Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
200. (1) The description of B in the definition “cumulative Canadian exploration expense” in subsection 66.1(6) of the Act is replaced by the following:
- B
- is the total of all amounts that were, because of subsection (1), included in computing the amount referred to in paragraph 59(3.2)(b) for the taxpayer’s taxation years ending before that time,
(2) Section 66.1 of the Act is amended by adding the following after subsection (6.1):
Marginal note:Deductible expense
(6.2) An expense of a taxpayer that is not included in paragraph (f) or (g) of the definition “Canadian exploration expense” in subsection (6) because the taxpayer earned revenue from a mine in a mineral resource is deemed, for the purposes of this Part, not to be an outlay or payment described in paragraph 18(1)(b).
(3) Subsection (1) applies to taxation years that end after November 5, 2010.
(4) Subsection (2) applies in respect of expenses incurred after November 5, 2010.
201. (1) Paragraph (e) of the definition “Canadian development expense” in subsection 66.2(5) of the Act is replaced by the following:
(e) the cost to the taxpayer of, including any payment for the preservation of a taxpayer’s rights in respect of, any property described in paragraph (b), (e) or (f) of the definition “Canadian resource property” in subsection 66(15), or any right to or interest in — or for civil law, any right in or to — the property (other than a right or an interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership),
(2) The description of B in the definition “cumulative Canadian development expense” in subsection 66.2(5) of the Act is replaced by the following:
- B
- is the total of all amounts that were, because of subsection (1), included in computing the amount referred to in paragraph 59(3.2)(c) for taxation years ending before that time,
(3) Subsection (1) applies to taxation years that begin after 2006, except that in its application to taxation years that begin in 2007, paragraph (e) of the definition “Canadian development expense” in subsection 66.2(5) of the Act, as enacted by subsection (1), is to be read as follows:
(e) notwithstanding paragraph 18(1)(m), the cost to the taxpayer of, including any payment for the preservation of a taxpayer’s rights in respect of, any property described in paragraph (b), (e) or (f) of the definition “Canadian resource property” in subsection 66(15), or any right to or interest in — or for civil law, any right in or to — the property (other than a right or an interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership), but not including any payment made to any of the persons referred to in subparagraph 18(1)(m)(i) for the preservation of a taxpayer’s right in respect of a Canadian resource property, nor a payment to which paragraph 18(1)(m) applied because of clause 18(1)(m)(ii)(B),
(4) Subsection (2) applies to taxation years that end after November 5, 2010.
202. (1) The formula in the definition “cumulative foreign resource expense” in subsection 66.21(1) of the Act is replaced by the following:
(A + A.1 + B + C + D) – (E + F + G + H + I + J)
(2) The definition “cumulative foreign resource expense” in subsection 66.21(1) of the Act is amended by adding the following after the description of A:
- A.1
- is the total of all foreign resource expenses, in respect of that country, that is the cost to the taxpayer of any of the taxpayer’s foreign resource property in respect of that country that is deemed to have been acquired by the taxpayer under paragraph 128.1(1)(c) at the last time (before the particular time) that the taxpayer became resident in Canada;
(3) The description of B in the definition “cumulative foreign resource expense” in subsection 66.21(1) of the Act is replaced by the following:
- B
- is the total of all amounts included in computing the amount referred to in paragraph 59(3.2)(c.1) in respect of that country, for taxation years that ended before the particular time and at a resident time;
(4) Subsections (1) and (2) are deemed to have come into force on January 1, 2005.
(5) Subsection (3) applies to taxation years that end after November 5, 2010.
203. (1) Paragraph (a) of the definition “Canadian oil and gas property expense” in subsection 66.4(5) of the Act is replaced by the following:
(a) the cost to the taxpayer of, including any payment for the preservation of a taxpayer’s rights in respect of, any property described in paragraph (a), (c) or (d) of the definition “Canadian resource property” in subsection 66(15) or any right to or interest in — or, for civil law, any right in or to — the property (other than a right or an interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership), or an amount paid to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on March 31, 1977 to the extent that it can reasonably be regarded as a cost of acquiring the lease,
(2) Subsection (1) applies to taxation years that begin after 2006, except that in its application to the taxation years that begin in 2007, paragraph (a) of the definition “Canadian oil and gas property expense” in subsection 66.4(5) of the Act, as enacted by subsection (1), is to be read as follows:
(a) notwithstanding paragraph 18(1)(m), the cost to the taxpayer of, including any payment for the preservation of a taxpayer’s rights in respect of, any property described in paragraph (a), (c) or (d) of the definition “Canadian resource property” in subsection 66(15) or any right to or interest in — or, for civil law, any right in or to — the property (other than a right or an interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership), or an amount paid or payable to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on March 31, 1977 to the extent that it can reasonably be regarded as a cost of acquiring the lease, but not including any payment made to any of the persons referred to in subparagraph 18(1)(m)(i) for the preservation of a taxpayer’s right in respect of a Canadian resource property, nor a payment (other than a net royalty payment referred to in this paragraph) to which paragraph 18(1)(m) applied because of clause 18(1)(m)(ii)(B),
204. (1) Section 66.7 of the Act is amended by adding the following after subsection (10):
Marginal note:Amalgamation — partnership property
(10.1) For the purposes of subsections (1) to (5) and the definition “original owner” in subsection 66(15), if at any particular time there has been an amalgamation within the meaning assigned by subsection 87(1), other than an amalgamation to which subsection 87(1.2) applies, of two or more corporations (each of which is referred to in this subsection as a “predecessor corporation”) to form one corporate entity (referred to in this subsection as the “new corporation”) and immediately before the particular time a predecessor corporation was a member of a partnership that owned a Canadian resource property or a foreign resource property,
(a) the predecessor corporation is deemed
(i) to have owned, immediately before the particular time, that portion of each Canadian resource property and of each foreign resource property owned by the partnership at the particular time that is equal to the predecessor corporation’s percentage share of the total of the amounts that would be paid to all members of the partnership if the partnership were wound up immediately before the particular time, and
(ii) to have disposed of those portions to the new corporation at the particular time;
(b) the new corporation is deemed to have, by way of the amalgamation, acquired those portions at the particular time; and
(c) the income of the new corporation for a taxation year that ends after the particular time that can reasonably be attributable to production from those properties is deemed to be the lesser of
(i) the new corporation’s share of the part of the income of the partnership for fiscal periods of the partnership that end in the year that can reasonably be regarded as being attributable to production from those properties, and
(ii) the amount that would be determined under subparagraph (i) for the year if the new corporation’s share of the income of the partnership for the fiscal periods of the partnership that end in the year were determined on the basis of the percentage share referred to in paragraph (a).
(2) Subsection 66.7(16) of the Act is replaced by the following:
Marginal note:Non-successor acquisitions
(16) If at any time a Canadian resource property or a foreign resource property is acquired by a person in circumstances in which none of subsections (1) to (5), nor subsection 29(25) of the Income Tax Application Rules, apply, every person who was an original owner or predecessor owner of the property before that time is, for the purpose of applying those subsections to or in respect of the person or any other person who after that time acquires the property, deemed after that time not to be an original owner or predecessor owner of the property before that time.
(3) Subsection (1) applies to amalgamations that occur after 1996.
(4) Subsection (2) applies to property acquired after November 5, 2010.
205. (1) Paragraph 66.8(3)(a) of the Act is replaced by the following:
(a) the expression “limited partner” of a partnership has the meaning that would be assigned by subsection 96(2.4), if in subsection 96(2.5) each reference to
(i) “February 25, 1986” were a reference to “June 17, 1987”,
(ii) “February 26, 1986” were a reference to “June 18, 1987”,
(iii) “January 1, 1987” were a reference to “January 1, 1988”,
(iv) “June 12, 1986” were a reference to “June 18, 1987”, and
(v) “prospectus, preliminary prospectus or registration statement” were a reference to “prospectus, preliminary prospectus, registration statement, offering memorandum or notice that is required to be filed before any distribution of securities may commence”;
(a.1) the expression “at-risk amount” of a taxpayer in respect of a partnership has the meaning that would be assigned by subsection 96(2.2) if paragraph 96(2.2)(c) read as follows:
(c) all amounts each of which is an amount owing at that time to the partnership, or to a person or partnership not dealing at arm’s length with the partnership, by the taxpayer or by a person or partnership not dealing at arm’s length with the taxpayer, other than any amount deducted under subparagraph 53(2)(c)(i.3) in computing the adjusted cost base, or under section 143.2 in computing the cost, to the taxpayer of the taxpayer’s partnership interest at that time, or any amount owing by the taxpayer to a person in respect of which the taxpayer is a subsidiary wholly-owned corporation or where the taxpayer is a trust, to a person that is the sole beneficiary of the taxpayer, and;
(2) Subsection (1) applies to fiscal periods that end after 2003.
- Date modified: