Jobs and Growth Act, 2012 (S.C. 2012, c. 31)

(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer’s investment tax credit at the end of the year that is in respect of qualified expenditures incurred by the taxpayer in the year, and

Marginal note:Addition to refundable investment tax credit

(2.01) In the case of a taxpayer that is a Canadian-controlled private corporation other than a qualifying corporation or an excluded corporation, the refundable investment tax credit of the taxpayer for a taxation year is the amount, if any, by which

• (a) the total of

  • (i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer’s investment tax credit at the end of the year that is in respect of qualified expenditures incurred by the taxpayer in the year, and

  • (ii) all amounts determined under paragraph (a.1) of the definition “investment tax credit” in subsection 127(9) in respect of expenditures for which an amount is included in subparagraph (i)

exceeds

• (b) the total of

  • (i) the portion of the total of all amounts deducted by the taxpayer under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to have been so deducted for the year) that can reasonably be considered to be in respect of the total determined under paragraph (a), and

  • (ii) the portion of the total of all amounts required by subsection 127(6) to be deducted in computing the taxpayer’s investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined under paragraph (a).

(d.1) where, by reason of paragraph (d), a taxation year of the individual is not a calendar year,

• (i) paragraph 146(5)(b) shall, for the purpose of the application of subsection 146(5) to the taxation year, be read as follows:

  • “(b) the amount, if any, by which

    • (i) the amount, if any, by which the taxpayer’s RRSP deduction limit for the particular calendar year in which the taxation year ends exceeds the total of all contributions made by an employer in the particular calendar year to a pooled registered pension plan in respect of the taxpayer

    exceeds

    • (ii) the total of the amounts deducted under this subsection and subsection (5.1) in computing the taxpayer’s income for any preceding taxation year that ends in the particular calendar year.”,

and

• (ii) paragraph 146(5.1)(b) shall, for the purpose of the application of subsection 146(5.1) to the taxation year, be read as follows:

  • “(b) the amount, if any, by which

    • (i) the amount, if any, by which the taxpayer’s RRSP deduction limit for the particular calendar year in which the taxation year ends exceeds the total of all contributions made by an employer in the particular calendar year to a pooled registered pension plan in respect of the taxpayer

    exceeds

    • (ii) the total of the amount deducted under subsection (5) in computing the taxpayer’s income for the year and the amounts deducted under this subsection and subsection (5) in computing the taxpayer’s income for any preceding taxation year that ends in the particular calendar year.”;

Marginal note:Foreign affiliate dumping — immigrating corporation

(c.3) if the taxpayer is a corporation that was, immediately before the particular time, controlled by a particular non-resident corporation and the taxpayer owned, immediately before the particular time, one or more shares of one or more non-resident corporations (each of which is in this paragraph referred to as a “subject affiliate”) that, immediately after the particular time, were — or that became, as part of a transaction or event or series of transactions or events that includes the taxpayer having become resident in Canada — foreign affiliates of the taxpayer, then

• (i) in computing the paid-up capital, at any time after the time that is immediately after the particular time, of any particular class of shares of the capital stock of the taxpayer there is to be deducted the amount determined by the formula

  A × B/C

  where

  A 

  is the lesser of

  • (A) the paid-up capital in respect of all of the shares of the capital stock of the taxpayer at the time that is immediately after the particular time, and

  • (B) the total of all amounts each of which is the fair market value at the particular time of

    • (I) a share of the capital stock of a subject affiliate owned by the taxpayer at the particular time, or

    • (II) an amount owing by the subject affiliate to the taxpayer at the particular time,

  B 

  is the paid-up capital in respect of the particular class of shares of the capital stock of the taxpayer at the time that is immediately after the particular time, and

  C 

  is the paid-up capital in respect of all the shares of the capital stock of the taxpayer at the time that is immediately after the particular time, and

• (ii) for the purposes of Part XIII, the taxpayer is deemed, immediately after the particular time, to have paid to the particular non-resident corporation, and the particular non-resident corporation is deemed, immediately after the particular time, to have received from the taxpayer, a dividend equal to the amount, if any, by which the amount determined under clause (B) of the description of A in subparagraph (i) exceeds the amount determined under clause (A) of the description of A in subparagraph (i); and

Marginal note:Paid-up capital adjustment

(3) In computing the paid-up capital at any time in respect of a class of shares of the capital stock of a corporation

• (a) there is to be deducted an amount equal to the lesser of A and B, and added an amount equal to the lesser of A and C, where

  A 

  is the absolute value of the difference between

  • (i) the total of all amounts deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of the class paid before that time by the corporation, and

  • (ii) the total that would be determined under subparagraph (i) if this Act were read without reference to subsection (2),

  B 

  is the total of all amounts required by subsection (2) to be added in computing the paid-up capital in respect of the class before that time, and

  C 

  is the total of all amounts required by subsection (2) to be deducted in computing the paid-up capital in respect of the class before that time; and

• (b) there is to be added an amount equal to the lesser of

  • (i) the amount, if any, by which

    • (A) the total of all amounts deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of the class paid after March 28, 2012 and before that time by the corporation

    exceeds

    • (B) the total that would be determined under clause (A) if this Act were read without reference to subparagraph (c.3)(i), and

  • (ii) the total of all amounts required by subparagraph (c.3)(i) to be deducted in computing the paid-up capital in respect of the class before that time.

Marginal note:Non-application of subsections (1) to (6)

(7) Subsections (1) to (6) do not apply to the holder of a segregated fund policy with respect to such a policy that is issued or effected as or under a pooled registered pension plan, registered pension plan, registered retirement income fund, registered retirement savings plan or TFSA.

Marginal note:Restriction — financially dependent

(1.1) For the purposes of paragraph (b) of the definition “refund of premiums” in subsection (1), clause 60(l)(v)(B.01), the definition “eligible individual” in subsection 60.02(1), subparagraph 104(27)(e)(i) and section 147.5, it is assumed, unless the contrary is established, that an individual’s child or grandchild was not financially dependent on the individual for support immediately before the individual’s death if the income of the child or grandchild for the taxation year preceding the taxation year in which the individual died exceeded the amount determined by the formula

(iii.1) that was an exempt-income contribution amount (as defined in subsection 147.5(1)) for any taxation year,

(b) the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all contributions made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.

(b) the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all amounts each of which is

• (i) the amount deducted under subsection (5) in computing the taxpayer’s income for the year, or

• (ii) a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.

(iii) was not paid by way of a transfer of an amount to a registered retirement savings plan from

(A) a pooled registered pension plan in circumstances to which subsection 147.5(21) applied, or

(B) a specified pension plan in circumstances to which subsection (21) applied,

Marginal note:Specified pension plan — account

(21.2) For the purposes of paragraph (8.2)(b), subsection (8.21), paragraphs (16)(a) and (b) and 18(1)(u), subparagraph (a)(i) of the definition “excluded right or interest” in subsection 128.1(10), paragraph (b) of the definition “excluded premium” in subsection 146.01(1), paragraph (c) of the definition “excluded premium” in subsection 146.02(1), subsections 146.3(14) and 147(19), section 147.3 and paragraph 147.5(21)(c), and for the purposes of any regulations made under subsection 147.1(18), an individual’s account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant.