Jobs and Growth Act, 2012 (S.C. 2012, c. 31)
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Assented to 2012-12-14
PART 1AMENDMENTS TO THE INCOME TAX ACT AND RELATED REGULATIONS
R.S., c. 1 (5th Supp.)Income Tax Act
9. (1) Subparagraph 37(1)(a)(i) of the Act is replaced by the following:
(i) on scientific research and experimental development related to a business of the taxpayer, carried on in Canada and directly undertaken by the taxpayer,
(i.01) on scientific research and experimental development related to a business of the taxpayer, carried on in Canada and directly undertaken on behalf of the taxpayer,
(2) Paragraph 37(1)(b) of the Act is repealed.
(3) Paragraph 37(1)(d) of the Act is replaced by the following:
(d) the total of all amounts each of which is the amount of any government assistance or non-government assistance (as defined in subsection 127(9)) in respect of an expenditure described in paragraph (a) or (b), as paragraph (a) or (b), as the case may be, read in its application in respect of the expenditure, that at the taxpayer’s filing-due date for the year the taxpayer has received, is entitled to receive or can reasonably be expected to receive,
(4) Subsection 37(6) of the Act is replaced by the following:
Marginal note:Expenditures of a capital nature
(6) For the purposes of section 13, an amount claimed under subsection (1) that may reasonably be considered to be in respect of a property described in paragraph (1)(b), as that paragraph read in its application in respect of the property, is deemed to be an amount allowed to the taxpayer in respect of the property under regulations made under paragraph 20(1)(a), and for that purpose the property is deemed to be of a separate prescribed class.
(5) Clause 37(6.1)(a)(i)(B) of the Act is replaced by the following:
(B) the lesser of the amounts determined immediately before that time in respect of the corporation under subparagraphs (1)(b)(i) and (ii), as those subparagraphs read on March 29, 2012, in respect of expenditures made, and property acquired, by the corporation before 2014, or
(6) Clause 37(8)(a)(ii)(A) of the Act is amended by adding “or” at the end of subclause (I), by replacing “or” with “and” at the end of subclause (II) and by repealing subclause (III).
(7) Subclause 37(8)(a)(ii)(B)(I) of the Act is repealed.
(8) Subclause 37(8)(a)(ii)(B)(II) of the Act is replaced by the following:
(II) an expenditure of a current nature in respect of the prosecution of scientific research and experimental development in Canada directly undertaken on behalf of the taxpayer,
(9) Subclause 37(8)(a)(ii)(B)(III) of the Act is repealed.
(10) Clause 37(8)(a)(ii)(B) of the Act is amended by adding “or” at the end of subclause (IV), by striking out “or” at the end of subclause (V) and by repealing subclause (VI).
(11) Paragraph 37(8)(d) of the Act is replaced by the following:
(d) references to expenditures of a current nature include any expenditure made by a taxpayer other than an expenditure made by the taxpayer for
(i) the acquisition from a person or partnership of a property that is a capital property of the taxpayer, or
(ii) the use of, or the right to use, property that would be capital property of the taxpayer if it were owned by the taxpayer.
(12) Section 37 of the Act is amended by adding the following after subsection (13):
Marginal note:Look-through rule
(14) For the purposes of subparagraphs (1)(a)(i.01) to (iii), the amount of a particular expenditure made by a taxpayer shall be reduced by the amount of any related expenditure of the person or partnership to whom the particular expenditure is made that is not an expenditure of a current nature of the person or partnership.
Marginal note:Reporting of certain payments
(15) If an expenditure is required to be reduced because of subsection (14), the person or the partnership referred to in that subsection is required to inform the taxpayer in writing of the amount of the reduction without delay if requested by the taxpayer and in any other case no later than 90 days after the end of the calendar year in which the expenditure was made.
(13) Subsection (1) applies in respect of expenditures made after 2012.
(14) Subsections (2) and (6) to (12) apply in respect of expenditures made after 2013 and expenditures that subsection 37(1.2) of the Act deems not to have been made before 2014.
(15) Subsections (3) to (5) come into force on January 1, 2014.
10. (1) Paragraph 53(2)(c) of the Act is amended by striking out “and” at the end of subparagraph (xi), by adding “and” at the end of subparagraph (xii) and by adding the following after subparagraph (xii):
(xiii) the amount of any reduction (within the meaning of paragraph 247(13)(a)) of the amount of a dividend deemed to have been received by the taxpayer in respect of a transaction (as defined in subsection 247(1)) or series of transactions in which the partnership was a participant;
(2) Subsection (1) is deemed to have come into force on March 29, 2012.
11. (1) Subsection 56(1) of the Act is amended by striking out “and” at the end of paragraph (z.1), by adding “and” at the end of paragraph (z.2) and by adding the following after paragraph (z.2):
Marginal note:Pooled registered pension plan
(z.3) any amount required by section 147.5 to be included in computing the taxpayer’s income for the year.
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
12. (1) Subparagraph 60(l)(v) of the Act is amended by adding the following after clause (A):
(A.1) the amount included in computing the taxpayer’s income for the year as a payment (other than a payment that is part of a series of periodic payments) received by the taxpayer out of or under a pooled registered pension plan as a consequence of the death of an individual who was, immediately before the death, a spouse or common-law partner of the taxpayer,
(2) Clause 60(l)(v)(B.01) of the Act is replaced by the following:
(B.01) the amount included in computing the taxpayer’s income for the year as a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a pooled registered pension plan, a registered pension plan or a specified pension plan as a consequence of the death of an individual of whom the taxpayer was a child or grandchild, if the taxpayer was, immediately before the death, financially dependent on the individual for support because of mental or physical infirmity,
(3) Sub-subclause 60(l)(v)(B.1)(II)1 of the Act is replaced by the following:
1. a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a pooled registered pension plan, a registered pension plan or a specified pension plan,
(4) Subsections (1) to (3) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
13. (1) The definition “eligible individual” in subsection 60.02(1) of the Act is replaced by the following:
“eligible individual”
« particulier admissible »
“eligible individual” means a child or grandchild of a deceased annuitant under a registered retirement savings plan or a registered retirement income fund, or of a deceased member of a pooled registered pension plan, a registered pension plan or a specified pension plan, who was financially dependent on the deceased for support, at the time of the deceased’s death, by reason of mental or physical infirmity.
(2) Paragraph (c) of the definition “eligible proceeds” in subsection 60.02(1) of the Act is replaced by the following:
(c) a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) out of or under a pooled registered pension plan, a registered pension plan or a specified pension plan.
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
14. (1) The definition “eligible pension income” in subsection 60.03(1) of the Act is replaced by the following:
“eligible pension income”
« revenu de pension déterminé »
“eligible pension income”, of an individual for a taxation year, means the total of
(a) the eligible pension income (as defined in subsection 118(7)) of the individual for the year, and
(b) if the individual has attained the age of 65 years before the end of the year, the lesser of
(i) the total of all amounts each of which is a payment made in the year to the individual
(A) out of or under a retirement compensation arrangement that provides benefits that supplement the benefits provided under a registered pension plan (other than an individual pension plan for the purposes of Part LXXXIII of the Income Tax Regulations), and
(B) in respect of a life annuity that is attributable to periods of employment for which benefits are also provided to the individual under the registered pension plan, and
(ii) the amount, if any, by which the defined benefit limit (as defined in subsection 8500(1) of the Income Tax Regulations) for the year multiplied by 35 exceeds the amount determined under paragraph (a).
(2) Subsection (1) applies to the 2013 and subsequent taxation years.
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