Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7)
Full Document:
Assented to 2016-06-22
6 (1) Subparagraph 56(3)(a)(i) of the Act is replaced by the following:
(i) in an educational program in respect of which the taxpayer is a qualifying student (as defined in subsection 118.6(1)) in the taxation year, in the immediately preceding taxation year or in the following taxation year, or
(2) Paragraph 56(3.1)(b) of the Act is replaced by the following:
(b) if an award is received in connection with an educational program in respect of which the taxpayer is a qualifying student because of subparagraph (a)(ii) of the definition qualifying student in subsection 118.6(1) in the taxation year, in the immediately preceding taxation year or in the following taxation year (in this paragraph referred to as the claim year), the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of the award may not exceed the amount that is the total of amounts, each of which is the cost of materials related to the program or a fee paid to a designated educational institution in respect of the program, as defined in subsection 118.6(1), in respect of the claim year.
(3) Subsection (1) applies to the 2017 and subsequent taxation years and
(a) for the 2016 taxation year, a taxpayer is considered to be entitled to deduct an amount under subsection 118.6(2) of the Act in respect of an educational program for the immediately following taxation year if the taxpayer is a qualifying student (as defined in subsection 118.6(1) of the Act) in respect of the educational program in that year; and
(b) for the 2017 taxation year, a taxpayer is considered to be a qualifying student in respect of an educational program in the immediately preceding taxation year if the taxpayer was entitled to deduct an amount under subsection 118.6(2) of the Act in respect of the educational program for that year.
(4) Subsection (2) applies to the 2017 and subsequent taxation years and
(a) for the 2016 taxation year, a taxpayer is considered to be entitled to deduct an amount by reason of paragraph (b) of the description of B in subsection 118.6(2) of the Act in respect of an educational program for the immediately following taxation year if the taxpayer is a qualifying student in respect of the educational program because of subparagraph (a)(ii) of the definition qualifying student in subsection 118.6(1) of the Act for that year; and
(b) for the 2017 taxation year, a taxpayer is considered to be a qualifying student in respect of an educational program because of subparagraph (a)(ii) of the definition qualifying student in subsection 118.6(1) of the Act in the immediately preceding taxation year if the taxpayer was entitled to deduct an amount by reason of paragraph (b) of the description of B in subsection 118.6(2) of the Act in respect of the educational program for that year.
7 (1) Paragraph (a) of the definition Canadian exploration expense in subsection 66.1(6) of the Act is replaced by the following:
(a) any expense incurred by the taxpayer (other than an expense incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well) for the purpose of determining the existence, location, extent or quality of an accumulation of petroleum or natural gas (other than a mineral resource) in Canada, including such an expense that is
(i) a geological, geophysical or geochemical expense, or
(ii) an expense for environmental studies or community consultations (including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of an accumulation of petroleum or natural gas),
(2) The portion of paragraph (f) of the definition Canadian exploration expense in subsection 66.1(6) of the Act before subparagraph (i) is replaced by the following:
(f) any expense incurred by the taxpayer (other than an expense incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well) for the purpose of determining the existence, location, extent or quality of a mineral resource in Canada including such an expense for environmental studies or community consultations (including, notwithstanding subparagraph (v), studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in Canada) and any expense incurred in the course of
(3) Subsections (1) and (2) apply in respect of expenses incurred after February 2015.
8 (1) Subsection 81(1) of the Act is amended by adding the following after paragraph (g.5):
Marginal note:Ontario Electricity Support Program
(g.6) an amount of rate assistance received under section 79.2 of the Ontario Energy Board Act, 1998, S.O. 1998, c. 15, Sch B, as amended from time to time;
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
9 (1) Subparagraph 82(1)(b)(i) of the Act is replaced by the following:
(i) the product of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year multiplied by 17%, and
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
10 (1) Clause (a)(i)(A) of the definition capital dividend account in subsection 89(1) of the Act is replaced by the following:
(A) the amount of the corporation’s capital gain — computed without reference to subclause 52(3)(a)(ii)(A)(II) and subparagraph 53(1)(b)(ii) — from the disposition (other than a disposition under paragraph 40(3.1)(a) or subsection 40(12) or a disposition that is the making of a gift after December 8, 1997 that is not a gift described in subsection 110.1(1)) of a property in the period beginning at the beginning of its first taxation year that began after the corporation last became a private corporation and that ended after 1971 and ending immediately before the particular time (in this definition referred to as the period)
(2) Clause (a)(ii)(A) of the definition capital dividend account in subsection 89(1) of the Act is replaced by the following:
(A) the amount of the corporation’s capital loss — computed without reference to subclause 52(3)(a)(ii)(A)(II) and subparagraph 53(1)(b)(ii) — from the disposition (other than a disposition under subsection 40(3.12) or a disposition that is the making of a gift after December 8, 1997 that is not a gift described in subsection 110.1(1)) of a property in the period
(3) Subparagraph (b)(iii) of the definition paid-up capital in subsection 89(1) of the Act is replaced by the following:
(iii) where the particular time is after March 31, 1977, an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act except subsections 51(3) and 66.3(2) and (4), sections 84.1 and 84.2, subsections 85(2.1), 85.1(2.1) and (8), 86(2.1), 87(3) and (9), paragraph 128.1(1)(c.3), subsections 128.1(2) and (3), section 135.2, subsections 138(11.7), 139.1(6) and (7), 192(4.1) and 194(4.1) and sections 212.1 and 212.3,
(4) Subsections (1) and (2) apply to dispositions made after April 20, 2015.
(5) Subsection (3) is deemed to have come into force on July 1, 2015.
11 (1) Paragraph 94(4)(b) of the Act is replaced by the following:
(b) subsections (8.1) and (8.2), paragraph (14)(a), subsections 70(6) and 73(1), the definition Canadian partnership in subsection 102(1), paragraph 107.4(1)(c), the definition qualified disability trust in subsection 122(3), paragraph (a) of the definition mutual fund trust in subsection 132(6) and the definition eligible trust in subsection 135.2(1);
(2) Subsection (1) is deemed to have come into force on July 1, 2015, except that, for taxation years that end before 2016, paragraph 94(4)(b) of the Act, as enacted by subsection (1), is to be read without reference to “the definition qualified disability trust in subsection 122(3),”.
12 (1) Paragraphs 95(2)(a.2) and (a.21) of the Act are replaced by the following:
(a.2) in computing the income from a business other than an active business for a taxation year of a foreign affiliate of a taxpayer
(i) there shall be included the income of the affiliate for the year from the insurance of specified Canadian risks (which, for the purposes of this paragraph, includes income for the year from the reinsurance of specified Canadian risks), unless more than 90% of the gross premium revenue of the affiliate for the year from the insurance of risks (net of reinsurance ceded) was in respect of the insurance of risks (other than specified Canadian risks) of persons with whom the affiliate deals at arm’s length,
(ii) if subparagraph (i) applies to include income of the affiliate from the insurance of specified Canadian risks,
(iii) there shall be included the income of the affiliate for the year in respect of the ceding of specified Canadian risks — except to the extent that the income is included because of subparagraph (i) or (ii) — which, for the purposes of this paragraph, includes
(A) income of the affiliate from services in respect of the ceding of specified Canadian risks, and
(B) except to the extent the amount is included under clause (A), the amount, if any, by which the fair market value of the consideration provided in respect of the ceding of the specified Canadian risks exceeds the affiliate’s cost in respect of those specified Canadian risks, and
(iv) if subparagraph (iii) applies to include income of the affiliate in respect of the ceding of specified Canadian risks,
(a.21) for the purposes of paragraph (a.2), one or more risks insured by a foreign affiliate of a taxpayer that, if this Act were read without reference to this paragraph, would not be specified Canadian risks (in this paragraph referred to as the foreign policy pool) are deemed to be specified Canadian risks if
(i) the affiliate, or a person or partnership that does not deal at arm’s length with the affiliate, enters into one or more agreements or arrangements in respect of the foreign policy pool,
(ii) the affiliate’s risk of loss or opportunity for gain or profit in respect of the foreign policy pool, in combination with its risk of loss or opportunity for gain in respect of the agreements or arrangements, can reasonably be considered to be — or could reasonably be considered to be if the affiliate had entered into the agreements or arrangements entered into by the person or partnership — determined, in whole or in part, by reference to one or more criteria in respect of one or more risks insured by another person or partnership (in this paragraph referred to as the tracked policy pool), which criteria are
(iii) 10% or more of the tracked policy pool consists of specified Canadian risks;
(2) Subsection 95(2) of the Act is amended by adding the following after paragraph (a.22):
(3) Subsections (1) and (2) apply to taxation years of a taxpayer that begin after April 20, 2015.
- Date modified: