Keeping Canada’s Economy and Jobs Growing Act (S.C. 2011, c. 24)
Full Document:
Assented to 2011-12-15
42. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:
(A) under any of sections 118 to 118.06, 118.2, 118.3, 118.5, 118.6, 118.8 and 118.9,
(2) Subsection (1) applies to the 2011 and subsequent taxation years.
43. (1) Paragraph (g) of the definition “excluded right or interest” in subsection 128.1(10) of the Act is amended by adding “or” at the end of subparagraph (ii) and by repealing subparagraph (iii).
(2) Subsection (1) applies to taxation years that begin after 2009.
44. (1) The description of G in the definition “surplus funds derived from operations” in subsection 138(12) of the Act is replaced by the following:
- G
- is the total of all gifts made in the period by the insurer to a qualified donee, and
(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2012.
45. (1) The definition “non-qualified investment” in subsection 146(1) of the Act is replaced by the following:
“non-qualified investment”
« placement non admissible »
“non-qualified investment” has the same meaning as in subsection 207.01(1);
(2) The definition “benefit” in subsection 146(1) of the Act is amended by adding the following after paragraph (b):
(b.1) an amount in respect of which the annuitant pays a tax under Part XI.01, unless the tax is waived, cancelled or refunded,
(3) The portion of subsection 146(1.1) of the Act before the formula is replaced by the following:
Marginal note:Restriction — financially dependent
(1.1) For the purpose of paragraph (b) of the definition “refund of premiums” in subsection (1), clause 60(l)(v)(B.01), the definition “eligible individual” in subsection 60.02(1) and subparagraph 104(27)(e)(i), it is assumed, unless the contrary is established, that an individual’s child or grandchild was not financially dependent on the individual for support immediately before the individual’s death if the income of the child or grandchild for the taxation year preceding the taxation year in which the individual died exceeded the amount determined by the formula
(4) Subsection 146(2) of the Act is amended by adding “and” at the end of paragraph (c.3) and by repealing paragraph (c.4).
(5) Section 146 of the Act is amended by adding the following after subsection (5.1):
Marginal note:RRSP premium
(5.2) If a taxpayer’s entitlement to benefits under a defined benefit provision of a registered pension plan is transferred in accordance with subsection 147.3(4) after February 2009 and before 2011, there may be deducted in computing the taxpayer’s income for a taxation year that ends on or after the day on which the transfer was made, the amount claimed by the taxpayer in respect of premiums paid by the taxpayer in the year to a registered retirement savings plan under which the taxpayer is the annuitant, not exceeding the amount, if any, determined by the formula
A – B – C
where
- A
- is the amount, if any, that is the lesser of
(a) the prescribed amount that would have been determined for the purpose of paragraph 147.3(4)(c) if subsection 8517(3.01) of the Regulations had applied in respect of the transfer, and
(b) the amount of the taxpayer’s entitlement to benefits under the provision commuted in connection with the transfer;
- B
- is the prescribed amount for the purpose of paragraph 147.3(4)(c) that applied in respect of the transfer; and
- C
- is the total of all amounts deducted by the taxpayer under this subsection for a preceding taxation year.
Marginal note:Transitional rule
(5.201) For the purpose of subsection (5.2), a premium paid by a taxpayer before 2013 is deemed to have been paid in the taxation year in which the transfer referred to in that subsection was made and not in the year in which it was actually paid, if the taxpayer so elects in prescribed form.
(6) Subsection 146(6) of the Act is repealed.
(7) Subparagraph 146(8.2)(b)(iii) of the Act is replaced by the following:
(iii) was not paid by way of a transfer of an amount from a specified pension plan to a registered retirement savings plan in circumstances to which subsection (21) applied,
(8) Subsection 146(10) of the Act is replaced by the following:
Marginal note:Property used as security for loan
(10) If at any time in a taxation year a trust governed by a registered retirement savings plan uses or permits to be used any property of the trust as security for a loan, the fair market value of the property at the time it commenced to be so used shall be included in computing the income for the year of the taxpayer who is the annuitant under the plan at that time.
(9) Subsections 146(11) and (11.1) of the Act are repealed.
(10) Subsection 146(13.1) of the Act is repealed.
(11) The portion of subsection 146(21) of the Act before subparagraph (a)(i) is replaced by the following:
Marginal note:Specified pension plan
(21) Where
(a) an amount (other than an amount that is part of a series of periodic payments) is transferred directly from an individual’s account under a specified pension plan
(12) Section 146 of the Act is amended by adding the following after subsection (21):
Marginal note:Specified pension plan — contribution
(21.1) For the purposes of this section, paragraphs 18(11)(b), 60(j), (j.1) and (l), 74.5(12)(a), 146.01(3)(a) and 146.02(3)(a) and Parts X.1 and X.5, and for the purposes of section 214.1 of the Income Tax Regulations, a contribution made by an individual to an account of the individual, or of the individual’s spouse or common-law partner, under a specified pension plan is deemed to be a premium paid by the individual to a registered retirement savings plan under which the individual, or the individual’s spouse or common-law partner, as the case may be, is the annuitant.
Marginal note:Specified pension plan — account
(21.2) For the purposes of paragraph (8.2)(b), subsection (8.21), paragraphs (16)(a) and (b) and 18(1)(u), subparagraph (a)(i) of the definition “excluded right or interest” in subsection 128.1(10), paragraph (b) of the definition “excluded premium” in subsection 146.01(1), paragraph (c) of the definition “excluded premium” in subsection 146.02(1), subsections 146.3(14) and 147(19) and section 147.3, and for the purposes of any regulations made under subsection 147.1(18), an individual’s account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant.
Marginal note:Specified pension plan — payment
(21.3) For the purposes of subsections (8.3) to (8.7), a payment received by an individual from a specified pension plan is deemed to be a payment received by the individual from a registered retirement savings plan.
(13) The portion of subsection 146(22) of the Act before paragraph (b) is replaced by the following:
Marginal note:Deemed payment of RRSP premiums
(22) If the Minister so directs,
(a) except for the purposes of subparagraphs (5)(a)(iv.1) and (5.1)(a)(iv), an amount paid by an individual in a taxation year (other than an amount paid in the first 60 days of the year) as a premium is deemed to have been paid at the beginning of the year and not at the time it was actually paid;
(14) Subsections (1), (6), (8) and (9) apply in respect of investments acquired after March 22, 2011.
(15) Subsections (2) and (10) apply to transactions occurring, income earned, capital gains accruing and investments acquired after March 22, 2011.
(16) Subsection (3) is deemed to have come into force on March 4, 2010.
(17) Subsection (4) is deemed to have come into force on March 23, 2011.
(18) Subsection (5) applies in respect of transfers made after February 2009.
(19) Subsections (7), (11) and (13) apply to taxation years that begin after 2009.
(20) Subsections 146(21.1) and (21.2) of the Act, as enacted by subsection (12), apply to taxation years that begin after 2009, except that, for taxation years that begin before 2011, subsection 146(21.1) of the Act, as enacted by subsection (12), is to be read without reference to “, and for the purposes of section 214.1 of the Income Tax Regulations,”.
(21) Subsection 146(21.3) of the Act, as enacted by subsection (12), applies to taxation years that begin after 2010.
46. (1) Paragraph (b) of the definition “excluded premium” in subsection 146.01(1) of the Act is replaced by the following:
(b) was an amount transferred directly from a registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan,
(2) Subsection (1) applies to taxation years that begin after 2009.
47. (1) Paragraph (c) of the definition “excluded premium” in subsection 146.02(1) of the Act is replaced by the following:
(c) was an amount transferred directly from a registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan; or
(2) Subsection (1) applies to taxation years that begin after 2009.
- Date modified: