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

• 39 (1) The definition designated person or partnership in subsection 5907(1) of the Regulations is replaced by the following:

  designated person or partnership

  designated person or partnership, in respect of a taxpayer at any time, means

  • (a) the taxpayer,

  • (b) a person or partnership that is at that time

    • (i) a person (other than a partnership) that does not, at that time, deal at arm’s length with the taxpayer, or

    • (ii) a partnership a member of which is, at that time, a designated person or partnership in respect of the taxpayer under this definition, and

  • (c) if a foreign affiliate of the taxpayer is an original corporation that undergoes a division in respect of which subsection 15(1.5) of the Act applies, a new corporation in respect of the division; (personne ou société de personnes désignée)

• (2) The portion of subparagraph 5907(2)(f)(ii) of the Regulations before clause (A) is replaced by the following:

  • (ii) subject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,

• (3) The portion of subparagraph 5907(2)(j)(iii) of the Regulations before clause (A) is replaced by the following:

  • (iii) subject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,

• (4) Section 5907 of the Regulations is amended by adding the following after subsection (2.01):

  • (2.011) Subparagraphs (2)(f)(ii) and (j)(iii) and subsection (5.1) do not apply to a particular disposition of property (referred to in this subsection as the “affiliate property”) by a particular foreign affiliate of a taxpayer to another foreign affiliate of the taxpayer if

    • (a) the particular disposition is a disposition referred to in subparagraph 15(1.5)(c)(i) of the Act;

    • (b) all of the shares of the capital stock of the other affiliate are owned, at a particular time that is within 180 days after the day that includes the time of the particular disposition, by a person or partnership that at the particular time is not a designated person or partnership in respect of the taxpayer; and

    • (c) the affiliate property is not disposed of by the other affiliate as part of a series of transactions or events that includes the particular disposition.

• (5) Subsection (1) is deemed to have come into force on July 27, 2018.

• (6) Subsections (2) to (4) apply in respect of dispositions that occur after October 23, 2012.

Coordinating Amendments

Marginal note:2016, c. 14

• 40 (1) If subsection 66(1) of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (in this section referred to as the “other Act”) comes into force before section 34 of this Act, then

  • (a) that section 34 is deemed never to have come into force and is repealed;

  • (b) clause 60(e)(ii)(A) of the Income Tax Act is replaced by the following:

    • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.‍1) or (1.‍2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

  • (c) subparagraph 60(e.1)(i) of the Act is replaced by the following:

    • (i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.‍1) or (1.‍2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

• (2) If subsection 66(1) of the other Act comes into force on the same day as section 34 of this Act, that section 34 is deemed to have come into force before that subsection 66(1).

PART 2Amendments to the Excise Tax Act (GST/HST Measures) and to Related Legislation

R.S., c. E-15Excise Tax Act

• 41 (1) Subsection 123(1) of the Excise Tax Act is amended by adding the following in alphabetical order:

  emission allowance

  emission allowance means

  • (a) an allowance, credit or similar instrument (other than a prescribed allowance, credit or instrument) that

    • (i) is issued or created by, or on behalf of,

      • (A) a government, a government of a foreign country, a government of a political subdivision of a country, a supranational organization or an international organization (each of which is in this definition referred to as a “regulator”),

      • (B) a board, commission or other body established by a regulator, or

      • (C) an agency of a regulator,

    • (ii) can be used to satisfy a requirement under

      • (A) a scheme or arrangement implemented by, or on behalf of, a regulator to regulate greenhouse gas emissions, or

      • (B) a prescribed scheme or arrangement, and

    • (iii) represents a specific quantity of greenhouse gas emissions expressed as carbon dioxide equivalent, or

  • (b) a prescribed property; (unité d’émission)

  investment limited partnership

  investment limited partnership means a limited partnership, the primary purpose of which is to invest funds in property consisting primarily of financial instruments, if

  • (a) the limited partnership is, or forms part of an arrangement or structure that is, represented or promoted as a hedge fund, investment limited partnership, mutual fund, private equity fund, venture capital fund or other similar collective investment vehicle, or

  • (b) the total value of all interests in the limited partnership held by listed financial institutions is 50% or more of the total value of all interests in the limited partnership; (société en commandite de placement)

• (2) The definition emission allowance, as enacted by subsection (1), is deemed to have come into force on June 27, 2018 but also applies in respect of any supply made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day.

• (3) The definition investment limited partnership, as enacted by subsection (1), is deemed to have come into force on September 8, 2017.

• 42 (1) Section 132 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Residence of investment limited partnerships

    (6) For the purposes of this Part but subject to subsection (2), an investment limited partnership is deemed not to be resident in Canada at any time if, at that time, the total value of all interests in the partnership held by non-resident members of the partnership (other than prescribed members) is 95% or more of the total value of all interests in the partnership.

• (2) Subsection (1) is deemed to have come into force on September 8, 2017.