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

Assented to 2010-12-15

  •  (1) Subsections 207.04(6) and (7) of the Act are repealed.

  • (2) Subsection (1) applies after October 16, 2009.

  •  (1) Subsection 207.05(1) of the Act is replaced by the following:

    Marginal note:Tax payable in respect of advantage
    • 207.05 (1) A tax is payable under this Part for a calendar year if, in the year, an advantage in relation to a TFSA is extended to, or is received or receivable by, a holder of the TFSA, a trust governed by the TFSA, or any other person who does not deal at arm’s length with the holder of the TFSA.

  • (2) Subsection (1) applies after October 16, 2009.

  •  (1) Paragraph 207.06(1)(b) of the Act is replaced by the following:

    • (b) one or more distributions are made without delay under a TFSA of which the individual is the holder, the total amount of which is not less than the total of

      • (i) the amount in respect of which the individual would otherwise be liable to pay the tax, and

      • (ii) income (including a capital gain) that is reasonably attributable, directly or indirectly, to the amount described in subparagraph (i).

  • (2) Section 207.06 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Waiver of tax payable — advantage

      (3) The Minister shall not waive or cancel a liability imposed under subsection 207.05(3) on an individual unless one or more distributions are made without delay under a TFSA of which the individual is the holder, the total amount of which is not less than the amount of the liability waived or cancelled.

    • Marginal note:Other powers of Minister

      (4) The Minister may notify the holder of a TFSA that the holder must cause a distribution to be made under the TFSA within 90 days of receipt of the notice, the amount of which is not less than the amount of the specified non-qualified investment income.

  • (3) Subsections (1) and (2) apply after October 16, 2009.

  •  (1) The Act is amended by adding the following after section 207.06:

    Marginal note:Income inclusion

    207.061 A holder of a TFSA shall include in computing the holder’s income for a taxation year under Part I the total of all amounts each of which is the portion of a distribution made in the year that is described in

    • (a) subparagraph 207.06(1)(b)(ii);

    • (b) subsection 207.06(3); or

    • (c) subparagraph (a)(ii) of the definition “specified distribution”.

    Marginal note:Special limit on tax payable

    207.062 If an individual is liable to pay an amount of tax under section 207.05 and under sections 207.02 or 207.03 in respect of the same contribution for the same calendar year, the tax payable under section 207.05 for the year shall be reduced by the amount of the tax payable under section 207.02 or 207.03, as the case may be, for the year.

  • (2) Subsection (1) applies after October 16, 2009.

 Paragraphs 207.07(2)(a) and (b) of the Act are replaced by the following:

  • (a) may, on sending the notice of assessment for the year, refund without application any allowable refund of the person for the year, to the extent that it was not applied against the person’s tax payable under paragraph (1)(b); and

  • (b) shall, with all due dispatch, make the refund referred to in paragraph (a) after sending the notice of assessment if an application for it has been made in writing by the person within three years after the sending of an original notice of assessment for the year.

 Paragraphs 207.7(2)(a) and (b) of the Act are replaced by the following:

  • (a) may, on sending the notice of assessment for the year or a notification that no tax is payable for the year, refund without application an amount equal to the amount, if any, by which the refundable tax of the arrangement at the end of the immediately preceding year exceeds the refundable tax of the arrangement at the end of the year; and

  • (b) shall, with all due dispatch, make such a refund after sending the notice of assessment if application for it has been made in writing by the custodian within three years after the day of sending of a notice of an original assessment for the year or of a notification that no tax is payable for the year.

  •  (1) Subsection 212(1) of the Act is amended by striking out “or” at the end of paragraph (u), by adding “or” at the end of paragraph (v) and by adding the following after paragraph (v):

    • (w) a payment out of a trust that is, or was, at any time, an employee life and health trust, except to the extent that it is a payment of a designated employee benefit (as defined by subsection 144.1(1)).

  • (2) Subsection (1) applies after 2009.

 Subparagraph 222(4)(a)(i) of the Act is replaced by the following:

  • (i) if a notice of assessment, or a notice referred to in subsection 226(1), in respect of the tax debt is sent to or served on the taxpayer, after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is sent or served, and

  •  (1) Paragraphs 225.1(1.1)(b) and (c) of the Act are replaced by the following:

    • (b) in the case of an amount assessed under section 188.1, one year after the day on which the notice of assessment was sent; and

    • (c) in any other case, 90 days after the day on which the notice of assessment was sent.

  • (2) Subsection 225.1(2) of the Act is replaced by the following:

    • Marginal note:No action by Minister

      (2) If a taxpayer has served a notice of objection under this Act to an assessment of an amount payable under this Act, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in paragraphs (1)(a) to (g) until after the day that is 90 days after the day on which notice is sent to the taxpayer that the Minister has confirmed or varied the assessment.

  • (3) Paragraph 225.1(7)(a) of the Act is replaced by the following:

    • (a) at any time on or before the particular day that is 90 days after the day of the sending of the notice of assessment, 1/2 of the amount so assessed; and

 Subsections 244(14) and (15) of the Act are replaced by the following:

  • Marginal note:Mailing or sending date

    (14) For the purposes of this Act, where any notice or notification described in subsection 149.1(6.3), 152(3.1), 165(3) or 166.1(5) or any notice of assessment or determination is mailed, or sent electronically, it shall be presumed to be mailed or sent, as the case may be, on the date of that notice or notification.

  • Marginal note:Date when electronic notice sent

    (14.1) For the purposes of this Act, if a notice or other communication in respect of a person or partnership is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person or partnership and received by the person or partnership on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person or partnership to the Minister for the purposes of this subsection, informing the person or partnership that a notice or other communication requiring the person or partnership’s immediate attention is available in the person or partnership’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person or partnership’s secure electronic account and the person or partnership has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

  • Marginal note:Date when assessment made

    (15) If any notice of assessment or determination has been sent by the Minister as required by this Act, the assessment or determination is deemed to have been made on the day of sending of the notice of the assessment or determination.

 The portion of subsection 245(6) of the Act after paragraph (b) is replaced by the following:

any person (other than a person referred to in paragraph (a) or (b)) shall be entitled, within 180 days after the day of sending of the notice, to request in writing that the Minister make an assessment, reassessment or additional assessment applying subsection (2) or make a determination applying subsection 152(1.11) with respect to that transaction.

  •  (1) The definition “employee benefit plan” in subsection 248(1) of the Act is replaced by the following:

    “employee benefit plan”

    « régime de prestations aux employés »

    “employee benefit plan” means an arrangement under which contributions are made by an employer or by any person with whom the employer does not deal at arm’s length to another person (in this Act referred to as the “custodian” of an employee benefit plan) and under which one or more payments are to be made to or for the benefit of employees or former employees of the employer or persons who do not deal at arm’s length with any such employee or former employee (other than a payment that, if section 6 were read without reference to subparagraph 6(1)(a)(ii) and paragraph 6(1)(g), would not be required to be included in computing the income of the recipient), but does not include any portion of the arrangement that is

    • (a) a fund, plan or trust referred to in subparagraph 6(1)(a)(i) or paragraph 6(1)(d) or (f),

    • (b) a trust described in paragraph 149(1)(y),

    • (c) an employee trust,

    • (c.1) a salary deferral arrangement, in respect of a taxpayer, under which deferred amounts are required to be included as benefits under paragraph 6(1)(a) in computing the taxpayer’s income,

    • (c.2) a retirement compensation arrangement,

    • (d) an arrangement the sole purpose of which is to provide education or training for employees of the employer to improve their work or work-related skills and abilities, or

    • (e) a prescribed arrangement;

  • (2) The definition “retirement compensation arrangement” in subsection 248(1) of the Act is amended by adding the following after paragraph (f):

    • (f.1) an employee life and health trust,

  • (3) The definition “salary deferral arrangement” in subsection 248(1) of the Act is amended by adding the following after paragraph (e):

    • (e.1) an employee life and health trust,

  • (4) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

    “employee life and health trust”

    « fiducie de soins de santé au bénéfice d’employés »

    “employee life and health trust” has the meaning assigned by subsection 144.1(2);

  • (5) Subsections (1) to (4) apply after 2009.

 
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