Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
232. Subsection 106(3) of the French version of the Act is replaced by the following:
Marginal note:Produit de disposition d’une participation au revenu
(3) Il est entendu que la fiducie qui, à un moment donné, distribue un de ses biens à un contribuable qui était un de ses bénéficiaires, en règlement total ou partiel de la participation du contribuable au revenu de la fiducie, est réputée avoir disposé du bien pour un produit égal à la juste valeur marchande du bien à ce moment.
233. (1) Subsection 107(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) if the capital interest is not a capital property of the taxpayer, notwithstanding the definition “cost amount” in subsection 108(1), its cost amount is deemed to be the amount, if any, by which
(i) the amount that would, if this Act were read without reference to this paragraph and the definition “cost amount” in subsection 108(1), be its cost amount
exceeds
(ii) the total of all amounts, each of which is an amount in respect of the capital interest that has become payable to the taxpayer before the disposition and that would be described in subparagraph 53(2)(h)(i.1) if that subparagraph were read without reference to its subclause (B)(I).
(2) Section 107 of the Act is amended by adding the following after subsection (1.1):
Marginal note:Deemed fair market value — non-capital property
(1.2) For the purpose of section 10, the fair market value at any time of a capital interest in a trust is deemed to be equal to the amount that is the total of
(a) the amount that would, if this Act were read without reference to this subsection, be its fair market value at that time, and
(b) the total of all amounts, each of which is an amount that would be described, in respect of the capital interest, in subparagraph 53(2)(h)(i.1) if that subparagraph were read without reference to its subclause (B)(I), that has become payable to the taxpayer before that time.
(3) Subparagraph 107(2)(b.1)(iii) of the Act is replaced by following:
(iii) in any other case, 50%;
(4) The portion of paragraph 107(2)(c) of the Act before subparagraph (i) is replaced by the following:
(c) the taxpayer’s proceeds of disposition of the capital interest in the trust (or of the part of it) disposed of by the taxpayer on the distribution are deemed to be equal to the amount, if any, by which
(5) The portion of paragraph 107(2)(d) of the French version of the Act before subparagraph (i) is replaced by the following:
d) lorsque les biens ainsi distribués étaient des biens amortissables de la fiducie, appartenant à une catégorie prescrite, et que le montant du coût en capital de ces biens, supporté par la fiducie, dépasse le coût que le contribuable est réputé, en vertu du présent article, avoir supporté pour les acquérir, pour l’application des articles 13 et 20 et des dispositions réglementaires prises en vertu de l’alinéa 20(1)a) :
(6) The portion of paragraph 107(2)(f) of the French version of the Act before subparagraph (i) is replaced by the following:
f) lorsque les biens ainsi distribués étaient des immobilisations admissibles de la fiducie au titre de son entreprise :
(7) The portion of subparagraph 107(2)(f)(ii) of the French version of the Act after the formula is replaced by the following:
où :
- A
- représente le montant calculé selon cet élément Q au titre de l’entreprise de la fiducie immédiatement avant la distribution;
- B
- la juste valeur marchande, immédiatement avant la distribution, des biens ainsi distribués;
- C
- la juste valeur marchande, immédiatement avant la distribution, de l’ensemble des immobilisations admissibles de la fiducie au titre de l’entreprise.
(8) Subsection 107(2.001) of the French version of the Act is replaced by the following:
Marginal note:Roulement — choix d’une fiducie
(2.001) Lorsqu’une fiducie distribue un bien à l’un de ses bénéficiaires en règlement total ou partiel de la participation de celui-ci à son capital, le paragraphe (2) ne s’applique pas à la distribution si la fiducie en fait le choix dans un formulaire prescrit présenté au ministre avec sa déclaration de revenu pour son année d’imposition où le bien est distribué et si l’un des faits ci-après se vérifie :
a) la fiducie réside au Canada au moment de la distribution;
b) le bien est un bien canadien imposable;
c) le bien est soit une immobilisation utilisée dans le cadre d’une entreprise que la fiducie exploite par l’entremise d’un établissement stable (au sens du règlement) au Canada immédiatement avant la distribution, soit une immobilisation admissible au titre d’une telle entreprise, soit un bien à porter à l’inventaire d’une telle entreprise.
(9) The portion of subsection 107(2.002) of the French version of the Act before paragraph (b) is replaced by the following:
Marginal note:Roulement — choix d’un bénéficiaire
(2.002) Lorsqu’une fiducie non-résidente distribue un bien (sauf celui visé aux alinéas (2.001)b) ou c)) à l’un de ses bénéficiaires en règlement total ou partiel de la participation de celui-ci à son capital, les règles ci-après s’appliquent si le bénéficiaire en fait le choix en vertu du présent paragraphe dans un formulaire prescrit présenté au ministre avec sa déclaration de revenu pour son année d’imposition où le bien est distribué :
a) le paragraphe (2) ne s’applique pas à la distribution;
(10) The portion of subsection 107(2.01) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Distribution de résidence principale
(2.01) Lorsqu’une fiducie personnelle distribue à un moment donné, à un contribuable dans les circonstances visées au paragraphe (2), un bien qui serait sa résidence principale, au sens de l’article 54, pour une année d’imposition si elle l’avait désigné comme telle en application de l’alinéa c.1) de la définition de résidence principale à cet article, les règles ci-après s’appliquent si la fiducie en fait le choix dans sa déclaration de revenu pour l’année d’imposition qui comprend ce moment :
(11) The portion of paragraph 107(2.1)(c) of the French version of the Act before subparagraph (i) is replaced by the following:
c) sous réserve de l’alinéa e), le produit de disposition, pour le bénéficiaire, de la partie de l’ancienne participation dont il a disposé au moment de la distribution est réputé être égal à l’excédent :
(12) The portion of subparagraph 107(2.1)(d)(iii) of the French version of the Act before clause (B) is replaced by the following:
(iii) le produit de disposition, pour le bénéficiaire, de la partie de l’ancienne participation dont il a disposé au moment de la distribution est réputé être égal à l’excédent de la juste valeur marchande du bien sur le total des montants suivants :
(A) la partie du montant de la distribution qui est un paiement auquel s’applique l’alinéa h) ou i) de la définition de disposition au paragraphe 248(1),
(13) Paragraph 107(2.1)(e) of the French version of the Act is replaced by the following:
e) lorsque la fiducie est une fiducie de fonds commun de placement, que la distribution est effectuée au cours d’une de ses années d’imposition qui est antérieure à son année d’imposition 2003, qu’elle a fait, pour l’année, le choix prévu au paragraphe (2.11) et qu’elle en fait le choix relativement à la distribution dans le formulaire prescrit produit avec sa déclaration de revenu pour l’année :
(i) il n’est pas tenu compte de l’alinéa c),
(ii) le produit de disposition, pour le bénéficiaire, de la partie de l’ancienne participation dont il a disposé lors de la distribution est réputé être égal au montant déterminé selon l’alinéa a).
(14) Subsection 107(2.11) of the Act is replaced by the following:
Marginal note:Gains not distributed to beneficiaries
(2.11) If a trust that is resident in Canada for a taxation year makes in the taxation year one or more distributions to which subsection (2.1) applies and the trust elects in prescribed form filed with the trust’s return for the year or a preceding taxation year to have one of the following paragraphs apply, the income of the trust for the year (determined without reference to subsection 104(6)) shall, for the purposes of subsections 104(6) and (13), be computed without regard
(a) if the election is to have this paragraph apply, to all of those distributions (other than distributions of cash denominated in Canadian dollars) to non-resident persons (including a partnership other than a Canadian partnership); and
(b) if the election is to have this paragraph apply, to all of those distributions (other than distributions of cash denominated in Canadian dollars).
(15) The portion of subsection 107(2.2) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Entité intermédiaire
(2.2) Lorsque, à un moment antérieur à 2005, une fiducie visée aux alinéas h), i) ou j) de la définition de entité intermédiaire au paragraphe 39.1(1) distribue des biens à l’un de ses bénéficiaires en règlement de tout ou partie des participations de celui-ci dans la fiducie et que le bénéficiaire présente au ministre, au plus tard à la date d’échéance de production qui lui est applicable pour son année d’imposition qui comprend ce moment, un choix concernant les biens sur le formulaire prescrit, le moins élevé des montants ci-après est à inclure dans le coût, pour le bénéficiaire, d’un bien (sauf de l’argent) qu’il a reçu dans le cadre de la distribution :
(16) The portion of subsection 107(4) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Fiducie en faveur de l’époux, du conjoint de fait ou de soi-même
(4) Si les conditions ci-après sont réunies, le paragraphe (2.1), mais non le paragraphe (2), s’applique au bien qu’une fiducie visée à l’alinéa 104(4)a) distribue à un bénéficiaire :
(17) Paragraph 107(4)(b) of the Act is replaced by the following:
(b) the distribution of the property occurs on or before the earlier of
(i) a reacquisition, in respect of any property of the trust, that occurs immediately after the day described by paragraph 104(4)(a), and
(ii) the cessation of the trust’s existence.
(18) The portion of subsection 107(4.1) of the French version of the Act before paragraph (b) is replaced by the following:
Marginal note:Cas d’application du paragraphe 75(2) à une fiducie
(4.1) Si les conditions ci-après sont réunies, le paragraphe (2.1), mais non le paragraphe (2), s’applique à la distribution d’un bien d’une fiducie personnelle donnée ou une fiducie donnée visée par règlement, effectuée par la fiducie donnée à un contribuable bénéficiaire de cette fiducie :
a) la distribution a été effectuée en règlement de la totalité ou d’une partie de la participation du contribuable au capital de la fiducie donnée;
(19) The portion of paragraph 107(4.1)(b) of the Act before subparagraph (i), as enacted by subsection 11(1), is replaced by the following:
(b) subsection 75(2) was applicable, or would have been applicable if it were read without reference to the phrase “while the person is resident in Canada” and subsection 75(3) were read without reference to paragraph (c.2), at a particular time in respect of any property of
(20) Subparagraph 107(4.1)(b)(ii) of the French version of the Act is replaced by the following:
(ii) soit d’une fiducie comptant parmi ses biens un bien qui, par suite d’une ou de plusieurs dispositions auxquelles le paragraphe 107.4(3) s’est appliqué, est devenu un bien de la fiducie donnée, lequel bien, après le moment donné et avant la distribution, n’a pas fait l’objet d’une disposition pour un produit de disposition égal à sa juste valeur marchande au moment de la disposition;
(21) Paragraph 107(4.1)(d) of the French version of the Act is replaced by the following:
d) la personne visée au sous-alinéa c)(i) existait au moment de la distribution du bien.
(22) Subsection 107(5) of the Act is replaced by the following:
Marginal note:Distribution of property received on qualifying disposition
(4.2) Subsection (2.1) applies (and subsection (2) does not apply) at any time to property distributed after December 20, 2002 to a beneficiary by a personal trust or a trust prescribed for the purpose of subsection (2), if
(a) at a particular time before December 21, 2002 there was a qualifying disposition (within the meaning assigned by subsection 107.4(1)) of the property, or of other property for which the property is substituted, by a particular partnership or a particular corporation, as the case may be, to a trust; and
(b) the beneficiary is neither the particular partnership nor the particular corporation.
Marginal note:Distribution to non-resident
(5) Subsection (2.1) applies (and subsection (2) does not apply) in respect of a distribution of a property (other than a share of the capital stock of a non-resident-owned investment corporation or property described in any of subparagraphs 128.1(4)(b)(i) to (iii)) by a trust to a non-resident taxpayer (including a partnership other than a Canadian partnership) in satisfaction of all or part of the taxpayer’s capital interest in the trust.
(23) The portion of subsection 107(5.1) of the Act before paragraph (b) is replaced by the following:
Marginal note:Instalment interest
(5.1) If, solely because of the application of subsection (5), paragraphs (2)(a) to (c) do not apply to a distribution in a taxation year of taxable Canadian property by a trust, in applying sections 155 and 156 and subsections 156.1(1) to (3) and 161(2), (4) and (4.01) and any regulations made for the purposes of those provisions, the trust’s tax payable under this Part for the year is deemed to be the lesser of
(a) the trust’s tax payable under this Part for the year, determined before taking into consideration the specified future tax consequences for the year, and
(24) Paragraph 107(5.1)(b) of the French version of the Act is replaced by the following:
b) le montant qui serait déterminé selon l’alinéa a) si le paragraphe (5) ne s’appliquait pas à chaque distribution, effectuée au cours de l’année, de biens canadiens imposables auxquels les règles énoncées au paragraphe (2) ne s’appliquent pas par le seul effet du paragraphe (5).
(25) Paragraphs 107(6)(a) and (b) of the Act are replaced by the following:
(a) the property or property for which it was substituted was held by a trust; and
(b) either
(i) the trust was non-resident and the property (or property for which it was substituted) was not taxable Canadian property of the trust, or
(ii) neither the vendor — nor a person that would, if section 251.1 were read without reference to the definition “controlled” in subsection 251.1(3), be affiliated with the vendor — had a capital interest in the trust.
(26) Subsections (1) and (2) apply to dispositions that occur, and valuations made,
(a) after 2001 in respect of qualified trust units, as defined in subsection 260(1) of the Act, as amended by subsection 365(5), in respect of which an amount described in paragraph 260(5.1)(b) of the Act, as enacted by subsection 365(7), or that would have been so described had no election been made under paragraph 365(12)(b), is paid after 2001 and before February 28, 2004, except that subparagraph 107(1)(e)(ii) of the Act, as enacted by subsection (1), and paragraph 107(1.2)(b) of the Act, as enacted by subsection (2), are, with respect to amounts described in subclause 53(2)(h)(i.1)(B)(I) of the Act that were payable on or before 2002, to be read without reference to the words “if that subparagraph were read without reference to its subclause (B)(I)”; and
(b) in any other case, after February 27, 2004, except that, subject to paragraph (a),
(i) subsection (1) does not apply to a disposition by a taxpayer after February 27, 2004 and before 2005 pursuant to an agreement in writing made by the taxpayer on or before February 27, 2004, and
(ii) subparagraph 107(1)(e)(ii) of the Act, as enacted by subsection (1), and paragraph 107(1.2)(b) of the Act, as enacted by subsection (2), are, with respect to amounts described in subclause 53(2)(h)(i.1)(B)(I) of the Act that were payable on or before February 27, 2004, to be read without reference to the words “if that subparagraph were read without reference to its subclause (B)(I)”.
(27) Subsection (3) and subsection 107(4.2) of the Act, as enacted by subsection (22), apply to distributions made after December 20, 2002.
(28) Subsection (4) applies to distributions made after 1999.
(29) Subsection (14) applies to the 2002 and subsequent taxation years. It also applies to the 2000 and 2001 taxation years of a trust if the trust so elects, by notifying the Minister of National Revenue in writing on or before its filing-due date for its taxation year that includes the day on which this Act receives royal assent, in which case the portion of subsection 107(2.11) of the Act, as enacted by subsection (14), before paragraph (a), is to be read as follows for the 2000 and 2001 taxation years of the trust:
(2.11) If a trust that is resident in Canada for a taxation year makes in the taxation year one or more distributions to which subsection (2.1) applies (or, in the case of property distributed after October 1, 1996 and before 2000, in circumstances in which subsection (5) applied) and the trust elects in prescribed form filed with the trust’s return for the year or a preceding taxation year, the income of the trust for the year (determined without reference to subsection 104(6)) shall, for the purposes of subsections 104(6) and (13), be computed without regard
(30) Subsections (17), (19) and (23) apply to distributions made after October 31, 2011.
(31) Subsection 107(5) of the Act, as enacted by subsection (22), applies to distributions made after February 27, 2004.
(32) Subsection (25) applies to dispositions made after October 31, 2011.
- Date modified: