Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)

• (i) the total of all amounts each of which is income (other than specified farming or fishing income of the corporation for the year) from an active business of the corporation for the year from the provision of services or property to a private corporation (directly or indirectly, in any manner whatever) if

specified farming or fishing income

specified farming or fishing income, of a particular corporation for a taxation year, means income of the particular corporation (other than an amount included in the particular corporation’s income under subsection 135(7)), if

• (a) the income is from the sale of the farming products or fishing catches of the particular corporation’s farming or fishing business to another corporation, and

• (b) the particular corporation deals at arm’s length with the other corporation; (revenu d’agriculture ou de pêche déterminé)

Marginal note:Definitions

• 125.6 (1) The following definitions apply in this section.

  assistance

  assistance means an amount, other than an amount deemed under subsection (2) to have been paid, that would be included under paragraph 12(1)(x) in computing the income of a taxpayer for any taxation year if that paragraph were read without reference to

  • (a) subparagraphs 12(1)(x)(v) to (viii), if the amount were received

    • (i) from a person or partnership described in subparagraph 12(1)(x)(ii), or

    • (ii) in circumstances where clause 12(1)(x)(i)(C) applies; and

  • (b) subparagraphs 12(1)(x)(v) to (vii), in any other case. (montant d’aide)

  eligible newsroom employee

  eligible newsroom employee, in respect of a qualifying journalism organization in a taxation year, means an individual who

  • (a) is employed by the organization in the taxation year;

  • (b) works, on average, a minimum of 26 hours per week throughout the portion of the taxation year in which the individual is employed by the organization;

  • (c) at any time in the taxation year, has been, or is reasonably expected to be, employed by the organization for a minimum period of 40 consecutive weeks that includes that time;

  • (d) spends at least 75% of their time engaged in the production of news content, including by researching, collecting information, verifying facts, photographing, writing, editing, designing and otherwise preparing content; and

  • (e) meets any prescribed conditions. (employé de salle de presse admissible)

  qualifying journalism organization

  qualifying journalism organization, at any time, means a qualified Canadian journalism organization that meets the following conditions:

  • (a) it is primarily engaged in the production of original written news content;

  • (b) it does not carry on a broadcasting undertaking as defined in subsection 2(1) of the Broadcasting Act;

  • (c) it does not, in the taxation year in which the time occurs, receive an amount from the Aid to Publishers component of the Canada Periodical Fund; and

  • (d) if it is a corporation having share capital, it meets the conditions in subparagraph (e)(iii) of the definition Canadian newspaper in subsection 19(5). (organisation journalistique admissible)

  qualifying labour expenditure

  qualifying labour expenditure, of a taxpayer for a taxation year 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, and

  • (b) 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

    • (i) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and

    • (ii) has not been repaid before the end of the year pursuant to a legal obligation to do so. (dépense de main-d’oeuvre admissible)

• Marginal note:Tax credit

  (2) A taxpayer 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 an amount determined by the formula

  0.25(A)

  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.

• Marginal note:When assistance received

  (3) For the purposes of this Act other than this section, and for greater certainty, the amount that a qualifying journalism organization is deemed under subsection (2) to have paid for a taxation year is assistance received by it from a government immediately before the end of the year.

• (a) that is a Canadian exploration expense incurred by a corporation after March 2019 and before 2025 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2025) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition mineral resource in subsection 248(1),

• (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2019 and before April 2024, and

• (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2019 and before April 2024; (dépense minière déterminée)

• Marginal note:Expenditure limit

  (10.2) For the purpose of subsection (10.1), a particular corporation’s expenditure limit for a particular taxation year is the amount determined by the formula

  $3 million × ($40 million – A)/$40 million

  where

  A

  is

  • (a) nil, if the following amount is less than or equal to $10 million:

    • (i) if the particular corporation is not associated with any other corporation in the particular taxation year, the amount that is its taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year, and

    • (ii) if the particular corporation is associated with one or more other corporations in the particular taxation year, the amount that is the total of all amounts, each of which is the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of the particular corporation for its, or of one of the other corporations for its, last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, and

  • (b) in any other case, the lesser of $40 million and the amount by which the amount determined under subparagraph (a)(i) or (ii), as the case may be, exceeds $10 million.