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

AMENDMENTS NOT IN FORCE

• — 2023, c. 17, s. 13

  • 13 Paragraph 241(4)(d) of the Income Tax Act is amended by adding the following after subparagraph (vii.5):

    • (vii.51) to an official solely for the purposes of the administration and enforcement of the Canada Disability Benefit Act or the evaluation or formulation of policy for that Act,

• — 2023, c. 26, s. 660

  • 660 Subparagraph 56(1)(l)(ii) of the Income Tax Act is replaced by the following:

    • (ii) reimbursement of costs incurred in relation to a decision of the Canada Employment Insurance Commission under the Employment Insurance Act or to an appeal of such a decision to the Social Security Tribunal or the Employment Insurance Board of Appeal under the Department of Employment and Social Development Act,

• — 2023, c. 26, s. 661

  • 661 Subparagraph 60(o)(ii) of the Act is replaced by the following:

    • (ii) a decision of the Canada Employment Insurance Commission under the Employment Insurance Act or to an appeal of such a decision to the Social Security Tribunal or the Employment Insurance Board of Appeal under the Department of Employment and Social Development Act,

• — 2024, c. 15, ss. 24(1), (2), (5), (7), (8), (11)

  • • 24 (1) Paragraph (b) of the description of A in the definition foreign accrual property income in subsection 95(1) of the Act is replaced by the following:

      • (b) a dividend from another foreign affiliate of the taxpayer, except for any portion of the dividend that would be deemed under subsection 113(5) not to be a dividend received by the affiliate on a share of the capital stock of the other affiliate for the purposes of section 113, if the affiliate were a corporation resident in Canada,

    • (2) Paragraph (a) of the description of H in the definition foreign accrual property income in subsection 95(1) of the Act is replaced by the following:

      • (a) if the affiliate was a member of a partnership at the end of the fiscal period of the partnership that ended in the year and the partnership received a dividend at a particular time in that fiscal period from a corporation that would be, if the reference in subsection 93.1(1) to “corporation resident in Canada” were a reference to “taxpayer resident in Canada”, a foreign affiliate of the taxpayer for the purposes of sections 93 and 113 at that particular time, then the portion of the amount of that dividend that

        • (i) is included in the value determined for A in respect of the affiliate for the year and that would be, if the reference in subsection 93.1(2) to “corporation resident in Canada” were a reference to “taxpayer resident in Canada”, deemed by paragraph 93.1(2)(a) to have been received by the affiliate for the purposes of sections 93 and 113, and

        • (ii) would not be deemed under subsection 113(5) not to be a dividend received by the affiliate on a share of the capital stock of the other affiliate for the purposes of section 113, if the affiliate were a corporation resident in Canada, and

    • (5) Clause 95(2)(f.11)(ii)(A) of the Act, as enacted by subsection (4), is replaced by the following:

      • (A) this Act is to be read without reference to subsections 17(1), 18(4), 18.2(2) and 18.4(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership,

    • (7) Subparagraph 95(2)(f.11)(ii) of the Act, as amended by subsection (6), is amended by striking out “and” at the end of clause (D), by adding “and” at the end of clause (E) and by adding the following after clause (E):

      • (F) the following rules apply for the purposes of applying subsection 12.7(3) and the related provisions of section 18.4 in respect of a payment of which the foreign affiliate, or a partnership of which the foreign affiliate is a member, is a recipient:

        • (I) the definitions in subsection 18.4(1) apply for the purposes of this clause,

        • (II) subsection 12.7(3) is deemed not to apply in respect of the payment if

          1 the foreign affiliate’s income or loss derived from the payment is included under subparagraph (a)(ii) in computing the foreign affiliate’s income or loss from an active business for a taxation year, or

          2 in the case of a payment that subsection 18.4(9) deems to be made to the foreign affiliate or the partnership by a particular entity in respect of a notional interest expense on a particular debt, any income or loss that were derived by the foreign affiliate from the payment would, based on the relevant assumptions in respect of the payment, be included under subparagraph (a)(ii) in computing the foreign affiliate’s income or loss from an active business for a taxation year,

        • (III) for the purposes of sub-subclause (II)2, the relevant assumptions in respect of the payment are

          1 the payment is an amount of interest paid by the particular entity to the foreign affiliate or the partnership, as the case may be, under a legal obligation to pay interest on the particular debt in the taxation year of the foreign affiliate or the partnership in which an amount in respect of the payment would, in the absence of subclause (II), be included under subsection 12.7(3) in the income of the foreign affiliate or partnership, and

          2 any amount that is deductible, in respect of the notional interest expense, is an amount deductible in respect of an expenditure for which the payment was made, and

        • (IV) the definition Canadian ordinary income in subsection 18.4(1) is to be read as if

          1 its subparagraph (a)(ii) read as follows:

          • “(ii) the amount is described in paragraph (b) or (c) of the description of A in the definition foreign accrual property income in subsection 95(1), or”, and

          2 the description of D in its paragraph (b) read as follows:

          • “D is the total of all amounts, each of which is an amount, in respect of the payment, that is included in the description of H in the definition foreign accrual property income in subsection 95(1) in computing the foreign accrual property income of a member of the partnership for a taxation year; or”;

    • (8) Subsections (1) and (2) apply in respect of any dividend received on or after July 1, 2024.

    • (11) Subsections (5) and (7) apply in respect of payments arising on or after July 1, 2024.

• — 2024, c. 15, s. 114

  • • 114 (1) Paragraph 18(1)(t) of the Income Tax Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v):

      • (vi) as interest under the Digital Services Tax Act;

    • (2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.

• — 2024, c. 15, s. 115

  • • 115 (1) Subsection 164(2.01) of the Act is replaced by the following:

      • Withholding of refunds

        (2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge and that are required to be filed by the taxpayer at or before that time under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Digital Services Tax Act have been filed with the Minister.

    • (2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.

• — 2024, c. 15, s. 116

  • • 116 (1) The portion of subsection 221.2(2) of the Act before paragraph (a) is replaced by the following:

      • Re-appropriation of amounts

        (2) If a particular amount was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a person under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act or the Digital Services Tax Act, the Minister may, on application by the person, appropriate the particular amount, or a part of it, to another amount that is or may become payable under any of those Acts and, for the purposes of any of those Acts,

    • (2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.

• — 2024, c. 17, s. 31

  • • 31 (1) Section 122.62 of the Act is amended by adding the following after subsection (8):

      • Death of child — qualified dependant

        (9) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be a qualified dependant at the beginning of a month if

        • (a) the person died in any of the six preceding months;

        • (b) the person’s date of birth was not 18 years or more prior to the beginning of the month; and

        • (c) the person was a qualified dependant immediately prior to their death.

      • Death of child — eligible individual

        (10) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be an eligible individual in respect of a qualified dependant at the beginning of a month if

        • (a) that qualified dependant is a qualified dependant at the beginning of that month because of subsection (9); and

        • (b) the person was an eligible individual in respect of the qualified dependant immediately before the qualified dependant’s death.

      • Death of child

        (11) For the purposes of paragraphs (a) and (b) of the description of E in subsection 122.61(1), if a person is deemed to be a qualified dependant at the beginning of a month because of subsection (9), the person is deemed to be the age at the beginning of that month that the person would have been at the beginning of that month had the person not died.

      • Death of child — disability tax credit

        (12) For the purposes of paragraph (a) of the description of N in subsection 122.61(1), if a person died on or after July 1 of a particular taxation year and an amount could have been deducted in respect of that person under section 118.3 for that taxation year, an amount is deemed to be deductible under section 118.3 in respect of that person for the immediately following taxation year.

    • (2) Subsection (1) applies in respect of the death of a person that occurs after 2024.

• — 2024, c. 17, ss. 111(1), (16) to (18)

  • Bill C-59

    • 111 (1) Subsections (2) to (34) apply if Bill C-59, introduced in the 1st session of the 44th Parliament and entitled the Fall Economic Statement Implementation Act, 2023 (in this section referred to as the “other Act”), receives royal assent.

    • (16) On the first day on which both subsection 114(1) of the other Act and section 98 of this Act are in force,

      • (a) subparagraph 18(1)(t)(v) of the English version of the Income Tax Act, as amended by subsection 114(1) of the other Act, is amended by striking out “or” at the end of that subparagraph 18(1)(t)(v);

      • (b) subparagraph 18(1)(t)(v) of the English version of the Income Tax Act, as amended by section 98 of this Act, is amended by striking out “or” at the end of that subparagraph 18(1)(t)(v);

      • (c) subparagraph 18(1)(t)(vi) of the English version of the Income Tax Act, as enacted by subsection 114(1) of the other Act, is amended by adding “or” at the end of that subparagraph 18(1)(t)(vi); and

      • (d) subparagraph 18(1)(t)(vi) of the Income Tax Act, as enacted by section 98 of this Act, is renumbered as 18(1)(t)(vii) and is repositioned accordingly if required.

    • (17) On the first day on which both subsection 115(1) of the other Act and section 99 of this Act are in force, subsection 164(2.01) of the Income Tax Act is replaced by the following:

      • Withholding of refunds

        (2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge and that are required to be filed by the taxpayer at or before that time under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister.

    • (18) On the first day on which both subsection 116(1) of the other Act and section 100 of this Act are in force, the portion of subsection 221.2(2) of the Income Tax Act before paragraph (a) is replaced by the following:

      • Re-appropriation of amounts

        (2) If a particular amount was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a person under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act or the Global Minimum Tax Act, the Minister may, on application by the person, appropriate the particular amount, or a part of it, to another amount that is or may become payable under any of those Acts and, for the purposes of any of those Acts,

• — 2024, c. 17, s. 170

  • • 170 (1) Paragraph (a) of the definition education savings plan in subsection 146.1(1) of the Income Tax Act is amended by striking out “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iv):

      • (v) the Minister designated for the purposes of the Canada Education Savings Act, and

    • (2) The definition subscriber in subsection 146.1(1) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):

      • (d) the Minister designated for the purposes of the Canada Education Savings Act, if that Minister entered into the plan with a promoter