Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
Assented to 2013-06-26
394. (1) The portion of section 3504 of the Regulations before paragraph (a) is replaced by the following:
3504. For the purposes of subparagraphs 110.1(2.1)(a)(ii) and 118.1(5.4)(a)(ii) of the Act, the following are prescribed donees:
(2) Subsection (1) is deemed to have come into force on May 2, 2007.
395. (1) Paragraph 4600(2)(k) of the Regulations is replaced by the following:
(k) a property included in Class 21, 24, 27, 29, 34, 39, 40, 43, 45, 46, 50 or 52 in Schedule II;
(2) Subsection (1) applies to property acquired after March 18, 2007, except that for property acquired before January 28, 2009, paragraph 4600(2)(k) of the Regulations, as enacted by subsection (1), is to be read without reference to Class 52.
396. (1) Paragraph 4800(1)(a) of the French version of the Regulations is replaced by the following:
a) une catégorie d’actions du capital-actions de la société désignée par la société dans son choix ou par le ministre dans son avis à la société, selon le cas, doit pouvoir faire l’objet d’un appel public à l’épargne;
(2) Paragraph 4800(2)(c) of the French version of the Regulations is replaced by the following:
c) aucune catégorie d’actions du capital-actions de la société ne peut faire l’objet d’un appel public à l’épargne ni ne remplit les conditions énoncées aux alinéas (1)b) et c).
(3) Subsections (1) and (2) apply to the 2000 and subsequent taxation years.
397. (1) The portion of section 4800.1 of the Regulations before paragraph (a) is replaced by the following:
4800.1 For the purposes of paragraph 107(1)(a) and subsections 107(1.1), (2) and (4.1) of the Act, the following are prescribed trusts:
(2) Subsection (1) is deemed to have come into force on January 1, 2000.
398. (1) The portion of section 4801 of the Regulations before subparagraph (b)(i) is replaced by the following:
4801. In applying at any time paragraph 132(6)(c) of the Act, the following are prescribed conditions in respect of a trust:
(a) either
(i) the following conditions are met:
(A) there has been at or before that time a lawful distribution in a province to the public of units of the trust and a prospectus, registration statement or similar document was not, under the laws of the province, required to be filed in respect of the distribution, and
(B) the trust
(I) was created after 1999 and on or before that time, or
(II) satisfies, at that time, the conditions prescribed in section 4801.001, or
(ii) a class of the units of the trust is, at that time, qualified for distribution to the public; and
(b) in respect of a class of the trust’s units that meets at that time the conditions described in paragraph (a), there are at that time no fewer than 150 beneficiaries of the trust, each of whom holds
(2) Subsection (1) applies to the 2000 and subsequent taxation years, except that for the purpose of applying clause 4801(a)(i)(B) of the Regulations, as enacted by subsection (1), to taxation years that end before 2004, that clause is to be read as follows:
(B) the trust was created after 1999 and on or before that time, or
399. (1) The Regulations are amended by adding the following after section 4801:
4801.001 For the purpose of applying at any particular time subclause 4801(a)(i)(B)(II), the following are the prescribed conditions:
(a) the trust was created before 2000;
(b) the trust was a unit trust on July 18, 2005;
(c) the particular time is after 2003; and
(d) the trusts elects by notifying the Minister, in writing before the trust’s filing-due date for its 2012 taxation year, that this section applies to it.
(2) Subsection (1) applies to the 2004 and subsequent taxation years.
400. (1) The portion of subsection 4803(2) of the French version of the Regulations before paragraph (d) is replaced by the following:
(2) Pour l’application de la présente partie, une catégorie d’actions du capital-actions d’une société ou une catégorie d’unités d’une fiducie ne peut faire l’objet d’un appel public à l’épargne que si, selon le cas :
a) un prospectus, une déclaration d’enregistrement ou un document semblable a été produit auprès d’une administration au Canada selon la législation fédérale ou provinciale et, si la législation le prévoit, approuvé par l’administration, et les actions ou unités de cette catégorie ont fait l’objet d’un appel public légal à l’épargne conformément à ce document;
b) il s’agit d’une catégorie d’actions, dont une ou plusieurs des actions ont été émises par la société à un moment, postérieur à 1971, où elle était une société publique, en échange d’actions de toute autre catégorie du capital-actions de la société qui pouvait, immédiatement avant l’échange, faire l’objet d’un appel public à l’épargne;
c) dans le cas d’une catégorie d’actions, dont une ou plusieurs des actions avaient été émises et étaient en circulation le 1er janvier 1972, la catégorie remplissait à cette date les conditions énoncées aux alinéas 4800(1)b) et c);
(2) Subsection (1) applies to the 2000 and subsequent taxation years.
401. (1) The portion of the description of A in the definition “underlying foreign tax” in subsection 5907(1) of the Regulations before subparagraph (i) is replaced by the following:
- A
- is, subject to subsection (1.03), the total of all amounts, in respect of the period, each of which is
(2) Section 5907 of the Regulations is amended by adding the following in numerical order:
(1.03) For the purposes of the description of A in the definition “underlying foreign tax” in subsection (1), income or profits tax paid in respect of the taxable earnings of a particular foreign affiliate of a particular corporation or in respect of a dividend received by the particular affiliate from another foreign affiliate of the particular corporation, and amounts by which the underlying foreign tax of the particular affiliate or any other foreign affiliate of the particular corporation is required under subsection (1.1) or (1.2) to be increased, is not to include any income or profits tax paid, or amounts by which the underlying foreign tax would otherwise be so required to be increased, as the case may be, in respect of the foreign accrual property income of the particular affiliate for a taxation year of the particular affiliate if, at any time in the year, a specified owner in respect of the particular corporation is considered,
(a) under the income tax laws (referred to in subsection (1.07) as the “relevant foreign tax law”) of any country other than Canada under the laws of which any income of another corporation — that is, at any time in the year, a pertinent person or partnership in respect of the particular affiliate — is subject to income taxation, to own less than all of the shares of the capital stock of the other corporation that are considered to be owned by the specified owner for the purposes of the Act; or
(b) under the income tax laws (referred to in subsection (1.08) as the “relevant foreign tax law”) of any country other than Canada under the laws of which any income of a particular partnership — that is, at any time in the year, a pertinent person or partnership in respect of the particular affiliate — is subject to income taxation, to have a lesser direct or indirect share of the income of the particular partnership than the specified owner is considered to have for the purposes of the Act.
(1.04) For the purposes of subsections (1.03) and (1.07), a “specified owner”, at any time, in respect of a corporation means the corporation or a person or partnership that is, at that time,
(a) a partnership of which the corporation is a member;
(b) a foreign affiliate of the corporation;
(c) a partnership a member of which is a foreign affiliate of the corporation; or
(d) a person or partnership referred to in any of subparagraphs (1.06)(a)(i) to (iii).
(1.05) For the purposes of this subsection and subsection (1.03), a “pertinent person or partnership”, at any time, in respect of a particular foreign affiliate of a corporation means the particular affiliate or a person or partnership that is, at that time,
(a) another foreign affiliate of the corporation
(i) in which the particular affiliate has an equity percentage, or
(ii) that has an equity percentage in the particular affiliate;
(b) a partnership a member of which is at that time a pertinent person or partnership in respect of the particular affiliate under this subsection; or
(c) a person or partnership referred to in any of subparagraphs (1.06)(b)(i) to (iii).
(1.06) For the purposes of subsections (1.04) and (1.05), if, as part of a series of transactions or events that includes the earning of the foreign accrual property income referred to in subsection (1.03), a foreign affiliate (referred to in this subsection as the “funding affiliate”) of the corporation or of a person (referred to in this subsection as the “related person”) resident in Canada that is related to the corporation, or a partnership (referred to in this subsection as the “funding partnership”) of which such an affiliate is a member, directly or indirectly provided funding to the particular affiliate, or a partnership of which the particular affiliate is a member, otherwise than by way of loans or other indebtedness that are subject to terms or conditions made or imposed, in respect of the loans or other indebtedness, that do not differ from those that would be made or imposed between persons dealing at arm’s length or by way of an acquisition of shares of the capital stock of any corporation, then
(a) if the funding affiliate is, or the funding partnership has a member that is, a foreign affiliate of the related person, the following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be specified owners in respect of the corporation:
(i) the related person,
(ii) each foreign affiliate of the related person, and
(iii) each partnership a member of which is referred to in subparagraph (i) or (ii); and
(b) the following persons and partnerships are deemed, at all times during which the foreign accrual property income is earned by the particular affiliate, to be pertinent persons or partnerships in respect of the particular affiliate:
(i) the funding affiliate or the funding partnership,
(ii) a non-resident corporation
(A) in which the funding affiliate has an equity percentage, or
(B) that has an equity percentage in the funding affiliate, and
(iii) a partnership a member of which is a person or partnership referred to in subparagraph (i) or (ii).
(1.07) For the purposes of paragraph (1.03)(a), a specified owner in respect of the particular corporation is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of another corporation that are considered to be owned for the purposes of the Act solely because the specified owner is not treated as a corporation under the relevant foreign tax law.
(1.08) For the purposes of paragraph (1.03)(b), a member of a partnership is not to be considered to have a lesser direct or indirect share of the income of the partnership under the relevant foreign tax law than for the purposes of the Act solely because of one or more of the following:
(a) a difference between the relevant foreign tax law and the Act in the manner of
(i) computing the income of the partnership, or
(ii) allocating the income of the partnership because of the admission to, or withdrawal from, the partnership of any of its members;
(b) the treatment of the partnership as a corporation under the relevant foreign tax law; or
(c) the fact that the member is not treated as a corporation under the relevant foreign tax law.
(1.09) For the purposes of subsection (1.03), if a specified owner owns, for the purposes of the Act, shares of the capital stock of a corporation and the dividends, or similar amounts, in respect of those shares are treated under the income tax laws of any country other than Canada under the laws of which any income of the corporation is subject to income taxation as interest or another form of deductible payment, the specified owner is deemed to be considered, under those tax laws, to own less than all of the shares of the capital stock of the corporation that are considered to be owned by the specified owner for the purposes of the Act.
(3) Subsections (1) and (2) apply to income or profits tax paid, and amounts referred to in subsections 5907(1.1) and (1.2) of the Regulations, in respect of the income of a foreign affiliate of a corporation for taxation years of the foreign affiliate that end in taxation years of the corporation that end after March 4, 2010, except that, for taxation years of the corporation that end on or before October 24, 2012,
(a) subsection 5907(1.03) of the Regulations, as enacted by subsection (2), is to be read as follows:
(1.03) For the purposes of the description of A in the definition “underlying foreign tax” in subsection (1), income or profits tax paid in respect of the taxable earnings of a particular foreign affiliate of a corporation or in respect of a dividend received by the particular affiliate from another foreign affiliate of the corporation, and amounts by which the underlying foreign tax of the particular affiliate, or any other foreign affiliate of the corporation, is required under subsection (1.1) or (1.2) to be increased, is not to include any income or profits tax paid, or amounts by which the underlying foreign tax would otherwise be so required to be increased, as the case may be, in respect of the foreign accrual property income of the particular affiliate that is earned during a period in which
(a) the corporation is considered, under the income tax laws (referred to in subsection (1.07) as the “relevant foreign tax law”) of any country, other than Canada, under the laws of which the income of the particular affiliate is subject to income taxation, to own less than all of the shares of the capital stock of the particular affiliate, of another foreign affiliate of the corporation in which the particular affiliate has an equity percentage, or of another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, that are considered to be owned by the corporation for the purposes of the Act; or
(b) the corporation’s share of the income of a partnership that owns, based on the assumptions contained in paragraph 96(1)(c) of the Act, shares of the capital stock of the particular affiliate is, under the income tax laws (referred to in subsection (1.08) as the “relevant foreign tax law”) of any country, other than Canada, under the laws of which the income of the partnership is subject to income taxation, less than its share of the income for the purposes of the Act.
(b) subsection 5907(1.07) of the Regulations, as enacted by subsection (2), is to be read as follows:
(1.07) For the purposes of paragraph (1.03)(a), a corporation is not to be considered, under the relevant foreign tax law, to own less than all of the shares of the capital stock of a foreign affiliate of the corporation that are considered to be owned for the purposes of the Act solely because the corporation or the foreign affiliate is not treated as a corporation under the relevant foreign tax law.
(c) the portion of subsection 5907(1.08) of the Regulations before paragraph (a), as enacted by subsection (2), is to be read as follows:
(1.08) For the purposes of paragraph (1.03)(b), a member of a partnership is not to be considered to have a lesser share of the income of the partnership under the relevant foreign tax law than for the purposes of the Act solely because of one or more of the following:
(d) section 5907 of the Regulations is to be read without reference to its subsections (1.04) to (1.06) and (1.09), as enacted by subsection (2).
- Date modified: