Budget Implementation Act, 2022, No. 1 (S.C. 2022, c. 10)

• 23 (1) Paragraph 188.1(5)(c) of the Act is replaced by the following:

  • (c) a qualifying disbursement.

• (2) Subsection 188.1(12) of the Act is replaced by the following:

  • Marginal note:Gifts not at arm’s length

    (12) If a registered charity has in a taxation year received a gift of property (other than a designated gift) from another registered charity with which it does not deal at arm’s length and it has expended, before the end of the next taxation year — in addition to its disbursement quota for each of those taxation years — an amount that is less than the fair market value of the property on charitable activities carried on by it or by way of gifts made by it that are qualifying disbursements to qualified donees or grantee organizations, with which it deals at arm’s length, the registered charity is liable to a penalty under this Act for that subsequent taxation year equal to 110% of the difference between the fair market value of the property and the additional amount expended.

24 Paragraph 241(4)(d) of the Act is amended by striking out “or” at the end of subparagraph (xvii), by adding “or” at the end of subparagraph (xviii) and by adding the following after subparagraph (xviii):

R.S., c. E-15Excise Tax Act

25 Paragraph 295(5)(d) of the Excise Tax Act is amended by striking out “or” at the end of subparagraph (viii), by adding “or” at the end of subparagraph (ix) and by adding the following after subparagraph (ix):

1992, c. 48, Sch.Children’s Special Allowances Act

• 26 (1) Section 2 of the Children’s Special Allowances Act is amended by adding the following in alphabetical order:

  Indigenous governing body

  Indigenous governing body means an Indigenous governing body (as defined in section 1 of An Act respecting First Nations, Inuit and Métis children, youth and families) that

  • (a) has given notice under subsection 20(1) of that Act;

  • (b) has requested a coordination agreement under subsection 20(2) of that Act; or

  • (c) meets prescribed conditions. (corps dirigeant autochtone)

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

• 27 (1) Paragraphs 3(1)(a) and (b) of the Act are replaced by the following:

  • (a) resides in an institution, a group foster home, the private home of foster parents or in the private home of a guardian, tutor or other individual occupying a similar role for the month, under a decree, order or judgment of a competent tribunal and is maintained by

    • (i) a department or agency of the government of Canada or a province, or

    • (ii) an agency appointed by a province, including an authority established under the laws of a province, or by an agency appointed by such an authority, for the purpose of administering any law of the province for the protection and care of children;

  • (b) is maintained by an institution licensed or otherwise authorized under the law of the province to have the custody or care of children; or

  • (c) resides in an institution, a group foster home, the private home of foster parents or in the private home of a guardian, tutor or other individual occupying a similar role for the month, under the laws of an Indigenous governing body and is maintained by

    • (i) the Indigenous governing body,

    • (ii) a department or agency of the Indigenous governing body, or

    • (iii) an agency appointed by the Indigenous governing body, including an authority established under the laws of the Indigenous governing body, or by an agency appointed by such an authority, for the purpose of administering any law of the Indigenous governing body for the protection and care of children.

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

• 28 (1) Paragraph 4(1)(a) of the Act is replaced by the following:

  • (a) an application therefor has been made in the prescribed manner by the department, agency, institution or Indigenous governing body referred to in subsection 3(1) that maintains the child; and

• (2) Subsection 4(3) of the Act is replaced by the following:

  • Marginal note:No allowance payable

    (3) No special allowance is payable for the month in which the child in respect of whom the special allowance is payable commences to be maintained by a department, agency, institution or Indigenous governing body, and no special allowance is payable in respect of a child for the month in which the child is born or commences to reside in Canada.

• (3) Paragraph 4(4)(a) of the Act is replaced by the following:

  • (a) ceases to be maintained by the department, agency, institution or Indigenous governing body;

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

• 29 (1) Sections 5 and 6 of the Act are replaced by the following:

  Marginal note:Recipient of special allowance

  5 Where payment of a special allowance is approved in respect of a child, the special allowance shall, in such manner and at such times as are determined by the Minister, be paid to the department, agency, institution or Indigenous governing body referred to in subsection 3(1) that maintains the child or, in the prescribed circumstances, to a foster parent.

  Marginal note:Report

  6 Where a special allowance ceases to be payable in respect of a child for a reason referred to in paragraph 4(4)(a), (b) or (c), the chief executive officer of the department, agency, institution or Indigenous governing body that made the application under paragraph 4(1)(a) in respect of the child shall, as soon as possible after the special allowance ceases to be payable in respect of the child, notify the Minister in the prescribed form and manner.

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

• 30 (1) Subsections 9(1) and (2) of the English version of the Act are replaced by the following:

  Marginal note:Return of special allowance

  • 9 (1) Any person, department, agency, institution or Indigenous governing body that has received or obtained by cheque or otherwise payment of a special allowance under this Act to which the person, department, agency, institution or Indigenous governing body is not entitled, or payment in excess of the amount to which the person, department, agency, institution or Indigenous governing body is entitled, shall, as soon as possible, return the cheque or the amount of the payment, or the excess amount, as the case may be.

  • Marginal note:Recovery of amount of payment

    (2) Where a person, department, agency, institution or Indigenous governing body has received or obtained payment of a special allowance under this Act to which the person, department, agency, institution or Indigenous governing body is not entitled, or payment in excess of the amount to which the person, department, agency, institution or Indigenous governing body is entitled, the amount of the special allowance or the amount of the excess, as the case may be, constitutes a debt due to Her Majesty.

• (2) Subsection 9(3) of the Act is replaced by the following:

  • Marginal note:Deduction from subsequent special allowance

    (3) Where any person, department, agency, institution or Indigenous governing body has received or obtained payment of a special allowance under this Act to which the person, department, agency, institution or Indigenous governing body is not entitled, or payment in excess of the amount to which the person, department, agency, institution or Indigenous governing body is entitled, the amount of the special allowance or the amount of the excess, as the case may be, may be deducted and retained in such manner as is prescribed out of any special allowance to which the person, department, agency, institution or Indigenous governing body is or subsequently becomes entitled under this Act.

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2020.

• 31 (1) Section 11 of the Act is replaced by the following:

  Marginal note:Agreements for exchange of information

  11 The Minister may enter into an agreement with the government of any province, or an Indigenous governing body, for the purpose of obtaining information in connection with the administration or enforcement of this Act or the regulations and of furnishing to that government, or Indigenous governing body, under prescribed conditions, any information obtained by or on behalf of the Minister in the course of the administration or enforcement of this Act or the regulations, if the Minister is satisfied that the information to be furnished to that government, or Indigenous governing body, under the agreement is to be used for the purpose of the administration of a social program, income assistance program or health insurance program in the province or of the Indigenous governing body.

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

• 32 (1) Paragraph 13(a) of the English version of the Act is replaced by the following:

  • (a) providing for the suspension of payment of a special allowance during any investigation respecting the eligibility of a department, agency, institution or Indigenous governing body to receive the special allowance and specifying the circumstances in which payment of a special allowance, the payment of which has been suspended, may be resumed;

• (2) Paragraph 13(c) of the Act is replaced by the following:

  • (c) specifying for the purposes of this Act the circumstances in which a child shall be considered to be maintained by a department, agency, institution or Indigenous governing body; and

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2020.

2002, c. 22Excise Act, 2001

33 Paragraph 211(6)(e) of the Excise Act, 2001 is amended by striking out “or” at the end of subparagraph (ix), by adding “or” at the end of subparagraph (x) and by adding the following after subparagraph (x):

C.R.C., c. 945Income Tax Regulations

• 34 (1) Section 1100 of the Income Tax Regulations is amended by adding the following before subsection (1):

  • Marginal note:Immediate expensing

    (0.1) For the purposes of paragraph 20(1)(a) of the Act, a deduction is allowed in computing an eligible person or partnership’s income for each taxation year equal to the lesser of

    • (a) the eligible person or partnership’s immediate expensing limit for the taxation year,

    • (b) the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year, and

    • (c) if the eligible person or partnership is not a Canadian-controlled private corporation, the amount of income, if any, earned from the source of income that is a business or property (computed without regard to paragraph 20(1)(a) of the Act) in which the relevant designated immediate expensing property is used for the eligible person or partnership’s taxation year.

  • Marginal note:Undepreciated capital cost — immediate expensing

    (0.2) Before computing any other deduction permitted under this Part and Schedules II to VI, the amount of any deduction made under subsection (0.1) by an eligible person or partnership in respect of a designated immediate expensing property of a prescribed class shall be deducted from the undepreciated capital cost of the particular class to which the property belongs.

  • Marginal note:Expenditures excluded from paragraph (0.1)(b)

    (0.3) For the purposes of paragraph (0.1)(b), in respect of property of a class in Schedule II that is immediate expensing property of an eligible person or partnership solely because of subparagraph (c)(i) of the definition immediate expensing property in subsection 1104(3.1), amounts incurred by any person or partnership in respect of the property are not to be included in determining the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year if the amounts are incurred before April 19, 2021 (if the eligible person or partnership is a Canadian-controlled private corporation) or before 2022 (if the eligible person or partnership is an individual or Canadian partnership), unless

    • (a) the property was acquired by an eligible person or partnership from another person or partnership (referred to in this paragraph as the “transferee” and the “transferor”, respectively)

      • (i) if the transferee is a Canadian-controlled private corporation, after April 18, 2021, or

      • (ii) if the transferee is an individual or a Canadian partnership, after December 31, 2021;

    • (b) the transferee was either

      • (i) the eligible person or partnership, or

      • (ii) a person or partnership that does not deal at arm’s length with the eligible person or partnership; and

    • (c) the transferor

      • (i) dealt at arm’s length with the transferee, and

      • (ii) held the property as inventory.

• (2) The portion of subsection 1100(1.1) of the Regulations before paragraph (a) is replaced by the following:

  • (1.1) Despite subsections (0.1), (1) and (3), the amount deductible by a taxpayer for a taxation year in respect of a property that is a specified leasing property at the end of the year is the lesser of

• (3) Subsection 1100(1.12) of the Regulations is replaced by the following:

  • (1.12) Despite subsections (0.1), (1) and (1.1), where, in a taxation year, a taxpayer has acquired a property that was not used by the taxpayer for any purpose in that year and the first use of the property by the taxpayer is a lease of the property in respect of which subsection (1.1) applies, the amount allowed to the taxpayer under subsections (0.1) and (1) in respect of the property for the year shall be deemed to be nil.

• (4) The portion of subsection 1100(11) of the Regulations before paragraph (a) is replaced by the following:

  • (11) Despite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in respect of property of a prescribed class owned by a taxpayer that includes rental property owned by him, otherwise allowed to the taxpayer by virtue of subsection (0.1) or (1) in computing his income for a taxation year, exceed the amount, if any, by which

• (5) The portion of subsection 1100(15) of the Regulations before paragraph (a) is replaced by the following:

  • (15) Despite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in respect of property of a prescribed class that is leasing property owned by a taxpayer, otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing his income for a taxation year, exceed the amount, if any, by which

• (6) The portion of subsection 1100(20.1) of the Regulations before paragraph (a) is replaced by the following:

  • (20.1) The total of all amounts each of which is a deduction in respect of computer tax shelter property allowed to the taxpayer under subsection (0.1) or (1) in computing a taxpayer’s income for a taxation year shall not exceed the amount, if any, by which

• (7) Subsection 1100(21.1) of the Regulations is replaced by the following:

  • (21.1) Despite subsections (0.1) and (1), where a taxpayer has acquired property described in paragraph (s) of Class 10 in Schedule II, or in paragraph (m) of Class 12 of Schedule II, the deduction in respect of the property otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing the taxpayer’s income for a taxation year shall not exceed the amount that it would be if the capital cost to the taxpayer of the property were reduced by the portion of any debt obligation of the taxpayer outstanding at the end of the year that is convertible into an interest or, for civil law, a right in the property or an interest in the taxpayer.

• (8) The portion of subsection 1100(24) of the Regulations before paragraph (a) is replaced by the following:

  • (24) Despite subsections (0.1) and (1), in no case shall the total of deductions, each of which is a deduction in respect of property of Class 34, 43.1, 43.2, 47 or 48 in Schedule II that is specified energy property owned by a taxpayer, otherwise allowed to the taxpayer under subsection (0.1) or (1) in computing the taxpayer’s income for a taxation year, exceed the amount, if any, by which

• (9) Subsections (1) to (8) are deemed to have come into force on April 19, 2021.