Budget Implementation Act, 2016, No. 2 (S.C. 2016, c. 12)
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Assented to 2016-12-15
PART 1Amendments to the Income Tax Act and to Related Legislation (continued)
C.R.C., C. 385Consequential Amendments to the Canada Pension Plan Regulations Arising from Subsection 27(1), Chapter 7 of the Statutes of Canada, 2016
85 (1) The definition Child Tax Benefit in subsection 37(1) of the Canada Pension Plan Regulations is repealed.
(2) Subsection 37(1) of the Regulations is amended by adding the following in alphabetical order:
- Canada child benefit
Canada child benefit means the deemed overpayment determined in accordance with section 122.61 of the Income Tax Act in respect of a qualified dependant under seven years of age; (allocation canadienne pour enfants)
(3) Subsections (1) and (2) are deemed to have come into force on July 1, 2016.
Terminology Changes Arising from Subsection 27(1), Chapter 7 of the Statutes of Canada, 2016
References in the Employment Insurance Act
Marginal note:Replacement of “Child Tax Benefit”
86 The Employment Insurance Act is amended by replacing “child tax benefit” with “Canada child benefit” in the following provisions:
References in Regulations
Marginal note:Replacement of “Child Tax Benefit” in Canada Pension Plan Regulations
87 (1) The Canada Pension Plan Regulations are amended by replacing “Child Tax Benefit” with “Canada child benefit”, with any grammatical changes that circumstances require, in the following provisions:
Marginal note:Replacement of “child tax benefit” in Employment Insurance Regulations
(2) The Employment Insurance Regulations are amended by replacing “child tax benefit” with “Canada child benefit” in the following provisions;
Marginal note:Replacement of “Canada child tax benefit” in Immigration and Refugee Protection Regulations
(3) The Immigration and Refugee Protection Regulations are amended by replacing “Canada child tax benefit” with “Canada child benefit” in the following provisions:
Coming into Force
Marginal note:July 1, 2016
88 Sections 86 and 87 are deemed to have come into force on July 1, 2016.
PART 2Amendments to the Excise Tax Act (GST/HST Measures) and Other Related Texts
R.S., c. E-15Excise Tax Act
Amendments to the Act
Marginal note:1994, c. 9, s. 2(1)
89 (1) The definition capital property in subsection 123(1) of the Excise Tax Act is replaced by the following:
- capital property
capital property, in respect of a person, means property that is, or would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, other than property described in Class 12, 14, 14.1 or 44 of Schedule II to the Income Tax Regulations; (immobilisation)
Marginal note:2007, c. 18, s. 2(5)
(2) Paragraph (a) of the definition filiale déterminée in subsection 123(1) of the French version of the Act is replaced by the following:
a) la personne morale relativement à laquelle la personne morale donnée détient le contrôle admissible des voix et est propriétaire d’au moins 90 % de la valeur et du nombre des actions, émises et en circulation et comportant plein droit de vote en toutes circonstances, du capital-actions de la personne morale;
Marginal note:2007, c. 18, s. 2(5)
(3) The portion of the definition qualifying subsidiary in subsection 123(1) of the English version of the Act before paragraph (a) is replaced by the following:
- qualifying subsidiary
qualifying subsidiary of a particular corporation means another corporation in respect of which the particular corporation holds qualifying voting control and owns not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the other corporation, and includes
(4) Subsection (1) comes into force or is deemed to have come into force on January 1, 2017.
(5) Subsections (2) and (3) apply as of March 22, 2017. They also apply as of March 23, 2016
(a) in respect of an election under subsection 150(1) or 156(2) of the Act that is to become effective on a day that is after March 22, 2016 but before March 22, 2017, unless the election is filed on or before March 22, 2016; and
(b) for the purpose of applying paragraphs 4(3)(b) and (c) of the Financial Services and Financial Institutions (GST/HST) Regulations in respect of a supply of a service if the agreement for the supply is entered into after March 22, 2016 but before March 22, 2017 and it is not the case that all or substantially all of the service will be performed before March 22, 2017.
Marginal note:2007, c. 18, s. 3(1)
90 (1) The portion of paragraph 128(1)(a) of the Act before subparagraph (i) is replaced by the following:
(a) qualifying voting control in respect of the other corporation is held by, and not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the other corporation are owned by,
(2) Section 128 of the Act is amended by adding the following after subsection (1):
Marginal note:Qualifying voting control
(1.1) For the purposes of this Part, a person or a group of persons holds qualifying voting control in respect of a corporation at any time if at that time
(a) the person, or the members of the group collectively, as the case may be, own shares of the corporation to which are attached not less than 90% of the shareholder votes that may be cast in respect of each matter, other than a matter
(i) for which a statute of a country, or of a state, province, or other political subdivision of a country, that applies to the corporation provides, in respect of the vote of the shareholders of the corporation on the matter, that
(A) any shareholder of the corporation has voting rights that are different from the voting rights that the shareholder would otherwise have under the letters patent, instrument of continuance or other constating instrument by which the corporation was incorporated or continued, including any amendment to, or restatement of, the constating instrument, or
(B) holders of a class or series of shares of the corporation are entitled to vote separately as a class or series, or
(ii) that is a prescribed matter or a matter that meets prescribed conditions or arises in prescribed circumstances; or
(b) the person or group, as the case may be, is a prescribed person or group in relation to the corporation.
(3) Section 128 of the Act is amended by adding the following after subsection (3):
Marginal note:Voting right controlled by another person
(4) For the purposes of subsection (1.1), a particular person is deemed not to own a share at a particular time if
(a) another person has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to control the voting rights attached to the share, unless the right is not exercisable at the particular time because its exercise is contingent on the death, bankruptcy or permanent disability of an individual; and
(b) the other person is not closely related to the particular person at the particular time.
(4) Subsection (1) applies as of March 22, 2017. It also applies as of March 23, 2016
(a) in respect of an election under subsection 150(1) or 156(2) of the Act that is to become effective on a day that is after March 22, 2016 but before March 22, 2017, unless the election is filed on or before March 22, 2016; and
(b) for the purpose of applying paragraphs 4(3)(b) and (c) of the Financial Services and Financial Institutions (GST/HST) Regulations in respect of a supply of a service if the agreement for the supply is entered into after March 22, 2016 but before March 22, 2017, and it is not the case that all or substantially all of the service will be performed before March 22, 2017.
(5) Subsections (2) and (3) are deemed to have come into force on March 23, 2016.
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