
« don déterminé »
“designated gift” means that portion of a gift of property made in a taxation year by a particular registered charity, to another registered charity with which it does not deal at arm’s length, that is designated by the particular registered charity in its information return for the taxation year;
(4) Paragraph 149.1(1.1)(a) of the Act is replaced by the following:
(a) a designated gift;
(5) The portion of subsection 149.1(1.2) of the Act before paragraph (b) is replaced by the following:
Marginal note:Authority of Minister
(1.2) For the purposes of the determination of B in the definition “disbursement quota” in subsection 149.1(1), the Minister may
(a) authorize a change in the number of periods chosen by a registered charity in determining the prescribed amount; and
(6) Paragraphs 149.1(4.1)(a) and (b) of the Act are replaced by the following:
(a) of a registered charity, if it has entered into a transaction (including a gift to another registered charity) and it may reasonably be considered that a purpose of the transaction was to avoid or unduly delay the expenditure of amounts on charitable activities;
(b) of a registered charity, if it may reasonably be considered that a purpose of entering into a transaction (including the acceptance of a gift) with another registered charity to which paragraph (a) applies was to assist the other registered charity in avoiding or unduly delaying the expenditure of amounts on charitable activities;
(7) Subsection 149.1(4.1) of the Act is amended by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) of a registered charity, if it has in a taxation year received a gift of property (other than a designated gift) from another registered charity with which it does not deal at arm’s length and it has expended, before the end of the next taxation year, in addition to its disbursement quota for each of those taxation years, an amount that is less than the fair market value of the property, on charitable activities carried on by it or by way of gifts made to qualified donees with which it deals at arm’s length.
(8) Subsections 149.1(8) and (9) of the Act are replaced by the following:
Marginal note:Accumulation of property
(8) A registered charity may, with the approval in writing of the Minister, accumulate property for a particular purpose, on terms and conditions and over any period of time that the Minister specifies in the approval. Any property accumulated after receipt of and in accordance with the approval, including any income earned in respect of the accumulated property, is not to be included in calculating the prescribed amount in paragraph (a) of the description of B in the definition “disbursement quota” in subsection (1) for the portion of any taxation year in the period, except to the extent that the registered charity is not in compliance with the terms and conditions of the approval.
(9) Subparagraph 149.1(12)(b)(i) of the Act is replaced by the following:
(i) a designated gift,
(10) Subsections (1) to (9) apply to taxation years that end on or after March 4, 2010.
38. (1) Paragraphs 152(3.1)(a) and (b) of the Act are replaced by the following:
(a) if at the end of the year the taxpayer is a mutual fund trust or a corporation other than a Canadian-controlled private corporation, the period that ends four years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year; and
(b) in any other case, the period that ends three years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year.
(2) Subparagraph 152(4)(d)(ii) of the Act is replaced by the following:
(ii) the day that is 90 days after the day of sending of a notice of the provincial reassessment.
39. (1) Paragraph 153(1)(s) of the Act is replaced by the following:
(s) an amount described in paragraph 56(1)(r) or (z.2), or
(2) Section 153 of the Act is amended by adding the following after subsection (1):
Marginal note:Withholding — stock option benefits
(1.01) An amount that is deemed to have been received by a taxpayer as a benefit under or because of any of paragraphs 7(1)(a) to (d.1) is remuneration paid as a bonus for the purposes of paragraph (1)(a), except the portion, if any, of the amount that is
(a) deductible by the taxpayer under paragraph 110(1)(d) in computing the taxpayer’s taxable income for a taxation year;
(b) deemed to have been received in a taxation year as a benefit because of a disposition of securities to which subsection 7(1.1) applies; or
(c) determined under paragraph 110(2.1)(b) to be deductible by the taxpayer under paragraph 110(1)(d.01) in computing the taxpayer’s taxable income for a taxation year.
(3) Section 153 of the Act is amended by adding the following after subsection (1.3):
Marginal note:Non-cash stock option benefit
(1.31) An amount deemed to have been received as a benefit under or because of any of paragraphs 7(1)(a) to (d.1) shall not be considered a basis on which the Minister may determine a lesser amount under subsection (1.1) solely because it is received as a non-cash benefit.
(4) Subsection (1) applies after 2009.
(5) Subsection (2) applies after 2010, except that it does not apply with respect to benefits arising from rights granted before 2011 to a taxpayer under an agreement to sell or issue securities that was entered into in writing before 4:00 p.m. Eastern Standard Time, March 4, 2010 and that included, at that time, a written condition prohibiting the taxpayer from disposing of the securities acquired under the agreement for a period of time after exercise.
(6) Subsection (3) applies after 2010.
40. Paragraph 161(11)(c) of the Act is replaced by the following:
(c) in the case of a penalty payable by reason of any other provision of this Act, from the day of sending of the notice of original assessment of the penalty to the day of payment.
41. Subparagraphs 161.1(3)(c)(i) to (v) of the Act are replaced by the following:
(i) the day of sending of the first notice of assessment giving rise to any portion of the corporation’s overpayment amount to which the application relates,
(ii) the day of sending of the first notice of assessment giving rise to any portion of the corporation’s underpayment amount to which the application relates,
(iii) if the corporation has served a notice of objection to an assessment referred to in subparagraph (i) or (ii), the day of sending of the notification under subsection 165(3) by the Minister in respect of the notice of objection,
(iv) if the corporation has appealed, or applied for leave to appeal, from an assessment referred to in subparagraph (i) or (ii) to a court of competent jurisdiction, the day on which the court dismisses the application, the application or appeal is discontinued or final judgment is pronounced in the appeal, and
(v) the day of sending of the first notice to the corporation indicating that the Minister has determined any portion of the corporation’s overpayment amount to which the application relates, if the overpayment amount has not been determined as a result of a notice of assessment sent before that day.
- Date modified: