Fall Economic Statement Implementation Act, 2022 (S.C. 2022, c. 19)

Marginal note:Tax payable

• 204.6 (1) If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(b), (d) or (f) holds property that is not a prescribed investment for that taxpayer, it shall, in respect of that month, pay a tax under this Part equal to the total of all amounts each of which is an amount determined in respect of such a property by the formula

  0.01(A × B ÷ C)

  where

  A

  is the fair market value of the property at the time of its acquisition by the taxpayer;

  B

  is the total number of units or shares of the capital stock of the registered investment held at the end of the month by one or more

  • (a) trusts that are governed by any of a RDSP, RESP, RRIF, RRSP, TFSA or deferred profit sharing plan, or

  • (b) registered investments described in paragraph 204.4(2)(b), (d) or (f); and

  C

  is the total number of issued units or issued and outstanding shares of the capital stock of the registered investment at the end of the month.

• (a) trusts that are governed by any of a FHSA, RDSP, RESP, RRIF, RRSP, TFSA or deferred profit sharing plan, or

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), 146.4(1) and 146.6(1) apply in this Part and Part XLIX of the Income Tax Regulations.

registered plan

registered plan means a FHSA, RDSP, RESP, RRIF, RRSP or TFSA. (régime enregistré)

• (e) the holder of a FHSA. (particulier contrôlant)

qualified investment

qualified investment for a trust governed by a FHSA or TFSA means

• (a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition qualified investment in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a FHSA or TFSA” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”;

• (a) included in the income of a person under section 146, 146.1, 146.3, 146.4 or 146.6;

• (b.1) a qualifying withdrawal under section 146.6;

• (b.2) a designated amount;

• (i) both registered plans are RRIFs, RRSPs or FHSAs;

designated amount

designated amount of an individual means an amount, not exceeding the excess FHSA amount of the individual, designated by the individual in the prescribed form and manner that is

• (a) a transfer in accordance with subparagraph 146.6(7)(b)(ii) to a FHSA under which the individual is the holder, to the extent that it does not exceed the total of all amounts transferred under paragraph 146(16)(a.2) on or before the date of the designation less the total of all amounts previously designated under this paragraph; or

• (b) a withdrawal from a FHSA under which the individual is the holder, to the extent that it does not exceed the total of all amounts contributed to a FHSA under which the individual is the holder on or before the date of the designation less the total of all amounts previously designated under this paragraph. (montant désigné)

excess FHSA amount

excess FHSA amount of an individual at a particular time in a taxation year means the amount determined by the formula

A + B − C − D − E

where

A

is the total of all amounts each of which is a contribution made to a FHSA by the individual at or before the particular time;

B

is the total of all amounts transferred under paragraph 146(16)(a.2), at or before the particular time, to a FHSA under which the individual is the holder;

C

is the lesser of

• (a) $40,000, and

• (b) the amount determined by the formula

  $8,000 + F + G + H − I

  where

  F

  is the amount of the FHSA carryforward for the taxation year,

  G

  is the total of all amounts each of which is a contribution made to a FHSA by the individual at or before the end of the immediately preceding taxation year,

  H

  is the total of all amounts transferred under paragraph 146(16)(a.2), at or before the end of the immediately preceding taxation year, to a FHSA under which the individual is the holder, and

  I

  is the excess FHSA amount determined at the end of the immediately preceding taxation year;

D

is the total of all amounts each of which is a designated amount in respect of a transfer or withdrawal made by the individual in the taxation year but before the particular time; and

E

is the total of all amounts required to be included in computing the income of the individual in the taxation year under subsection 146.6(6) or (17) at or before the particular time. (excédent de CELIAPP)

Marginal note:Tax payable on excess FHSA amount

207.021 If, at any time in a calendar month, an individual has an excess FHSA amount, the individual shall, in respect of that month, pay a tax under this Part equal to 1% of the highest such amount in that month.

Marginal note:Survivor as successor holder

207.022 If an individual’s survivor becomes the holder of a FHSA as a consequence of the individual’s death and, immediately before the individual’s death, the individual had an excess FHSA amount, the survivor is deemed to have made, at the beginning of the month following the individual’s death, a contribution under a FHSA equal to the amount, if any, by which

• (a) that excess FHSA amount

exceeds

• (b) the total fair market value immediately before the individual’s death of all property held under the FHSAs of the individual (other than a FHSA in respect of which the survivor became the successor holder as a consequence of the individual’s death).

• Marginal note:Waiver of tax payable

  (3) If an individual would otherwise be liable to pay a tax under section 207.021, the Minister may waive or cancel all or part of the liability if

  • (a) the individual establishes to the satisfaction of the Minister that the liability arose as a consequence of a reasonable error; and

  • (b) one or more distributions are made without delay under a FHSA of which the individual is the holder, the total amount of which is not less than the total of

    • (i) the amount in respect of which the individual would otherwise be liable to pay tax, and

    • (ii) the income (including any capital gain) that is reasonably attributable, directly or indirectly, to the amount described in subparagraph (i).

• Marginal note:First home savings account

  (y) a payment out of a FHSA, other than any portion of the payment that is transferred in accordance with subsection 146.6(7).

• Marginal note:Interest coupon stripping arrangement — conditions

  (21) Subsection (22) applies at any time in respect of a taxpayer if

  • (a) the taxpayer pays or credits a particular amount at that time as, on account or in lieu of payment of, or in satisfaction of, interest to a person or partnership (in this subsection and subsection (22) referred to as the “interest coupon holder”) in respect of a debt or other obligation, other than a specified publicly offered debt obligation, owed to another person or partnership (in this subsection and subsection (22) referred to as the “non-arm’s length creditor”) that is

    • (i) a non-resident person with whom the taxpayer is not dealing at arm’s length, or

    • (ii) a partnership other than a Canadian partnership; and

  • (b) the tax that would be payable under this Part in respect of the particular amount, if the particular amount were paid or credited to the non-arm’s length creditor rather than the interest coupon holder, is greater than the tax payable under this Part (determined without reference to subsection (22)) in respect of the particular amount.

• Marginal note:Interest coupon stripping arrangement — application

  (22) If this subsection applies at any time in respect of a taxpayer, then for the purpose of paragraph (1)(b), the taxpayer is deemed, at that time, to pay interest to the non-arm’s length creditor, the amount of which is determined by the formula

  A × (B − C) ÷ B

  where

  A

  is the particular amount referred to in paragraph (21)(a);

  B

  is the rate of tax that would be imposed under this Part in respect of the particular amount if the particular amount were paid by the taxpayer to the non-arm’s length creditor rather than the interest coupon holder at that time; and

  C

  is the rate of tax imposed under this Part in respect of the particular amount paid or credited to the interest coupon holder at that time.

• Marginal note:Definition of specified publicly offered debt obligation

  (23) For the purposes of subsection (21), specified publicly offered debt obligation means a debt or other obligation that meets the following conditions:

  • (a) it was issued by the taxpayer as part of an offering that is lawfully distributed to the public in accordance with a prospectus, registration statement or similar document filed with and, where required by law, accepted for filing by a public authority; and

  • (b) it can reasonably be considered that none of the main purposes of a transaction or event, or series of transactions or events, as a part of which the taxpayer pays or credits an amount as, on account or in lieu of payment of, or in satisfaction of, interest to a person or partnership in respect of the debt or other obligation is to avoid or reduce tax that would otherwise be payable under this Part by a non-resident person or partnership to whom the debt or other obligation is owed.

Marginal note:Information gathering

• 231.1 (1) An authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Act,

  • (a) inspect, audit or examine any document, including books and records, of a taxpayer or any other person that may be relevant in determining the obligations or entitlements of the taxpayer or any other person under this Act;

  • (b) examine any property or process of, or matter relating to, a taxpayer or any other person, an examination of which may assist the authorized person in determining the obligations or entitlements of the taxpayer or any other person under this Act;

  • (c) enter any premises or place where any business is carried on, any property is kept, anything is done in connection with any business or any books or records are or should be kept, except that, if the premises or place is a dwelling-house, the authorized person may enter the dwelling-house without the consent of the occupant only under the authority of a warrant under subsection (3);

  • (d) require a taxpayer or any other person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Act and

    • (i) to attend with the authorized person, at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

    • (ii) to answer the questions in writing, in any form specified by the authorized person; and

  • (e) require a taxpayer or any other person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Act.

• (h) in the case of a registrant that is a charity, an application by the registrant, and information filed in support of the application, for a designation, determination or decision by the Minister under any of subsections 149.1(6.3), (7), (8) and (13); and

• (i) in the case of a registrant that is a charity, in respect of an application for a determination by the Minister under subsection 149.1(5), information in respect of the application, including

  • (i) the application,

  • (ii) information filed in support of the application, and

  • (iii) a copy of the entirety of or any part of any letter or notice by the Minister to the registrant relating to the application.