Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)
Full Document:
- HTMLFull Document: Budget Implementation Act, 2023, No. 1 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2023, No. 1 [3565 KB]
Assented to 2023-06-22
PART 1Amendments to the Income Tax Act and Other Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
50 (1) The portion of subsection 153(1) of the Act after paragraph (v) is replaced by the following:
must deduct or withhold from the payment the amount determined in accordance with prescribed rules and must, at the prescribed time, remit that amount to the Receiver General on account of the payee’s tax for the year under this Part or Part XI.3, as the case may be, and, where at that prescribed time the person is a prescribed person, the remittance must be made to the account of the Receiver General at or through a designated financial institution.
(2) Subsection 153(1.4) of the Act is replaced by the following:
Marginal note:Exception — remittance to designated financial institution
(1.4) For the purpose of subsection (1), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at or through a designated financial institution if the prescribed person has remitted the amount to the Receiver General at least one day before the day upon which the amount is due.
(3) Subsections (1) and (2) apply in respect of payments and remittances made after 2021.
51 (1) Paragraph 160.1(1)(b) of the Act is replaced by the following:
(b) the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess (other than any portion of the excess that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61, 122.72 or 122.8) from the day it became payable to the date of payment.
(2) Paragraph 160.1(1.1)(b) of the Act is replaced by the following:
(b) the total of the amounts deemed by subsection 122.5(3), (3.002) or (3.003) to have been paid by the individual during those specified months.
(3) Subsection 160.1(3) of the Act is replaced by the following:
Marginal note:Assessment
(3) The Minister may at any time assess a taxpayer in respect of any amount payable by the taxpayer because of any of subsections (1) to (1.2) or for which the taxpayer is liable because of subsection (2.1) or (2.2), and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section, as though it were made under section 152 in respect of taxes payable under this Part, except that no interest is payable on an amount assessed in respect of an excess referred to in subsection (1) that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61, 122.72 or 122.8.
52 (1) The Act is amended by adding the following after section 160.4:
Electronic Payments
Marginal note:Definitions
160.5 (1) The following definitions apply in this section.
- designated financial institution
designated financial institution has the same meaning as in subsection 153(6). (institution financière désignée)
- electronic payment
electronic payment means any payment or remittance to the Receiver General that is made through electronic services offered by a designated financial institution or by any electronic means specified by the Minister. (paiement électronique)
Marginal note:Requirement – electronic payments
(2) The remittance or payment of an amount to the Receiver General must be made as an electronic payment if the amount of the remittance or payment exceeds $10,000, unless the payor or remitter cannot reasonably remit or pay the amount in that manner.
(2) Subsection (1) applies in respect of payments and remittances made after 2023.
53 Paragraph 161(11)(b.1) of the Act is replaced by the following:
(b.1) in the case of a penalty under subsection 237.1(7.4), 237.3(8), 237.4(12) or 237.5(5), from the day on which the taxpayer became liable to the penalty to the day of payment; and
54 (1) Paragraph 162(7.02)(a) of the Act is replaced by the following:
(a) where the number of those information returns is greater than 5 and less than 51, $125;
(a.1) where the number of those information returns is greater than 50 and less than 251, $250;
(2) Section 162 of the Act is amended by adding the following after subsection (7.3):
Marginal note:Penalty — electronic payments
(7.4) Every person who fails to comply with subsection 160.5(2) is liable to a penalty equal to $100 for each such failure.
(3) Subsection 162(8.1) of the Act is replaced by the following:
Marginal note:Rules — partnership liable to a penalty
(8.1) If a partnership is liable to a penalty under any of subsections (5) to (7.1), (7.3), (7.4), (8) and (10), then sections 152, 158 to 160.1, 161 and 164 to 167 and Division J apply, with any modifications that the circumstances require, to the penalty as if the partnership were a corporation.
(4) Subsection (1) applies in respect of information returns filed after 2023.
(5) Subsections (2) and (3) apply in respect of payments and remittances made after 2023.
55 Subsection 163(2.9) of the Act is replaced by the following:
Marginal note:Partnership liable to penalty
(2.9) If a partnership is liable to a penalty under paragraph (2)(i), subsection (2.4) or (2.901) or section 163.2, 237.1, 237.3 or 237.4, sections 152, 158 to 160.1, 161 and 164 to 167 and Division J apply, with any changes that the circumstances require, in respect of the penalty as if the partnership were a corporation.
56 (1) Section 164 of the Act is amended by adding the following after subsection (2.21):
Marginal note:Application respecting refunds under section 122.72
(2.22) Where an amount deemed under section 122.72 to be paid by an individual during a month specified for a taxation year is applied under subsection (2) to a liability of the individual and the individual’s return of income for the year is filed on or before the individual’s balance-due day for the year, the amount is deemed to have been so applied on the day on which the amount would have been refunded if the individual were not liable to make a payment to His Majesty in right of Canada.
(2) The portion of subsection 164(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Interest on refunds and repayments
(3) If, under this section, an amount in respect of a taxation year (other than an amount, or a portion of the amount, that can reasonably be considered to arise from the operation of section 122.5, 122.61, 122.72, 122.8 or 125.7) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is the latest of the days referred to in the following paragraphs and that ends on the day on which the amount is refunded, repaid or applied:
(3) Subsections (1) and (2) apply to taxation years that begin after 2022.
57 (1) The portion of subsection 189(6.1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Revoked charity to file returns
(6.1) If the registration of a taxpayer as a registered charity has been revoked (and subsection 188(2.1) does not apply to the taxpayer), the taxpayer shall, on or before the day that is one year from the end of the taxation year referred to in paragraph 188(1)(a), and without notice or demand,
(2) The portion of subsection 189(8) of the Act before paragraph (a) is replaced by the following:
Marginal note:Provisions applicable to Part
(8) Subsections 150(2) and (3), sections 152 and 158, subsection 161(11), sections 162 to 167 and Division J of Part I apply in respect of an amount assessed under this Part and of a notice of suspension under subsection 188.2(1), (2) or (2.1) as if the notice were a notice of assessment made under section 152, with any modifications that the circumstances require including, for greater certainty, that a notice of suspension that is reconsidered or reassessed may be confirmed or vacated, but not varied, except that
(3) Subsection (1) applies in respect of taxation years that end after August 9, 2022.
(4) Subsection (2) is deemed to have come into force on August 9, 2022.
58 (1) Paragraph (a) of the description of J in subsection 204.2(1.2) of the Act is replaced by the following:
(a) the total of all amounts each of which is
(i) an amount received by the individual in the year and before that time out of or under a pooled registered pension plan, a registered retirement savings plan, a registered retirement income fund or a specified pension plan and included in computing the individual’s income for the year, or
(ii) an amount included in computing the individual’s income for the year under any of subsections 146.01(4) to (6) and 146.02(4) to (6)
(2) Subsection (1) applies to the 2018 and subsequent taxation years.
59 (1) Section 204.5 of the Act is replaced by the following:
Marginal note:Publication
204.5 Each year the Minister shall make available to the public, in such a manner as the Minister deems appropriate, the names of all registered investments as of December 31 of the preceding year.
(2) Subsection (1) is deemed to have come into force on August 9, 2022.
60 (1) Subparagraph (a)(ii) of the definition advantage in subsection 207.01(1) of the Act is replaced by the following:
(ii) a loan or an indebtedness (including, in the case of a TFSA, a loan or an indebtedness in respect of which the conditions in subsection 146.2(4) or (4.1) are met) the terms and conditions of which are terms and conditions that persons dealing at arm’s length with each other would have entered into,
(2) The portion of subparagraph (b)(i) of the definition advantage in subsection 207.01(1) of the Act before clause (A) is replaced by the following:
(i) a transaction or event or a series of transactions or events (other than a payment, not exceeding a reasonable amount, by the controlling individual of the registered plan where the payment would be described by paragraph 20(1)(bb) if the reference to “the taxpayer” in subparagraph (i) of that paragraph were read as a reference to “a controlling individual of a registered plan” and if the references to “the taxpayer” in subparagraph (ii) of that paragraph were read as references to “the registered plan”) that
(3) Section 207.01 of the Act is amended by adding the following after subsection (1):
Marginal note:Interpretation
(2) For the purposes of this section, income includes dividends described in section 83.
(4) Subsection (1) is deemed to have come into force on August 9, 2022.
(5) Subsection (2) applies to the 2018 and subsequent taxation years.
(6) Subsection (3) applies in respect of dividends received on or after August 9, 2022.
61 (1) Paragraph (c) of the description of B in subsection 207.8(2) of the Act is replaced by the following:
(c) in any other case, the percentage (rounded to the nearest half percentage, or where it is equidistant from two such consecutive half percentages, to the higher of the two) determined by the formula
E × F
where
- E
- is the highest individual percentage for the year, and
- F
- is the percentage referred to in subsection 120(1); and
(2) Subsection (1) applies to the 2022 and subsequent taxation years.
- Date modified: