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

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Regulations are current to 2021-11-17 and last amended on 2021-08-12. Previous Versions

PART XXIXScientific Research and Experimental Development (continued)

Special-Purpose Buildings

 [Repealed, 2012, c. 31, s. 64]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-602, s. 1
  • SOR/95-63, s. 3
  • 2012, c. 31, s. 64

PART XXX[Repealed, 2013, c. 40, s. 105]

 [Repealed, SOR/93-531, s. 1]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/93-531, s. 1

 [Repealed, 2013, c. 40, s. 105]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/93-1, s. 1
  • SOR/93-148, s. 1
  • SOR/94-302, s. 1
  • SOR/94-632, s. 1
  • SOR/97-517, s. 1
  • SOR/2003-5, s. 14
  • 2013, c. 40, ss. 104, 105

 [Repealed, 2013, c. 40, s. 105]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/98-347, s. 1
  • 2013, c. 40, s. 105

PART XXXITax Shelter

Marginal note:Prescribed benefits

  •  (1) For the purposes of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, means any amount that may reasonably be expected, having regard to statements or representations made in respect of the interest, to be received or enjoyed by a person (in this subsection referred to as the purchaser) who acquires the interest, or a person with whom the purchaser does not deal at arm’s length, which receipt or enjoyment would have the effect of reducing the impact of any loss that the purchaser may sustain in respect of the interest, and includes such an amount

    • (a) that is, either immediately or in the future, owed to any other person by the purchaser or a person with whom the purchaser does not deal at arm’s length, to the extent that

      • (i) liability to pay that amount is contingent,

      • (ii) payment of that amount is or will be guaranteed by, security is or will be provided by, or an agreement to indemnify the other person to whom the amount is owed is or will be entered into by

        • (A) a promoter in respect of the interest,

        • (B) a person with whom the promoter does not deal at arm’s length, or

        • (C) a person who is to receive a payment (other than a payment made by the purchaser) in respect of the guarantee, security or agreement to indemnify,

      • (iii) the rights of that other person against the purchaser, or against a person with whom the purchaser does not deal at arm’s length, in respect of the collection of all or part of the purchase price are limited to a maximum amount, are enforceable only against certain property, or are otherwise limited by agreement, or

      • (iv) payment of that amount is to be made in a foreign currency or is to be determined by reference to its value in a foreign currency and it may reasonably be considered, having regard to the history of the exchange rate between the foreign currency and Canadian currency, that the total of all such payments, when converted to Canadian currency at the exchange rate expected to prevail at the date on which each such payment would be required to be made, will be substantially less than that total would be if each such payment was converted to Canadian currency at the time that each such payment became owing;

    • (b) that the purchaser or a person with whom the purchaser does not deal at arm’s length is entitled at any time to, directly or indirectly, receive or have available

      • (i) as a form of assistance from a government, municipality or other public authority, whether as a grant, a subsidy, a forgivable loan, a deduction from tax (other than an amount described in clause (b)(i)(B) of the definition tax shelter in subsection 237.1(1) of the Act) or an investment allowance, or as any other form of assistance, or

      • (ii) by reason of a revenue guarantee or other agreement in respect of which revenue may be earned by the purchaser or a person with whom the purchaser does not deal at arm’s length, to the extent that the revenue guarantee or other agreement may reasonably be considered to ensure that the purchaser or person will receive a return of all or a portion of the purchaser’s outlays in respect of the interest;

    • (c) that is the proceeds of disposition to which the purchaser may be entitled by way of an agreement or other arrangement under which the purchaser has a right, either absolutely or contingently, to dispose of the interest (otherwise than as a consequence of the purchaser’s death), including the fair market value of any property that the agreement or arrangement provides for the acquisition of in exchange for all or any part of the interest; and

    • (d) that is owed to a promoter, or a person with whom the promoter does not deal at arm’s length, by the purchaser or a person with whom the purchaser does not deal at arm’s length in respect of the interest.

  • (2) Notwithstanding subsection (1), for the purpose of paragraph b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, does not, except as otherwise provided in subparagraph (1)(b)(ii), include profits earned in respect of the interest.

  • (3) For the purpose of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed benefit, in respect of an interest in a property, includes an amount that is a limited-recourse amount because of subsection 143.2(1), (7) or (13) of the Act, but does not include an amount of indebtedness that is a limited-recourse amount

    • (a) solely because it is not required to be repaid within 10 years from the time the indebtedness arose where the debtor would, if the interest were acquired by the debtor immediately after that time, be

      • (i) a partnership

        • (A) at least 90% of the fair market value of the property of which is attributable to the partnership’s tangible capital property located in Canada, and

        • (B) at least 90% of the value of all interests in which are held by limited partners (within the meaning assigned by subsection 96(2.4) of the Act) of the partnership,

        except where it is reasonable to conclude that one of the main reasons for the acquisition of one or more properties by the partnership, or for the acquisition of one or more interests in the partnership by limited partners, is to avoid the application of this subsection, or

      • (ii) a member of a partnership having fewer than six members, except where

        • (A) the partnership is a member of another partnership,

        • (B) there is a limited partner (within the meaning assigned by subsection 96(2.4) of the Act) of the partnership,

        • (C) less than 90% of the fair market value of the partnership’s property is attributable to the partnership’s tangible capital property located in Canada, or

        • (D) it is reasonable to conclude that one of the main reasons for the existence of one of two or more partnerships, one of which is the partnership, or the acquisition of one or more properties by the partnership, is to avoid the application of this section to the member’s indebtedness,

    • (b) of a partnership

      • (i) where

        • (A) the indebtedness is secured by and used to acquire the partnership’s tangible capital property located in Canada (other than rental property, within the meaning assigned by subsection 1100(14), leasing property, within the meaning assigned by subsection 1100(17), or specified energy property, within the meaning assigned by subsection 1100(25)), and

        • (B) the person to whom the indebtedness is repayable is a member of the Canadian Payments Association, and

      • (ii) throughout the period during which any amount is outstanding in respect of the indebtedness,

        • (A) at least 90% of the fair market value of the property of which is attributable to tangible capital property located in Canada of the partnership,

        • (B) at least 90% of the value of all interests in which are held by limited partners (within the meaning assigned by subsection 96(2.4) of the Act) that are corporations, and

        • (C) the principal business of each such limited partner is related to the principal business of the partnership,

        except where it is reasonable to conclude that one of the main reasons for the acquisition of one or more properties by the partnership, or for the acquisition of one or more interests in the partnership by limited partners, is to avoid the application of this subsection, or

    • (c) of a corporation where the amount is a bona fide business loan made to the corporation for the purpose of financing a business that the corporation operates and the loan is made under a loan program of the Government of Canada or of a province the purpose of which is to extend financing to small- and medium-sized Canadian businesses.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/2011-188, s. 16

Marginal note:Prescribed property

 For the purpose of paragraph (b) of the definition tax shelter in subsection 237.1(1) of the Act, prescribed property, in relation to a tax shelter, means property that is a registered pension plan, a registered retirement savings plan, a deferred profit sharing plan, a registered retirement income fund, a registered education savings plan or a property in respect of which paragraph 40(2)(i) of the Act applies.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/2011-188, s. 16

PART XXXII[Repealed, SOR/2011-188, s. 17]

 [Repealed, 2007, c. 35, s. 74]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/80-129, s. 1
  • SOR/80-682, s. 1
  • SOR/81-725, s. 2
  • SOR/84-948, s. 12
  • SOR/85-696, ss. 7, 8
  • SOR/88-165, s. 16
  • SOR/89-409, s. 1
  • SOR/94-140, s. 6
  • SOR/2001-187, s. 3
  • SOR/2003-395, s. 1
  • 2007, c. 35, s. 74

 [Repealed, 2007, c. 35, s. 74]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/81-725, s. 3
  • SOR/86-488, s. 4
  • SOR/88-165, s. 17
  • SOR/89-102, s. 1
  • SOR/89-409, s. 2
  • SOR/92-660, s. 1
  • SOR/94-126, s. 1
  • SOR/94-140, s. 7
  • SOR/97-408, s. 1
  • SOR/2001-187, s. 4
  • SOR/2005-15, s. 1
  • 2007, c. 35, s. 74

 [Repealed, SOR/2011-188, s. 17]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/85-696, s. 9
  • SOR/2011-188, s. 17

PART XXXIIITax Transfer Payments

 For the purposes of subsection 154(2) of the Act, a rate of 45% is prescribed.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/99-17, s. 8
  • SOR/2006-1, s. 1

PART XXXIVInternational Development Assistance Programs

 For the purposes of paragraphs 122.3(1)(a) and 250(1)(d) of the Act, each international development assistance program of the Canadian International Development Agency that is financed with funds (other than loan assistance funds) provided under External Affairs Vote 30a, Appropriation Act No. 3, 1977-78, or another vote providing for such financing, is hereby prescribed as an international development assistance program of the Government of Canada.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/78-127, s. 1
  • SOR/78-349, s. 1
  • SOR/85-696, s. 10

PART XXXVGifts

[
  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/81-269, s. 1
  • 2011, c. 24, s. 80
]

Interpretation

 In this Part,

employees’ charity trust

employees’ charity trust means a registered charity that is organized for the purpose of remitting, to other registered charities, donations that are collected from employees by an employer; (fuducie de bienfaisance d’employés)

official receipt

official receipt means a receipt for the purposes of paragraph 110.1(2)(a) or 118.1(2)(a) of the Act, containing information required by section 3501 or 3502; (reçu officiel)

official receipt form

official receipt form means any printed form that a registered organization or other recipient of a gift has that is capable of being completed, or that originally was intended to be completed, as an official receipt by it; (formule de reçu officiel)

other recipient of a gift

other recipient of a gift means a person, to whom a gift is made by a taxpayer, referred to in any of paragraph 110.1(1)(c), subparagraph 110.1(2.1)(a)(ii) and paragraphs (a) and (d) of the definition qualified donee in subsection 149.1(1) of the Act; (autre bénéficiaire d’un don)

registered organization

registered organization means a registered charity, a registered Canadian amateur athletic association, registered journalism organization or a registered national arts service organization. (organisation enregistrée)

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/81-269, s. 2
  • SOR/86-488, s. 5
  • SOR/88-165, s. 18
  • SOR/94-140, s. 8
  • SOR/94-686, s. 51(F)
  • 2011, c. 24, s. 81
  • 2017, c. 33, s. 94
  • 2019, c. 29, s. 57

Contents of Receipts

  •  (1) Every official receipt issued by a registered organization shall contain a statement that it is an official receipt for income tax purposes and shall show clearly in such a manner that it cannot readily be altered,

    • (a) the name and address in Canada of the organization as recorded with the Minister;

    • (b) the registration number assigned by the Minister to the organization;

    • (c) the serial number of the receipt;

    • (d) the place or locality where the receipt was issued;

    • (e) where the gift is a cash gift, the date on which or the year during which the gift was received;

    • (e.1) where the gift is of property other than cash

      • (i) the date on which the gift was received,

      • (ii) a brief description of the property, and

      • (iii) the name and address of the appraiser of the property if an appraisal is done;

    • (f) the date on which the receipt was issued;

    • (g) the name and address of the donor including, in the case of an individual, the individual’s first name and initial;

    • (h) the amount that is

      • (i) the amount of a cash gift, or

      • (ii) if the gift is of property other than cash, the amount that is the fair market value of the property at the time that the gift is made;

    • (h.1) a description of the advantage, if any, in respect of the gift and the amount of that advantage;

    • (h.2) the eligible amount of the gift;

    • (i) the signature, as provided in subsection (2) or (3), of a responsible individual who has been authorized by the organization to acknowledge gifts; and

    • (j) the name and Internet website of the Canada Revenue Agency.

  • (1.1) Every official receipt issued by another recipient of a gift shall contain a statement that it is an official receipt for income tax purposes and shall show clearly in such a manner that it cannot readily be altered,

    • (a) the name and address of the other recipient of the gift;

    • (b) the serial number of the receipt;

    • (c) the place or locality where the receipt was issued;

    • (d) where the gift is a cash gift, the date on which the gift was received;

    • (e) where the gift is of property other than cash

      • (i) the date on which the gift was received,

      • (ii) a brief description of the property, and

      • (iii) the name and address of the appraiser of the property if an appraisal is done;

    • (f) the date on which the receipt was issued;

    • (g) the name and address of the donor including, in the case of an individual, the individual’s first name and initial;

    • (h) the amount that is

      • (i) the amount of a cash gift, or

      • (ii) if the gift is of property other than cash, the amount that is the fair market value of the property at the time that the gift was made;

    • (h.1) a description of the advantage, if any, in respect of the gift and the amount of that advantage;

    • (h.2) the eligible amount of the gift;

    • (i) the signature, as provided in subsection (2) or (3.1), of a responsible individual who has been authorized by the other recipient of the gift to acknowledge donations; and

    • (j) the name and Internet website of the Canada Revenue Agency.

  • (2) Except as provided in subsection (3) or (3.1), every official receipt shall be signed personally by an individual referred to in paragraph (1)(i) or (1.1)(i).

  • (3) Where all official receipt forms of a registered organization are

    • (a) distinctively imprinted with the name, address in Canada and registration number of the organization,

    • (b) serially numbered by a printing press or numbering machine, and

    • (c) kept at the place referred to in subsection 230(2) of the Act until completed as an official receipt,

    the official receipts may bear a facsimile signature.

  • (3.1) Where all official receipt forms of another recipient of the gift are

    • (a) distinctively imprinted with the name and address of the other recipient of the gift,

    • (b) serially numbered by a printing press or numbering machine, and

    • (c) if applicable, kept at a place referred to in subsection 230(1) of the Act until completed as an official receipt,

    the official receipts may bear a facsimile signature.

  • (4) An official receipt issued to replace an official receipt previously issued shall show clearly that it replaces the original receipt and, in addition to its own serial number, shall show the serial number of the receipt originally issued.

  • (5) A spoiled official receipt form shall be marked “cancelled” and such form, together with the duplicate thereof, shall be retained by the registered organization or the other recipient of a gift as part of its records.

  • (6) Every official receipt form on which any of the following is incorrectly or illegibly entered is deemed to be spoiled:

    • (a) the date on which the gift is received;

    • (b) the amount of the gift, in the case of a cash gift;

    • (c) a description of the advantage, if any, in respect of the gift and the amount of that advantage; and

    • (d) the eligible amount of the gift.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/81-269, s. 3
  • SOR/2007-74, s. 1
  • 2013, c. 34, s. 393
 
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