Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
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Assented to 2013-06-26
268. (1) Section 126.1 of the Act is repealed.
(2) Subsection (1) applies in respect of forms filed after March 20, 2003.
269. (1) Paragraphs 127(1)(a) and (b) of the French version of the Act are replaced by the following:
a) les 2/3 de tout impôt sur les opérations forestières, payé par le contribuable au gouvernement d’une province sur le revenu pour l’année tiré d’opérations forestières dans cette province;
b) 6 2/3 % du revenu du contribuable pour l’année, tiré d’opérations forestières dans la province, dont fait mention l’alinéa a).
(2) The definition revenu pour l’année tiré des opérations forestières dans la province in subsection 127(2) of the French version of the Act is repealed.
(3) The definition impôt sur les opérations forestières in subsection 127(2) of the French version of the Act is replaced by the following:
« impôt sur les opérations forestières »
“logging tax”
impôt sur les opérations forestières Impôt levé par la législature d’une province et qui est, par règlement, déclaré être un impôt d’application générale sur le revenu tiré d’opérations forestières.
(4) Subsection 127(2) of the French version of the Act is amended by adding the following in alphabetical order:
« revenu pour l’année tiré d’opérations forestières dans la province »
“income for the year from logging operations in the province”
revenu pour l’année tiré d’opérations forestières dans la province S’entend au sens du règlement.
(5) The portion of subsection 127(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Contributions to registered parties and candidates
(3) There may be deducted from the tax otherwise payable by a taxpayer under this Part for a taxation year in respect of the total of all amounts each of which is the eligible amount of a monetary contribution that is referred to in the Canada Elections Act and that is made by the taxpayer in the year to a registered party, a registered association or a candidate, as those terms are defined in that Act,
(6) Subsection 127(4.2) of the Act, as it read immediately before it was repealed by S.C. 2006, c. 9, s. 64(2), is replaced by the following:
Marginal note:Allocation of amount contributed among partners
(4.2) If at the end of a fiscal period of a partnership a taxpayer is a member of the partnership, the taxpayer’s share of the total that would, if the partnership were a person and its fiscal period were its taxation year, be the total referred to in subsection (3) in respect of the partnership for that taxation year is deemed for the purpose of that subsection to be a monetary contribution made by the taxpayer in the taxpayer’s taxation year in which the fiscal period of the partnership ends.
(7) Subsection 127(4.2) of the Act, as enacted by subsection (6), is repealed.
(8) The definition “eligible salary and wages” in subsection 127(9) of the Act is replaced by the following:
“eligible salary and wages”
« traitement et salaire admissibles »
“eligible salary and wages” payable by a taxpayer to an eligible apprentice means the amount, if any, that is the salary and wages payable by the taxpayer to the eligible apprentice in respect of the first 24 months of the apprenticeship (other than a qualified expenditure incurred by the taxpayer in a taxation year, remuneration that is based on profits, bonuses, amounts described in section 6 or 7, and amounts deemed to be incurred by subsection 78(4));
(9) Paragraph (b) of the definition “pre-production mining expenditure” in subsection 127(9) of the Act is replaced by the following:
(b) is not an expense that
(i) was renounced under subsection 66(12.6) to the taxable Canadian corporation except if the corporation is, on the effective date of the renunciation,
(A) a corporation that would be a “principal business corporation”, as defined in subsection 66(15), if that definition were read without reference to its paragraphs (a), (a.1), (f), (h) and (i), and
(B) the sole shareholder of the corporation that renounced the expenditure, or
(ii) is a member’s share of an expense incurred by a partnership unless the expense was deemed by subsection 66(18) to have been made or incurred at the end of the fiscal period of the partnership by the member and throughout the fiscal period of the partnership in which the expense was incurred
(A) each member of the partnership would (otherwise than because of being a member of the partnership) be a “principal-business corporation” as defined in subsection 66(15) of the Act, if that definition were read without reference to its paragraphs (a), (a.1), (f), (h) and (i), and
(B) the corporation is a member of the partnership at the time the expenditure is incurred and would not be a specified member of the partnership if the definition “specified member” in subsection 248(1) were read without reference to its subparagraph (b)(ii),
(10) Paragraphs 127(27)(b) and (c) of the Act are replaced by the following:
(b) the cost, or a portion of the cost, of the particular property was a qualified expenditure, or would if this Act were read without reference to subsection (26) be a qualified expenditure, to the taxpayer,
(c) the cost, or the portion of the cost, of the particular property is included, or would if this Act were read without reference to subsection (26) be included, in an amount, a percentage of which can reasonably be considered to be included in computing the taxpayer’s investment tax credit at the end of the taxation year, and
(11) The portion of subsection 127(27) of the Act after paragraph (d) is replaced by the following:
there shall be added to the taxpayer’s tax otherwise payable under this Part for the year the lesser of
(e) the amount that can reasonably be considered to be included in the taxpayer’s investment tax credit at the end of any taxation year, or that would be so included if this Act were read without reference to subsection (26), in respect of the particular property, and
(f) the amount that is the percentage — that is the sum of each percentage described in paragraph (c) that has been applied to compute the taxpayer’s investment tax credit in respect of the particular property — of
(i) in the case where the particular property or the other property is disposed of to a person who deals at arm’s length with the taxpayer,
(A) the proceeds of disposition of the property, if the property
(I) is the particular property and is neither first term shared-use equipment nor second term shared-use equipment, or
(II) is the other property,
(B) 25% of the proceeds of disposition of the property, if the property is the particular property, is first term shared-use equipment and is not second term shared-use equipment, and
(C) 50% of the proceeds of disposition of the property, if the property is the particular property and is second term shared-use equipment, and
(ii) in the case where the particular property or the other property is converted to commercial use or is disposed of to a person who does not deal at arm’s length with the taxpayer,
(A) the fair market value of the property, if the property
(I) is the particular property and is neither first term shared-use equipment nor second term shared-use equipment, or
(II) is the other property,
(B) 25% of the fair market value of the property at the time of its conversion or disposition, if the particular property is first term shared-use equipment and is not second term shared-use equipment, and
(C) 50% of the fair market value of the property at the time of its conversion or disposition, if the particular property is second term shared-use equipment.
(12) Subsection (5) applies to monetary contributions made after December 20, 2002, except that, for monetary contributions made before 2004, the reference to “to a registered party, a registered association or a candidate” in subsection 127(3) of the Act, as amended by subsection (5), is to be read as a reference to “to a registered party or a candidate”.
(13) Subsection (6) applies to monetary contributions made after December 20, 2002 and before 2007.
(14) Subsection (7) is deemed to have come into force on January 1, 2007, except that it does not apply in respect of monetary contributions made before that day.
(15) Subsection (8) applies to taxation years that end after November 5, 2010.
(16) Subsection (9) applies to the 2003 and subsequent taxation years.
(17) Subsections (10) and (11) apply to dispositions and conversions that occur after December 20, 2002.
270. (1) Paragraph (b) of the definition “approved share” in subsection 127.4(1) of the Act is replaced by the following:
(b) a share issued by a prescribed labour-sponsored venture capital corporation that is not a registered labour-sponsored venture capital corporation if, at the time of the issue, no province under the laws (described in section 6701 of the Income Tax Regulations) of which the corporation is registered or established provides assistance in respect of the acquisition of the share;
(2) Subsection 127.4(6) 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) nil, if the share is issued in exchange for another share of the corporation.
(3) Subsection (1) applies to acquisitions of shares that occur after 2003.
(4) Subsection (2) applies to the 2004 and subsequent taxation years.
271. (1) The portion of subparagraph 127.52(1)(d)(ii) of the Act before the formula is replaced by the following:
(ii) each amount that is designated by a trust for a particular year of the trust in respect of the individual and deemed by subsection 104(21) to be a taxable capital gain for the year of the individual were equal to the amount obtained by the formula
(2) Paragraph 127.52(1)(d) of the Act is amended by striking out “and” at the end of subparagraph (i), by adding “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):
(iii) this Act were read without reference to subsection 104(21.6);
(3) Paragraph 127.52(1)(d) of the Act, as amended by subsections (1) and (2), is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii).
(4) Paragraph 127.52(1)(e) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after subparagraph (i):
(i.1) the individual’s income for the year from property, or from the business of selling the product of property, described in Class 43.1 or 43.2 in Schedule II to the Income Tax Regulations, determined before deducting those amounts, and
(5) Subparagraph 127.52(1)(h)(i) of the Act is replaced by the following:
(i) the amounts deducted under any of subsections 110(2), 110.6(2), (2.1), (2.2) and (12) and 110.7(1),
(6) Subsections (1) and (3) apply to taxation years that begin after October 31, 2011.
(7) Subsection (2) applies to the 2000 and subsequent taxation years.
(8) Subsection (4) applies in respect of taxation years that end after 2008.
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