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

Assented to 2013-06-26

PART 8COORDINATING AMENDMENTS

Marginal note:2012, c. 16
  •  (1) In this section, “other Act” means the Pooled Registered Pension Plans Act.

  • (2) If this Act receives royal assent after the first day on which both the other Act and subsection 2(1) of the Jobs and Growth Act, 2012 are in force, then, on the day on which this Act receives royal assent, subparagraph 6(1)(a)(i) of the Income Tax Act, as enacted by subsection 170(1) of this Act, is replaced by the following:

    • (i) derived from the contributions of the taxpayer’s employer to or under a deferred profit sharing plan, an employee life and health trust, a group sickness or accident insurance plan, a group term life insurance policy, a pooled registered pension plan, a private health services plan, a registered pension plan or a supplementary unemployment benefit plan,

  • (3) If both the other Act and subsection 2(1) of the Jobs and Growth Act, 2012 come into force on the same day as this Act receives royal assent, then this Act is deemed to have received royal assent before the coming into force of that subsection 2(1).

  • (4) On the first day on which the other Act is in force and this Act has received royal assent,

    • (a) the portion of paragraph 60(n.1) of the Income Tax Act before subparagraph (i), as enacted by subsection 196(4) of this Act, is replaced by the following:

      • Marginal note:Repayment of pension benefits

        (n.1) an amount paid by the taxpayer in the year to a pooled registered pension plan or registered pension plan if

    • (b) subparagraph 60(n.1)(iii) of the Income Tax Act, as enacted by subsection 196(4) of this Act, is replaced by the following:

      • (iii) no portion of the amount is deductible under any of paragraph 8(1)(m) and subsections 146(5) to (5.2) in computing the taxpayer’s income for the year;

  • (5) On the first day on which the other Act is in force and on which both this Act and the Jobs and Growth Act, 2012 have received royal assent

    • (a) section 253.1 of the Income Tax Act, as enacted by subsection 363(1) of this Act, is replaced by the following:

      Marginal note:Investments in limited partnerships

      253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 146.1(2.1)(c), subsection 146.2(6), paragraph 146.4(5)(b), subsection 147.5(8), paragraph 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

    • (b) section 57 of the Jobs and Growth Act, 2012 is deemed never to have come into force and is repealed.

  • (6) Subsection (4) applies to the 2009 and subsequent taxation years, except that, before the day on which the other Act comes into force

    • (a) the portion of paragraph 60(n.1) of the Income Tax Act before subparagraph (i), as enacted by paragraph (4)(a), is to be read without reference to “pooled registered pension plan or”; and

    • (b) subparagraph 60(n.1)(iii) of the Income Tax Act, as enacted by paragraph (4)(b), is to be read as follows:

      • (iii) no portion of the amount is deductible under paragraph 8(1)(m) in computing the taxpayer’s income for the year;

Marginal note:Bill C-45
  •  (1) Subsections (2) to (5) apply if Bill C-45, introduced in the 1st session of the 41st Parliament and entitled Jobs and Growth Act, 2012 (in this section referred to as the “other Act”), receives royal assent.

  • (2) On the first day on which both the other Act and this Act have received royal assent,

    • (a) the portion of subsection 18(5) of the Income Tax Act before the definition “outstanding debts to specified non-residents” is replaced by the following:

      • Marginal note:Definitions

        (5) Notwithstanding any other provision of this Act (other than subsection (5.1)), in this subsection and subsections (4) to (6),

    • (b) the definition “specified proportion” in subsection 18(5) of the Income Tax Act is repealed;

    • (c) the portion of subsection 93.1(1) of the Income Tax Act before paragraph (a) is replaced by the following:

      Marginal note:Shares held by partnership
      • 93.1 (1) For the purposes of determining whether a non-resident corporation is a foreign affiliate of a corporation resident in Canada for the purposes of subsections (2), 20(12) and 39(2.1), sections 90, 93 and 113, paragraphs 128.1(1)(c.3) and (d), section 212.3 and subsection 219.1(2), (and any regulations made for the purposes of those provisions), section 95 (to the extent that it is applied for the purposes of those provisions), paragraph 95(2)(g.04) and section 126, if, based on the assumptions contained in paragraph 96(1)(c), at any time shares of a class of the capital stock of a corporation are owned by a partnership or are deemed under this subsection to be owned by a partnership, then each member of the partnership is deemed to own at that time the number of those shares that is equal to the proportion of all those shares that

    • (d) clause 212.3(9)(c)(ii)(B) of the Income Tax Act, as enacted by subsection 49(1) of the other Act, is replaced by the following:

      • (B) as a dividend or qualifying return of capital, within the meaning assigned by subsection 90(3), in respect of a class of subject shares, or the portion of a dividend or qualifying return of capital in respect of a class of substituted shares that may reasonably be considered to relate to the subject shares, or

    • (e) subparagraph 212.3(18)(b)(vii) of the Income Tax Act, as enacted by subsection 49(1) of the other Act, is replaced by the following:

      • (vii) as a dividend or a qualifying return of capital, within the meaning assigned by subsection 90(3), in respect of the shares of another non-resident corporation that is, immediately before the investment time, a foreign affiliate of the CRIC;

    • (f) paragraph 212.3(20)(a) of the Income Tax Act, as enacted by subsection 49(1) of the other Act, is replaced by the following:

      • (a) the total of all amounts each of which is the amount of a debt obligation assumed by the CRIC in respect of the liquidation and dissolution, redemption, dividend or qualifying return of capital, as the case may be, and

    • (g) the portion of section 8201 of the Income Tax Regulations before paragraph (a) is replaced by the following:

      8201. For the purposes of subsection 16.1(1), the definition “outstanding debts to specified non-residents” in subsection 18(5), subsections 100(1.3) and 112(2), the definition “qualified Canadian transit organization” in subsection 118.02(1), subsections 125.4(1) and 125.5(1), the definition “taxable supplier” in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), the definition “Canadian banking business” in subsection 248(1) and paragraph 260(5)(a) of the Act, a “permanent establishment” of a person or partnership (either of whom is referred to in this section as the “person”) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person’s business is conducted, and

  • (3) Paragraph (2)(c) is deemed to have come into force on August 20, 2011, except that before March 29, 2012, the portion of subsection 93.1(1) of the Income Tax Act before paragraph (a), as enacted by subsection paragraph 2(c), is to be read as follows:

    • 93.1 (1) For the purposes of determining whether a non-resident corporation is a foreign affiliate of a corporation resident in Canada for the purposes of subsections (2), 20(12) and 39(2.1), sections 90, 93 and 113, paragraph 128.1(1)(d), (and any regulations made for the purposes of those provisions), section 95 (to the extent that it is applied for the purposes of those provisions), paragraph 95(2)(g.04) and section 126, if, based on the assumptions contained in paragraph 96(1)(c), at any time shares of a class of the capital stock of a corporation are owned by a partnership or are deemed under this subsection to be owned by a partnership, then each member of the partnership is deemed to own at that time the number of those shares that is equal to the proportion of all those shares that

  • (4) Clause 212.3(9)(c)(ii)(B) of the Income Tax Act, as enacted by paragraph (2)(d), subparagraph 212.3(18)(b)(vii) of that Act, as enacted by paragraph (2)(e), and paragraph 212.3(20)(a) of that Act, as enacted by paragraph (2)(f), apply in respect of transactions and events that occur after March 28, 2012, other than transactions and events to which subsections 212.3(9), (18) and (20) of the Income Tax Act, as enacted by subsection 49(1) of the other Act, do not apply because of subsection 49(2) or (3) of the other Act.

  • (5) Paragraph (2)(g) applies to the 2012 and subsequent taxation years.

 
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