Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
237. (1) Paragraph 110(1)(k) of the Act is replaced by the following:
Marginal note:Part VI.1 tax
(k) the amount determined by multiplying the taxpayer’s tax payable under subsection 191.1(1) for the year by
(i) if the taxation year ends before 2010, 3,
(ii) if the taxation year ends after 2009 and before 2012, 3.2, and
(iii) if the taxation year ends after 2011, 3.5.
(2) Subsection 110(1.7) of the Act is replaced by the following:
Marginal note:Reduction in exercise price
(1.7) If the amount payable by a taxpayer to acquire securities under an agreement referred to in subsection 7(1) is reduced at any particular time and the conditions in subsection (1.8) are satisfied in respect of the reduction,
(a) the rights (referred to in this subsection and subsection (1.8) as the “old rights”) that the taxpayer had under the agreement immediately before the particular time are deemed to have been disposed of by the taxpayer immediately before the particular time;
(b) the rights (referred to in this subsection and subsection (1.8) as the “new rights”) that the taxpayer has under the agreement at the particular time are deemed to be acquired by the taxpayer at the particular time; and
(c) the taxpayer is deemed to receive the new rights as consideration for the disposition of the old rights.
Marginal note:Conditions for subsection (1.7) to apply
(1.8) The following are the conditions in respect of the reduction:
(a) that the taxpayer would not be entitled to a deduction under paragraph (1)(d) if the taxpayer acquired securities under the agreement immediately after the particular time and this section were read without reference to subsection (1.7); and
(b) that the taxpayer would be entitled to a deduction under paragraph (1)(d) if the taxpayer
(i) disposed of the old rights immediately before the particular time,
(ii) acquired the new rights at the particular time as consideration for the disposition, and
(iii) acquired securities under the agreement immediately after the particular time.
(3) Subsection (1) applies to the 2003 and subsequent taxation years.
(4) Subsection (2) applies to reductions that occur after 1998.
(5) An election by a taxpayer under subsection 7(10) of the Act, as it read immediately before its repeal by subsection 3(10) of the Sustaining Canada’s Economic Recovery Act, to have subsection 7(8) of the Act, as it read immediately before its repeal by subsection 3(8) of the Sustaining Canada’s Economic Recovery Act, apply is deemed to have been filed in a timely manner if
(a) it is filed on or before the 60th day after the day on which this Act receives royal assent;
(b) it is in respect of a security acquired by the taxpayer before the day on which this Act receives royal assent;
(c) the taxpayer is entitled to a deduction under paragraph 110(1)(d) of the Act in respect of the acquisition; and
(d) the taxpayer would not have been so entitled if subsection 110(1.7) of the Act, as enacted by subsection (2), did not apply.
238. (1) The portion of paragraph 110.1(1)(a) of the Act before the formula is replaced by the following:
Marginal note:Charitable gifts
(a) the total of all amounts each of which is the eligible amount of a gift (other than a gift described in paragraph (b), (c) or (d)) made by the corporation in the year or in any of the five preceding taxation years to
(i) a registered charity,
(ii) a registered Canadian amateur athletic association,
(iii) a corporation resident in Canada and described in paragraph 149(1)(i),
(iv) a municipality in Canada,
(iv.1) a municipal or public body performing the function of government in Canada,
(v) the United Nations or an agency thereof,
(vi) a university outside Canada that is prescribed to be a university the student body of which ordinarily includes students from Canada,
(vii) a charitable organization outside Canada to which Her Majesty in right of Canada has made a gift in the year or in the 12-month period preceding the year, or
(viii) Her Majesty in right of Canada or a province,
not exceeding the lesser of the corporation’s income for the year and the amount determined by the formula
(2) The portion of paragraph 110.1(1)(a) of the Act before the formula, as enacted by subsection (1), is replaced by the following:
Marginal note:Charitable gifts
(a) the total of all amounts each of which is the eligible amount of a gift (other than a gift described in paragraph (b), (c) or (d)) made by the corporation in the year or in any of the five preceding taxation years to a qualified donee, not exceeding the lesser of the corporation’s income for the year and the amount determined by the formula
(3) The description of B in paragraph 110.1(1)(a) of the Act is replaced by the following:
- B
- is the total of all amounts, each of which is that proportion of the corporation’s taxable capital gain for the taxation year in respect of a gift made by the corporation in the taxation year (in respect of which gift an eligible amount is described in this paragraph for the taxation year) that the eligible amount of the gift is of the corporation’s proceeds of disposition in respect of the gift,
(4) Clause (B) in the description of D in paragraph 110.1(1)(a) of the Act is replaced by the following:
(B) the total of all amounts each of which is determined in respect of a disposition that is the making of a gift of property of the class by the corporation in the year (in respect of which gift an eligible amount is described in this paragraph for the taxation year) equal to the lesser of
(I) that proportion, of the amount by which the proceeds of disposition of the property exceeds any outlays and expenses, to the extent that they were made or incurred by the corporation for the purpose of making the disposition, that the eligible amount of the gift is of the corporation’s proceeds of disposition in respect of the gift, and
(II) that proportion, of the capital cost to the corporation of the property, that the eligible amount of the gift is of the corporation’s proceeds of disposition in respect of the gift;
(5) Paragraph 110.1(1)(a.1) of the Act is replaced by the following:
Marginal note:Gifts of medicine
(a.1) the total of all amounts each of which is an amount, in respect of property that is the subject of an eligible medical gift made by the corporation in the taxation year or in any of the five preceding taxation years, determined by the formula
A × B/C
where
- A
- is the lesser of
(a) the cost to the corporation of the property, and
(b) 50 per cent of the amount, if any, by which the corporation’s proceeds of disposition of the property in respect of the gift exceeds the cost to the corporation of the property;
- B
- is the eligible amount of the gift; and
- C
- is the corporation’s proceeds of disposition of the property in respect of the gift.
(6) The portion of paragraph 110.1(1)(b) of the Act before subparagraph (i) is replaced by the following:
Marginal note:Gifts to Her Majesty
(b) the total of all amounts each of which is the eligible amount of a gift (other than a gift described in paragraph (c) or (d)) made by the corporation to Her Majesty in right of Canada or of a province
(7) Paragraph 110.1(1)(c) of the Act is replaced by the following:
Marginal note:Gifts to institutions
(c) the total of all amounts each of which is the eligible amount of a gift (other than a gift described in paragraph (d)) of an object that the Canadian Cultural Property Export Review Board has determined meets the criteria set out in paragraphs 29(3)(b) and (c) of the Cultural Property Export and Import Act, which gift was made by the corporation in the year or in any of the five preceding taxation years to an institution or a public authority in Canada that was, at the time the gift was made, designated under subsection 32(2) of that Act either generally or for a specified purpose related to that object; and
(8) Subparagraph 110.1(1)(d)(i) of the Act is replaced by the following:
(i) Her Majesty in right of Canada or of a province, a municipality in Canada or a municipal or public body performing a function of government in Canada, or
(9) Paragraph 110.1(1)(d) of the Act, as amended by subsection (8), is replaced by the following:
Marginal note:Ecological gifts
(d) the total of all amounts each of which is the eligible amount of a gift of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real servitude) if
(i) the fair market value of the gift is certified by the Minister of the Environment,
(ii) the land is certified by that Minister, or by a person designated by that Minister, to be ecologically sensitive land, the conservation and protection of which is, in the opinion of that Minister or the designated person, important to the preservation of Canada’s environmental heritage, and
(iii) the gift was made by the corporation in the year or in any of the five preceding taxation years to
(A) Her Majesty in right of Canada or of a province,
(B) a municipality in Canada,
(C) a municipal or public body performing a function of government in Canada, or
(D) a registered charity one of the main purposes of which is, in the opinion of that Minister, the conservation and protection of Canada’s environmental heritage, and that is approved by that Minister or the designated person in respect of the gift.
(10) The portion of subsection 110.1(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Proof of gift
(2) An eligible amount of a gift shall not be included for the purpose of determining a deduction under subsection (1) unless the making of the gift is evidenced by filing with the Minister
(11) Subsection 110.1(3) of the Act is replaced by the following:
Marginal note:Where subsection (3) applies
(2.1) Subsection (3) applies in circumstances where
(a) a corporation makes a gift at any time of
(i) capital property to a donee described in paragraph (1)(a), (b) or (d), or
(ii) in the case of a corporation not resident in Canada, real or immovable property situated in Canada to a prescribed donee who provides an undertaking, in a form satisfactory to the Minister, to the effect that the property will be held for use in the public interest; and
(b) the fair market value of the property otherwise determined at that time exceeds
(i) in the case of depreciable property of a prescribed class, the lesser of the undepreciated capital cost of that class at the end of the taxation year of the corporation that includes that time (determined without reference to the proceeds of disposition designated in respect of the property under subsection (3)) and the adjusted cost base to the corporation of the property immediately before that time, and
(ii) in any other case, the adjusted cost base to the corporation of the property immediately before that time.
Marginal note:Gifts of capital property
(3) If this subsection applies in respect of a gift by a corporation of property, and the corporation designates an amount in respect of the gift in its return of income under section 150 for the year in which the gift is made, the amount so designated is deemed to be its proceeds of disposition of the property and, for the purpose of subsection 248(31), the fair market value of the gift, but the amount so designated may not exceed the fair market value of the property otherwise determined and may not be less than the greater of
(a) in the case of a gift made after December 20, 2002, the amount of the advantage, if any, in respect of the gift, and
(b) the amount determined under subparagraph (2.1)(b)(i) or (ii), as the case may be, in respect of the property.
(12) Subparagraph 110.1(2.1)(a)(i) of the Act, as enacted by subsection (11), is replaced by the following:
(i) capital property to a qualified donee, or
(13) Subsection 110.1(4) of the Act is replaced by the following:
Marginal note:Gifts made by partnership
(4) If at the end of a fiscal period of a partnership a corporation is a member of the partnership, its share of any amount that would, if the partnership were a person, be the eligible amount of a gift made by the partnership to any donee is, for the purpose of this section, deemed to be the eligible amount of a gift made to that donee by the corporation in its taxation year in which the fiscal period of the partnership ends.
(14) The portion of paragraph 110.1(5)(b) of the Act before subparagraph (i) is replaced by the following:
(b) where the gift is a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real servitude, the greater of
(15) Subsections (1), (3), (4), (6), (7), (9), (10), (13) and (14) apply to gifts made after December 20, 2002.
(16) Subsections (2) and (12) are deemed to have come into force on January 1, 2012.
(17) Subsection (5) applies to gifts made after March 18, 2007.
(18) Subsection (8) applies to gifts made after May 8, 2000.
(19) Subsection (11) applies to gifts made after 1999, except that, for gifts made after 1999 and before December 21, 2002, the reference to “subsection 248(31)” in subsection 110.1(3) of the Act, as enacted by subsection (11), is to be read as a reference to “subsection (1)”.
- Date modified: