Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
239. (1) Paragraph (c) of the definition “qualifying amount” in subsection 110.2(1) of the Act is replaced by the following:
(c) an amount described in paragraph 6(1)(f) or (f.1), subparagraph 56(1)(a)(iv) or paragraph 56(1)(b), or
(2) Subsection (1) is deemed to have come into force on April 1, 2006.
240. (1) The portion of paragraph (a) of the definition “qualified farm property” in subsection 110.6(1) of the Act before subparagraph (i) is replaced by the following:
(a) real or immovable property that was used in the course of carrying on the business of farming in Canada by,
(2) The portion of paragraph (a) of the definition “qualified fishing property” in subsection 110.6(1) of the Act before subparagraph (i) is replaced by the following:
(a) real or immovable property or a fishing vessel that was used in the course of carrying on the business of fishing in Canada by,
(3) Paragraphs 110.6(1.3)(a) and (b) of the Act are replaced by the following:
(a) the following apply in respect of the property or property for which the property was substituted (in this paragraph referred to as “the property”),
(i) the property was owned throughout the period of at least 24 months immediately preceding that time by one or more of
(A) the individual, or a spouse, common-law partner, child or parent of the individual,
(B) a partnership, an interest in which is an interest in a family farm partnership of the individual or of the individual’s spouse or common-law partner,
(C) if the individual is a personal trust, the individual from whom the trust acquired the property or a spouse, common-law partner, child or parent of that individual, or
(D) a personal trust from which the individual or a child or parent of the individual acquired the property, and
(ii) either
(A) in at least two years while the property was owned by one or more persons referred to in subparagraph (i),
(I) the gross revenue of a person (in this subclause referred to as the “operator”) referred to in subparagraph (i) from the farming business referred to in subclause (II) for the period during which the property was owned by a person described in subparagraph (i) exceeded the income of the operator from all other sources for that period, and
(II) the property was used principally in a farming business carried on in Canada in which an individual referred to in subparagraph (i), or where the individual is a personal trust, a beneficiary of the trust, was actively engaged on a regular and continuous basis, or
(B) throughout a period of at least 24 months while the property was owned by one or more persons or partnerships referred to in subparagraph (i), the property was used by a corporation referred to in subparagraph (a)(iv) of the definition “qualified farm property” in subsection (1) or by a partnership referred to in subparagraph (a)(v) of that definition in a farming business in which an individual referred to in any of subparagraphs (a)(i) to (iii) of that definition was actively engaged on a regular and continuous basis; or
(4) The portion of subsection 110.6(6) of the Act before paragraph (a) is replaced by the following:
Marginal note:Failure to report capital gain
(6) Notwithstanding subsections (2) to (2.3), no amount may be deducted under this section in respect of a capital gain of an individual for a particular taxation year in computing the individual’s taxable income for the particular taxation year or any subsequent year, if
(5) Paragraph 110.6(6)(a) of the French version of the Act is replaced by the following:
a) le particulier, sciemment ou dans des circonstances équivalant à faute lourde :
(i) soit ne produit pas de déclaration de revenu pour l’année donnée dans un délai de un an suivant la date d’échéance de production qui lui est applicable pour cette année,
(ii) soit ne déclare pas le gain en capital dans sa déclaration de revenu pour l’année donnée;
(6) The portion of subsection 110.6(12) of the Act before paragraph (a) is replaced by the following:
Marginal note:Trust deduction — death of spouse or common-law partner
(12) Notwithstanding any other provision of this Act, a trust (other than an alter ego trust or a joint spousal or common-law partner trust) that is described in paragraph 104(4)(a) or (a.1) may, in computing its taxable income for its taxation year that includes the day determined under paragraph 104(4)(a) or (a.1), as the case may be, in respect of the trust, deduct under this section an amount equal to the least of
(7) Subsection 110.6(14) of the Act is amended by adding the following after paragraph (d):
(d.1) a person who is a member of a partnership that is a member of another partnership is deemed to be a member of the other partnership;
(8) Subsections (1) and (2) apply to dispositions of property that occur after May 1, 2006.
(9) Subsection (3) applies to dispositions of property that occur after November 5, 2010.
(10) Subsections (4) and (5) apply to any taxation year for which a return of income has not been filed before October 31, 2011, except in respect of gains realized in another taxation year for which a return of income was filed before October 31, 2011.
(11) Subsection (6) applies to taxation years that begin after October 31, 2011.
(12) Subsection (7) applies
(a) to dispositions that occur after December 20, 2002; and
(b) to dispositions made by a taxpayer after 1999, if the taxpayer so elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act receives royal assent.
241. (1) Subsection 111(1.1) 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 amount, if any, that the Minister determines to be reasonable in the circumstances, after considering the application of subsections 104(21.6), 130.1(4), 131(1) and 138.1(3.2) to the taxpayer for the particular year.
(2) Paragraph 111(1.1)(c) of the Act, as enacted by subsection (1), is replaced by the following:
(c) the amount, if any, that the Minister determines to be reasonable in the circumstances for the particular year and after considering the application to the taxpayer of subsections 104(21.6), 130.1(4), 131(1) and 138.1(3.2) as they read in their application to the taxpayer’s last taxation year that began before November 2011.
(3) Subsections 111(7.1) to (7.2) of the Act are repealed.
(4) The description of C in the definition “pre-1986 capital loss balance” in subsection 111(8) of the Act is replaced by the following:
- C
- is the total of all amounts deducted under section 110.6 in computing the individual’s taxable income for taxation years that ended before 1988 or begin after October 17, 2000,
(5) Subsections (1) and (4) apply to the 2000 and subsequent taxation years.
(6) Subsections (2) and (3) apply to taxation years that begin after October 31, 2011.
242. (1) Subsection 112(2.1) of the Act is replaced by the following:
Marginal note:No deduction permitted
(2.1) No deduction may be made under subsection (1) or (2) in computing the taxable income of a specified financial institution in respect of a dividend received by it on a share that was, at the time the dividend was received, a term preferred share, other than a dividend on a share of the capital stock of a corporation that was not acquired in the ordinary course of the business carried on by the institution, and for the purposes of this subsection, if a restricted financial institution received the dividend on a share of the capital stock of a mutual fund corporation or an investment corporation at any time after the mutual fund or investment corporation has elected under subsection 131(10) not to be a restricted financial institution, the share is deemed to be a term preferred share acquired in the ordinary course of business.
(2) The portion of paragraph 112(2.2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) a person or partnership (in this subsection and subsection (2.21) referred to as the “guarantor”) that is a specified financial institution or a specified person in relation to a specified financial institution, but that is not the issuer of the share or an individual other than a trust, is, at or immediately before the time the dividend was received, obligated, either absolutely or contingently and either immediately or in the future, to effect any undertaking (in this subsection and subsections (2.21) and (2.22) referred to as a “guarantee agreement”), including any guarantee, covenant or agreement to purchase or repurchase the share and including the lending of funds to or the placing of amounts on deposit with, or on behalf of, the particular corporation or any specified person in relation to the particular corporation given to ensure that
(3) Subsections (1) and (2) apply to dividends received on or after November 5, 2010.
243. (1) Clause 113(1)(b)(i)(A) of the Act is replaced by the following:
(A) the corporation’s relevant tax factor for the year
(2) Clause 113(1)(c)(i)(B) of the Act is replaced by the following:
(B) the corporation’s relevant tax factor for the year, and
(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2001.
244. (1) The portion of subsection 115.2(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Not carrying on business in Canada
(2) For the purposes of subsections 115(1) and 150(1) and Part XIV, a non-resident person is not considered to be carrying on business in Canada at any particular time solely because of the provision to the person, or to a partnership of which the person is a member, at the particular time of designated investment services by a Canadian service provider if
(2) Paragraph 115.2(2)(c) of the Act is amended by striking out “or” at the end of subparagraph (i) and by replacing subparagraph (ii) with the following:
(ii) where the non-resident person is, or is affiliated with, a person or partnership described in clause (A) or (B), the total of the fair market value of all investments in the partnership at the particular time is not less than four times the total of the fair market value of each investment in the partnership beneficially owned at the particular time by
(A) a person or partnership (other than a designated entity in respect of the Canadian service provider), more than 25% of the total of the fair market value, at the particular time, of investments in which are beneficially owned by persons and partnerships (other than a designated entity in respect of the Canadian service provider) that are affiliated with the Canadian service provider, or
(B) a person or partnership (other than a designated entity in respect of the Canadian service provider) that is affiliated with the Canadian service provider, or
(iii) at the particular time, the non-resident person is not affiliated with the Canadian service provider and is not affiliated with any person or partnership (other than the partnership to which the services are provided) described in clause (ii)(A) or (B).
(3) The portion of subsection 115.2(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Interpretation
(3) For the purposes of this subsection and subparagraphs (2)(b)(iii) and (c)(ii),
(4) Section 115.2 of the Act is amended by adding the following after subsection (4):
Marginal note:Property of a partnership
(5) For the purpose of determining whether a non-resident person’s interest in a partnership is, at any particular time before March 5, 2010, a taxable Canadian property, property of the partnership shall not be considered to be used or held by the partnership in a business carried on in Canada, if because of subsection (2) the non-resident person is not considered to be carrying on business in Canada at the particular time.
(5) Subsection 115.2(5) of the Act, as enacted by subsection (4), is repealed.
(6) Subsection (1) applies to the 1999 and subsequent taxation years.
(7) Subsections (2) and (3) apply to the 2002 and subsequent taxation years, except that for the period that begins at the beginning of the 2002 taxation year of a taxpayer and that ends on October 31, 2011, paragraph 115.2(2)(c) of the Act, as amended by subsection (2), does not apply to the taxpayer if the taxpayer so elects and files the election in writing with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes October 31, 2011.
(8) Subsection (4) applies to the 2008 and subsequent taxation years.
(9) Subsection (5) is deemed to have come into force on March 5, 2010.
- Date modified: