Budget Implementation Act, 2021, No. 1 (S.C. 2021, c. 23)
Full Document:
- HTMLFull Document: Budget Implementation Act, 2021, No. 1 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2021, No. 1 [3013 KB]
Assented to 2021-06-29
PART 1Amendments to the Income Tax Act and Other Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
62 (1) Paragraph 250(1)(f) of the Act is replaced by the following:
(f) was at any time in the year a child of, and dependent for support on, an individual to whom paragraph (b), (c), (d) or (d.1) applies and the person’s income for the year did not exceed the amount determined for F in subsection 118(1.1) for the year; or
(2) Subsection (1) applies to the 2020 and subsequent taxation years.
63 (1) Subsection 252(3) of the Act is replaced by the following:
Marginal note:Extended meaning of spouse and former spouse
(3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) and (j), section 60.1, subsections 70(6) and (6.1), 73(1) and (5) and 104(4) and (5.1), the definition pre-1972 spousal trust in subsection 108(1), subsection 146(16), the definition survivor in subsection 146.2(1), subparagraph 146.3(2)(f)(iv), subsection 146.3(14), section 146.5, subsections 147(19) and 147.3(5) and (7), section 147.5, subsections 148(8.1) and (8.2), the definition qualifying transfer in subsection 207.01(1), and subsections 210(1) and 248(22) and (23), spouse and former spouse of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
64 (1) Section 260 of the Act is amended by adding the following after subsection (1.1):
Marginal note:References — borrower and lender
(1.2) For the purposes of subsections (8), (8.1), (8.2), (8.3) and (9.1) and 212(2.1) and (3), in respect of a specified securities lending arrangement,
(a) a reference to a borrower includes a transferee; and
(b) a reference to a lender includes a transferor.
(2) Subsection 260(8) of the Act is replaced by the following:
Marginal note:Non-resident withholding tax
(8) For the purpose of Part XIII, any amount paid or credited under a securities lending arrangement or a specified securities lending arrangement by or on behalf of the borrower to the lender
(a) as an SLA compensation payment in respect of a security that is not a qualified trust unit is, subject to paragraph (c), deemed
(i) to the extent of the amount of the interest paid in respect of the security, to be a payment made by the borrower to the lender of interest, and
(ii) to the extent of the amount of the dividend paid in respect of the security, to be a payment made by the borrower, as a corporation, to the lender of a dividend payable on the security;
(b) as an SLA compensation payment in respect of a security that is a qualified trust unit, is deemed, to the extent of the amount of the underlying payment to which the SLA compensation payment relates, to be an amount paid by the trust and having the same character and composition as the underlying payment;
(c) as an SLA compensation payment is deemed to be a payment of interest made by the borrower to the lender, if
(i) the security that is transferred or lent to the borrower under the arrangement is a share of a class of the capital stock of a non-resident corporation,
(ii) the borrower and the lender are not dealing at arm’s length, and
(iii) the arrangement is not a fully collateralized arrangement; and
(d) as, on account of, in lieu of payment of or in satisfaction of, a fee for the use of the security is deemed to be a payment of interest made by the borrower to the lender.
(3) The portion of subsection 260(8.1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Deemed fee for borrowed security
(8.1) For the purpose of paragraph (8)(d), if under a securities lending arrangement or a specified securities lending arrangement the borrower has at any time provided the lender with money, either as collateral or consideration for the security, and the borrower does not, under the arrangement, pay or credit a reasonable amount to the lender as, on account of, in lieu of payment of or in satisfaction of, a fee for the use of the security, the borrower is deemed to have, at the time that an identical or substantially identical security is or can reasonably be expected to be transferred or returned to the lender, paid to the lender under the arrangement an amount as a fee for the use of the security equal to the amount, if any, by which
(4) Subsection 260(8.2) of the Act is replaced by the following:
Marginal note:Effect for tax treaties — interest
(8.2) In applying subparagraph (8)(a)(i), if a securities lending arrangement or specified securities lending arrangement is a fully collateralized arrangement, any SLA compensation payment deemed to be a payment made by the borrower to the lender of interest is deemed for the purposes of any tax treaty to be payable on the security.
Marginal note:Effect for tax treaties — dividend
(8.3) In applying subparagraph (8)(a)(ii), if the security is a share of a class of the capital stock of a corporation resident in Canada (in this subsection referred to as the “Canadian share”), for the purposes of determining the rate of tax that Canada may impose on a dividend because of the dividend article of a tax treaty,
(a) any SLA compensation payment deemed to be a payment made by the borrower to the lender of a dividend is deemed to be paid by the issuer of the Canadian share and not by the borrower;
(b) the lender is deemed to be the beneficial owner of the Canadian share; and
(c) the shares of the capital stock of the issuer owned by the lender are deemed to give it less than 10% of the votes that could be cast at an annual meeting of the shareholders of the issuer and have less than 10% of the fair market value of all of the issued and outstanding shares of the capital stock of the issuer, if
(i) the securities lending arrangement or the specified securities lending arrangement is not a fully collateralized arrangement, and
(ii) the borrower and the lender are not dealing at arm’s length.
(5) Subsection 260(9.1) of the Act is replaced by the following:
Marginal note:Non-arm’s length compensation payment
(9.1) For the purpose of Part XIII, if the lender under a securities lending arrangement or a specified securities lending arrangement is not dealing at arm’s length with either the borrower under the arrangement or the issuer of the security that is transferred or lent under the arrangement, or both, and subsection (8) deems an amount to be a payment of interest by a person to the lender, the lender is deemed, in respect of that payment, not to be dealing at arm’s length with that person.
(6) Subsection (1) is deemed to have come into force on March 19, 2019.
(7) Subsections (2) to (5) apply in respect of amounts paid or credited as SLA compensation payments after March 18, 2019. However, subsections (2) to (5) do not apply in respect of amounts paid or credited as SLA compensation payments after March 18, 2019 and before October 2019, if they are pursuant to a written arrangement entered into before March 19, 2019.
R.S., c. E-15Excise Tax Act
65 Subsection 99(1) of the Excise Tax Act is replaced by the following:
Marginal note:Provision of documents may be required
99 (1) Subject to section 102.1, the Minister may, for any purpose related to the administration or enforcement of this Act, or of a listed international agreement, by a notice served or sent in accordance with subsection (1.1), require that any person provide any book, record, writing or other document or any information or further information within any reasonable time that may be stipulated in the notice.
Marginal note:Notice
(1.1) A notice referred to in subsection (1) may be
(a) served personally;
(b) sent by registered or certified mail; or
(c) sent electronically to a bank or credit union (as defined in subsection 123(1)) that has provided written consent to receive notices under subsection (1) electronically.
66 (1) Subsection 102.1(1) of the Act is replaced by the following:
Marginal note:Unnamed persons
102.1 (1) The Minister shall not serve or send a notice under subsection 99(1) with respect to an unnamed person or a group of unnamed persons unless the Minister has been authorized to do so under subsection (2).
(2) The portion of subsection 102.1(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Authorization order
(2) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to serve or send a notice under subsection 99(1) with respect to an unnamed person or a group of unnamed persons if the judge is satisfied by information on oath that
(3) Paragraph 102.1(2)(b) of the Act is replaced by the following:
(b) the notice would be served or sent in order to verify compliance by the person or group with any duty or obligation of that person or of persons in that group under this Act.
67 Section 105 of the Act is amended by adding the following after subsection (2):
Marginal note:Proof of electronic delivery
(2.1) If, under this Act or a regulation made under this Act, provision is made for sending a notice to a person electronically, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the notice if the affidavit sets out that
(a) the officer has knowledge of the facts in the particular case;
(b) the notice was sent electronically to the person on a named day; and
(c) the officer identifies as exhibits annexed to the affidavit copies of
(i) an electronic message confirming that the notice has been sent to the person, and
(ii) the notice.
68 (1) The portion of subsection 289(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Requirement to provide documents or information
289 (1) Despite any other provision of this Part, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of a listed international agreement or this Part, including the collection of any amount payable or remittable under this Part by any person, by a notice served or sent in accordance with subsection (1.1), require that any person provide the Minister, within any reasonable time that is stipulated in the notice, with
(2) Section 289 of the Act is amended by adding the following after subsection (1):
Marginal note:Notice
(1.1) A notice referred to in subsection (1) may be
(a) served personally;
(b) sent by registered or certified mail; or
(c) sent electronically to a bank or credit union that has provided written consent to receive notices under subsection (1) electronically.
69 Paragraph 289.2(a) of the Act is replaced by the following:
(a) if the person is served or sent a notice of a requirement under subsection 289(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
70 (1) Subsection 292(2) of the Act is replaced by the following:
Marginal note:Requirement to provide foreign-based information
(2) Despite any other provision of this Part, the Minister may, by a notice served or sent in accordance with subsection (3.1), require a person resident in Canada or a non-resident person that carries on business in Canada to provide any foreign-based information or document.
(2) Section 292 of the Act is amended by adding the following after subsection (3):
Marginal note:Notice
(3.1) A notice referred to in subsection (2) may be
(a) served personally;
(b) sent by registered or certified mail; or
(c) sent electronically to a bank or credit union that has provided written consent to receive notices under subsection (2) electronically.
(3) Subsection 292(4) of the English version of the Act is replaced by the following:
Marginal note:Review of foreign information requirement
(4) If a person is served or sent a notice of a requirement under subsection (2), the person may, within 90 days after the day on which the notice is served or sent, apply to a judge for a review of the requirement.
(4) Subsection 292(6) of the English version of the Act is replaced by the following:
Marginal note:Requirement not unreasonable
(6) For the purposes of subsection (5), a requirement to provide information or a document shall not be considered to be unreasonable because the information or document is under the control of or available to a non-resident person that is not controlled by the person on which the notice of the requirement under subsection (2) is served, or to which that notice is sent, if that person is related to the non-resident person.
(5) Subsection 292(8) of the English version of the Act is replaced by the following:
Marginal note:Consequence of failure
(8) If a person fails to comply substantially with a notice served or sent under subsection (2) and if the notice is not set aside under subsection (5), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Part shall, on motion of the Minister, prohibit the introduction by that person of any foreign-based information or document covered by that notice.
71 Section 335 of the Act is amended by adding the following after subsection (2):
Marginal note:Proof of electronic delivery
(2.1) If, under this Part or a regulation made under this Part, provision is made for sending a notice to a person electronically, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the notice if the affidavit sets out that
(a) the officer has knowledge of the facts in the particular case;
(b) the notice was sent electronically to the person on a named day; and
(c) the officer identifies as exhibits attached to the affidavit copies of
(i) an electronic message confirming that the notice has been sent to the person, and
(ii) the notice.
2002, c. 9, s. 5Air Travellers Security Charge Act
72 (1) Subsection 38(1) of the Air Travellers Security Charge Act is replaced by the following:
Marginal note:Requirement to provide information
38 (1) Despite any other provision of this Act, the Minister may, by a notice served or sent in accordance with subsection (2.1), require a person resident in Canada or a person that is not resident in Canada but that carries on business in Canada to provide any information or record.
(2) Section 38 of the Act is amended by adding the following after subsection (2):
Marginal note:Notice
(2.1) A notice referred to in subsection (1) may be
(a) served personally;
(b) sent by registered or certified mail; or
(c) sent electronically to a bank or credit union (as defined in subsection 123(1) of the Excise Tax Act) that has provided written consent to receive notices under subsection (1) electronically.
(3) Subsection 38(3) of the English version of the Act is replaced by the following:
Marginal note:Review of information requirement
(3) If a person is served or sent a notice of a requirement under subsection (1), the person may, within 90 days after the day on which the notice is served or sent, apply to a judge for a review of the requirement.
(4) Subsection 38(5) of the Act is replaced by the following:
Marginal note:Requirement not unreasonable
(5) For the purposes of subsection (4), a requirement to provide information or a record shall not be considered to be unreasonable solely because the information or record is under the control of or available to a person that is not resident in Canada, if that person is related, for the purposes of the Income Tax Act, to the person on which the notice of the requirement is served or to which that notice is sent.
(5) Subsection 38(7) of the English version of the Act is replaced by the following:
Marginal note:Consequence of failure
(7) If a person fails to comply substantially with a notice served or sent under subsection (1) and the notice is not set aside under subsection (4), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Act shall, on the motion of the Minister, prohibit the introduction by that person of any information or record described in that notice.
- Date modified: