Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)
Full Document:
- HTMLFull Document: Budget Implementation Act, 2017, No. 2 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2017, No. 2 [3012 KB]
Assented to 2017-12-14
PART 1Amendments to the Income Tax Act and to Related Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
38 (1) The portion of paragraph 110(1)(d) of the Act before subparagraph (ii) is replaced by the following:
Marginal note:Employee options
(d) an amount equal to 1/2 of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of a security that a particular qualifying person has agreed after February 15, 1984 to sell or issue under an agreement, in respect of the transfer or other disposition of rights under the agreement or as a result of the death of the taxpayer because the taxpayer immediately before death owned a right to acquire the security under the agreement, if
(i) the security was acquired under the agreement
(A) by the taxpayer or a person not dealing at arm’s length with the taxpayer in circumstances described in paragraph 7(1)(c), or
(B) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, within the first taxation year of the graduated rate estate of the taxpayer, by
(I) the graduated rate estate of the taxpayer,
(II) a person who is a beneficiary (as defined in subsection 108(1)) under the graduated rate estate of the taxpayer, or
(III) a person in whom the rights of the taxpayer under the agreement have vested as a result of the death,
(i.1) the security
(A) is a prescribed share at the time of its sale or issue, as the case may be,
(B) would have been a prescribed share if it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement,
(B.1) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, would have been a prescribed share if it were issued or sold to the taxpayer immediately before the death of the taxpayer,
(C) would have been a unit of a mutual fund trust at the time of its sale or issue if those units issued by the trust that were not identical to the security had not been issued,
(D) would have been a unit of a mutual fund trust if
(I) it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement, and
(II) those units issued by the trust that were not identical to the security had not been issued, or
(E) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, would have been a unit of a mutual fund trust if
(I) it were issued or sold to the taxpayer immediately before the death of the taxpayer, and
(II) those units issued by the trust that were not identical to the security had not been issued,
(2) Paragraphs 110(1.1)(c) and (d) of the Act are replaced by the following:
(c) the particular qualifying person provides the taxpayer or, if the taxpayer is deceased, the graduated rate estate of the taxpayer, with evidence in writing of the election; and
(d) the taxpayer or, if the taxpayer is deceased, the graduated rate estate of the taxpayer, files the evidence with the Minister with the taxpayer’s return of income for the year in which a deduction under paragraph (1)(d) is claimed.
(3) Subsections (1) and (2) apply in respect of acquisitions of securities and transfers or dispositions of rights occurring after 4:00 pm Eastern Standard Time on March 4, 2010, except that for taxation years ending before 2016, the references to “graduated rate estate” in paragraphs 110(1)(d) and (1.1)(c) and (d) of the Act, as enacted by subsections (1) and (2), are to be read as “estate”.
39 (1) The portion of paragraph 110.1(1)(d) of the Act before subparagraph (i) is replaced by the following:
Marginal note:Ecological gifts
(d) the total of all amounts each of which is the eligible amount of a gift of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a personal servitude (the rights to which the land is subject and which has a term of not less than 100 years) or a real servitude) if
(2) Clauses 110.1(1)(d)(iii)(B) to (D) of the Act are replaced by the following:
(B) a municipality in Canada that is approved by that Minister or the designated person in respect of the gift,
(C) a municipal or public body performing a function of government in Canada that is approved by that Minister or the designated person in respect of the gift, or
(D) a registered charity (other than a private foundation) one of the main purposes of which is, in the opinion of that Minister, the conservation and protection of Canada’s environmental heritage, and that is approved by that Minister or the designated person in respect of the gift.
(3) The portion of paragraph 110.1(5)(b) of the Act before subparagraph (i) is replaced by the following:
(b) where the gift is a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real or personal servitude, the greater of
(4) Subsections (1) to (3) apply in respect of gifts made after March 21, 2017.
40 (1) The definition exchange rate in subsection 111(8) of the Act is replaced by the following:
- exchange rate
exchange rate, at any time in respect of a currency of a country other than Canada, means the rate of exchange between that currency and Canadian currency quoted by the Bank of Canada on the day that includes that time or, if that day is not a business day, on the day that immediately precedes that day, or a rate of exchange acceptable to the Minister; (taux de change)
(2) Subsection (1) is deemed to have come into force on March 1, 2017.
41 (1) Section 112 of the Act is amended by adding the following after subsection (10):
Marginal note:Interest in a partnership — cost reduction
(11) In computing the cost to a taxpayer, at any time, of an interest in a partnership that is property (other than capital property) of the taxpayer, there is to be deducted an amount equal to the total of all amounts each of which is the taxpayer’s share of any loss of the partnership from the disposition by the partnership, or another partnership of which the partnership is directly or indirectly a member, of a share of the capital stock of a corporation (referred to in this subsection and subsection (12) as the “partnership loss”) in a fiscal period of the partnership that includes that time or a prior fiscal period, computed without reference to subsections (3.1), (4) and (5.2), to the extent that the taxpayer’s share of the partnership loss has not previously reduced the taxpayer’s cost of the interest in the partnership because of the application of this subsection.
Marginal note:Application
(12) For the purposes of subsection (11), if a taxpayer disposes of an interest in a partnership at any particular time, the taxpayer’s share of a partnership loss is to be computed as if
(a) the fiscal period of each partnership of which the taxpayer is directly or indirectly a member had ended immediately before the time that is immediately before the particular time;
(b) any share of the capital stock of a corporation that was property of a partnership referred to in paragraph (a) at the particular time had been disposed of by the relevant partnership immediately before the end of that fiscal period for proceeds equal to its fair market value at the particular time; and
(c) each member of a partnership referred to in paragraph (a) were allocated a share of any loss (computed without reference to subsections (3.1), (4) and (5.2)) in respect of dispositions described in paragraph (b) determined by reference to the member’s specified proportion for the fiscal period referred to in paragraph (a).
Marginal note:Application
(13) For the purposes of subsection (11), if a taxpayer (referred to as the “transferee” in this subsection) acquires an interest in a partnership at any time from another taxpayer (referred to as the “transferor” in this subsection), in computing the cost of the partnership interest to the transferee there is to be added an amount equal to the total of all amounts each of which is an amount deducted from the transferor’s cost of the partnership interest because of subsection (11), other than an amount to which subsection (3.1) would apply.
(2) Subsection (1) is deemed to have come into force on September 16, 2016.
42 (1) The description of B in subsection 118(3) of the Act is replaced by the following:
- B
- is the lesser of
(a) $2,000, and
(b) the total of
(i) the eligible pension income of the individual for the taxation year, and
(ii) the total of all amounts received by the individual in the year on account of a retirement income security benefit payable to the individual under Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act.
(2) Subsection (1) applies to the 2015 and subsequent taxation years.
43 (1) The portion of paragraph (a) of the definition total ecological gifts in subsection 118.1(1) of the Act before subparagraph (i) is replaced by the following:
(a) of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a personal servitude (the rights to which the land is subject and which has a term of not less than 100 years) or a real servitude)
(2) Subparagraphs (b)(i) and (ii) of the definition total ecological gifts in subsection 118.1(1) of the Act are replaced by the following:
(i) Her Majesty in right of Canada or of a province,
(i.1) a municipality in Canada, or a municipal or public body performing a function of government in Canada, that is approved by that Minister or the designated person in respect of the gift, or
(ii) a registered charity (other than a private foundation) one of the main purposes of which is, in the opinion of that Minister, the conservation and protection of Canada’s environmental heritage, and that is approved by that Minister or the designated person in respect of the gift, and
(3) Paragraph 118.1(20)(b) of the Act is replaced by the following:
(b) a credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of the Canadian Payments Act.
(4) Subsections (1) and (2) apply in respect of gifts made after March 21, 2017.
(5) Subsection (3) is deemed to have come into force on October 24, 2001.
44 (1) Clauses 118.2(2)(l.9)(ii)(A) and (B) of the Act are replaced by the following:
(A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, and
(B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment,
(2) Clauses 118.2(2)(l.92)(ii)(A) and (B) of the Act are replaced by the following:
(A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or
(B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment,
(3) Clauses 118.2(2)(l.92)(iii)(A) and (B) of the Act are replaced by the following:
(A) a medical doctor, a nurse practitioner or a psychologist, in the case of mental impairment, or
(B) a medical doctor, a nurse practitioner or an occupational therapist, in the case of a physical impairment, and
(4) Subsection 118.2(2) of the Act is amended by striking out “or” at the end of paragraph (t), by adding “or” at the end of paragraph (u) and by adding the following after paragraph (u):
(v) on behalf of the patient who is authorized to possess marihuana for medical purposes under the Marihuana for Medical Purposes Regulations or section 56 of the Controlled Drugs and Substances Act, for the cost of marihuana purchased from
(i) a licensed producer (as defined in subsection 1(1) of the Marihuana for Medical Purposes Regulations), in accordance with a medical document (as defined in subsection 1(1) of the Marihuana for Medical Purposes Regulations),
(ii) a health care practitioner (as defined in subsection 1(1) of the Marihuana for Medical Purposes Regulations) in the course of treatment for a medical condition,
(iii) a hospital, under subsection 65(2.1) of the Narcotics Control Regulations, or
(iv) an individual who possesses an exemption for cultivation or production under section 56 of the Controlled Drugs and Substances Act.
(5) Subsection 118.2(2) of the Act, as amended by subsection (4), is amended by adding “or” at the end of paragraph (t) and by replacing paragraphs (u) and (v) with the following:
(u) on behalf of the patient who is authorized to possess marihuana, marihuana plants or seeds, cannabis or cannabis oil for their own medical use under the Access to Cannabis for Medical Purposes Regulations or section 56 of the Controlled Drugs and Substances Act, for the cost of marihuana, marihuana plants or seeds, cannabis or cannabis oil purchased in accordance with the Access to Cannabis for Medical Purposes Regulations or section 56 of the Controlled Drugs and Substances Act.
(6) Subsections (1) to (3) apply in respect of expenses incurred after September 7, 2017.
(7) Subsection (4) is deemed to have come into force on June 7, 2013.
(8) Subsection (5) is deemed to have come into force on August 24, 2016.
45 (1) Paragraph 118.6(3)(b) of the Act is replaced by the following:
(b) the individual has in the year a mental or physical impairment the effects of which on the individual have been certified in writing, to be such that the individual cannot reasonably be expected to be enrolled as a full-time student while so impaired, by a medical doctor, a nurse practitioner or, where the impairment is
(i) an impairment of sight, by a medical doctor, a nurse practitioner or an optometrist,
(i.1) a speech impairment, by a medical doctor, a nurse practitioner or a speech-language pathologist,
(ii) a hearing impairment, by a medical doctor, a nurse practitioner or an audiologist,
(iii) an impairment with respect to the individual’s ability in feeding or dressing themself, by a medical doctor, a nurse practitioner or an occupational therapist,
(iii.1) an impairment with respect to the individual’s ability in walking, by a medical doctor, a nurse practitioner, an occupational therapist or a physiotherapist, or
(iv) an impairment with respect to the individual’s ability in mental functions necessary for everyday life (within the meaning assigned by paragraph 118.4(1)(c.1)), by a medical doctor, a nurse practitioner or a psychologist.
(2) Subsection (1) applies in respect of certifications made after September 7, 2017.
46 (1) The formula in paragraph 122(1)(c) of the Act is replaced by the following:
A − (B − C)
(2) Paragraph 122(1)(c) of the Act is amended by striking out “and” at the end of the description of A, by adding “and” at the end of the description of B and by adding the following after the description of B:
- C
- is the total of all amounts each of which is an amount determined for clause (ii)(B) of the description of A in determining the amount for A for the year.
(3) Subsections (1) and (2) apply to taxation years that end after September 15, 2016.
Page Details
- Date modified: