Economic Action Plan 2014 Act, No. 1 (S.C. 2014, c. 20)
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Assented to 2014-06-19
PART 1AMENDMENTS TO THE INCOME TAX ACT AND TO RELATED LEGISLATION
R.S., c. 1 (5th Supp.)Income Tax Act
30. (1) The definition “credit union” in subsection 248(1) of the Act is replaced by the following:
“credit union”
« caisse de crédit »
“credit union” has the meaning assigned by subsection 137(6), except for the purposes of Part XV.1;
(2) Paragraph 248(37)(c) of the Act is replaced by the following:
(c) of an object referred to in subparagraph 39(1)(a)(i.1), other than an object acquired under a gifting arrangement (as defined in subsection 237.1(1)) that is a tax shelter;
(3) Subsection (1) comes into force on January 1, 2015.
(4) Subsection (2) applies to gifts made after February 10, 2014.
R.S., c. F-11Financial Administration Act
31. The Financial Administration Act is amended by adding the following after section 161:
Meaning of “listed tax law”
162. (1) In this section, “listed tax law” means
(a) the Income Tax Act and the Income Tax Regulations;
(c) the Excise Tax Act and any regulations made under that Act;
(d) the Excise Act, 2001 and any regulations made under that Act;
(e) the Air Travelers Security Charge Act and any regulations made under that Act;
(f) the Excise Act and any regulations made under that Act; or
(g) the Customs Tariff and any regulations made under that Act.
Marginal note:Tabling of list — legislative proposals
(2) The Minister shall table in the House of Commons, on or before the fifth day on which the House of Commons is sitting after October 31 of a particular fiscal year, a list of the specific legislative proposals to amend listed tax laws
(a) that the Government publicly announced before April 1 of the fiscal year preceding the particular fiscal year; and
(b) that have not been enacted or made before the date of tabling in substantially the same form as the proposal or in a form that reflects consultations and deliberations relating to the proposal.
Marginal note:Exception
(3) The list referred to in subsection (2) shall not include a specific legislative proposal that has been publicly withdrawn by the Government or an announcement of a general intention to develop a specific legislative proposal.
Marginal note:Exception
(4) The obligation to table does not apply in respect of a particular fiscal year if
(a) there are no specific legislative proposals to be included in the list referred to in subsection (2); or
(b) the fifth day on which the House of Commons is sitting after October 31 of the particular fiscal year is less than 12 months after the last general election.
C.R.C., c. 945Income Tax Regulations
32. Section 103 of the Income Tax Regulations is amended by adding the following after subsection (8):
(9) The amount to be deducted or withheld by a person from any payment of an amount described in paragraph 56(1)(z.4) of the Act is
(a) in the case of a payment to a resident of Quebec, 30% of the payment; or
(b) in the case of a payment to a resident of Canada who is not a resident of Quebec, 50% of the payment.
33. (1) The portion of paragraph 108(1.1)(a) of the Regulations before subparagraph (i) is replaced by the following:
(a) equal to or greater than $25,000 and less than $100,000, all amounts deducted or withheld from payments described in the definition “remuneration” in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General
(2) The portion of paragraph 108(1.1)(b) of the Regulations before subparagraph (i) is replaced by the following:
(b) equal to or greater than $100,000, all amounts deducted or withheld from payments described in the definition “remuneration” in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which the payments were made,
(3) Paragraph 108(1.11)(a) of the Regulations is replaced by the following:
(a) in accordance with subsection (1), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $25,000 and the employer has advised the Minister that the employer has so elected; or
(4) The portion of paragraph 108(1.11)(b) of the Regulations before subparagraph (i) is replaced by the following:
(b) if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected,
(5) Subparagraph 108(1.2)(a)(iii) of the Regulations is replaced by the following:
(iii) subsection 82(1) of the Employment Insurance Act,
(6) Subsections (1) to (4) apply to amounts deducted or withheld after 2014.
34. Paragraph 202(2)(m) of the Regulations is replaced by the following:
(m) a payment described in paragraph 212(1)(v) or (x) of the Act,
35. (1) Section 6708 of the Regulations is replaced by the following:
6708. For the purposes of paragraph 204.8(2)(b), section 27.2 of the Community Small Business Investment Funds Act, 1992, S.O. 1992, c. 18, is a prescribed wind-up rule.
(2) Subsection (1) is deemed to have come into force on November 27, 2013.
36. (1) Subsection 8517(3.01) of the Regulations is replaced by the following:
(3.001) Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan if
(a) the individual is an employee or a former employee of an employer (or a predecessor employer of the employer) that was a participating employer under the provision;
(b) lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered;
(c) the Minister has approved the application of subsection (3.01) in respect of the transfer; and
(d) either
(i) the plan is not an individual pension plan and the reduction in the lifetime retirement benefits paid or payable to the individual has been approved under the Pension Benefits Standards Act, 1985 or a similar law of a province, or
(ii) the plan is an individual pension plan, the amount transferred from the plan on behalf of the individual is the last payment from the plan to the individual and all the property held in connection with the plan is distributed from the plan on behalf of plan members within 90 days of the transfer.
(3.01) If this subsection applies, the description of A in subsection (1) is to be read as follows in respect of the transfer:
- A
- is the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), but without reference to the benefit reduction referred to in paragraph (3)(c) or (3.001)(b), as the case may be; and
(2) Subsection (1) applies in respect of transfers from registered pension plans made after 2012.
37. (1) Section 9000 of the Regulations and the heading “Prescribed Trust not a Financial Institution” before it are replaced by the following:
Prescribed Person not a Financial Institution
9000. For the purposes of paragraph (e) of the definition “financial institution” in subsection 142.2(1) of the Act, the following are prescribed persons:
(a) the Business Development Bank of Canada;
(b) BDC Capital Inc.; and
(c) a trust, at any particular time, if at that particular time
(i) the trust is a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a) of the Act),
(ii) the trust is deemed, under paragraph 138.1(1)(a) of the Act, to have been created at a time that is not more than two years before that particular time, and
(iii) the cost of the trustee’s interest (as determined by paragraph 138.1(1)(c) and (d) of the Act) in the trust does not exceed $5,000,000.
(2) Subsection (1) applies to taxation years that end after November 29, 2013.
C.R.C., c. 385Canada Pension Plan Regulations
38. (1) The portion of paragraph 8(1.1)(a) of the Canada Pension Plan Regulations before subparagraph (i) is replaced by the following:
(a) equal to or greater than $25,000 and less than $100,000, the employer shall remit the employee’s contribution and the employer’s contribution to the Receiver General
(2) The portion of paragraph 8(1.1)(b) of the Regulations before subparagraph (i) is replaced by the following:
(b) equal to or greater than $100,000, the employer shall remit the employee’s contribution and the employer’s contribution to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which remuneration was paid,
(3) Paragraph 8(1.11)(a) of the Regulations is replaced by the following:
(a) in accordance with subsection (1), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $25,000 and the employer has advised the Minister that the employer has so elected; or
(4) The portion of paragraph 8(1.11)(b) of the Regulations before subparagraph (i) is replaced by the following:
(b) if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected,
(5) Subsections (1) to (4) apply to amounts deducted or withheld after 2014.
- Date modified: