Economic Action Plan 2013 Act, No. 2 (S.C. 2013, c. 40)
Full Document:
Assented to 2013-12-12
87. (1) Subparagraphs 241(4)(d)(ix) and (x) of the Act are replaced by the following:
(ix) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a taxpayer, solely for the purpose of enabling that department or agency to obtain statistical data for research and analysis,
(x) to an official of the Canada Employment Insurance Commission or the Department of Employment and Social Development, solely for the purpose of the administration or enforcement of the Employment Insurance Act, an employment program of the Government of Canada (including, for greater certainty, any activity relating to a program for temporary foreign workers for which the administration or enforcement is the responsibility of the Minister of Employment and Social Development under the Immigration and Refugee Protection Regulations) or the evaluation or formation of policy for that Act or program,
(2) Paragraph 241(4)(j.1) of the Act is replaced by the following:
(j.1) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to a social assistance payment made on the basis of a means, needs or income test if the purpose of the adjustment is to take into account the amount determined for C in subsection 122.61(1) in respect of a person for a taxation year;
(j.2) provide information obtained under section 122.62 to an official of the government of a province solely for the purposes of the administration or enforcement of a prescribed law of the province;
88. (1) Section 247 of the Act is amended by adding the following after subsection (7):
Marginal note:Exclusion — certain guarantees
(7.1) Subsection (2) does not apply to adjust an amount of consideration paid, payable or accruing to a corporation resident in Canada (in this subsection referred to as the “parent”) in a taxation year of the parent for the provision of a guarantee to a person or partnership (in this subsection referred to as the “lender”) for the repayment, in whole or in part, of a particular amount owing to the lender by a non-resident person, if
(a) the non-resident person is a controlled foreign affiliate of the parent for the purposes of section 17 throughout the period in the year during which the particular amount is owing; and
(b) it is established that the particular amount would be an amount owing described in paragraph 17(8)(a) or (b) if it were owed to the parent.
(2) Subsection (1) applies to taxation years that begin after 1997 and in applying subsection 247(7.1) of the Act, as enacted by subsection (1), to taxation years that begin before February 24, 1998, section 17 of the Act is to be read as it read on January 24, 2005, except that if a taxpayer elects under this subsection in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxation year that includes the day on which this Act receives royal assent,
(a) notwithstanding the time limitations in subsection 152(4) of the Act, the Minister of National Revenue may make such assessments, reassessments and determinations under Part I of the Act as are necessary to give effect to this subsection for a taxation year that ends before that day; and
(b) if the taxpayer so indicates in the election, subsection (1) does not apply to taxation years of the taxpayer that begin before December 22, 2012.
89. (1) The definition “trust” in subsection 248(1) of the Act is replaced by the following:
“trust”
« fiducie »
“trust” has the meaning assigned by subsection 104(1) and, unless the context otherwise requires, includes an estate;
(2) The definition “estate” in subsection 248(1) of the English version of the Act is replaced by the following:
“estate”
« succession »
“estate” has the meaning assigned by subsection 104(1) and includes, for civil law, a succession;
(3) Clause (e)(iii)(B) of the definition “automobile” in subsection 248(1) of the Act is replaced by the following:
(B) at least 30 kilometres outside the nearest point on the boundary of the nearest population centre, as defined by the last census dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year;
(4) The portion of the definition “majority interest partner” in subsection 248(1) of the Act before paragraph (a) is replaced by the following:
“majority-interest partner”
« associé détenant une participation majoritaire »
“majority-interest partner”, of a particular partnership at any time, means a person or partnership (in this definition referred to as the “taxpayer”)
(5) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
“derivative forward agreement”
« contrat dérivé à terme »
“derivative forward agreement”, of a taxpayer, means an agreement entered into by the taxpayer to purchase or sell a capital property if
(a) the term of the agreement exceeds 180 days or the agreement is part of a series of agreements with a term that exceeds 180 days,
(b) in the case of a purchase agreement, the difference between the fair market value of the property delivered on settlement, including partial settlement, of the agreement and the amount paid for the property is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than
(i) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property, or
(ii) if the purchase price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, and
(c) in the case of a sale agreement,
(i) the difference between the sale price of the property and the fair market value of the property at the time the agreement is entered into by the taxpayer is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than
(A) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property, or
(B) if the sale price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, and
(ii) the agreement is part of an arrangement that has the effect — or would have the effect if the agreements that are part of the arrangement and that were entered into by persons or partnerships not dealing at arm’s length with the taxpayer were entered into by the taxpayer instead of non-arm’s length persons or partnerships — of eliminating a majority of the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a period of more than 180 days;
“LIA policy”
« police RAL »
“LIA policy” means a life insurance policy (other than an annuity) where
(a) a particular person or partnership becomes obligated after March 20, 2013 to repay an amount to another person or partnership (in this definition referred to as the “lender”) at a time determined by reference to the death of a particular individual whose life is insured under the policy, and
(b) the lender is assigned an interest in
(i) the policy, and
(ii) an annuity contract the terms of which provide that payments are to continue for a period that ends no earlier than the death of the particular individual;
“synthetic disposition arrangement”
« arrangement de disposition factice »
“synthetic disposition arrangement”, in respect of a property owned by a taxpayer, means one or more agreements or other arrangements that
(a) are entered into by the taxpayer or by a person or partnership that does not deal at arm’s length with the taxpayer,
(b) have the effect, or would have the effect if entered into by the taxpayer instead of the person or partnership, of eliminating all or substantially all the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a definite or indefinite period of time, and
(c) can, in respect of any agreement or arrangement entered into by a person or partnership that does not deal at arm’s length with the taxpayer, reasonably be considered to have been entered into, in whole or in part, with the purpose of obtaining the effect described in paragraph (b);
“synthetic disposition period”
« période de disposition factice »
“synthetic disposition period”, of a synthetic disposition arrangement, means the definite or indefinite period of time during which the synthetic disposition arrangement has, or would have, the effect described in paragraph (b) of the definition “synthetic disposition arrangement” in this subsection;
“10/8 policy”
« police 10/8 »
“10/8 policy” means a life insurance policy (other than an annuity) where
(a) an amount is or may become
(i) payable, under the terms of a borrowing, to a person or partnership that has been assigned an interest in the policy or in an investment account in respect of the policy, or
(ii) payable (within the meaning assigned by the definition “amount payable” in subsection 138(12)) under a policy loan (as defined in subsection 148(9)) made in accordance with the terms and conditions of the policy, and
(b) either
(i) the return credited to an investment account in respect of the policy
(A) is determined by reference to the rate of interest on the borrowing or policy loan, as the case may be, described in paragraph (a), and
(B) would not be credited to the account if the borrowing or policy loan, as the case may be, were not in existence, or
(ii) the maximum amount of an investment account in respect of the policy is determined by reference to the amount of the borrowing or policy loan, as the case may be, described in paragraph (a);
(6) Subsection (3) applies to the 2013 and subsequent taxation years.
(7) Subsection (5) is deemed to have come into force on March 21, 2013, except that the definitions “LIA policy” and “10/8 policy” in subsection 248(1) of the Act, as amended by subsection (5), apply to taxation years that end after March 20, 2013.
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