Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
272. (1) Subparagraph 128(2)(g)(iii) of the Act is replaced by the following:
(iii) the individual’s unused tuition, textbook and education tax credits (as determined under subsection 118.61(1)) at the end of the last taxation year that ended before that time is deemed to be nil;
(2) Subsection (1) applies to the 2006 and subsequent taxation years.
273. (1) The portion of subsection 128.1(5) of the Act before paragraph (b) is replaced by the following:
Marginal note:Instalment interest
(5) If an individual is deemed by subsection (4) to have disposed of a property in a taxation year, 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 individual’s total tax payable under this Part for the year is deemed to be the lesser of
(a) the individual’s total tax payable under this Part for the year, determined before taking into consideration the specified future tax consequences for the year, and
(2) Paragraph 128.1(7)(b) of the French version of the Act is replaced by the following:
b) est propriétaire, à ce moment, d’un bien qu’il a acquis, la dernière fois, à l’occasion d’une distribution à laquelle le paragraphe 107(2) se serait appliqué, n’eût été le paragraphe 107(5), effectuée par une fiducie à un moment (appelé « moment de la distribution » au présent paragraphe) postérieur au 1er octobre 1996 et antérieur au moment donné;
(3) Paragraph 128.1(7)(d) of the French version of the Act is replaced by the following:
d) sous réserve des alinéas e) et f), si le particulier et la fiducie en font conjointement le choix dans un document présenté au ministre au plus tard à la première en date des dates d’échéance de production qui leur est applicable pour leur année d’imposition qui comprend le moment donné, le paragraphe 107(2.1) ne s’applique pas à la distribution pour ce qui est des biens que le particulier a acquis à l’occasion de la distribution et qui étaient des biens canadiens imposables lui appartenant tout au long de la période ayant commencé au moment de la distribution et se terminant au moment donné;
(4) Subparagraph 128.1(7)(e)(i) of the French version of the Act is replaced by the following:
(i) il résidait au Canada au moment de la distribution,
(5) Subparagraphs 128.1(7)(f)(i) and (ii) of the French version of the Act are replaced by the following:
(i) malgré l’alinéa 107(2.1)a), la fiducie est réputée avoir disposé du bien au moment de la distribution pour un produit de disposition égal au total des montants suivants :
(A) le coût indiqué du bien pour elle immédiatement avant ce moment,
(B) l’excédent du montant de la réduction prévue au paragraphe 40(3.7) et dont il est question à l’alinéa e), sur le moins élevé des montants suivants :
(I) le coût indiqué du bien pour la fiducie immédiatement avant le moment de la distribution,
(II) le montant que le particulier et la fiducie ont indiqué conjointement pour l’application du présent alinéa dans le document concernant le choix prévu à l’alinéa d) relativement au bien,
(ii) malgré l’alinéa 107(2.1)b), le particulier est réputé avoir acquis le bien au moment de la distribution à un coût égal à l’excédent du montant déterminé par ailleurs selon l’alinéa 107(2)b) sur le montant de la réduction prévue au paragraphe 40(3.7) et dont il est question à l’alinéa e), ou, s’il est moins élevé, le montant indiqué selon la subdivision (i)(B)(II);
(6) The portion of paragraph 128.1(7)(g) of the French version of the Act before subparagraph (i) is replaced by the following:
g) si le particulier et la fiducie en font conjointement le choix, dans un document présenté au ministre au plus tard à la dernière en date des dates d’échéance de production qui leur est applicable pour leur année d’imposition qui comprend le moment donné, relativement à chaque bien dont le particulier a été propriétaire tout au long de la période ayant commencé au moment de la distribution et se terminant au moment donné et dont il est réputé, par l’alinéa (1)b), avoir disposé du fait qu’il est devenu un résident du Canada, le produit de disposition pour la fiducie, selon l’alinéa 107(2.1)a), au moment de la distribution et le coût d’acquisition du bien pour le particulier au moment donné sont réputés, malgré les alinéas 107(2.1)a) et b), correspondre à ce produit et à ce coût, déterminés compte non tenu du présent alinéa, diminués du moins élevé des montants suivants :
(7) The portion of paragraph 128.1(7)(i) of the French version of the Act before subparagraph (i) is replaced by the following:
i) malgré les paragraphes 152(4) à (5), le ministre établit, pour tenir compte des choix prévus au présent paragraphe, toute cotisation concernant l’impôt payable par la fiducie ou le particulier en vertu de la présente loi pour toute année qui est antérieure à l’année comprenant le moment donné sans être antérieure à l’année comprenant le moment de la distribution; pareille cotisation est toutefois sans effet sur le calcul des montants suivants :
(8) Subsection (1) applies to taxation years that begin after October 31, 2011.
274. (1) Section 128.3 of the Act is replaced by the following:
Marginal note:Former resident — replaced shares
128.3 If, in a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and (ii), subsection 85.1(8) or section 86 or 87 applies, a person acquires a share (in this section referred to as the “new share”) in exchange for another share or equity in a SIFT wind-up entity (in this section referred to as the “old share”), for the purposes of section 119, subsections 126(2.21) to (2.23), subparagraph 128.1(4)(b)(iv) and subsections 128.1(6) to (8), 180.1(1.4) and 220(4.5) and (4.6), the person is deemed not to have disposed of the old share, and the new share is deemed to be the same share as the old share.
(2) Subsection (1) applies to taxation years that begin after 2001, except that, before December 20, 2007, section 128.3 of the Act, as enacted by subsection (1), is to be read as follows:
128.3 If, in a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and (ii) or section 86 or 87 applies, a person acquires a share (in this section referred to as the “new share”) in exchange for another share (in this section referred to as the “old share”), for the purposes of section 119, subsections 126(2.21) to (2.23), subparagraph 128.1(4)(b)(iv) and subsections 128.1(6) to (8), 180.1(1.4) and 220(4.5) and (4.6), the person is deemed not to have disposed of the old share, and the new share is deemed to be the same share as the old share.
275. (1) Clauses 129(3)(a)(ii)(B) and (C) of the Act are replaced by the following:
(B) 100/35 of the total of amounts deducted under subsection 126(1) from its tax for the year otherwise payable under this Part, and
(C) the amount determined by multiplying the total of amounts deducted under subsection 126(2) from its tax for the year otherwise payable under this Part, by the relevant factor for the year, and
(2) Subparagraph 129(3)(a)(iii) of the Act is replaced by the following:
(iii) the corporation’s tax for the year payable under this Part,
(3) Clause 129(3)(a)(ii)(B) of the Act, as enacted by subsection (1), applies to taxation years that begin after October 31, 2011.
(4) Clause 129(3)(a)(ii)(C) of the Act, as enacted by subsection (1), applies to the 2003 and subsequent taxation years.
(5) Subsection (2) applies to taxation years that begin after 2007.
276. (1) Paragraph 130.1(4)(b) of the Act is replaced by the following:
(b) notwithstanding any other provision of this Act, if an amount is received by a taxpayer in a taxation year as, on account of, in lieu of payment of or in satisfaction of, the dividend, the amount
(i) shall not be included in computing the taxpayer’s income for the year as income from a share of the capital stock of the corporation, and
(ii) is deemed to be a capital gain of the taxpayer from the disposition of capital property in the year.
(2) Subsections 130.1(4.2) to (4.5) of the Act are repealed.
(3) Subparagraph 130.1(6)(f)(i) of the Act is replaced by the following:
(i) debts owing to the corporation that were secured, whether by mortgages, hypothecs or in any other manner, on houses (as defined in section 2 of the National Housing Act) or on property included within a housing project (as defined in that section as it read on June 16, 1999), and
(4) Subsections (1) and (2) apply to taxation years that begin after October 31, 2011, except that if any part of a dividend declared by a corporation is in respect of capital gains of the corporation from dispositions of property that occurred before October 18, 2000, then paragraph 130.1(4)(b) of the Act, as enacted by subsection (1), is to be read, in its application to that part of the dividend, as it read in its application to the corporation’s last taxation year that began before November 1, 2011.
(5) Subsection (3) applies to property acquired by a corporation after October 31, 2011, unless
(a) the property is a particular debt
(i) that is owing to the corporation and secured on property (referred to in this paragraph as the “subject property”),
(ii) that replaces a debt (referred to in this paragraph as the “old debt”) that was on October 31, 2011 owing to the corporation and secured on the subject property, and
(iii) that has a maximum term for repayment that does not exceed the maximum term for repayment, in effect on October 31, 2011, of the old debt; and
(b) the corporation would be a mortgage investment corporation for its taxation year that includes October 31, 2011 if that taxation year were determined as though it ended on October 31, 2011.
(6) If property that is held by a corporation on October 31, 2011 consists of debt, the term for repayment of the debt is extended by agreement entered into on a particular date that is after October 31, 2011, and the extended term exceeds the maximum term for repayment of the debt in effect on October 31, 2011, then the property is deemed, for the purposes of applying subsection (5), to have been acquired by the corporation on the particular date.
277. (1) Paragraph 131(1)(b) of the Act is replaced by the following:
(b) notwithstanding any other provision of this Act (other than paragraph (5.1)(b)), if an amount is received by a taxpayer in a taxation year as, on account of, in lieu of payment of or in satisfaction of, the dividend, the amount
(i) shall not be included in computing the taxpayer’s income for the year as income from a share of the capital stock of the corporation, and
(ii) is deemed to be a capital gain of the taxpayer from the disposition of capital property in the year.
(2) Subsections 131(1.5) to (1.9) of the Act are repealed.
(3) Subparagraph 131(5.1)(b)(i) of the Act is replaced by the following:
(i) subparagraph (1)(b)(ii) does not apply in respect of the dividend, to the extent of the TCP gains distribution, and
(4) Paragraph (a) of the definition “capital gains dividend account” in subsection 131(6) of the Act is replaced by the following:
(a) the total of
(i) its capital gains, for all taxation years that began more than 60 days before that time, from dispositions of property after 1971 and before that time while it was a mutual fund corporation, and
(ii) all amounts each of which is an amount in respect of a distribution made by a trust to the corporation, at a time that is after its 2004 taxation year and at which it is a mutual fund corporation, in respect of capital gains of the trust equal to twice the amount determined by the following formula:
A – B
where
- A
- is the amount of the distribution, and
- B
- is the amount designated under subsection 104(21) by the trust in respect of the net taxable capital gains of the trust attributable to those capital gains
(5) Subparagraph (b)(iii) of the definition “capital gains dividend account” in subsection 131(6) of the Act is replaced by the following:
(iii) an amount equal to 100/14 of its capital gains refund for any taxation year throughout which it was a mutual fund corporation where the year ended more than 60 days before that time;
(6) Subsections (1) to (3) and (5) apply to taxation years that begin after October 31, 2011, except that
(a) if any part of a dividend declared by a corporation is in respect of capital gains of the corporation from dispositions of property that occurred before October 18, 2000, then paragraph 131(1)(b) of the Act, as enacted by subsection (1), is to be read, in its application to that part of the dividend, as it read in its application to the corporation’s last taxation year that began before November 1, 2011; and
(b) if a corporation had a capital gains refund for a taxation year that began before November 2011, then in computing the capital gains dividend account of the corporation at any time in a taxation year of the corporation that begins after October 31, 2011, subparagraph (b)(iii) of the definition “capital gains dividend account” in subsection 131(6) of the Act, as enacted by subsection (5), is to be read, in its application to the corporation, as it read in its application to the corporation’s last taxation year that began before November 1, 2011.
(7) Subsection (4) applies to the 2005 and subsequent taxation years.
- Date modified: