Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)

1988, c. 28Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

• 369. (1) Subsections 216(1) and (2) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act are replaced by the following:

  Marginal note:Imposition of corporate income tax and capital tax in offshore area

  • 216. (1) There shall be imposed, levied and collected under this Part in respect of the taxable income earned by, and the taxable capital of, a corporation in a taxation year in the offshore area, in accordance with subsection (3), the taxes, interest, penalties and other sums that would be imposed, levied and collected under the Nova Scotia Income Tax Act in respect of that taxable income and that taxable capital if the offshore area were in the land portion of the Province.

  • Marginal note:Exception

    (2) Despite subsection (1), if taxes are imposed under the Nova Scotia Income Tax Act in respect of the taxable income earned by, or the taxable capital of, a corporation in a taxation year in the Province and taxes would, in the absence of this subsection, be imposed under subsection (1) in respect of that taxable income or that taxable capital, no taxes shall be imposed under subsection (1) in respect of that taxable income or that taxable capital.

• (2) Subsection 216(4) of the Act is replaced by the following:

  • Marginal note:Determination of taxable income earned in the offshore area

    (4) For the purpose of this section, the taxable income of a corporation earned in a taxation year in the offshore area or in the Province shall be determined in accordance with Part IV of the Income Tax Regulations as though the offshore area were a province and the Income Tax Act were read without reference to the definition “province” in subsection 124(4) of that Act, and “taxable capital” means taxable capital employed in Canada determined in accordance with Part I.3 of that Act.

• (3) Subsections (1) and (2) are deemed to have come into force on April 1, 1997.

R.S., c. F-8; 1995, c. 17, s. 45(1)Federal-Provincial Fiscal Arrangements Act

Marginal note:1990, c. 39, s. 56(1); 1999, c. 31, s. 237(F)

• 370. (1) Paragraph 12.2(1)(b) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

  • (b) the Act of the legislature of the province imposing a tax on the income of corporations provides, in the opinion of the Minister, for a deduction in computing taxable income of a corporation for taxation years ending in the fiscal year of an amount that is not less than the amount deductible by the corporation for the year under paragraph 110(1)(k) of the Income Tax Act.

• (2) Subsection (1) is deemed to have come into force on January 1, 2004.

1998, c. 19Income Tax Amendments Act, 1997

• 371. (1) The version of subparagraph 130(3)(a)(vii) of the Income Tax Act found in subsection 155(2) of the Income Tax Amendments Act, 1997, as amended by subsection 92(1) of the Income Tax Amendments Act, 1998, chapter 22 of the Statutes of Canada, 1999, which subsection 155(2) is in this section referred to as the “enacting subsection”, is amended by adding the following immediately after clause (B):

  • (B.1) paragraph (b) of that definition were read as follows:

    • (b) each beneficiary of a trust (except a beneficiary of a trust governed by a registered education savings plan who has not attained 19 years of age) is deemed to own that proportion of all such shares owned by the trust at that time that the fair market value at that time of the beneficial interest of the beneficiary in the trust is of the fair market value at that time of all beneficial interests in the trust,

• (2) The version of subparagraph 130(3)(a)(vii) of the Income Tax Act found in the enacting subsection is amended by adding the following immediately after clause (C):

  • (C.1) paragraph (e) of that definition were read as follows:

    • (e) notwithstanding paragraph (b), where a beneficiary’s share of the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, any discretionary power, the beneficiary (except a beneficiary of a trust governed by a registered education savings plan who has not attained 19 years of age) is deemed to own each share of the capital stock of a corporation owned at that time by the trust;

• (3) Clause 130(3)(a)(vii)(B.1) of the Income Tax Act, as enacted by subsection (1), is repealed.

• (4) Clause 130(3)(a)(vii)(C.1) of the Income Tax Act, as enacted by subsection (2), is repealed.

• (5) Subsections (1) and (2) are deemed to have come into force on June 18, 1998.

• (6) Subsections (3) and (4) apply to taxation years that begin after October 31, 2011.

2001, c. 17Income Tax Amendments Act, 2000

• 372. (1) Subsection 59(2) of the Income Tax Amendments Act, 2000 is replaced by the following:

  • (2) Subsection (1) applies to taxation years that end after February 27, 2000, except that, for a taxation year of a debtor that includes either February 28, 2000 or October 17, 2000, or began after February 28, 2000 and ended before October 17, 2000, the reference to “½” in subsection 80.01(10) of the Act, as enacted by subsection (1), is to be read as a reference to the fraction in paragraph 38(a) of the Act that applied to the debtor for the year in which the commercial debt obligation was deemed to have been settled.

• (2) Subsection (1) is deemed to have come into force on June 14, 2001.

• 373. (1) Subsection 70(11) of the Act is replaced by the following:

  • (11) Subsections (4), (5) and (7) apply to taxation years that end after February 27, 2000, except that, for a taxation year of a taxpayer that includes February 28, 2000 or October 17, 2000, or began after February 28, 2000 and ended before October 17, 2000, the references to “twice” in subsection 93(1.2) of the Act, as enacted by subsection (4), in subsection 93(2) of the Act, as enacted by subsection (5), and in subsection 93(2.2) of the Act, as enacted by subsection (7), are to be read as references to “the fraction that is the reciprocal of the fraction in paragraph 38(a), as enacted by subsection 22(1) of the Income Tax Amendments Act, 2000, that applies to the taxpayer for the year, multiplied by”.

• (2) Subsection (1) is deemed to have come into force on June 14, 2001.

• 374. (1) Subsection 80(27) of the Act is replaced by the following:

  • (27) Subsection (17) applies to distributions made on or after March 16, 2001, except that for a distribution made after 2001 and before 2009 by a particular trust of property (in this subsection referred to as “distributed property”), paragraph 107(4.1)(b) of the Act, as enacted by subsection (17), is to be read without reference to its subparagraph (ii), if

    • (a) subsection 75(2) of the Act was not applicable in respect of the distributed property, or property for which it was substituted (in this subsection referred to as “substituted property”), at any time during which the distributed property or the substituted property was held by

      • (i) the particular trust,

      • (ii) a trust that made a disposition, to which subsection 107.4(3) of the Act applied, to the particular trust, or

      • (iii) a trust that made a disposition, to which subsection 107.4(3) of the Act applied, to a trust described by subparagraph (ii) or by this subparagraph; and

    • (b) the only property in respect of which subsection 75(2) of the Act was applicable at a time at which it was held by a trust described in paragraph (a) is a property that was held by the trust before 1989 at a time at which subsection 75(2) of the Income Tax Act, R.S.C. 1952, was applicable in respect of the property.

• (2) Subsection (1) is deemed to have come into force on June 14, 2001.

2011, c. 24Keeping Canada’s Economy and Jobs Growing Act

375. Subsection 73(3) of the Keeping Canada’s Economy and Jobs Growing Act is replaced by the following:

C.R.C., c. 945Income Tax Regulations

• 376. (1) Paragraph 104(3)(e) of the Income Tax Regulations is replaced by the following:

  • (e) the total amount of the payment and all other such payments received by the annuitant in respect of the home at or before the time of the payment does not exceed the dollar amount specified in paragraph (h) of the definition “regular eligible amount” in subsection 146.01(1) of the Act;

• (2) Subsection (1) is deemed to have come into force on January 28, 2009.

• 377. (1) The portion of subsection 229(1) of the Regulations before paragraph (a) is replaced by the following:

  • 229. (1) Every member, of a partnership that carries on a business in Canada at any time in a fiscal period of the partnership (other than a member that is, because of subsection 115.2(2) of the Act, not considered to be carrying on business in Canada at that time), or of a partnership that is at any time in a fiscal period of the partnership, a Canadian partnership or a SIFT partnership, shall make for that period an information return in prescribed form containing the following information:

• (2) Subsection (1) applies to fiscal periods that end after 2007.

• 378. (1) Subclause 304(1)(c)(iv)(B)(II) of the Regulations is replaced by the following:

  • (II) if the holder is a trust

    1. in the case of a specified trust, for the life of an individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death, or, in the case of a joint spousal or common-law partner trust, until the day of the later of the death of the individual and the death of the beneficiary under the trust who is the individual’s spouse or common-law partner,

    2. in the case of a testamentary trust (other than a specified trust) where the annuity is issued before October 24, 2012, for the life of an individual who is entitled to receive income from the trust, and

    3. in the case of any other testamentary trust other than a specified trust, for the life of an individual who was entitled when the contract was first held to receive all of the income of the trust that arose before the individual’s death,

• (2) Clauses 304(1)(c)(iv)(C) to (E) of the Regulations are replaced by the following:

  • (C) if the annuity payments are to be made over a term that is guaranteed or fixed, the guaranteed or fixed term not exceed 91 years minus the age, when the contract was first held, in whole years of the following individual:

    • (I) if the holder is not a trust, the individual who is

      1. in the case of a joint and last survivor annuity, the younger of the first holder and the survivor,

      2. in the case of a contract that is held jointly, the younger of the first holders, and

      3. in any other case, the first holder,

    • (II) if the holder is a specified trust, the individual who is

      1. in the case of a joint and last survivor annuity held by a joint spousal or common-law partner trust, the younger of the individuals referred to in paragraph 104(4)(a) of the Act who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, and

      2. in the case of an annuity that is not a joint and last survivor annuity, the individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death,

    • (III) if the holder is a testamentary trust other than a specified trust, the individual who was the youngest beneficiary under the trust when the contract was first held,

  • (D) no loans exist under the contract,

  • (E) the holder’s rights under the contract not be disposed of otherwise than

    • (I) if the holder is an individual, on the holder’s death,

    • (II) if the holder is a specified trust (other than a joint spousal or common-law partner trust), on the death of the individual referred to in paragraph 104(4)(a) of the Act who is entitled to receive all of the income of the trust that arose before the individual’s death,

    • (III) if the holder is a specified trust that is a joint spousal or common-law partner trust, on the later of the deaths of the individuals referred to in paragraph 104(4)(a) of the Act who are in combination entitled to receive all of the income of the trust that arose before the later of their deaths, and

    • (IV) if the holder is a testamentary trust, other than a specified trust, and the contract was first held after October 2011, on the earlier of

      1. the time at which the trust ceases to be a testamentary trust, and

      2. the death of the individual referred to in subclause (B)(II) or (C)(III), as the case may be, in respect of the trust, and

  • (F) no payments be made out of the contract other than as permitted by this section,

• (3) Subsections (1) and (2) apply to the 2000 and subsequent taxation years, except that with regard to a contract held by a trust created by a taxpayer at a particular time in 2000 for the benefit of another individual, subclauses 304(1)(c)(iv)(B)(II) and (C)(II) of the Regulations, as enacted by subsections (1) and (2), are to be read without reference to “or common-law partner”, unless, because of an election made under section 144 of the Modernization of Benefits and Obligations Act, chapter 12 of the Statutes of Canada, 2000, sections 130 to 142 of that Act apply at the particular time to the taxpayer and the other individual.