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Economic Action Plan 2013 Act, No. 2 (S.C. 2013, c. 40)

Assented to 2013-12-12

C.R.C., c. 945Income Tax Regulations

  •  (1) Section 201 of the Income Tax Regulations is amended by adding the following after subsection (5):

    • (5.1) Subsection (5) applies to an insurer in respect of an LIA policy in respect of a calendar year only if

      • (a) the insurer is notified in writing  —  before the end of the calendar year and by, or on behalf, of the policyholder  —  that the policy is an LIA policy; or

      • (b) it is reasonable to conclude that the insurer knew, or ought to have known, before the end of the calendar year, that the policy is an LIA policy.

  • (2) Subsection (1) applies to taxation years that end after March 20, 2013.

  •  (1) The portion of subsection 306(1) of the Regulations before paragraph (a) is replaced by the following:

    • 306. (1) For the purposes of this Part and subsection 12.2(11) of the Act, “exempt policy” at any time means a life insurance policy (other than an annuity contract, LIA policy or a deposit administration fund policy) in respect of which the following conditions are met at that time:

  • (2) Subsection (1) applies to taxation years that end after March 20, 2013.

  •  (1) Paragraph 600(b) of the Regulations is replaced by the following:

    • (b) subsections 13(4), (7.4) and (29), 14(6), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;

  • (2) Subsection (1) is deemed to have come into force on March 21, 2013.

  •  (1) The portion of section 806.2 of the Regulations before paragraph (a) is replaced by the following:

    806.2 For the purposes of the definition “participating debt interest” in subsection 212(3) of the Act, an obligation is a prescribed obligation if it is an indexed debt obligation and no amount payable in respect of it is

  • (2) Subsection (1) is deemed to have come into force on January 1, 2008.

  •  (1) Paragraph 1100(1)(a) of the Regulations is amended by adding the following after subparagraph (xxvii.1):

    • (xxvii.2) of Class 41.2, 25 per cent,

  • (2) Subparagraph 1100(1)(w)(i) of the Regulations is replaced by the following:

    • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.1), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

  • (3) Subparagraph 1100(1)(x)(i) of the Regulations is replaced by the following:

    • (i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

  • (4) Subparagraph 1100(1)(y)(i) of the Regulations is replaced by the following:

    • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

  • (5) Subparagraph (i) of the description of A in paragraph 1100(1)(y.1) of the Regulations is replaced by the following:

    • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

  • (6) The description of B in paragraph 1100(1)(y.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

    • (vi) 0%, if one or more days in the year are after 2014;

  • (7) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (y.1):

    Additional Allowances  —  Class 41.2  —  Single Mine Properties

     

    • (y.2) such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4g), not exceeding the amount determined by the formula

      A × B

      where

      A 
      is the lesser of
      • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

      • (ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

        • (A) without reference to subsection (2),

        • (B) after making any deduction under paragraph (a) for the year, and

        • (C) before making any deduction under this paragraph, and

      B 
      is the percentage that is the total of
      • (i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

      • (ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

      • (iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

      • (iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

      • (v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

      • (vi) 0%, if one or more days in the year are after 2020;

  • (8) Subparagraph (i) of the description of A in paragraph 1100(1)(ya.1) of the Regulations is replaced by the following:

    • (i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

  • (9) The description of B in paragraph 1100(1)(ya.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

    • (vi) 0%, if one or more days in the year are after 2014;

  • (10) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (ya.1):

    Additional allowances Class 41.2  —  Multiple Mine Properties

     

    • (ya.2) such additional amount as the taxpayer may claim in respect of a property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4h), not exceeding the amount determined by the formula

      A × B

      where

      A 
      is the lesser of
      • (i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

      • (ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

        • (A) without reference to subsection (2),

        • (B) after making any deduction under paragraph (a) for the year, and

        • (C) before making any deduction under this paragraph, and

      B 
      is the percentage that is the total of
      • (i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

      • (ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

      • (iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

      • (iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

      • (v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

      • (vi) 0%, if one or more days in the year are after 2020;

  • (11) Paragraph 1100(12)(b) of the Regulations is replaced by the following:

    • (b) a partnership each member of which was

      • (i) a corporation described in paragraph (a), or

      • (ii) another partnership described in this paragraph.

  • (12) Paragraph 1100(16)(b) of the Regulations is replaced by the following:

    • (b) a partnership each member of which was

      • (i) a corporation described in paragraph (a), or

      • (ii) another partnership described in this paragraph.

  • (13) Subparagraph 1100(25)(b)(iv) of the Regulations is replaced by the following:

    • (iv) a partnership each member of which was

      • (A) a corporation described in subparagraph (iii) or paragraph (26)(a), or

      • (B) another partnership described in this subparagraph.

  • (14) Paragraph 1100(26)(b) of the Regulations is replaced by the following:

    • (b) a partnership each member of which was

      • (i) a corporation described in paragraph (a), or

      • (ii) another partnership described in this paragraph.

  • (15) Subsections (1) to (10) apply to taxation years that end after March 20, 2013.

  • (16) Subsections (11) to (14) apply to fiscal periods that end after October 2010.

 
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