Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)

• 49 (1) Subsection 272.1(3) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

  • (b) in the case of management or administrative services that are rendered by a general partner of an investment limited partnership to the investment limited partnership under an agreement for the particular supply of those services,

    • (i) if subsection 136.1(2) applies in respect of the particular supply, for each separate supply of those services that is deemed under paragraph 136.1(2)(a) to be made by the general partner for a billing period (within the meaning of that subsection), the separate supply is deemed, despite paragraph 136.1(2)(c), to be made for consideration that becomes due on the last day of the billing period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the billing period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership, and

    • (ii) in any other case,

      • (A) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a separate supply of those services for each reporting period of the general partner during which those services are, or are to be, rendered under the agreement, and

      • (B) each separate supply of those services that is deemed to be made under clause (A) for a reporting period of the general partner is deemed to be made on the first day of the reporting period for consideration that becomes due on the last day of the reporting period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the reporting period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership; and

  • (c) in any other case, the supply is deemed to have been made for consideration that becomes due at the time the supply is made equal to the fair market value at that time of the property or service acquired by the partnership determined as if the person were not a member of the partnership and were dealing at arm’s length with the partnership.

• (2) Section 272.1 of the Act is amended by adding the following after subsection (7):

  • Marginal note:Investment limited partnership — supply by general partner

    (8) For the purposes of this Part, if a general partner of an investment limited partnership renders a management or administrative service to the investment limited partnership,

    • (a) the rendering of the service is deemed not to be done by the general partner as a member of the investment limited partnership; and

    • (b) the supply by the general partner to the investment limited partnership that includes the service is deemed to have been made otherwise than in the course of the investment limited partnership’s activities.

• (3) For the purposes of subsections (4) to (6) and Part IX of the Act, if management or administrative services are rendered by a general partner of an investment limited partnership to the investment limited partnership under a particular agreement entered into before September 8, 2017 and if some or all of those services are rendered on or after that day, the following rules apply:

  • (a) in respect of the management or administrative services that are rendered on or after September 8, 2017 (referred to in this paragraph as the “subsequent services”),

    • (i) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a particular supply of the subsequent services and the particular supply is deemed to have been made on September 8, 2017,

    • (ii) the subsequent services are deemed to have been rendered under an agreement for the particular supply and not under the particular agreement and the agreement for the particular supply is deemed to have been entered into on September 8, 2017,

    • (iii) any amount that is charged, collected or remitted at any time as or on account of tax under Part IX of the Act in respect of an amount of consideration that is reasonably attributable to the rendering of the subsequent services is deemed to be an amount of tax that is collected at that time in respect of the particular supply, and

    • (iv) if the total of all amounts of tax that are payable under Part IX of the Act in respect of the particular supply before February 27, 2018 is in excess of the total of the amounts that are deemed under subparagraph (iii) to be amounts collected before that day in respect of that supply, that excess is deemed, despite subsection 272.1(3) of the Act, to have become payable on February 27, 2018 and the general partner is deemed to have collected that excess on that day; and

  • (b) in respect of the management or administrative services, if any, that are rendered before September 8, 2017 (referred to in this paragraph as the “prior services”),

    • (i) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a supply of the prior services (referred to in this paragraph as the “earlier supply”) and the earlier supply is deemed to have been made on the day on which the particular agreement is entered into,

    • (ii) the prior services are deemed to have been rendered under an agreement for the earlier supply and not under the particular agreement and the agreement for the earlier supply is deemed to have been entered into on the day on which the particular agreement is entered into, and

    • (iii) any amount that is charged, collected or remitted at any time as or on account of tax under Part IX of the Act in respect of an amount of consideration that is reasonably attributable to the rendering of the prior services under the particular agreement is deemed to be an amount of tax that is collected at that time in respect of the earlier supply.

• (4) Subsection (1) applies in respect of any supply made after September 7, 2017.

• (5) Subsection (2) is deemed to have come into force on September 8, 2017 but also applies in respect of management or administrative services that are rendered under an agreement entered into before that day if an amount was, before that day, charged, collected or remitted as or on account of tax under Part IX of the Act in respect of those services or in respect of any supply made under the agreement.

• (6) For the purposes of Part IX of the Act, if subsection 272.1(8) of the Act, as enacted by subsection (2), applies in respect of management or administrative services that are rendered before September 8, 2017 by a general partner of an investment limited partnership to the investment limited partnership under an agreement entered into before that day, the following rules apply:

  • (a) subsection 272.1(3) of the Act does not apply in respect of the supply of the management or administrative services made by the general partner to the investment limited partnership;

  • (b) any amount that the investment limited partnership pays or credits to the general partner after September 7, 2017 that is reasonably attributable to the management or administrative services is deemed to be consideration for the supply of those services by the general partner to the investment limited partnership that becomes due at the time the amount is paid or credited; and

  • (c) if an amount was charged, collected or remitted as or on account of tax in respect of a particular amount — being an amount that the investment limited partnership paid or credited to the general partner before September 8, 2017 and that is reasonably attributable to the management or administrative services — the particular amount is deemed to be consideration for a taxable supply of those services that becomes due at the time the amount is paid or credited.

50 The Act is amended by adding the following after section 289.1:

51 The portion of subsection 292(7) of the Act before paragraph (a) is replaced by the following:

• 52 (1) Paragraph 295(5)(d.1) of the Act is replaced by the following:

  • (d.1) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, under, and solely for the purpose of,

    • (i) paragraph 33.1(a) of the Old Age Security Act,

    • (ii) an order made under subsection 462.48(3) of the Criminal Code, or

    • (iii) an order made under the Mutual Legal Assistance in Criminal Matters Act to gather or send information, for the purposes of an investigation or prosecution relating to an act or omission that, if it had occurred in Canada, would constitute an offence for which an order could be obtained under subsection 462.48(3) of the Criminal Code, in response to a request made pursuant to

      • (A) an administrative arrangement entered into under section 6 of the Mutual Legal Assistance in Criminal Matters Act, or

      • (B) a bilateral agreement for mutual legal assistance in criminal matters to which Canada is a party;

• (2) Paragraph 295(5)(n) of the Act is replaced by the following:

  • (n) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a tax treaty (as defined in subsection 248(1) of the Income Tax Act) or in a listed international agreement; or