Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
308. (1) The definition “public foundation” in subsection 149.1(1) of the Act is replaced by the following:
“public foundation”
« fondation publique »
“public foundation”, at a particular time, means a charitable foundation
(a) more than 50% of the directors, trustees, officers or like officials of which deal at arm’s length with each other and with
(i) each of the other directors, trustees, officers and like officials of the foundation,
(ii) each person described by subparagraph (b)(i) or (ii), and
(iii) each member of a group of persons (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)) who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described by subparagraph (b)(i), and
(b) that is not, at the particular time, and would not at the particular time be, if the foundation were a corporation, controlled directly or indirectly in any manner whatever
(i) by a person (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)),
(A) who immediately after the particular time, has contributed to the foundation amounts that are, in total, greater than 50% of the capital of the foundation immediately after the particular time, and
(B) who immediately after the person’s last contribution at or before the particular time, had contributed to the foundation amounts that were, in total, greater than 50% of the capital of the foundation immediately after the making of that last contribution, or
(ii) by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph (i);
(2) The portion of the definition “charitable organization” in subsection 149.1(1) of the Act before paragraph (a) is replaced by the following:
“charitable organization”
« oeuvre de bienfaisance »
“charitable organization”, at any particular time, means an organization, whether or not incorporated,
(3) Paragraphs (c) and (d) of the definition “charitable organization” in subsection 149.1(1) of the Act are replaced by the following:
(c) more than 50% of the directors, trustees, officers or like officials of which deal at arm’s length with each other and with
(i) each of the other directors, trustees, officers and like officials of the organization,
(ii) each person described by subparagraph (d)(i) or (ii), and
(iii) each member of a group of persons (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)) who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described by subparagraph (d)(i), and
(d) that is not, at the particular time, and would not at the particular time be, if the organization were a corporation, controlled directly or indirectly in any manner whatever
(i) by a person (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)),
(A) who immediately after the particular time, has contributed to the organization amounts that are, in total, greater than 50% of the capital of the organization immediately after the particular time, and
(B) who immediately after the person’s last contribution at or before the particular time, had contributed to the organization amounts that were, in total, greater than 50% of the capital of the organization immediately after the making of that last contribution, or
(ii) by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph (i);
(4) Paragraph (d) of the definition “enduring property” in subsection 149.1(1) of the English version of the Act, as it read immediately before its repeal by subsection 37(1) of the Sustaining Canada’s Economic Recovery Act, is replaced by the following:
(d) a gift received by the registered charity as a transferee from an original recipient charity or another transferee of a property that was, before that gift was so received, an enduring property of the original recipient charity or of the other transferee because of paragraph (a) or (c) or this paragraph, or property substituted for the gift, if, in the case of a property that was an enduring property of an original recipient charity because of paragraph (c), the gift is subject to the same terms and conditions under the trust or direction as applied to the original recipient charity;
(5) Subsection 149.1(2) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) makes a disbursement by way of a gift, other than a gift made
(i) in the course of charitable activities carried on by it, or
(ii) to a donee that is a qualified donee at the time of the gift.
(6) Subsection 149.1(3) of the Act is amended by adding the following after paragraph (b):
(b.1) makes a disbursement by way of a gift, other than a gift made
(i) in the course of charitable activities carried on by it, or
(ii) to a donee that is a qualified donee at the time of the gift;
(7) Subsection 149.1(4) of the Act is amended by adding the following after paragraph (b):
(b.1) makes a disbursement by way of a gift, other than a gift made
(i) in the course of charitable activities carried on by it, or
(ii) to a donee that is a qualified donee at the time of the gift;
(8) The portion of subsection 149.1(9) of the Act after paragraph (b), as it read immediately before its repeal by subsection 37(8) of the Sustaining Canada’s Economic Recovery Act, is replaced by the following:
is, notwithstanding subsection (8), deemed to be income of the charity for, and the eligible amount of a gift for which it issued a receipt described in subsection 110.1(2) or 118.1(2) in, its taxation year in which the period referred to in paragraph (a) expires or the time referred to in paragraph (b) occurs, as the case may be.
(9) Subsection (1) is deemed to have come into force on January 1, 2000, except that, in respect of a foundation that has not been designated before 2000 as a private foundation or a charitable organization under subsection 149.1(6.3) of the Act or under subsection 110(8.1) or (8.2) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and that has not applied after February 15, 1984 for registration under paragraph 110(8)(c) of that Act or under the definition “registered charity” in subsection 248(1) of the Act, subparagraph (a)(iii) and paragraph (b) of the definition “public foundation” in subsection 149.1(1) of the Act, as enacted by subsection (1), are, in their application before the earlier of the day, if any, on which the foundation is designated after 1999 as a private foundation or a charitable organization under subsection 149.1(6.3) of the Act and January 1, 2005, to be read
(a) without reference to “(other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l))”; and
(b) as if the references to “50%” in paragraph (b) of that definition were references to “75%”.
(10) Subsections (2) and (3) are deemed to have come into force on January 1, 2000, except that, in respect of a charitable organization that has not been designated before 2000 as a private foundation or a public foundation under subsection 149.1(6.3) of the Act or under subsection 110(8.1) or (8.2) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and that has not applied after February 15, 1984 for registration under paragraph 110(8)(c) of that Act or under the definition “registered charity” in subsection 248(1) of the Act, subparagraphs (c)(ii) and (iii) of the definition “charitable organization” in subsection 149.1(1) of the Act, as enacted by subsection (3), apply after the earlier of the day, if any, on which the organization is designated after 1999 as a private foundation or a public foundation under subsection 149.1(6.3) of the Act and December 31, 2004.
(11) Subsection (4) applies to taxation years that begin after March 22, 2004 but that end before March 4, 2010. For greater certainty, paragraph (d) of the definition “enduring property” in subsection 149.1(1) of the English version of the Act, as enacted by subsection (4), is deemed to have been repealed in respect of taxation years that end on or after March 4, 2010.
(12) Subsections (5) to (7) apply to gifts made after December 20, 2002.
(13) Subsection (8) is deemed to have come into force on December 21, 2002 but it applies only to taxation years that end before March 4, 2010. For greater certainty, subsection 149.1(9) of the Act, as amended by subsection (8), is deemed to have been repealed in respect of taxation years that end on or after March 4, 2010.
(14) In its application to gifts made after December 20, 2002 but in a taxation year that begins before March 23, 2004, the portion of the description of A in the definition “disbursement quota” in subsection 149.1(1) of the Act before paragraph (a) is to be read as follows:
- A
- is 80% of the total of all amounts each of which is the eligible amount of a gift for which the foundation issued a receipt described in subsection 110.1(2) or 118.1(2) in its immediately preceding taxation year, other than
(15) In its application to gifts made after December 20, 2002 but in a taxation year that begins before March 23, 2004, the portion of the description of A.1 in the definition “disbursement quota” in subsection 149.1(1) of the Act before paragraph (a) is to be read as follows:
- A.1
- is 80% of the total of all amounts each of which is the eligible amount of a gift received in a preceding taxation year, to the extent that the eligible amount
(16) An application referred to in subsection 149.1(6.3) of the Act, in respect of one or more taxation years after 1999, may be made after 1999 and before the 90th day after the day on which this Act receives royal assent. If a designation referred to in that subsection for any of those taxation years is made in response to the application, the charity is deemed to be registered as a charitable organization, a public foundation or a private foundation, as the case may be, for the taxation years that the Minister of National Revenue specifies.
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