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

• Marginal note:Restrictive covenant — bad debt

  (f) all debts owing to a taxpayer that are established by the taxpayer to have become bad debts in the taxation year and that are in respect of an amount included because of the operation of subsection 6(3.1) or 56.4(2) in computing the taxpayer’s income in a preceding taxation year;

• Marginal note:Quebec parental insurance plan — self-employed premiums

  (g) the amount determined by the formula

  A – B

  where

  A 

  is the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the taxation year as a premium under the Act respecting parental insurance, R.S.Q., c. A-29.011, and

  B 

  is the total of all amounts each of which is an amount that would be payable by the taxpayer as an employee’s premium under the Act respecting parental insurance, R.S.Q., c. A-29.011, if those earnings were employment income of the taxpayer for the taxation year;

• (B) under which the taxpayer is the annuitant for a term not exceeding 18 years minus the age in whole years of the taxpayer at the time the annuity was acquired

• (v.1) a benefit described in subparagraph 56(1)(a)(vii), and

• Marginal note:Repayment of pension benefits

  (n.1) an amount paid by the taxpayer in the year to a registered pension plan if

  • (i) the taxpayer is an individual,

  • (ii) the amount is paid as

    • (A) a repayment of an amount received from the plan that was included in computing the taxpayer’s income for the year or a preceding year, if

      • (I) it is reasonable to consider that the amount was paid under the plan as a consequence of an error and not as an entitlement to benefits, or

      • (II) it was subsequently determined that, as a consequence of a settlement of a dispute in respect of the taxpayer’s employment, the taxpayer was not entitled to the amount, or

    • (B) interest in respect of a repayment described in clause (A), and

  • (iii) no portion of the amount is deductible under paragraph 8(1)(m) in computing the taxpayer’s income for the year;

• Marginal note:Repayment of apprenticeship grants

  (p) the total of all amounts each of which is an amount paid in the taxation year as a repayment under the Apprenticeship Incentive Grant program or the Apprenticeship Completion Grant program of an amount that was included under paragraph 56(1)(n.1) in computing the taxpayer’s income for the taxation year or a preceding taxation year;

Meaning of “lifetime benefit trust”

• 60.011 (1) For the purpose of subsection (2), a trust is at any particular time a lifetime benefit trust with respect to a taxpayer and the estate of a deceased individual if

  • (a) immediately before the death of the deceased individual, the taxpayer

    • (i) was both a spouse or common-law partner of the deceased individual and mentally infirm, or

    • (ii) was both a child or grandchild of the deceased individual and dependent on the deceased individual for support because of mental infirmity; and

  • (b) the trust is, at the particular time, a personal trust under which

    • (i) no person other than the taxpayer may receive or otherwise obtain the use of, during the taxpayer’s lifetime, any of the income or capital of the trust, and

    • (ii) the trustees

      • (A) are empowered to pay amounts from the trust to the taxpayer, and

      • (B) are required — in determining whether to pay, or not to pay, an amount to the taxpayer — to consider the needs of the taxpayer including, without limiting the generality of the foregoing, the comfort, care and maintenance of the taxpayer.

• Meaning of “qualifying trust annuity”

  (2) Each of the following is a qualifying trust annuity with respect to a taxpayer:

  • (a) an annuity that meets the following conditions:

    • (i) it is acquired after 2005,

    • (ii) the annuitant under it is a trust that is, at the time the annuity is acquired, a lifetime benefit trust with respect to the taxpayer and the estate of a deceased individual,

    • (iii) it is for the life of the taxpayer (with or without a guaranteed period), or for a fixed term equal to 90 years minus the age in whole years of the taxpayer at the time it is acquired, and

    • (iv) if it is with a guaranteed period or for a fixed term, it requires that, in the event of the death of the taxpayer during the guaranteed period or fixed term, any amounts that would otherwise be payable after the death of the taxpayer be commuted into a single payment;

  • (b) an annuity that meets the following conditions:

    • (i) it is acquired after 1988,

    • (ii) the annuitant under it is a trust under which the taxpayer is the sole person beneficially interested (determined without regard to any right of a person to receive an amount from the trust only on or after the death of the taxpayer) in amounts payable under the annuity,

    • (iii) it is for a fixed term not exceeding 18 years minus the age in whole years of the taxpayer at the time it is acquired, and

    • (iv) if it is acquired after 2005, it requires that, in the event of the death of the taxpayer during the fixed term, any amounts that would otherwise be payable after the death of the taxpayer be commuted into a single payment; and

  • (c) an annuity that meets the following conditions:

    • (i) it is acquired

      • (A) after 2000 and before 2005 at a time at which the taxpayer was mentally or physically infirm, or

      • (B) in 2005 at a time at which the taxpayer was mentally infirm,

    • (ii) the annuitant under it is a trust under which the taxpayer is the sole person beneficially interested (determined without regard to any right of a person to receive an amount from the trust only on or after the death of the taxpayer) in amounts payable under the annuity, and

    • (iii) it is for the life of the taxpayer (with or without a guaranteed period), or for a fixed term equal to 90 years minus the age in whole years of the taxpayer at the time it is acquired.

• Application of paragraph 60(l) to “qualifying trust annuity”

  (3) For the purpose of paragraph 60(l),

  • (a) in determining if a qualifying trust annuity with respect to a taxpayer is an annuity described in subparagraph 60(l)(ii), clauses 60(l)(ii)(A) and (B) are to be read without regard to their requirement that the taxpayer be the annuitant under the annuity; and

  • (b) if an amount paid to acquire a qualifying trust annuity with respect to a taxpayer would, if this Act were read without reference to this subsection, not be considered to have been paid by or on behalf of the taxpayer, the amount is deemed to have been paid on behalf of the taxpayer where

    • (i) it is paid

      • (A) by the estate of a deceased individual who was, immediately before death,

        • (I) a spouse or common-law partner of the taxpayer, or

        • (II) a parent or grandparent of the taxpayer on whom the taxpayer was dependent for support, or

      • (B) by the trust that is the annuitant under the qualifying trust annuity, and

    • (ii) it would, if it had been paid by the taxpayer, be deductible under paragraph 60(l) in computing the taxpayer’s income for a taxation year and the taxpayer elects, in the taxpayer’s return of income under this Part for that taxation year, to have this paragraph apply to the amount.

• (B) a person certified in writing by a medical doctor to be a person who

• Marginal note:Canadian exploration expenses to flow-through shareholder

  (12.6) If a person gave consideration under an agreement to a corporation for the issue of a flow-through share of the corporation and, in the period that begins on the day on which the agreement was made and ends 24 months after the end of the month that includes that day, the corporation incurred Canadian exploration expenses (other than an expense deemed by subsection 66.1(9) to be a Canadian exploration expense of the corporation), the corporation may, after it complies with subsection (12.68) in respect of the share and before March of the first calendar year that begins after the period, renounce, effective on the day on which the renunciation is made or on an earlier day set out in the form prescribed for the purpose of subsection (12.7), to the person in respect of the share the amount, if any, by which the portion of those expenses that was incurred on or before the effective date of the renunciation (which portion is in this subsection referred to as the “specified expenses”) exceeds the total of

• Marginal note:Effect of renunciation

  (12.63) Subject to subsections (12.69) to (12.702), if under subsection (12.62) a corporation renounces an amount to a person,

• Marginal note:Frais engagés dans l’année suivante

  (12.66) Pour l’application du paragraphe (12.6) et pour l’application du paragraphe (12.601) et de l’alinéa (12.602)b), la société qui émet une action accréditive à une personne conformément à une convention est réputée avoir engagé des frais d’exploration au Canada ou des frais d’aménagement au Canada le dernier jour de l’année civile précédant une année civile donnée si les conditions ci-après sont réunies :

  • a) la société engage les frais au cours de l’année donnée;

  • a.1) la convention a été conclue au cours de l’année précédente;

• (iii) seraient des dépenses visées à l’alinéa f) de la définition de frais d’aménagement au Canada au paragraphe 66.2(5) si le passage « à l’un des alinéas a) à e) » était remplacé par « aux alinéas a) ou b) »;

the corporation is, for the purpose of subsection (12.6), or of subsection (12.601) and paragraph (12.602)(b), as the case may be, deemed to have incurred the expenses on the last day of that preceding year.

“flow-through share”

« action accréditive »

“flow-through share” means a share (other than a prescribed share) of the capital stock of a principal-business corporation, or a right (other than a prescribed right) to acquire a share of the capital stock of a principal-business corporation, issued to a person under an agreement in writing made between the person and the corporation under which the corporation, for consideration that does not include property to be exchanged or transferred by the person under the agreement in circumstances to which any of sections 51, 85, 85.1, 86 and 87 applies, agrees

• (a) to incur, in the period that begins on the day on which the agreement was made and ends 24 months after the month that includes that day, Canadian exploration expenses or Canadian development expenses in an amount not less than the consideration for which the share or right is to be issued, and

• (b) to renounce, in prescribed form and before March of the first calendar year that begins after that period, to the person in respect of the share or right, an amount in respect of the Canadian exploration expenses or Canadian development expenses so incurred by it not exceeding the consideration received by the corporation for the share or right;

• Marginal note:Members of partnerships

  (18) For the purposes of this section, subsection 21(2), sections 59.1 and 66.1 to 66.7, paragraph (d) of the definition “investment expense” in subsection 110.6(1), the definition “pre-production mining expenditure” in subsection 127(9) and the descriptions of C and D in subsection 211.91(1), where a person’s share of an outlay or expense made or incurred by a partnership in a fiscal period of the partnership is included in respect of the person under paragraph (d) of the definition “foreign exploration and development expenses” in subsection (15), paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6), paragraph (f) of the definition “Canadian development expense” in subsection 66.2(5), paragraph (e) of the definition “foreign resource expense” in subsection 66.21(1) or paragraph (b) of the definition “Canadian oil and gas property expense” in subsection 66.4(5), the portion of the outlay or expense so included is deemed, except for the purposes of applying the definitions “foreign exploration and development expenses”, “Canadian exploration expense”, “Canadian development expense”, “foreign resource expense” and “Canadian oil and gas property expense” in respect of the person, to be made or incurred by the person at the end of that fiscal period.