Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)
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Assented to 2018-06-21
PART 1Amendments to the Income Tax Act and to Related Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
23 (1) Paragraph 131(5)(a) of the Act is replaced by the following:
(a) is deemed for the purposes of paragraph 87(2)(aa) and section 129 to have been a private corporation throughout the year, except that its non-eligible refundable dividend tax on hand (as defined in subsection 129(4)) at the end of the year shall be determined without reference to paragraph (a) of that definition; and
(2) Paragraph 131(11)(a) of the Act is replaced by the following:
(a) for the purposes of subparagraphs (a)(i) and (ii) of the definition non-eligible refundable dividend tax on hand in subsection 129(4), the amount deducted under paragraph 111(1)(b) from the corporation’s income for each taxation year ending after that time shall be deemed to be nil;
(3) Subject to subsection 20(5), subsections (1) and (2) apply to taxation years that begin after 2018.
24 Clause (a)(ii)(B.1) of the definition disability savings plan in subsection 146.4(1) of the Act is replaced by the following:
(B.1) if the arrangement is entered into before 2024, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,
25 (1) Subparagraph (a)(iv) of the definition qualified donee in subsection 149.1(1) of the Act is replaced by the following:
(iv) a university outside Canada, the student body of which ordinarily includes students from Canada, that has applied for registration, or
(2) Subsection (1) is deemed to have come into force on February 27, 2018, except that
(a) if a university has applied for registration prior to February 27, 2018 and is registered by the Minister on or after that day, subsection (1) applies in respect of the university as of the day it applied for registration; and
(b) any university named in Schedule VIII to the Income Tax Regulations at the end of February 26, 2018 is deemed to have applied for registration.
26 (1) Subsection 160(1.2) of the Act is replaced by the following:
Marginal note:Joint and several, or solidary, liability — tax on split income
(1.2) If an amount is required to be added because of subsection 120.4(2) in computing a specified individual’s tax payable under this Part for a taxation year and the specified individual has not attained the age of 24 years before the start of the year, the following rules apply:
(a) subject to paragraph (b), a particular individual is jointly and severally, or solidarily, liable with the specified individual for the amount if
(i) where the specified individual has not attained the age of 17 years before the year, the particular individual is a parent of the specified individual, and
(ii) where the specified individual has attained the age of 17 years before the year,
(A) the particular individual is a source individual in respect of the specified individual,
(B) the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and
(C) the particular individual meets the conditions in any of paragraphs (a) to (c) in the definition related business in subsection 120.4(1) in respect of the related business;
(b) the particular individual’s liability under paragraph (a) in respect of the specified individual for the year is to be determined as though the only amounts included in the specified individual’s split income for the year are amounts derived from the related business referred to in subparagraph (a)(ii); and
(c) nothing in this subsection limits the liability of
(2) Subsection (1) applies to the 2018 and subsequent taxation years.
27 (1) The portion of subsection 162(6) of the Act before paragraph (a) is replaced by the following:
Marginal note:Failure to provide identification number
(6) Every person or partnership who fails to provide on request their business number, their Social Insurance Number, their trust account number or their U.S. federal taxpayer identifying number to a person required under this Act or the Regulations to make an information return requiring the number is liable to a penalty of $100 for each such failure, unless
(2) Subsection (1) applies to the 2018 and subsequent taxation years.
28 (1) Paragraph (b) of the definition adjusted income in subsection 180.2(1) of the Act is replaced by the following:
(b) deductible under paragraph 20(1)(ww) or 60(w), (y) or (z); (revenu modifié)
(2) Subsection (1) applies to the 2018 and subsequent taxation years.
29 (1) Subsection 186(5) of the Act is replaced by the following:
Marginal note:Deemed private corporation
(5) A corporation that is at any time in a taxation year a subject corporation shall, for the purposes of paragraph 87(2)(aa) and section 129, be deemed to be a private corporation at that time, except that its non-eligible refundable dividend tax on hand (as defined in subsection 129(4)) at the end of the year shall be determined without reference to paragraph (a) of that definition.
(2) Subject to subsection 20(5), subsection (1) applies to taxation years that begin after 2018.
30 (1) Subsection 188(1.3) of the Act is replaced by the following:
Marginal note:Eligible donee
(1.3) In this Part, an eligible donee in respect of a particular charity is
(a) a registered charity
(i) of which more than 50% of the members of the board of directors or trustees of the registered charity deal at arm’s length with each member of the board of directors or trustees of the particular charity,
(ii) that is not the subject of a suspension under subsection 188.2(1),
(iii) that has no unpaid liabilities under this Act or under the Excise Tax Act,
(iv) that has filed all information returns required by subsection 149.1(14), and
(v) that is not the subject of a certificate under subsection 5(1) of the Charities Registration (Security Information) Act or, if it is the subject of such a certificate, the certificate has been determined under subsection 7(1) of that Act not to be reasonable; or
(b) a municipality in Canada that is approved by the Minister in respect of a transfer of property from the particular charity.
(2) Subsection (1) applies in respect of transfers of property made after February 26, 2018.
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