Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
337. (1) The portion of subsection 204.9(5) of the French version of the Act before paragraph (b) is replaced by the following:
Marginal note:Transferts entre régimes
(5) Pour l’application de la présente partie, dans le cas où un bien détenu par une fiducie régie par un régime enregistré d’épargne-études (appelé « régime cédant » au présent paragraphe) est distribué, à un moment donné, à une fiducie régie par un autre semblable régime (appelé « régime cessionnaire » au présent paragraphe), les règles ci-après s’appliquent :
a) sauf disposition contraire énoncée aux alinéas b) et c), le montant de la distribution est réputé ne pas avoir été versé au régime cessionnaire;
(2) The portion of paragraph 204.9(5)(c) of the French version of the Act before subparagraph (i) is replaced by the following:
c) sauf pour l’application du présent paragraphe à une distribution effectuée après le moment donné, du paragraphe (4) à un remplacement de bénéficiaire effectué après ce moment et du paragraphe 204.91(3) à des faits s’étant produits après ce moment, l’alinéa b) ne s’applique pas par suite de la distribution si, selon le cas :
(3) Paragraph 204.9(5)(d) of the French version of the Act is replaced by the following:
d) dans le cas où les sous-alinéas c)(i) ou (ii) s’appliquent à la distribution, le montant de la distribution est réputé ne pas avoir été retiré du régime cédant;
338. (1) The portion of subsection 204.94(2) of the Act before the formula is replaced by the following:
Marginal note:Charging provision
(2) Every person (other than a public primary caregiver that is exempt from tax under Part I) shall pay a tax under this Part for each taxation year equal to the amount determined by the formula
(2) Subsection (1) applies to the 2007 and subsequent taxation years.
339. (1) The definition “specified proportion” in subsection 206(1) of the Act, as it read before 2005, is repealed.
(2) In their application to months that end after December 20, 2002 and before 2005, subparagraphs (b)(i) to (iii) of the definition “cost amount” in subsection 206(1) of the Act are to be read as follows:
(i) after 2000 and at or before the end of the taxation year, by the trust in respect of the interest (otherwise than as proceeds of disposition of the interest), and
(ii) that has not been satisfied at or before that time by the issue of new units of the trust or by a payment of an amount by the trust;
(3) In its application to months that end after October 2003 and before 2005, paragraph (d.1) of the definition “foreign property” in subsection 206(1) of the Act, as it read immediately before it was repealed by S.C. 2005, c. 30, s. 14, is to be read as follows:
(d.1) any share (other than an excluded share) of the capital stock of, or any debt obligation (other than a debt obligation described in subparagraph (g)(iii)) issued by, a corporation (other than an investment corporation, a mutual fund corporation or a registered investment) that is a Canadian corporation, if shares of the corporation can reasonably be considered to derive their value, directly or indirectly, primarily from foreign property,
(4) In its application to months that end after October 2003 and before 2005, paragraph (g) of the definition “foreign property” in subsection 206(1) of the Act is to be read as follows:
(g) indebtedness of a non-resident person, other than
(i) indebtedness issued by an authorized foreign bank and payable at a branch in Canada of the bank,
(ii) indebtedness issued or guaranteed by
(A) the International Bank for Reconstruction and Development,
(B) the International Finance Corporation,
(C) the Inter-American Development Bank,
(D) the Asian Development Bank,
(E) the Caribbean Development Bank,
(F) the European Bank for Reconstruction and Development,
(G) the African Development Bank, or
(H) a prescribed person, or
(iii) a debt obligation that is fully secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada or that would be fully secured were it not for a decline in the fair market value of the property after the debt obligation was issued,
(5) In its application to months that end after 1997 and before 2005, the portion of subsection 206(3.1) of the French version of the Act before paragraph (a) is to be read as follows:
(3.1) Pour ce qui est de l’application du sous-alinéa (2)a)(ii) à un moment donné ou postérieurement, lorsqu’un titre déterminé par rapport à un autre titre est acquis au moment donné par le contribuable mentionné au paragraphe (3.2) relativement au titre et que le titre est un bien étranger à ce moment, les règles ci-après s’appliquent :
(6) Subsection (1) is deemed to have come into force on December 21, 2002.
340. (1) Section 207.31 of the Act is replaced by the following:
Marginal note:Tax payable by recipient of an ecological gift
207.31 Any charity, municipality in Canada or municipal or public body performing a function of government in Canada (referred to in this section as the “recipient”) that at any time in a taxation year, without the authorization of the Minister of the Environment or a person designated by that Minister, disposes of or changes the use of a property described in paragraph 110.1(1)(d) or in the definition “total ecological gifts” in subsection 118.1(1) and given to the recipient shall, in respect of the year, pay a tax under this Part equal to 50% of the amount that would be determined for the purposes of section 110.1 or 118.1, if this Act were read without reference to subsections 110.1(3) and 118.1(6), to be the fair market value of the property if the property were given to the recipient immediately before the disposition or change.
(2) Subsection (1) applies in respect of dispositions of or changes of use of property after July 18, 2005.
341. (1) Sections 210 and 210.1 of the Act are replaced by the following:
Marginal note:Definitions
210. (1) The following definitions apply in this Part.
“designated beneficiary”
« bénéficiaire étranger ou assimilé »
“designated beneficiary”, under a particular trust at any time, means a beneficiary, under the particular trust, who is at that time
(a) a non-resident person;
(b) a non-resident-owned investment corporation;
(c) a person who is, because of subsection 149(1), exempt from tax under Part I on all or part of their taxable income and who acquired an interest as a beneficiary under the particular trust after October 1, 1987 directly or indirectly from a beneficiary under the particular trust except if
(i) the interest was, at all times after the later of October 1, 1987 and the day on which the interest was created, held by persons who were exempt from tax under Part I on all of their taxable income because of subsection 149(1), or
(ii) the person is a trust, governed by a registered retirement savings plan or a registered retirement income fund, who acquired the interest, directly or indirectly, from an individual or the spouse or common-law partner, or former spouse or common-law partner, of the individual who was, immediately after the interest was acquired, a beneficiary under the trust governed by the fund or plan;
(d) another trust (referred to in this paragraph as the “other trust”) that is not a testamentary trust, a mutual fund trust or a trust that is exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income, if any beneficiary under the other trust is at that time
(i) a non-resident person,
(ii) a non-resident-owned investment corporation,
(iii) a trust that is not
(A) a testamentary trust,
(B) a mutual fund trust,
(C) a trust that is exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income, or
(D) a trust
(I) whose interest, at that time, in the other trust was held, at all times after the day on which the interest was created, either by it or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income, and
(II) none of the beneficiaries under which is, at that time, a designated beneficiary under it, or
(iv) a person or partnership that
(A) is a designated beneficiary under the other trust because of paragraph (c) or (e), or
(B) would be a designated beneficiary under the particular trust because of paragraph (c) or (e) if, instead of being a beneficiary under the other trust, the person or partnership were at that time a beneficiary, under the particular trust, whose interest as a beneficiary under the particular trust were
(I) identical to its interest (referred to in this clause as the “particular interest”) as a beneficiary under the other trust,
(II) acquired from each person or partnership from whom it acquired the particular interest, and
(III) held, at all times after the later of October 1, 1987 and the day on which the particular interest was created, by the same persons or partnerships that held the particular interest at those times; or
(e) a particular partnership any of the members of which is at that time
(i) another partnership, except if
(A) each such other partnership is a Canadian partnership,
(B) the interest of each such other partnership in the particular partnership is held, at all times after the day on which the interest was created, by the other partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income,
(C) the interest of each member, of each such other partnership, that is a person exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income was held, at all times after the day on which the interest was created, by that member or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income, and
(D) the interest of the particular partnership in the particular trust was held, at all times after the day on which the interest was created, by the particular partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income,
(ii) a non-resident person,
(iii) a non-resident-owned investment corporation,
(iv) another trust that is, under paragraph (d), a designated beneficiary of the particular trust or that would, under paragraph (d), be a designated beneficiary of the particular trust if the other trust were at that time a beneficiary under the particular trust whose interest as a beneficiary under the particular trust were
(A) acquired from each person or partnership from whom the particular partnership acquired its interest as a beneficiary under the particular trust, and
(B) held, at all times after the later of October 1, 1987 and the day on which the particular partnership’s interest as a beneficiary under the particular trust was created, by the same persons or partnerships that held that interest of the particular partnership at those times, or
(v) a person exempt because of subsection 149(1) from tax under Part I on all or part of its taxable income except if the interest of the particular partnership in the particular trust was held, at all times after the day on which the interest was created, by the particular partnership or by persons who were exempt because of subsection 149(1) from tax under Part I on all of their taxable income.
“designated income”
« revenu de distribution »
“designated income”, of a trust for a taxation year, means the amount that would be the income of the trust for the year determined under section 3 if
(a) this Act were read without reference to subsections 104(6), (12) and (30);
(b) the trust had no income other than taxable capital gains from dispositions described in paragraph (c) and incomes from
(i) real or immovable properties in Canada (other than Canadian resource properties),
(ii) timber resource properties,
(iii) Canadian resource properties (other than properties acquired by the trust before 1972), and
(iv) businesses carried on in Canada;
(c) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were from
(i) dispositions of taxable Canadian property, and
(ii) dispositions of particular property (other than property described in any of subparagraphs 128.1(4)(b)(i) to (iii)), or property for which the particular property is substituted, that was transferred at any particular time to a particular trust in circumstances in which subsection 73(1) or 107.4(3) applied, if
(A) it is reasonable to conclude that the property was so transferred in anticipation that a person beneficially interested at the particular time in the particular trust would subsequently cease to reside in Canada, and a person beneficially interested at the particular time in the particular trust did subsequently cease to reside in Canada, or
(B) when the property was so transferred, the terms of the particular trust satisfied the conditions in subparagraph 73(1.01)(c)(i) or (iii), and it is reasonable to conclude that the transfer was made in connection with the cessation of residence, on or before the transfer, of a person who was, at the time of the transfer, beneficially interested in the particular trust and a spouse or common-law partner, as the case may be, of the transferor of the property to the particular trust; and
(d) the only losses referred to in paragraph 3(d) were losses from sources described in any of subparagraphs (b)(i) to (iv).
Marginal note:Tax not payable
(2) No tax is payable under this Part for a taxation year by a trust that was throughout the year
(a) a testamentary trust;
(b) a mutual fund trust;
(c) exempt from tax under Part I because of subsection 149(1);
(d) a trust to which paragraph (a), (a.1) or (c) of the definition “trust” in subsection 108(1) applies; or
(e) non-resident.
(2) Subsection (1) applies to the 1996 and subsequent taxation years, except that paragraph (c) of the definition “designated income” in subsection 210(1) of the Act, as enacted by subsection (1), is to be read
(a) in respect of dispositions that occur after October 1, 1996 and before December 21, 2002, as follows:
(c) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were from dispositions of taxable Canadian property; and
(b) in respect of dispositions that occur in a 1996 taxation year and before October 2, 1996, as follows:
(c) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were from dispositions of property that would have been taxable Canadian property if, at no time in the year, the trust had been resident in Canada; and
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