Budget Implementation Act, 2024, No. 1 (S.C. 2024, c. 17)
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Assented to 2024-06-20
PART 1Amendments to the Income Tax Act and Other Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
23 (1) Section 108 of the Act is amended by adding the following after subsection (2):
Marginal note:Interest rate hedging agreements
(2.1) For the purposes of subparagraph (2)(b)(iv), if an amount included in computing the income of a trust is derived from, or from the disposition of, an agreement that can reasonably be considered to have been made by the trust to reduce its risk from fluctuations in interest rates in respect of debt incurred by the trust to acquire or refinance property described in subparagraph (2)(b)(iii), the amount is deemed to be derived from that property.
(2) Subsection (1) applies to taxation years that end after 2021.
24 (1) Clause 111(1)(e)(ii)(A) of the Act is replaced by the following:
(A) the amount required by subsection 127(8) or 127.48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer for the taxation year,
(2) Clause 111(1)(e)(ii)(A) of the Act, as enacted by subsection (1), is replaced by the following:
(A) the amount required by subsection 127(8), 127.48(12) or 127.49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer for the taxation year,
(3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023.
(4) Subsection (2) is deemed to have come into force on January 1, 2024.
25 (1) Paragraph 116(5)(a) of the French version of the Act is replaced by the following:
a) après enquête raisonnable, l’acheteur n’avait aucune raison de croire que la personne ne résidait pas au Canada;
(2) Paragraph 116(5.01)(a) of the French version of the Act is replaced by the following:
a) après enquête raisonnable, l’acheteur en vient à la conclusion que la personne non-résidente est, aux termes d’un traité fiscal que le Canada a conclu avec un pays donné, un résident de ce pays;
(3) The portion of paragraph 116(5.3)(a) of the French version of the Act before subparagraph (i) is replaced by the following:
a) le contribuable, sauf si le paragraphe (5.01) s’applique à l’acquisition ou si, après enquête raisonnable, le contribuable n’avait pas de raison de croire que la personne non-résidente n’était pas un résident du Canada, est tenu de payer, au titre de l’impôt prévu par la présente partie pour l’année pour le compte de la personne non-résidente, 50 % de l’excédent du montant visé au sous-alinéa (i) sur le montant visé au sous-alinéa (ii) :
26 (1) The portion of subsection 118.06(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Volunteer firefighter tax credit
(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible volunteer firefighting services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the taxation year if the individual
(2) Subsection (1) applies to the 2024 and subsequent taxation years.
27 (1) The portion of subsection 118.07(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Search and rescue volunteer tax credit
(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible search and rescue volunteer services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the taxation year if the individual
(2) Subsection (1) applies to the 2024 and subsequent taxation years.
28 (1) Paragraph 118.2(2)(v) of the Act is replaced by the following:
(v) to a fertility clinic, or donor bank, in Canada as a fee or other amount paid or payable, to obtain sperm, ova or embryos to enable the conception of a child by the individual, the individual’s spouse or common-law partner or a surrogate mother on behalf of the individual.
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
29 (1) Subparagraph 120.2(1)(b)(i) of the Act is replaced by the following:
(i) the amount that, but for this section, section 120 and subsection 120.4(2), would be the individual’s tax payable under this Part for the particular year if the individual were not entitled to any deduction under section 126
(2) Paragraph 120.2(3)(b) of the Act is replaced by the following:
(b) the amount that, if this Act were read without reference to section 120, would be the individual’s tax payable under this Part for the year if the individual were not entitled to any deduction under section 126, and
(3) Subsections (1) and (2) apply to taxation years that begin after December 31, 2023.
30 Paragraph (a) of the definition shared-custody parent in section 122.6 of the English version of the Act is replaced by the following:
(a) are not at that time cohabiting spouses or common-law partners of each other,
31 (1) Section 122.62 of the Act is amended by adding the following after subsection (8):
Marginal note:Death of child — qualified dependant
(9) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be a qualified dependant at the beginning of a month if
(a) the person died in any of the six preceding months;
(b) the person’s date of birth was not 18 years or more prior to the beginning of the month; and
(c) the person was a qualified dependant immediately prior to their death.
Marginal note:Death of child — eligible individual
(10) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be an eligible individual in respect of a qualified dependant at the beginning of a month if
(a) that qualified dependant is a qualified dependant at the beginning of that month because of subsection (9); and
(b) the person was an eligible individual in respect of the qualified dependant immediately before the qualified dependant’s death.
Marginal note:Death of child
(11) For the purposes of paragraphs (a) and (b) of the description of E in subsection 122.61(1), if a person is deemed to be a qualified dependant at the beginning of a month because of subsection (9), the person is deemed to be the age at the beginning of that month that the person would have been at the beginning of that month had the person not died.
Marginal note:Death of child — disability tax credit
(12) For the purposes of paragraph (a) of the description of N in subsection 122.61(1), if a person died on or after July 1 of a particular taxation year and an amount could have been deducted in respect of that person under section 118.3 for that taxation year, an amount is deemed to be deductible under section 118.3 in respect of that person for the immediately following taxation year.
(2) Subsection (1) applies in respect of the death of a person that occurs after 2024.
32 (1) Subsection 122.92(1) of the Act is amended by adding the following in alphabetical order:
- return of income
return of income, in respect of an eligible individual for a taxation year, means the eligible individual’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the eligible individual had tax payable under this Part for the taxation year. (déclaration de revenu)
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
33 (1) The definition qualifying labour expenditure in subsection 125.6(1) of the Act is replaced by the following:
- qualifying labour expenditure
qualifying labour expenditure of a taxpayer for a taxation year in respect of an eligible newsroom employee, for a taxation year
(a) that begins before 2023 and ends after 2022, means the lesser of
(i) the amount determined by the formula
$85,000 × A ÷ 365
where
- A
- is the lesser of 365 and the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and
(ii) the amount determined by the formula
A − B
where
- A
- is the amount determined by the formula
C × D ÷ E
where
- C
- is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization,
- D
- is the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and
- E
- is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and
- B
- is the amount determined by the formula
F × G ÷ H
where
- F
- is the total of all amounts each of which is an amount of assistance that
(A) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in C, and
(B) has not been repaid before the end of the year pursuant to a legal obligation to do so,
- G
- is the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and
- H
- is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization; and
(b) that begins after 2022, means the lesser of
(i) the amount determined by the formula
$85,000 × A ÷ 365
where
- A
- is the lesser of 365 and the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and
(ii) the amount determined by the formula
A − B
where
- A
- is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization, and
- B
- is the total of all amounts each of which is an amount of assistance that
(A) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and
(B) has not been repaid before the end of the year pursuant to a legal obligation to do so. (dépense de main-d’oeuvre admissible)
(2) Subsection 125.6(1) of the Act is amended by adding the following in alphabetical order:
- low threshold qualifying labour expenditure
low threshold qualifying labour expenditure of a taxpayer for a taxation year that begins before 2023 and ends after 2022, in respect of an eligible newsroom employee, means the lesser of
(a) the amount determined by the formula
$55,000 × A ÷ 365
where
- A
- is the lesser of 365 and the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and
(b) the amount determined by the formula
A − B
where
- A
- is the amount determined by the formula
C × D ÷ E
where
- C
- is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization,
- D
- is the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and
- E
- is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and
- B
- is the amount determined by the formula
F × G ÷ H
where
- F
- is the total of all amounts each of which is an amount of assistance that
(i) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in C, and
(ii) has not been repaid before the end of the year pursuant to a legal obligation to do so,
- G
- is the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and
- H
- is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization. (seuil inférieur de dépense de main-d’oeuvre admissible)
(3) Subsections 125.6(2) and (2.1) of the Act are replaced by the following:
Marginal note:Tax credit
(2) A taxpayer (other than a partnership) that is a qualifying journalism organization at any time in a taxation year and that files a prescribed form containing prescribed information with its return of income for the year is deemed to have, on its balance-due day for the year, paid on account of its tax payable under this Part for the year
(a) if the year begins before 2023 and ends after 2022, an amount determined by the formula
0.25 × A + 0.35 × B − C
where
- A
- is the total of all amounts each of which is a low threshold qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee,
- B
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and
- C
- is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year;
(b) if the year begins after 2022 and ends before 2027, an amount determined by the formula
0.35 × A − B
where
- A
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and
- B
- is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year;
(c) if the year begins before 2027 and ends after 2026, an amount determined by the formula
0.35 × A + 0.25 × B − C
where
- A
- is the amount determined by the formula
D × E ÷ F
where
- D
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee,
- E
- is the number of days in the taxation year that are before 2027 during which the taxpayer is a qualifying journalism organization, and
- F
- is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization,
- B
- is the amount determined by the formula
G × H ÷ I
where
- G
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee,
- H
- is the number of days in the taxation year that are after 2026 during which the taxpayer is a qualifying journalism organization, and
- I
- is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and
- C
- is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year; and
(d) if the year begins after 2026, an amount determined by the formula
0.25 × A − B
where
- A
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and
- B
- is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year.
Marginal note:Partnership — tax credit
(2.1) If a taxpayer (other than a partnership) is a member of a partnership (other than a specified member of the partnership) at the end of a fiscal period of the partnership that ends in a taxation year of the taxpayer, the partnership is a qualifying journalism organization at any time in that fiscal period and the partnership files an information return in prescribed form containing prescribed information for that fiscal period, then the taxpayer is deemed to have, on the taxpayer’s balance-due day for the taxation year, paid on account of the taxpayer’s tax payable under this Part for the taxation year
(a) if the fiscal period begins before 2023 and ends after 2022, an amount determined by the formula
(0.25 × A + 0.35 × B − C) × D ÷ E
where
- A
- is the total of all amounts each of which is a low threshold qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,
- B
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,
- C
- is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,
- D
- is the specified proportion of the taxpayer for the fiscal period, and
- E
- is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership;
(b) if the fiscal period begins after 2022 and ends before 2027, an amount determined by the formula
(0.35 × A − B) × C ÷ D
where
- A
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,
- B
- is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,
- C
- is the specified proportion of the taxpayer for the fiscal period, and
- D
- is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership;
(c) if the fiscal period begins before 2027 and ends after 2026, an amount determined by the formula
(0.35 × A + 0.25 × B − C) × D ÷ E
where
- A
- is the amount determined by the formula
F × G ÷ H
where
- F
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,
- G
- is the number of days in the fiscal period that are before 2027 during which the partnership is a qualifying journalism organization, and
- H
- is the number of days in the fiscal period during which the partnership is a qualifying journalism organization,
- B
- is the amount determined by the formula
I × J ÷ K
where
- I
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,
- J
- is the number of days in the fiscal period that are after 2026 during which the partnership is a qualifying journalism organization, and
- K
- is the number of days in the fiscal period during which the partnership is a qualifying journalism organization,
- C
- is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,
- D
- is the specified proportion of the taxpayer for the fiscal period, and
- E
- is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership; and
(d) if the fiscal period begins after 2026, an amount determined by the formula
(0.25 × A − B) × C ÷ D
where
- A
- is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,
- B
- is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,
- C
- is the specified proportion of the taxpayer for the fiscal period, and
- D
- is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership.
(4) Subsections (1) to (3) are deemed to have come into force on January 1, 2023.
- Date modified: