Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)

• 123. (1) Clauses 108(2)(b)(ii)(A) and (B) of the Act are replaced by the following:

  • (A) the investing of its funds in property (other than real property or an interest in real property or an immovable or a real right in an immovable),

  • (B) the acquiring, holding, maintaining, improving, leasing or managing of any real property or an interest in real property, or of any immovable or a real right in immovables, that is capital property of the trust, or

• (2) Clauses 108(2)(b)(iii)(F) and (G) of the Act are replaced by the following:

  • (F) real property situated in Canada, and interests in such real property, or immovables situated in Canada and real rights in such immovables, and

  • (G) rights to and interests in — or, for civil law, rights in or to — any rental or royalty computed by reference to the amount or value of production from a natural accumulation of petroleum or natural gas in Canada, from an oil or gas well in Canada or from a mineral resource in Canada,

• (3) Paragraph 108(2)(c) of the Act is replaced by the following:

  • (c) the fair market value of the property of the trust at the end of 1993 was primarily attributable to real property or an interest in real property — or to immovables or a real right in immovables — and the trust was a unit trust throughout any calendar year that ended before 1994 and the fair market value of the property of the trust at the particular time is primarily attributable to property described in paragraph (a) or (b) of the definition “qualified investment” in section 204, real property or an interest in real property — or immovables or a real right in immovables — or any combination of those properties.

124. Clause (a)(ii)(A) of the definition “qualified investment” in subsection 115.2(1) of the Act is replaced by the following:

• 125. (1) Paragraph 116(6)(a.1) of the Act is replaced by the following:

  • (a.1) a property (other than real or immovable property situated in Canada, a Canadian resource property or a timber resource property) that is described in an inventory of a business carried on in Canada by the person;

• (2) Paragraph 116(6)(h) of the Act is replaced by the following:

  • (h) an interest, or for civil law a right, in property referred to in any of paragraphs (a) to (g); and

126. The portion of the definition “specified investment business” in subsection 125(7) of the Act before paragraph (a) is replaced by the following:

• 127. (1) The portion of subparagraph 126(2.21)(a)(i) of the Act before clause (A) is replaced by the following:

  • (i) where the property is real or immovable property situated in a country other than Canada,

• (2) Subparagraph 126(2.21)(a)(ii) of the Act is replaced by the following:

  • (ii) where the property is not real or immovable property, to the government of a country with which Canada has a tax treaty at the particular time and in which the individual is resident at the particular time,

• (3) The portion of subparagraph 126(2.22)(a)(i) of the Act before clause (A) is replaced by the following:

  • (i) where the property is real or immovable property situated in a country other than Canada,

• (4) Subparagraph 126(2.22)(a)(ii) of the Act is replaced by the following:

  • (ii) where the property is not real or immovable property, to the government of a country with which Canada has a tax treaty at the particular time and in which the individual is resident at the particular time,

128. Paragraph (d) of the description of A in the definition “scientific research and experimental development tax credit” in subsection 127.3(2) of the English version of the Act is replaced by the following:

• 129. (1) The portion of paragraph 128(1)(e) of the English version of the Act before subparagraph (i) is replaced by the following:

  • (e) if, in the case of any taxation year of the corporation ending during the period the corporation is a bankrupt, the corporation fails to pay any tax payable by it under this Act for any such year, the corporation and the trustee in bankruptcy are jointly and severally, or solidarily, liable to pay the tax, except that

• (2) Subparagraph 128(1)(e)(ii) of the Act is replaced by the following:

  • (ii) payment by either of them discharges the liability to the extent of the amount paid;

• 130. (1) Subparagraph 128.1(4)(b)(i) of the Act is replaced by the following:

  • (i) real or immovable property situated in Canada, a Canadian resource property or a timber resource property,

• (2) Subparagraph 128.1(7)(h)(ii) of the English version of the Act is replaced by the following:

  • (ii) if the individual alone makes such an election or specification, the individual and the trust are jointly and severally, or solidarily, liable for any amount payable under this Act by the trust as a result of the election or specification, and

• 131. (1) Paragraphs 130.1(6)(b) and (c) of the Act are replaced by the following:

  • (b) its only undertaking was the investing of funds of the corporation and it did not manage or develop any real or immovable property;

  • (c) none of the property of the corporation consisted of

    • (i) debts owing to the corporation that were secured on real or immovable property situated outside Canada,

    • (ii) debts owing to the corporation by non-resident persons, except any such debts that were secured on real or immovable property situated in Canada,

    • (iii) shares of the capital stock of corporations not resident in Canada, or

    • (iv) real or immovable property situated outside Canada, or any leasehold interest in such property;

• (2) Paragraph 130.1(6)(g) of the Act is replaced by the following:

  • (g) the cost amount to the corporation of all real or immovable property of the corporation, including leasehold interests in such property (except real or immovable property acquired by the corporation by foreclosure or otherwise after default made on a mortgage, hypothec or agreement of sale of real or immovable property) did not exceed 25% of the cost amount to it of all its property;

132. Subparagraphs 131(8)(b)(i) and (ii) of the Act are replaced by the following:

133. Subparagraphs 132(6)(b)(i) and (ii) of the Act are replaced by the following:

• 134. (1) Subparagraph (b)(i) of the definition “non-resident-owned investment corporation” in subsection 133(8) of the Act is replaced by the following:

  • (i) ownership of, or trading or dealing in, bonds, shares, debentures, mortgages, hypothecary claims, bills, notes or other similar property or any interest, or for civil law any right, therein,

• (2) Subparagraph (b)(iii) of the definition société de placement appartenant à des non-résidents in subsection 133(8) of the French version of the Act is replaced by the following:

  • (iii) soit de loyers, de la location de chatels, de frais ou rémunérations sur chartes-parties, de rentes, de redevances, d’intérêts ou de dividendes,

• (3) Paragraph (c) of the definition “société de placement appartenant à des non-résidents” in subsection 133(8) of the French version of the Act is replaced by the following:

  • c) au plus 10 % de son revenu brut de chaque année d’imposition se terminant au cours de la période ont été tirés de loyers, de la location de chatels, de frais ou rémunérations sur chartes-parties;