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Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)

Assented to 2018-12-13

PART 1Amendments to the Income Tax Act and to Other Legislation (continued)

R.S., c. 1 (5th Supp.)Income Tax Act (continued)

 The portion of section 231 of the Act before the first definition is replaced by the following:

Marginal note:Definitions

231 In sections 231.1 to 231.8,

 The portion of subsection 231.6(7) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Time period not to count

    (7) The period of time between the day on which an application for review of a requirement is made pursuant to subsection (4) and the day on which the application is finally disposed of shall not be counted in the computation of

 The Act is amended by adding the following after section 231.7:

Marginal note:Time period not to count

231.8 The following periods of time shall not be counted in the computation of the period of time within which an assessment may be made for a taxation year of a taxpayer under subsection 152(4):

  • (a) where the taxpayer is served a notice of a requirement under subsection 231.2(1), the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; and

  • (b) where an application is commenced by the Minister under subsection 231.7(1) to order the taxpayer to provide any access, assistance, information or document, the period of time between the day on which the taxpayer files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of.

  •  (1) Subsection 233.4(4) of the Act is replaced by the following:

    • Marginal note:Returns respecting foreign affiliates

      (4) A reporting entity for a taxation year or fiscal period shall file with the Minister for the year or period a return in prescribed form in respect of each foreign affiliate of the entity in the year or period within 12 months after the end of the year or period.

  • (2) Subsection 233.4(4) of the Act is replaced by the following:

    • Marginal note:Returns respecting foreign affiliates

      (4) A reporting entity for a taxation year or fiscal period shall file with the Minister for the year or period a return in prescribed form in respect of each foreign affiliate of the entity in the year or period within 10 months after the end of the year or period.

  • (3) Subsection (1) applies to taxation years of a taxpayer, and fiscal periods of a partnership, that begin in 2020.

  • (4) Subsection (2) applies to taxation years of a taxpayer, and fiscal periods of a partnership, that begin after 2020.

 Paragraph 241(4)(e) of the Act is amended by striking out “or” at the end of subparagraph (xi), by adding “or” at the end of subparagraph (xii) and by adding the following after subparagraph (xii):

  • (xiii) an order made under the Mutual Legal Assistance in Criminal Matters Act to gather or send information, for the purposes of an investigation or prosecution relating to an act or omission that, if it had occurred in Canada, would constitute an offence for which an order could be obtained under subsection 462.48(3) of the Criminal Code, in response to a request made pursuant to

  •  (1) The definition SLA compensation payment in subsection 260(1) of the Act is replaced by the following:

    SLA compensation payment

    SLA compensation payment means an amount paid pursuant to

    • (a) a securities lending arrangement as compensation for an underlying payment; or

    • (b) a specified securities lending arrangement as compensation for an underlying payment, including, if the property transferred or lent is described in subparagraph (a)(ii) of the definition specified securities lending arrangement, as compensation for a taxable dividend paid on a share described in subparagraph (a)(i) of that definition; (paiement compensatoire (MPVM))

  • (2) Subsection 260(1) of the Act is amended by adding the following in alphabetical order:

    specified securities lending arrangement

    specified securities lending arrangement means an arrangement, other than a securities lending arrangement, under which

    • (a) a particular person (referred to in this definition as a “transferor”) transfers or lends at any particular time a property to another person (referred to in this definition as a “transferee”) and the property is

      • (i) a particular share described in paragraph (a) of the definition qualified security, or

      • (ii) a property in respect of which the following conditions are met:

        • (A) the property is

          • (I) an interest in a partnership, or

          • (II) an interest as a beneficiary under a trust, and

        • (B) all or any part of the fair market value of the property, immediately before the particular time, is derived, directly or indirectly, from a share described in subparagraph (i),

    • (b) it may reasonably be expected, at the particular time, that the transferee — or a person that does not deal at arm’s length with, or is affiliated with, the transferee — will transfer or return after the particular time to the transferor — or a person that does not deal at arm’s length with, or is affiliated with, the transferor (referred to in this definition as a “substitute transferor”) — a property that is identical or substantially identical to the property so transferred or lent, and

    • (c) the transferor’s (together with any substitute transferor’s) risk of loss or opportunity for gain or profit with respect to the particular property is not changed in any material respect; (mécanisme de prêt de valeurs mobilières déterminé)

  • (3) The portion of subsection 260(5) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Where subsection (5.1) applies

      (5) Subsection (5.1) applies to a taxpayer for a taxation year in respect of a particular amount (other than an amount received as proceeds of disposition or an amount received by a person under an arrangement where it may reasonably be considered that one of the main reasons for the person entering into the arrangement was to enable the person to receive an SLA compensation payment pursuant to a securities lending arrangement, or a dealer compensation payment, that would be deductible in computing the taxable income, or not included in computing the income, for any taxation year of the person) received by the taxpayer in the taxation year

  • (4) Paragraph 260(6)(a) of the Act is replaced by the following:

    • (a) if the taxpayer is a registered securities dealer and the particular amount is deemed by subsection (5.1) to have been received as a taxable dividend, no more than 2/3 of the particular amount (unless, for greater certainty, the particular amount is an amount for which a deduction in computing income may be claimed under subsection (6.1) by the taxpayer); or

  • (5) The portion of subsection 260(6.1) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Deductible amount

      (6.1) There may be deducted in computing a corporation’s income under Part I from a business or property for a taxation year an amount equal to the lesser of

  • (6) Subsections (1) to (5) apply in respect of amounts paid or payable, or received or receivable, as compensation for dividends after February 26, 2018. However, subsections (1) to (5) do not apply in respect of amounts paid or payable, or received or receivable, as compensation for dividends after February 26, 2018 and before October 2018, if they are pursuant to a written arrangement entered into before February 27, 2018.

R.S., c. C-46Criminal Code

 Paragraph 462.48(2)(c) of the Criminal Code is replaced by the following:

  • (c) the type of information or book, record, writing, return or other document obtained by or on behalf of the Minister of National Revenue for the purposes of the Income Tax Act, Part IX of the Excise Tax Act or the Excise Act, 2001 to which access is sought or that is proposed to be examined or communicated; and

 

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