Keeping Canada’s Economy and Jobs Growing Act (S.C. 2011, c. 24)
Full Document:
Assented to 2011-12-15
24. (1) The Act is amended by adding the following after section 118.03:
Marginal note:Definitions
118.031 (1) The following definitions apply in this section.
“eligible expense”
« dépense admissible »
“eligible expense” in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a person who is, at the time the amount is paid, the individual’s spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the qualifying child in a prescribed program of artistic, cultural, recreational or developmental activity and, for the purposes of this section, that cost
(a) includes the cost to the qualifying entity of the program in respect of its administration, instruction, rental of required facilities, and uniforms and equipment that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time, if any, they are so acquired; and
(b) does not include
(i) the cost of accommodation, travel, food or beverages,
(ii) any amount deductible in computing any person’s income for any taxation year, or
(iii) any amount included in computing a deduction from any person’s tax payable under any Part of this Act, for any taxation year.
“qualifying child”
« enfant admissible »
“qualifying child” of an individual has the meaning assigned by subsection 118.03(1).
“qualifying entity”
« entité admissible »
“qualifying entity” means a person or partnership that offers one or more programs of artistic, cultural, recreational or developmental activity prescribed for the purposes of the definition “eligible expense”.
Marginal note:Children’s arts tax credit
(2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula
A × B
where
- A
- is the appropriate percentage for the taxation year; and
- B
- is the total of all amounts each of which is, in respect of a qualifying child of the individual for the taxation year, the lesser of $500 and the amount determined by the formula
C – D
where
- C
- is total of all amounts each of which is an amount paid in the taxation year by the individual, or by the individual’s spouse or common-law partner, that is an eligible expense in respect of the qualifying child of the individual, and
- D
- is the total of all amounts that any person is or was entitled to receive, each of which relates to an amount included in computing the value determined for C in respect of the qualifying child that is the amount of a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).
Marginal note:Children’s arts tax credit — child with disability
(3) For the purpose of computing the tax payable under this Part by an individual for a taxation year there may be deducted in respect of a qualifying child of the individual an amount equal to $500 multiplied by the appropriate percentage for the taxation year if
(a) the amount referred to in the description of B in subsection (2) is $100 or more; and
(b) an amount is deductible in respect of the qualifying child under section 118.3 in computing any person’s tax payable under this Part for the taxation year.
Marginal note:Apportionment of credit
(4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of that qualifying child if that individual were the only individual entitled to deduct an amount for the year under this section in respect of that qualifying child, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(2) Subsection (1) applies to the 2011 and subsequent taxation years.
25. (1) The Act is amended by adding the following after section 118.05:
Definition of “eligible volunteer firefighting services”
118.06 (1) In this section, “eligible volunteer firefighting services” means services provided by an individual in the individual’s capacity as a volunteer firefighter to a fire department that consist primarily of responding to and being on call for firefighting and related emergency calls, attending meetings held by the fire department and participating in required training related to the prevention or suppression of fires, but does not include services provided to a particular fire department if the individual provides firefighting services to the department otherwise than as a volunteer.
Marginal note:Volunteer firefighter tax credit
(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual, there may be deducted the amount determined by multiplying $3,000 by the appropriate percentage for the taxation year if the individual
(a) performs not less than 200 hours of eligible volunteer firefighting services in the taxation year for one or more fire departments; and
(b) provides the certificates referred to in subsection (3) as and when requested by the Minister.
Marginal note:Certificate
(3) If the Minister so demands, an individual making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from the fire chief or a delegated official of each fire department to which the individual provided eligible volunteer firefighting services for the year, attesting to the number of hours of eligible volunteer firefighting services performed in the year by the individual for the particular fire department.
(2) Subsection (1) applies to the 2011 and subsequent taxation years.
26. (1) Paragraph (d) of the definition “total charitable gifts” in subsection 118.1(1) of the English version of the Act is replaced by the following:
(d) a municipality in Canada,
(2) The definition “total charitable gifts” in subsection 118.1(1) of the Act is amended by adding the following after paragraph (d):
(d.1) a municipal or public body performing a function of government in Canada,
(3) The definition “total charitable gifts” in subsection 118.1(1) of the Act, as amended by subsections (1) and (2), is replaced by the following:
“total charitable gifts”
« total des dons de bienfaisance »
“total charitable gifts”, of an individual for a taxation year, means the total of all amounts each of which is the fair market value of a gift (other than a gift the fair market value of which is included in the total Crown gifts, the total cultural gifts or the total ecological gifts of the individual for the year) made by the individual in the year or in any of the five preceding taxation years (other than in a year for which a deduction under subsection 110(2) was claimed in computing the individual’s taxable income) to a qualified donee, to the extent that the amount was not included in determining an amount that was deducted under this section in computing the individual’s tax payable under this Part for a preceding taxation year;
(4) Paragraph 118.1(6)(a) of the Act is replaced by the following:
(a) capital property to a qualified donee, or
(5) Paragraph 118.1(13)(c) of the Act is replaced by the following:
(c) if the security is disposed of by the donee within 60 months after the particular time and paragraph (b) does not apply to the security, the individual is deemed to have made a gift to the donee of property at the time of the disposition and the fair market value of that gift is deemed to be the lesser of the fair market value of any consideration (other than a non-qualifying security of any person) received by the donee for the disposition and the amount of the gift made at the particular time that would, but for this subsection, have been included in the individual’s total charitable gifts or total Crown gifts for a taxation year; and
(6) Section 118.1 of the Act is amended by adding the following after subsection (13):
Marginal note:Application of subsection (13.2)
(13.1) Subsection (13.2) applies if, as part of a series of transactions,
(a) an individual makes, at a particular time, a gift of a particular property to a qualified donee;
(b) a particular person holds a non-qualifying security of the individual; and
(c) the qualified donee acquires, directly or indirectly, a non-qualifying security of the individual or of the particular person.
Marginal note:Non-qualifying securities — third-party accommodation
(13.2) If this subsection applies,
(a) for the purposes of this section, the fair market value of the particular property is deemed to be reduced by an amount equal to the fair market value of the non-qualifying security acquired by the qualified donee; and
(b) for the purposes of subsection (13),
(i) if the non-qualifying security acquired by the qualified donee is a non-qualifying security of the particular person, it is deemed to be a non-qualifying security of the individual,
(ii) the individual is deemed to have made, at the particular time referred to in subsection (13.1), a gift of the non-qualifying security acquired by the qualified donee, the fair market value of which does not exceed the amount, if any, by which
(A) the fair market value of the particular property determined without reference to paragraph (a)
exceeds
(B) the fair market value of the particular property determined under paragraph (a), and
(iii) paragraph (13)(b) does not apply in respect of the gift.
Marginal note:Non-qualifying securities — anti-avoidance
(13.3) For the purposes of subsections (13.1) and (13.2), if, as part of a series of transactions, an individual makes a gift to a qualified donee and the qualified donee acquires a non-qualifying security of a person (other than the individual or particular person referred to in subsection (13.1)) and it may reasonably be considered, having regard to all the circumstances, that one of the purposes or results of the acquisition of the non-qualifying security by the qualified donee was to facilitate, directly or indirectly, the making of the gift by the individual, then the non-qualifying security acquired by the qualified donee is deemed to be a non-qualifying security of the individual.
(7) Section 118.1 of the Act is amended by adding the following after subsection (20):
Marginal note:Options
(21) Subject to subsections (23) and (24), if an individual has granted an option to a qualified donee in a taxation year, no amount in respect of the option is to be included in computing the total charitable gifts, total Crown gifts, total cultural gifts or total ecological gifts in respect of the individual for any year.
Marginal note:Application of subsection (23)
(22) Subsection (23) applies if
(a) an option to acquire a property of an individual is granted to a qualified donee;
(b) the option is exercised so that the property is disposed of by the individual and acquired by the qualified donee at a particular time; and
(c) either
(i) the amount that is 80% of the fair market value of the property at the particular time is greater than or equal to the total of
(A) the consideration received by the individual from the qualified donee for the property, and
(B) the consideration received by the individual from the qualified donee for the option, or
(ii) the individual establishes to the satisfaction of the Minister that the granting of the option or the disposition of the property was made by the individual with the intention to make a gift to the qualified donee.
Marginal note:Granting of an option
(23) If this subsection applies, notwithstanding subsection 49(3),
(a) the individual is deemed to have received proceeds of disposition of the property equal to the property’s fair market value at the particular time; and
(b) there shall be included in the individual’s total charitable gifts, for the taxation year that includes the particular time, the amount by which the property’s fair market value exceeds the total described in subparagraph (22)(c)(i).
Marginal note:Disposition of an option
(24) If an option to acquire a particular property of an individual is granted to a qualified donee and the option is disposed of by the qualified donee (otherwise than by the exercise of the option) at a particular time
(a) the individual is deemed to have disposed of a property at the particular time
(i) the adjusted cost base of which to the individual immediately before the particular time is equal to the consideration, if any, paid by the qualified donee for the option, and
(ii) the proceeds of disposition of which are equal to the lesser of the fair market value of the particular property at the particular time and the fair market value of any consideration (other than a non-qualifying security of any person) received by the qualified donee for the option; and
(b) there shall be included in the total charitable gifts of the individual for the individual’s taxation year that includes the particular time the amount, if any, by which the proceeds of disposition as determined by paragraph (a) exceed the consideration, if any, paid by the donee for the option.
Marginal note:Returned property
(25) Subsection (26) applies if a qualified donee has issued to an individual a receipt referred to in subsection (2) in respect of a transfer of a property (in this subsection and subsection (26) referred to as the “original property”) and a particular property that is
(a) the original property is later transferred to the individual (unless that later transfer is reasonable consideration or remuneration for property acquired by or services rendered to a person); or
(b) any other property that may reasonably be considered compensation for or a substitute for, in whole or in part, the original property, is later transferred to the individual.
Marginal note:Returned property
(26) If this subsection applies, then
(a) irrespective of whether the transfer of the original property by the individual to the qualified donee referred to in subsection (25) was a gift, the individual is deemed not to have disposed of the original property at the time of that transfer nor to have made a gift;
(b) if the particular property is identical to the original property, the particular property is deemed to be the original property; and
(c) if the particular property is not the original property, then
(i) the individual is deemed to have disposed of the original property at the time that the particular property is transferred to the individual for proceeds of disposition equal to the greater of the fair market value of the particular property at that time and the fair market value of the original property at the time that it was transferred by the individual to the donee, and
(ii) if the transfer of the original property by the individual would be a gift if this section were read without reference to paragraph (a), the individual is deemed to have, at the time of that transfer, transferred to the donee a property that is the subject of a gift having a fair market value equal to the amount, if any, by which the fair market value of the original property at the time of that transfer exceeds the fair market value of the particular property at the time that it is transferred to the individual.
Marginal note:Information return
(27) If subsection (26) applies in respect of a transfer of property to an individual and that property has a fair market value greater than $50, the transferor must file an information return containing prescribed information with the Minister not later than 90 days after the day on which the property was transferred and provide a copy of the return to the individual.
Marginal note:Reassessment
(28) If subsection (26) applies in respect of a transfer of property to an individual, the Minister may reassess a return of income of any person to the extent that the reassessment can reasonably be regarded as relating to the transfer.
(8) Subsections (1) and (2) apply to gifts made after May 8, 2000.
(9) Subsections (3) and (4) come into force on the later of the day on which this Act receives royal assent and January 1, 2012.
(10) Subsections (5) and (6) are deemed to have come into force on March 22, 2011.
(11) Subsections 118.1(21) to (24) of the Act, as enacted by subsection (7), apply in respect of options granted on or after March 22, 2011.
(12) Subsections 118.1(25) to (28) of the Act, as enacted by subsection (7), apply to transfers of property made on or after March 22, 2011, except that an information return required to be filed under subsection 118.1(27) of the Act, as enacted by subsection (7), that is filed before November 16, 2011 is deemed to have been filed on time.
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