Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

AMENDMENTS NOT IN FORCE

• — 2017, c. 33, ss. 2(1), (3), (4)

  • • 2 (1) Subsection 10(14) of the Income Tax Act is repealed.

    • (3) Subsection 10(14.1) of the Act, as enacted by subsection (2), is repealed.

    • (4) Subsections (1) and (3) come into force on January 1, 2024.

• — 2017, c. 33, ss. 7(2), (4)

  • • 7 (2) Section 34 of the Act, as amended by subsection (1), is repealed.

    • (4) Subsection (2) comes into force on January 1, 2024.

• — 2022, c. 19, s. 13

  • • 13 (1) Subsection 104(1) of the Act is replaced by the following:

      • Reference to trust or estate

        • 104 (1) In this Act, a reference to a trust or estate (in this Subdivision referred to as a “trust”) shall, unless the context otherwise requires, be read to include a reference to the trustee, executor, administrator, liquidator of a succession, heir or other legal representative having ownership or control of the trust property, but, except for the purposes of this subsection, subsection (1.1), section 150, subparagraph (b)(v) of the definition disposition in subsection 248(1) and paragraph (k) of that definition, a trust is deemed not to include an arrangement under which the trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property unless the trust is described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1).

    • (2) Subsection (1) applies to taxation years that end after December 30, 2023.

• — 2022, c. 19, s. 35

  • • 35 (1) The portion of subsection 150(1.1) of the Act before paragraph (a) is replaced by the following:

      • Exception

        (1.1) Subject to subsection (1.2), subsection (1) does not apply to a taxation year of a taxpayer if

    • (2) Section 150 of the Act is amended by adding the following after subsection (1.1):

      • Exception — trusts

        (1.2) Subsection (1.1) does not apply to a taxation year of a trust if the trust is resident in Canada and is an express trust, or for civil law purposes a trust other than a trust that is established by law or by judgement, unless the trust

        • (a) had been in existence for less than three months at the end of the year;

        • (b) holds assets with a total fair market value that does not exceed $50,000 throughout the year, if the only assets held by the trust throughout the year are one or more of

          • (i) money,

          • (ii) a debt obligation described in paragraph (a) of the definition fully exempt interest in subsection 212(3),

          • (iii) a share, debt obligation or right listed on a designated stock exchange,

          • (iv) a share of the capital stock of a mutual fund corporation,

          • (v) a unit of a mutual fund trust,

          • (vi) an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), and

          • (vii) an interest as a beneficiary under a trust, all the units of which are listed on a designated stock exchange;

        • (c) is required under the relevant rules of professional conduct or the laws of Canada or a province to hold funds for the purposes of the activity that is regulated under those rules or laws, provided the trust is not maintained as a separate trust for a particular client or clients;

        • (d) is a registered charity;

        • (e) is a club, society or association described in paragraph 149(1)(l);

        • (f) is a mutual fund trust;

        • (g) is, for greater certainty, a related segregated fund trust, within the meaning assigned by paragraph 138.1(1)(a);

        • (h) is a trust, all the units of which are listed on a designated stock exchange;

        • (i) is prescribed to be a master trust;

        • (j) is, for greater certainty, a graduated rate estate;

        • (k) is a qualified disability trust, as defined in subsection 122(3);

        • (l) is an employee life and health trust;

        • (m) is a trust described under paragraph 81(1)(g.3);

        • (n) is a trust under or governed by

          • (i) a deferred profit sharing plan,

          • (ii) a pooled registered pension plan,

          • (iii) a registered disability savings plan,

          • (iv) a registered education savings plan,

          • (v) a registered pension plan,

          • (vi) a registered retirement income fund,

          • (vii) a registered retirement savings plan,

          • (viii) a tax-free savings account,

          • (ix) an employee profit sharing plan,

          • (x) a registered supplementary unemployment benefit plan, or

          • (xi) a first home savings account; or

        • (o) is a cemetery care trust or a trust governed by an eligible funeral arrangement.

      • Bare trusts and arrangements — inclusion

        (1.3) For the purposes of this section, a trust includes an arrangement under which a trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property.

      • Solicitor-client privilege

        (1.4) For greater certainty, subsections (1.1) to (1.3) do not require the disclosure of information that is subject to solicitor-client privilege.

    • (3) Subsections (1) and (2) apply to taxation years that end after December 30, 2023.

• — 2022, c. 19, s. 42

  • False statement or omission — trust return

    • 42 (1) Section 163 of the Act is amended by adding the following after subsection (4):

      • False statement or omission

        (5) A person or partnership is liable to a penalty if the person or partnership

        • (a) knowingly or under circumstances amounting to gross negligence

          • (i) makes — or participates in, assents to or acquiesces in, the making of — a false statement or omission in a return of income of a trust that is not subject to one of the exceptions listed in paragraphs 150(1.2)(a) to (o) for a taxation year, or

          • (ii) fails to file a return described in subparagraph (i); or

        • (b) fails to comply with a demand under subsection 150(2) or 231.2(1) to file a return described in subparagraph (a)(i).

      • False statement or omission — trust return

        (6) The amount of the penalty to which the person or partnership is liable under subsection (5) is equal to the greater of

        • (a) $2,500, and

        • (b) 5% of the highest amount at any time in the year that is equal to the total fair market value of all the property held by the trust referred to in subsection (5) at that time.

    • (2) Subsection (1) applies to taxation years that end after December 30, 2023.