Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)
Full Document:
Assented to 2017-12-14
62 (1) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.2):
(b.3) the following conditions apply:
(i) the taxpayer, or a partnership of which the taxpayer is a member (directly or indirectly through one or more partnerships), disposes in the year of real or immovable property,
(ii) the taxpayer is not a real estate investment trust (as defined in subsection 122.1(1)) for the year,
(iii) if the disposition is by a corporation or partnership, the property is capital property of the corporation or partnership, as the case may be,
(iv) the disposition is not reported in
(A) if the disposition is by the taxpayer, the return of income of the taxpayer under this Part for the year, or
(B) if the disposition is by a partnership, the partnership’s return required to be filed for the year under section 229 of the Income Tax Regulations, and
(v) in the case that the disposition is not reported in the return described in clause (iv)(A) or (B) and the taxpayer subsequently reports the disposition by filing a prescribed form amending the taxpayer’s return of income under this Part for the year, the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the prescribed form amending the return is filed;
(2) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following:
Marginal note:Extended period assessment
(4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b), (b.1), (b.3) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,
(3) Subsection 152(4.01) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) if paragraph (4)(b.3) applies to the assessment, reassessment or additional assessment, the disposition referred to in that paragraph.
(4) Subsections (1) to (3) apply to taxation years that end after October 2, 2016.
63 (1) Paragraph 181.1(3)(b) of the Act is replaced by the following:
(b) that was a bankrupt at the end of the year;
(2) Subsection (1) applies in respect of bankruptcies that occur after April 26, 1995.
64 (1) Paragraph 186.1(a) of the Act is replaced by the following:
(a) that was, at any time in the year, a bankrupt; or
(2) Subsection (1) applies in respect of bankruptcies that occur after April 26, 1995.
65 (1) Paragraph (a) of the description of J in subsection 204.2(1.2) of the Act is replaced by the following:
(a) the total of all amounts each of which is an amount (other than the portion of it that reduces the amount on which tax is payable by the individual under subsection 204.1(1)) received by the individual in the year and before that time out of or under a pooled registered pension plan, a registered retirement savings plan, a registered retirement income fund or a specified pension plan and included in computing the individual’s income for the year
(2) Subsection (1) is deemed to have come into force on January 1, 2010, except that in its application before December 14, 2012, paragraph (a) of the description of J in subsection 204.2(1.2) of the Act, as enacted by subsection (1), is to be read without reference to “a pooled registered pension plan”.
(2) Subsection (1) applies to transactions and events occurring, income earned, capital gains accruing and investments acquired after March 22, 2017.
67 (1) The heading of Part XI.01 of the Act is replaced by the following:
Taxes in Respect of Registered Plans
(2) Subsection (1) is deemed to have come into force on March 23, 2017.
68 (1) The portion of subsection 207.01(1) of the Act before the first definition is replaced by the following:
Marginal note:Definitions
207.01 (1) The following definitions and the definitions in subsections 146(1) (other than the definition benefit), 146.1(1), 146.2(1), 146.3(1) and 146.4(1) apply in this Part and Part XLIX of the Income Tax Regulations.
(2) The definition RRSP strip in subsection 207.01(1) of the Act is repealed.
(3) The definitions controlling individual, registered plan and transitional prohibited property in subsection 207.01(1) of the Act are replaced by the following:
- controlling individual
controlling individual, of a registered plan, means
- registered plan
registered plan means a RDSP, RESP, RRIF, RRSP or TFSA. (régime enregistré)
- transitional prohibited property
transitional prohibited property, at any time for a particular trust governed by a registered plan (other than a TFSA) of a controlling individual, means a property that is held by the particular trust at that time, that was held
(a) on March 22, 2011 by a trust governed by a RRIF or RRSP of the controlling individual and that was a prohibited investment for that trust on March 23, 2011; or
(b) on March 22, 2017 by a trust governed by a RDSP or RESP of the controlling individual and that was a prohibited investment for that trust on March 23, 2017. (bien interdit transitoire)
(4) Subparagraphs (a)(iii) and (iv) of the definition advantage in subsection 207.01(1) of the Act are replaced by the following:
(iii) a payment out of or under the registered plan in satisfaction of all or part of a beneficiary’s or controlling individual’s interest in the registered plan,
(iv) the payment or allocation of any amount to the registered plan by the issuer, carrier or promoter,
(iv.1) an amount paid under or because of the Canada Disability Savings Act, the Canada Education Savings Act or under a designated provincial program, and
(5) The portion of subparagraph (c)(ii) of the definition advantage in subsection 207.01(1) of the Act before clause (A) is replaced by the following:
(ii) in the case of a registered plan that is not a TFSA, an amount received by the controlling individual of the registered plan, or by a person who does not deal at arm’s length with the controlling individual (if it is reasonable to consider, having regard to all the circumstances, that the amount was paid in relation to, or would not have been paid but for, property held in connection with the registered plan) and the amount was paid as, on account or in lieu of, or in satisfaction of, a payment
(6) Paragraph (d) of the definition advantage in subsection 207.01(1) of the Act is replaced by the following:
(d) a registered plan strip in respect of the registered plan; and
(7) Paragraph (b) of the definition swap transaction in subsection 207.01(1) of the Act is replaced by the following:
(b) a payment into the registered plan that is
(8) Paragraph (d) of the definition swap transaction in subsection 207.01(1) of the Act is amended by striking out “or” at the end of subparagraph (i) and by adding the following after subparagraph (ii):
(9) Subsection 207.01(1) of the Act is amended by adding the following in alphabetical order:
- registered plan strip
registered plan strip, in respect of a registered plan that is not a TFSA, means the amount of a reduction in the fair market value of property held in connection with the registered plan, if the value is reduced as part of a transaction or event or a series of transactions or events one of the main purposes of which is to enable the controlling individual of the registered plan, or a person who does not deal at arm’s length with the controlling individual, to obtain a benefit in respect of property held in connection with the registered plan or to obtain a benefit as a result of the reduction, but does not include an amount that is
(a) included in the income of a person under section 146, 146.1, 146.3 or 146.4;
(b) an excluded withdrawal under section 146.01 or 146.02;
(c) described in subsection 146(16), 146.3(14.2) or 146.4(8);
(d) a distribution to a trust governed by a RESP under circumstances to which subparagraph 204.9(5)(c)(i) or (ii) applies;
(e) an accumulated income payment made to a RDSP under circumstances to which subsection 146.1(1.2) applies;
(f) a refund of payments under a RESP; or
(g) the non-taxable portion of a disability assistance payment made from a RDSP. (somme découlant d’un dépouillement de régime enregistré)
(10) Subsection 207.01(5) of the Act is replaced by the following:
Marginal note:Obligation of issuer
(5) The issuer, carrier or promoter of a registered plan shall exercise the care, diligence and skill of a reasonably prudent person to minimize the possibility that a trust governed by the registered plan holds a non-qualified investment.
(11) Subsection 207.01(7) of the Act is replaced by the following:
Marginal note:Adjusted cost base
(7) For the purpose of computing the adjusted cost base to a trust governed by a registered plan (other than a TFSA) of a property that is a transitional prohibited property for the trust, the cost to the trust of the property until the property is disposed of by the trust is deemed to be equal to the fair market value of the property,
(12) Paragraph 207.01(8)(a) of the Act is replaced by the following:
(a) the property would, in the absence of subsection (9), have ceased at any time (in this subsection and subsection (9) referred to as the “relevant time”) to be a prohibited investment for a trust governed by a registered plan (other than a TFSA) of a controlling individual;
(13) Paragraph 207.01(8)(c) of the Act is replaced by the following:
(c) in the case of a property held under a RRIF or RRSP, the controlling individual elected under subsection 207.05(4); and
(14) Subsection 207.01(9) of the Act is replaced by the following:
Marginal note:Prohibited investment status
(9) If this subsection applies in respect of a property, the property is deemed to be a prohibited investment at and after the relevant time for every trust governed by a registered plan (other than a TFSA) of the controlling individual referred to in paragraph (8)(a).
(15) Paragraph 207.01(12)(a) of the Act is replaced by the following:
(a) the property is acquired at any time (in this subsection and subsection (13) referred to as the “exchange time”) by a trust (in this section and subsection (13) referred to as the “exchanging trust”) governed by a registered plan (other than a TFSA) of a controlling individual in exchange for another property (in this subsection referred to as the “exchanged property”) in a transaction to which any of section 51, subsection 85(1) and sections 85.1, 86 and 87 apply;
(16) Paragraph 207.01(12)(d) of the Act is replaced by the following:
(d) in the case of a property held under a RRIF or RRSP, the controlling individual elected under subsection 207.05(4).
(17) Paragraphs 207.01(13)(a) and (b) of the Act are replaced by the following:
(a) other than for the purposes of subsection (7), the property is deemed to be, at and after the exchange time, a property,
(b) if the property would, in the absence of this paragraph, not be a prohibited investment for the exchanging trust immediately after the exchange time, the property is deemed to be a prohibited investment at and after the exchange time for every trust governed by a registered plan (other than a TFSA) of the controlling individual.
(18) Subsections (1) to (6) and (9) apply to transactions and events occurring, income earned, capital gains accruing and investments acquired after March 22, 2017.
(19) Subsections (7) and (8) apply
(a) after 2021 in relation to transactions undertaken to remove a property from a RDSP or RESP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if the property were retained in the RDSP or RESP;
(b) after 2027 in relation to transactions undertaken to remove a transitional prohibited property (as defined in subsection 207.01(1) of the Act, as amended by subsection (3)), from a RDSP or RESP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if the property were retained in the RDSP or RESP; and
(c) in any other case, after June 2017.
(20) Subsections (10) to (17) are deemed to have come into force on March 23, 2017.
- Date modified: