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

• 206. (1) The portion of subsection 67.1(1.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Meal expenses for long-haul truck drivers

    (1.1) An amount paid or payable in respect of the consumption of food or beverages by a long-haul truck driver during an eligible travel period of the driver is deemed to be the amount determined by multiplying the specified percentage in respect of the amount so paid or payable by the lesser of

• (2) Subsection (1) applies to amounts that are paid, or become payable, after March 18, 2007.

• 207. (1) The portion of section 68 of the Act before paragraph (a) is replaced by the following:

  Marginal note:Allocation of amounts in consideration for property, services or restrictive covenants

  68. If an amount received or receivable from a person can reasonably be regarded as being in part the consideration for the disposition of a particular property of a taxpayer, for the provision of particular services by a taxpayer or for a restrictive covenant as defined by subsection 56.4(1) granted by a taxpayer,

• (2) Section 68 of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) the part of the amount that can reasonably be regarded as being consideration for the restrictive covenant is deemed to be an amount received or receivable by the taxpayer in respect of the restrictive covenant irrespective of the form or legal effect of the contract or agreement, and that part is deemed to be an amount paid or payable to the taxpayer by the person to whom the restrictive covenant was granted.

• (3) Subsections (1) and (2) are deemed to have come into force on February 27, 2004, except that those subsections do not apply to a taxpayer’s grant of a restrictive covenant made in writing by the taxpayer before February 27, 2004 between the taxpayer and a person with whom the taxpayer deals at arm’s length.

• 208. (1) Paragraph 69(1)(b) of the English version of the Act is amended by striking out “and” at the end of subparagraph (iii).

• (2) Subsection (1) applies to dispositions that occur after December 23, 1998.

• 209. (1) The portion of subsection 70(3) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Droits ou biens transférés aux bénéficiaires

    (3) Si, avant l’expiration du délai accordé pour le choix prévu au paragraphe (2), un droit ou un bien auquel ce paragraphe s’appliquerait par ailleurs a été transféré ou distribué aux bénéficiaires ou à d’autres personnes ayant un droit de bénéficiaire sur la succession ou la fiducie, les règles ci-après s’appliquent :

• (2) Subsection 70(5.2) of the Act is replaced by the following:

  • Marginal note:Resource property and land inventory

    (5.2) If in a taxation year a taxpayer dies,

    • (a) the taxpayer is deemed

      • (i) to have disposed, at the time that is immediately before the taxpayer’s death, of each

        • (A) Canadian resource property of the taxpayer,

        • (B) foreign resource property of the taxpayer, and

        • (C) property that was land included in the inventory of a business of the taxpayer, and

      • (ii) subject to paragraph (c), to have received at that time proceeds of disposition for each such property equal to its fair market value at that time;

    • (b) any person who, as a consequence of the taxpayer’s death, acquires a property that is deemed by paragraph (a) to have been disposed of by the taxpayer is, subject to paragraph (c), deemed to have acquired the property at the time of the death at a cost equal to its fair market value at the time that is immediately before the death; and

    • (c) where the taxpayer was resident in Canada at the time that is immediately before the taxpayer’s death, a particular property described in clause (a)(i)(A), (B) or (C) is, on or after the death and as a consequence of the death, transferred or distributed to a spouse or common-law partner of the taxpayer described in paragraph (6)(a) or a trust described in paragraph (6)(b), and it can be shown within the period that ends 36 months after the death (or, where written application has been made to the Minister by the taxpayer’s legal representative within that period, within any longer period that the Minister considers reasonable in the circumstances) that the particular property has, within that period, vested indefeasibly in the spouse, common-law partner or trust, as the case may be,

      • (i) the taxpayer is deemed to have received, at the time that is immediately before the taxpayer’s death, proceeds of disposition of the particular property equal to

        • (A) if the particular property is Canadian resource property of the taxpayer or foreign resource property of the taxpayer, the amount specified by the taxpayer’s legal representative in the taxpayer’s return of income filed under paragraph 150(1)(b), not exceeding its fair market value at that time, and

        • (B) if the particular property was land included in the inventory of a business of the taxpayer, its cost amount to the taxpayer at that time, and

      • (ii) the spouse, common-law partner or trust, as the case may be, is deemed to have acquired at the time of the death the particular property at a cost equal to the amount determined under subparagraph (i) in respect of the disposition of it under paragraph (a).

• (3) The portion of subsection 70(6) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Transfert ou distribution de biens à l’époux ou au conjoint de fait ou à une fiducie à leur profit

    (6) Lorsqu’un bien d’un contribuable qui résidait au Canada immédiatement avant son décès est un bien auquel le paragraphe (5) s’appliquerait par ailleurs et qu’il est, par suite du décès du contribuable, transféré ou distribué :

• (4) The portion of subsection 70(6.1) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Transfert ou distribution du compte de stabilisation du revenu net à l’époux ou au conjoint de fait ou à une fiducie

    (6.1) Lorsqu’un bien qui est un compte de stabilisation du revenu net d’un contribuable est transféré ou distribué à l’une des personnes ci-après au moment du décès du contribuable ou postérieurement et par suite de ce décès, les paragraphes (5.4) et 73(5) ne s’appliquent pas au second fonds du compte de stabilisation du revenu net du contribuable :

• (5) The portion of paragraph 70(7)(b) of the French version of the Act before subparagraph (i) is replaced by the following:

  • b) le représentant légal du contribuable peut, dans la déclaration de revenu du contribuable (sauf celle produite en vertu des paragraphes (2) ou 104(23), de l’alinéa 128(2)e) ou du paragraphe 150(4)) dans laquelle il énumère un ou plusieurs biens, sauf un compte de stabilisation du revenu net, qui ont été transférés ou distribués à la fiducie au moment du décès du contribuable ou postérieurement et par suite de ce décès et dont la juste valeur marchande globale immédiatement après ce décès est au moins égale au total des dettes non admissibles du contribuable, faire un choix pour que, à la fois :

• (6) Subsection (2) applies to taxation years that begin after 2006.

210. The portion of subsection 72(2) of the French version of the Act before paragraph (a) is replaced by the following:

• 211. (1) Subsection 73(2) of the Act is replaced by the following:

  • Marginal note:Capital cost and amount deemed allowed to spouse, etc., or trust

    (2) If a transferee is deemed by subsection (1) to have acquired any particular depreciable property of a prescribed class of a taxpayer for an amount determined under paragraph (1)(b) and the capital cost to the taxpayer of the particular property exceeds the amount determined under that paragraph, in applying sections 13 and 20 and any regulations made under paragraph 20(1)(a)

    • (a) the capital cost to the transferee of the particular property is deemed to be the amount that was the capital cost to the taxpayer of the particular property; and

    • (b) the excess is deemed to have been allowed to the transferee in respect of the particular property under regulations made under paragraph 20(1)(a) in computing income for taxation years before the acquisition of the particular property.

• (2) Paragraph 73(3)(a) of the Act is replaced by the following:

  • (a) the property was, before the transfer, land in Canada or depreciable property in Canada of a prescribed class, of the taxpayer, or any eligible capital property in respect of a fishing or farming business carried on in Canada by the taxpayer;

• (3) Subsection (1) applies to transfers that occur after 1999.

• (4) Subsection (2) applies to dispositions of property that occur after May 1, 2006, other than a disposition in respect of which a taxpayer has made an election under subsection 11(5) of the Budget Implementation Act, 2006, No. 2.

• 212. (1) Paragraph 75(3)(b) of the Act is replaced by the following:

  • (b) by an employee life and health trust, an employee trust, a private foundation that is a registered charity, a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), a trust described by paragraph (a.1) of the definition “trust” in subsection 108(1), or a trust described by paragraph 149(1)(y);

• (2) Subsection (1) applies to taxation years that begin after October 31, 2011.

• 213. (1) The Act is amended by adding the following after section 75.1:

  Marginal note:Rules applicable with respect to “qualifying trust annuity”

  75.2 If an amount paid to acquire a qualifying trust annuity with respect to a taxpayer was deductible under paragraph 60(l) in computing the taxpayer’s income,

  • (a) any amount that is paid out of or under the annuity at any particular time after 2005 and before the death of the taxpayer is deemed to have been received out of or under the annuity at the particular time by the taxpayer, and not to have been received by any other taxpayer; and

  • (b) if the taxpayer dies after 2005

    • (i) an amount equal to the fair market value of the annuity at the time of the taxpayer’s death is deemed to have been received, immediately before the taxpayer’s death, by the taxpayer out of or under the annuity, and

    • (ii) for the purpose of subsection 70(5), the annuity is to be disregarded in determining the fair market value (immediately before the taxpayer’s death) of the taxpayer’s interest in the trust that is the annuitant under the annuity.

• (2) Subsection (1) is deemed to have come into force on January 1, 2006.