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Sustaining Canada’s Economic Recovery Act (S.C. 2010, c. 25)

Assented to 2010-12-15

  •  (1) Paragraphs 164(1)(a) and (b) of the Act are replaced by the following:

    • (a) may,

      • (i) before sending the notice of assessment for the year, where the taxpayer is, for any purpose of the definition “refundable investment tax credit” (as defined in subsection 127.1(2)), a qualifying corporation (as defined in that subsection) and claims in its return of income for the year to have paid an amount on account of its tax payable under this Part for the year because of subsection 127.1(1) in respect of its refundable investment tax credit (as defined in subsection 127.1(2)), refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount by which the total determined under paragraph (f) of the definition “refundable investment tax credit” in subsection 127.1(2) in respect of the taxpayer for the year exceeds the total determined under paragraph (g) of that definition in respect of the taxpayer for the year,

      • (ii) before sending the notice of assessment for the year, where the taxpayer is a qualified corporation (as defined in subsection 125.4(1)) or an eligible production corporation (as defined in subsection 125.5(1)) and an amount is deemed under subsection 125.4(3) or 125.5(3) to have been paid on account of its tax payable under this Part for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the total of those amounts so deemed to have been paid, and

      • (iii) on or after sending the notice of assessment for the year, refund any overpayment for the year, to the extent that the overpayment was not refunded pursuant to subparagraph (i) or (ii); and

    • (b) shall, with all due dispatch, make the refund referred to in subparagraph (a)(iii) after sending the notice of assessment if application for it is made in writing by the taxpayer within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable under this Part by the taxpayer for the year if that subsection were read without reference to paragraph 152(4)(a).

  • (2) The portion of subsection 164(1.5) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Exception

      (1.5) Notwithstanding subsection (1), the Minister may, on or after sending a notice of assessment for a taxation year, refund all or any portion of any overpayment of a taxpayer for the year

  • (3) Subsection 164(2.3) of the Act is replaced by the following:

    • Marginal note:Form deemed to be return of income

      (2.3) For the purpose of subsection (1), where a taxpayer files the form referred to in paragraph (b) of the definition “return of income” in section 122.6 for a taxation year, the form is deemed to be a return of the taxpayer’s income for that year and a notice of assessment in respect of that return is deemed to have been sent by the Minister.

  •  (1) Subparagraph 165(1)(a)(ii) of the Act is replaced by the following:

    • (ii) the day that is 90 days after the day of sending of the notice of assessment; and

  • (2) Paragraph 165(1)(b) of the Act is replaced by the following:

    • (b) in any other case, on or before the day that is 90 days after the day of sending of the notice of assessment.

  • (3) The portion of subsection 165(1.1) of the Act after paragraph (c) and before paragraph (d) is replaced by the following:

    the taxpayer may object to the assessment or determination within 90 days after the day of sending of the notice of assessment or determination, but only to the extent that the reasons for the objection can reasonably be regarded

 Subsection 166.1(6) of the Act is replaced by the following:

  • Marginal note:Date of objection or request if application granted

    (6) If an application made under subsection (1) is granted, the notice of objection or the request, as the case may be, is deemed to have been served or made on the day on which the decision of the Minister is sent to the taxpayer.

 The portion of subsection 169(1) of the Act after paragraph (b) is replaced by the following:

but no appeal under this section may be instituted after the expiration of 90 days from the day notice has been sent to the taxpayer under section 165 that the Minister has confirmed the assessment or reassessed.

  •  (1) The Act is amended by adding the following after section 180:

    PART I.01TAX IN RESPECT OF STOCK OPTION BENEFIT DEFERRAL

    Marginal note:Election — special tax and relief for deferral of stock option benefits
    • 180.01 (1) A taxpayer may make an election in prescribed form to have subsection (2) apply for a taxation year in respect of particular securities if

      • (a) the taxpayer elected to have subsection 7(8) apply, as that subsection applied before 4:00 p.m. Eastern Standard Time, March 4, 2010, in respect of the particular securities; and

      • (b) the taxpayer has, in the year and before 2015, disposed of the particular securities; and

      • (c) the election under this subsection is filed

        • (i) if the taxpayer has disposed of the particular securities before 2010, on or before the taxpayer’s filing-due date for 2010, and

        • (ii) in any other case, on or before the taxpayer’s filing-due date for the year of disposition of the particular securities.

    • Marginal note:Effect of election

      (2) If a taxpayer makes an election under subsection (1) for a taxation year in respect of particular securities, the following rules apply:

      • (a) paragraph 110(1)(d) shall be read without reference to the phrase “1/2 of” in respect of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of the particular securities;

      • (b) the taxpayer is deemed to have realized a capital gain for the year equal to the lesser of

        • (i) the amount that is deductible by the taxpayer under paragraph 110(1)(d), as modified by paragraph (a), and

        • (ii) the taxpayer’s capital loss in respect of the disposition of the particular securities;

      • (c) the taxpayer is liable to pay a tax for the year equal to

        • (i) in the case of a taxpayer resident in the Province of Quebec at the end of the year, 2/3 of the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities, and

        • (ii) in any other case, the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities;

      • (d) to the extent that the taxation year is outside the normal reassessment period (as defined in subsection 152(3.1)), the election is deemed to be an application for reassessment under subsection 152(4.2); and

      • (e) notwithstanding subsection 152(4) and as the circumstances require, the Minister shall re-determine the taxpayer’s “net capital loss” (as defined in subsection 111(8)) for the taxation year and reassess any taxation year in which an amount has been deducted under paragraph 111(1)(b).

    • Marginal note:Non-application for employment insurance purposes

      (3) An amount included under subsection (2)(b) in computing a person’s income under Part I of this Act for a taxation year shall not be included in determining the income of the person for the year under Part VII of the Employment Insurance Act.

    • Marginal note:Provisions applicable to this Part

      (4) Subsection 150(3), sections 150.1 to 152, 155 to 156.1 and 158 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.

  • (2) Subsection (1) is deemed to have come into force on March 4, 2010.

  •  (1) The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following:

    “adjusted income”

    « revenu modifié »

    “adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if in computing that income no amount were

    • (a) included

      • (i) under paragraph 56(1)(q.1) or subsection 56(6),

      • (ii) in respect of a gain from a disposition of property to which section 79 applies, or

      • (iii) in respect of a gain described in subsection 40(3.21), or

    • (b) deductible under paragraph 60(w), (y) or (z);

  • (2) Subsection (1) applies to the 2000 and subsequent taxation years.

 The portion of subsection 184(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Election to treat excess as separate dividend

    (3) If, in respect of a dividend payable at a particular time after 1971, a corporation would, but for this subsection, be required to pay a tax under this Part equal to all or a portion of an excess referred to in subsection (2) of this section or subsection 184(1) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, it may elect in prescribed manner on or before a day that is not later than 90 days after the day of sending of the notice of assessment in respect of the tax that would otherwise be payable under this Part, and on such an election being made, subject to subsection (4), the following rules apply:

 The portion of subsection 185.1(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Election to treat excessive eligible dividend designation as an ordinary dividend

    (2) If, in respect of an excessive eligible dividend designation that is not described in paragraph (1)(b) and that is made by a corporation in respect of an eligible dividend (in this subsection and subsection (3) referred to as the “original dividend”) paid by it at a particular time, the corporation would, if this Act were read without reference to this subsection, be required to pay a tax under subsection (1), and it elects in prescribed manner on or before the day that is 90 days after the day of sending the notice of assessment in respect of that tax that would otherwise be payable under subsection (1), the following rules apply:

 
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