Budget Implementation Act, 2021, No. 1 (S.C. 2021, c. 23)

• 37 (1) Paragraph 147.4(1)(a) of the Act is replaced by the following:

  • (a) at any time an individual acquires, in full or partial satisfaction of the individual’s entitlement to benefits under a registered pension plan, an interest in an annuity contract (other than an advanced life deferred annuity) purchased from a licensed annuities provider,

• (2) Subsection (1) is deemed to have come into force on January 1, 2020.

• 38 (1) The portion of the definition qualifying annuity in subsection 147.5(1) of the Act before paragraph (a) is replaced by the following:

  qualifying annuity

  qualifying annuity, for an individual, means an annuity (other than an advanced life deferred annuity) that

• (2) Paragraph 147.5(5)(a) of the Act is replaced by the following:

  • (a) the payment of benefits to a member that would be in accordance with paragraph 8506(1)(e.1) or (e.2) of the Income Tax Regulations if the benefits were provided under a money purchase provision of a registered pension plan; and

• (3) Paragraph 147.5(21)(c) of the Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v):

  • (vi) a licensed annuities provider to acquire an advanced life deferred annuity for the benefit of the member.

• (4) Subsections (1) to (3) are deemed to have come into force on January 1, 2020.

• 39 (1) The definition ineligible individual in subsection 149.1(1) of the Act is amended by striking out “or” at the end of paragraph (d) and by adding the following after paragraph (e):

  • (f) a listed terrorist entity, or a member of a listed terrorist entity,

  • (g) a director, trustee, officer or like official of a listed terrorist entity during a period in which that entity supported or engaged in terrorist activities, including a period prior to the date on which the entity became a listed terrorist entity, or

  • (h) an individual who controlled or managed, directly or indirectly, in any manner whatever, a listed terrorist entity during a period in which that entity supported or engaged in terrorist activities, including a period prior to the date on which the entity became a listed terrorist entity; (particulier non admissable)

• (2) The definition qualifying journalism organization in subsection 149.1(1) of the Act is amended by striking out “and” at the end of paragraph (f), by adding “and” at the end of paragraph (g) and by adding the following after paragraph (g):

  • (h) it is primarily engaged in the production of original news content; (organisation journalistique admissible)

• (3) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:

  listed terrorist entity

  listed terrorist entity, at any time, means a person, partnership, group, fund, unincorporated association or organization that is at that time a listed entity, as defined in subsection 83.01(1) of the Criminal Code; (entité terroriste inscrite)

• (4) Section 149.1 of the Act is amended by adding the following after subsection (1.01):

  • Marginal note:Deeming rule — listed terrorist entity

    (1.02) If, but for this subsection, a person, partnership, group, fund, unincorporated association or organization becomes a listed terrorist entity at a particular time and ceases to be a listed terrorist entity at a later time further to an application made under subsection 83.05(2) of the Criminal Code or as a result of paragraph 83.05(6)(d) of that Act, then the entity is deemed not to have become a listed terrorist entity and to not have been a listed terrorist entity throughout that period.

• (5) Paragraph 149.1(4.1)(c) of the Act is replaced by the following:

  • (c) of a registered charity, if a false statement (as defined in subsection 163.2(1)) was made in circumstances amounting to culpable conduct (as defined in subsection 163.2(1)) in the furnishing of information for the purpose of obtaining or maintaining its registration;

• (6) Subsection (2) is deemed to have come into force on January 1, 2019.

• 40 (1) Paragraph 152(1)(b) of the Act is replaced by the following:

  • (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.

• (2) Paragraph 152(1)(b) of the Act is replaced by the following:

  • (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3) or (3.001), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.

• (3) Subsection 152(3.4) of the Act is replaced by the following:

  • Marginal note:COVID-19 — notice of determination

    (3.4) The Minister may at any time determine the amount deemed by any of subsections 125.7(2) to (2.2) to be an overpayment on account of a taxpayer’s liability under this Part that arose during a qualifying period (as defined in subsection 125.7(1)), or determine that there is no such amount, and send a notice of the determination to the taxpayer.

• (4) Clause 152(4)(b)(iii)(A) of the Act is replaced by the following:

  • (A) as a consequence of a transaction (as defined in subsection 247(1)) involving the taxpayer and a non-resident person with whom the taxpayer was not dealing at arm’s length, or

• (5) Subsection (1) is deemed to have come into force on January 1, 2019.

• (6) Subsection (2) is deemed to have come into force on March 25, 2020.

• (7) Subsection (4) applies to taxation years of a taxpayer in respect of which the normal reassessment period (within the meaning of subsection 152(3.1) of the Act) for the taxpayer ends after March 18, 2019.

• 41 (1) Subsection 153(1) of the Act is amended by striking out “or” at the end of paragraph (s), by adding “or” at the end of paragraph (t) and by adding the following after paragraph (t):

  • (u) a payment out of or under an advanced life deferred annuity

• (2) Subsection (1) is deemed to have come into force on January 1, 2020.

• 42 (1) Paragraph 157(3)(e) of the Act is replaced by the following:

  • (e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the year.

• (2) Paragraph 157(3.1)(c) of the Act is replaced by the following:

  • (c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the taxation year.

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.

• 43 (1) Subparagraph 163(2)(h)(i) of the Act is replaced by the following:

  • (i) the amount that would be deemed by subsection 125.6(2) or (2.1) to have been paid for the year by the person if that amount were calculated by reference to the information provided in the return filed for the year pursuant to that subsection

• (2) Subparagraph 163(2)(i)(i) of the Act is replaced by the following:

  • (i) the amount that would be deemed by any of subsections 125.7(2) to (2.2) to have been an overpayment by the person or partnership if that amount were calculated by reference to the information provided in the application filed pursuant to paragraph (a) of the definition qualifying entity in subsection 125.7(1), paragraph (a) of the definition qualifying renter in subsection 125.7(1) or paragraph (a) of the definition qualifying recovery entity in subsection 125.7(1), as the case may be

• (3) Section 163 of the Act is amended by adding the following after subsection (2.901):

  • Marginal note:Penalty — COVID-19

    (2.902) Every eligible entity that is deemed by subsection 125.7(6.1) to have an amount of total current period remuneration for a qualifying period is liable to a penalty equal to 25% of the amount that would be deemed by subsection 125.7(2.2) to have been an overpayment by the eligible entity during that qualifying period if that amount were calculated by reference to the information provided in the application filed pursuant to paragraph (a) of the definition qualifying recovery entity in subsection 125.7(1).

• (4) Subsection (1) is deemed to have come into force on January 1, 2019.

• 44 (1) Subparagraph 164(1)(a)(ii) of the Act is replaced by the following:

  • (ii) before sending the notice of assessment for the year, where the taxpayer is a qualified corporation (as defined in subsection 125.4(1)), an eligible production corporation (as defined in subsection 125.5(1)) or a qualifying journalism organization (as defined in subsection 125.6(1)) and an amount is deemed under subsection 125.4(3), 125.5(3) or 125.6(2) or (2.1) to have been paid on account of its tax payable under this Part for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the total of those amounts so deemed to have been paid, and

• (2) Subsection 164(1.6) of the Act is replaced by the following:

  • Marginal note:COVID-19 refunds

    (1.6) Notwithstanding subsection (2.01), at any time after the beginning of a taxation year of a taxpayer in which an overpayment is deemed to have arisen under any of subsections 125.7(2) to (2.2), the Minister may refund to the taxpayer all or any part of the overpayment.

• (3) Subsection (1) is deemed to have come into force on January 1, 2019.

45 Section 168 of the Act is amended by adding the following after subsection (3):

• 46 (1) The Act is amended by adding the following after section 168:

  Designation of Qualified Canadian Journalism Organizations

  Marginal note:Date of designation

  • 168.1 (1) If an organization is designated for the purpose of the definition qualified Canadian journalism organization in subsection 248(1), the organization is deemed to have become designated on the date that the application for designation of the organization was made, unless otherwise specified by the Minister.

  • Marginal note:Revocation of designation

    (2) The Minister may, at any time, revoke the designation of an organization made for the purpose of the definition qualified Canadian journalism organization in subsection 248(1) and, for that purpose, the Minister shall take into account any recommendations of a body established for the purpose of that definition and referred to in paragraph (b) of that definition.

  • Marginal note:Notice and date of revocation

    (3) If the designation of an organization is revoked under subsection (2),

    • (a) the Minister shall provide notice of the revocation to the organization in writing; and

    • (b) the revocation is deemed to be effective as of the date on which the notice in paragraph (a) is sent, unless the Minister specifies an earlier date.

• (2) Subsection (1) is deemed to have come into force on January 1, 2019.

47 The portion of subsection 188(1) of the Act before paragraph (a) is replaced by the following:

48 Subsection 188.2(2) of the Act is amended by striking out “or” at the end of paragraph (d), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e):

• 49 (1) The Act is amended by adding the following after Part X.5:

  PART XITax in Respect of Advanced Life Deferred Annuity

  Marginal note:Definitions

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

    ALDA dollar limit

    ALDA dollar limit, for a calendar year, means

    • (a) for 2020, $150,000; and

    • (b) for each year after 2020, the amount (rounded to the nearest multiple of $10,000, or if that amount is equidistant from two such consecutive multiples, to the higher multiple) that is equal to $150,000 adjusted for each year after 2020 in the manner set out in section 117.1. (plafond de la RVDAA)

    cumulative excess amount

    cumulative excess amount, of an individual at any particular time in a calendar year, means the amount determined by the formula

    A − B

    where

    A

    is the greater of

    • (a) the total of all amounts each of which is an excess ALDA transfer of the individual at or before the particular time, and

    • (b) the amount determined by the formula

      C − D

      where

      C

      is the total of all amounts each of which is the amount of a transfer at or before the particular time to acquire an advanced life deferred annuity on behalf of the individual, and

      D

      is the ALDA dollar limit for the calendar year; and

    B

    is the total of all amounts each of which is the amount of a refund described in paragraph (g) of the definition advanced life deferred annuity in subsection 146.5(1) made at or before the particular time on behalf of the individual. (excédent cumulatif)

    excess ALDA transfer

    excess ALDA transfer, of an individual, means the portion of the amount of a transfer, made from a transferor plan under any of subsections 146(16) and 146.3(14.1) and paragraphs 147(19)(d), 147.3(1)(c) and 147.5(21)(c) to acquire an advanced life deferred annuity on behalf of the individual, determined by the formula

    A − B

    where

    A

    is the amount of the transfer; and

    B

    is the amount determined by the formula

    0.25(C + D) − E

    where

    C

    is the total value of the property held for the benefit of the individual under the transferor plan at the end of the calendar year preceding the calendar year in which the transfer is made, other than

    • (a) if the transferor plan is a registered pension plan, property held in connection with

      • (i) a defined benefit provision (as defined in subsection 147.1(1)) of the transferor plan, or

      • (ii) a VPLA fund, as described in subsection 8506(13) of the Income Tax Regulations,

    • (b) if the transferor plan is a pooled registered pension plan, property held in connection with benefits that would be described in paragraph 147.5(5)(a) if the reference in that paragraph to “8506(1)(e.1) or (e.2)” were read as a reference to “8506(1)(e.2)”,

    • (c) if the transferor plan is a registered retirement income fund, contracts for annuities held in connection with the fund other than annuities described in paragraph (b.1) of the definition qualified investment in subsection 146.3(1), and

    • (d) if the transferor plan is a registered retirement savings plan, contracts for annuities held in connection with the plan other than annuities described in paragraph (c.1) of the definition qualified investment in subsection 146(1),

    D

    is the total of all amounts each of which is the amount transferred from the transferor plan, in a calendar year preceding the calendar year in which the transfer is made, to acquire an advanced life deferred annuity on behalf of the individual, and

    E

    is the total of all amounts each of which is the amount of a previous transfer from the transferor plan to acquire an advanced life deferred annuity on behalf of the individual. (excédent de transfert au titre de la RVDAA)

  • Marginal note:Tax payable by individuals

    (2) If at the end of any month an individual has a cumulative excess amount, the individual shall, in respect of that month, pay a tax under this Part equal to 1% of that cumulative excess amount.

  • Marginal note:Waiver of tax

    (3) If an individual would, but for this subsection, be required to pay a tax under subsection (2) in respect of a month, the Minister may waive or cancel all or part of the tax if the individual establishes to the satisfaction of the Minister that

    • (a) the cumulative excess amount on which the tax is based arose as a consequence of reasonable error; and

    • (b) reasonable steps are being taken to eliminate the cumulative excess amount.

  Marginal note:Return and payment of tax

  • 206 (1) Every person who is liable to pay tax under this Part for all or part of a calendar year shall,

    • (a) on or before the person’s filing-due date for the year, file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand; and

    • (b) on or before the person’s balance-due day for the year, pay to the Receiver General the amount of tax payable under this Part by the person for the year.

  • Marginal note:Provisions applicable to Part

    (2) Subsections 150(2) and (3), sections 152 and 158 to 167 and Division J of Part I apply with any modifications that the circumstances require.

• (2) Subsection (1) is deemed to have come into force on January 1, 2020.