Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)

• Marginal note:Fees paid to investment counsel

  (bb) an amount, other than a commission, that

  • (i) is paid by the taxpayer in the year to a person or partnership the principal business of which

    • (A) is advising others as to the advisability of purchasing or selling specific shares or securities, or

    • (B) includes the provision of services in respect of the administration or management of shares or securities, and

  • (ii) is paid for

    • (A) advice as to the advisability of purchasing or selling a specific share or security of the taxpayer, or

    • (B) services in respect of the administration or management of shares or securities of the taxpayer;

• (c) the purchaser of the property sold was a corporation that, immediately after the sale,

  • (i) was controlled, directly or indirectly, in any manner whatever, by the taxpayer,

  • (ii) was controlled, directly or indirectly, in any manner whatever, by a person or group of persons that controlled the taxpayer, directly or indirectly, in any manner whatever, or

  • (iii) controlled the taxpayer, directly or indirectly, in any manner whatever; or

• (d) the purchaser of the property sold was a partnership in which the taxpayer was, immediately after the sale, a majority interest partner.

• Marginal note:Foreign non-business income tax

  (12) In computing the income of a taxpayer who is resident in Canada at any time in a taxation year from a business or property for the year, there may be deducted any amount that the taxpayer claims that does not exceed the non-business income tax paid by the taxpayer for the year to the government of a country other than Canada (within the meaning assigned by subsection 126(7) read without reference to paragraphs (c) and (e) of the definition “non-business income tax” in that subsection) in respect of that income, other than any of those taxes paid that can, in whole or in part, reasonably be regarded as having been paid by a corporation in respect of income from a share of the capital stock of a foreign affiliate of the corporation.

• (a) the total of all amounts used to determine A to D.1 in the definition “undepreciated capital cost” in subsection 13(21) in respect of a taxpayer’s depreciable property of a particular class exceeds the total of all amounts used to determine E to K in that definition in respect of that property, and

• Marginal note:Non-application of subsection (16)

  (16.1) Subsection (16) does not apply

  • (a) in respect of a passenger vehicle of a taxpayer that has a cost to the taxpayer in excess of $20,000 or any other amount that is prescribed; and

  • (b) in respect of a taxation year in respect of a property that was a former property deemed by paragraph 13(4.3)(a) or (b) to be owned by the taxpayer, if

    • (i) within 24 months after the taxpayer last owned the former property, the taxpayer or a person not dealing at arm’s length with the taxpayer acquires a similar property in respect of the same fixed place to which the former property applied, and

    • (ii) at the end of the taxation year, the taxpayer or the person owns the similar property or another similar property in respect of the same fixed place to which the former property applied.

• (V) the cost of materials consumed or transformed in the prosecution of scientific research and experimental development in Canada, or

Marginal note:Allocation of gain re certain gifts

38.2 If a taxpayer is entitled to an amount of an advantage in respect of a gift of property described in paragraph 38(a.1) or (a.2),

• (a) those paragraphs apply only to that proportion of the taxpayer’s capital gain in respect of the gift that the eligible amount of the gift is of the taxpayer’s proceeds of disposition in respect of the gift; and

• (b) paragraph 38(a) applies to the extent that the taxpayer’s capital gain in respect of the gift exceeds the amount of the capital gain to which paragraph 38(a.1) or (a.2) applies.

• (c) the amount that the taxpayer claims in prescribed form filed with the taxpayer’s return of income for the particular year, not exceeding the eligible amount of the gift, where the taxpayer is not deemed by subsection 118.1(13) to have made a gift of property before the end of the particular year as a consequence of a disposition of the security by the donee or as a consequence of the security ceasing to be a non-qualifying security of the taxpayer before the end of the particular year.

• (iii) the purchaser of the property sold is a partnership in which the taxpayer was, immediately after the sale, a majority interest partner;

A 

is the total of

• (a) all amounts required by subsection 53(2) to be deducted in computing the adjusted cost base to the member of the interest in the partnership at that time, and

• (b) if the member is a member of a professional partnership, and that time is the end of the fiscal period of the partnership, the amount referred to in subparagraph 53(2)(c)(i) in respect of the taxpayer for that fiscal period; and

B 

is the total of

• (a) the cost to the member of the interest determined for the purpose of computing the adjusted cost base to the member of the interest at that time,

• (b) all amounts required by subsection 53(1) to be added to the cost to the member of the interest in computing the adjusted cost base to the member of the interest at that time, and

• (c) if the member is a member of a professional partnership, and that time is the end of the fiscal period of the partnership, the amount referred to in subparagraph 53(1)(e)(i) in respect of the taxpayer for that fiscal period.

• Meaning of “professional partnership”

  (3.111) In this section, “professional partnership” means a partnership through which one or more persons carry on the practice of a profession that is governed or regulated under a law of Canada or a province.

• (a) by operation of any law governing the partnership arrangement, the liability of the member as a member of the partnership is limited (except by operation of a provision of a statute of Canada or a province that limits the member’s liability only for debts, obligations and liabilities of the partnership, or any member of the partnership, arising from negligent acts or omissions, from misconduct or from fault of another member of the partnership or an employee, an agent or a representative of the partnership in the course of the partnership business while the partnership is a limited liability partnership);

• (b) a share of the capital stock of a corporation that is acquired in exchange for another share in a transaction is deemed to be a property that is identical to the other share if

  • (i) section 51, 86 or 87 applies to the transaction, or

  • (ii) the following conditions are met, namely,

    • (A) section 85.1 applies to the transaction,

    • (B) subsection (3.4) applied to a prior disposition of the other share, and

    • (C) none of the times described in any of subparagraphs (3.4)(b)(i) to (v) has occurred in respect of the prior disposition;