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

AMENDMENTS NOT IN FORCE

• — 2022, c. 10, ss. 44(1), (5), (9), (11)

  • • 44 (1) Subparagraphs (c)(i) and (ii) of Class 43.1 in Schedule II to the Regulations are replaced by the following:

      • (i) part of a system that

        • (A) is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy, or both electrical and heat energy, using only fuel that is eligible waste fuel, fossil fuel, producer gas, spent pulping liquor or any combination of those fuels,

        • (B) if the system is rated to generate more than three megawatts of electrical energy, meets the following condition on an annual basis:

          A ≥ (2 × B + C)/(D + E/3412)

          where

          A

          is 11,000 BTU per kilowatt-hour,

          B

          is the energy content of fossil fuel other than solution gas (expressed as the higher heating value of the fuel) consumed by the system in BTU,

          C

          is the energy content of the eligible waste fuel, producer gas and spent pulping liquor (expressed as the higher heating value of the fuel) consumed by the system in BTU,

          D

          is the gross electrical energy produced by the system in kilowatt-hours, and

          E

          is the net useful energy in the form of heat exported from the system to a thermal host in BTU, and

        • (C) uses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis, or

    • (5) Subparagraph (d)(ix) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

      • (ix) equipment that

        • (A) is used by the taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, not using any fuel other than eligible waste fuel, fossil fuel, producer gas or a combination of those fuels,

        • (B) uses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis,

        • (C) may include

          • (I) fuel handling equipment used to upgrade the combustible portion of the fuel,

          • (II) control, feedwater and condensate systems, and

          • (III) other ancillary equipment, and

        • (D) does not include

          • (I) equipment used for the purpose of producing heat energy to operate electrical generating equipment,

          • (II) buildings or other structures,

          • (III) heat rejection equipment (such as condensers and cooling water systems),

          • (IV) fuel storage facilities,

          • (V) other fuel handling equipment, and

          • (VI) property otherwise included in Class 10 or 17,

    • (9) Subparagraph (d)(xvi) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

      • (xvi) equipment that

        • (A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating producer gas (other than producer gas that is to be converted into liquid fuels or chemicals),

        • (B) uses feedstock of which no more than 25% of the energy content (expressed as the higher heating value of the feedstock) is from fossil fuel, as determined on an annual basis,

        • (C) may include

          • (I) related piping (including fans and compressors),

          • (II) air separation equipment,

          • (III) storage equipment,

          • (IV) equipment used for drying or shredding feedstock,

          • (V) ash-handling equipment,

          • (VI) equipment used to upgrade the producer gas into biomethane, and

          • (VII) equipment used to remove non-combustibles and contaminants from the producer gas, and

        • (D) does not include

          • (I) buildings or other structures,

          • (II) heat rejection equipment (such as condensers and cooling water systems),

          • (III) equipment used to convert producer gas into liquid fuels or chemicals, and

          • (IV) property otherwise included in Class 10 or 17,

    • (11) Subsections (1), (5) and (9) apply in respect of property of a taxpayer that becomes available for use by the taxpayer after 2024.

• — 2022, c. 10, s. 45

  • • 45 (1) Paragraph (a) of Class 43.2 in Schedule II to the Regulations is replaced by the following:

      • (a) otherwise than because of paragraph (d) of that Class; or

    • (2) Subparagraph (b)(i) of Class 43.2 in Schedule II to the Regulations is repealed.

    • (3) Subsections (1) and (2) apply in respect of property of a taxpayer that becomes available for use by the taxpayer after 2024.

• — 2022, c. 19, s. 72

  • • 72 (1) The Regulations are amended by adding the following after section 204.1:

      Additional Reporting — Trusts

      • • 204.2 (1) For the purposes of subsection 150(1) of the Act, every person having the control of, or receiving income, gains or profits in a fiduciary capacity, or in a capacity analogous to a fiduciary capacity, shall provide information in respect of a trust, unless the trust is subject to one of the exceptions listed in paragraphs 150(1.2)(a) to (o) of the Act, that includes the name, address, date of birth (in the case of an individual other than a trust), jurisdiction of residence and TIN (as defined in subsection 270(1) of the Act) for each person who, in the year,

          • (a) is a trustee, beneficiary (subject to subsection (2)) or settlor (as defined in subsection 17(15) of the Act) of the trust; or

          • (b) has the ability (through the terms of the trust or a related agreement) to exert influence over trustee decisions regarding the appointment of income or capital of the trust.

        • (2) For the purposes of subsection (1), the requirement in paragraph (1)(a) to provide required information in respect of beneficiaries of a trust in a return is met if

          • (a) the required information is provided in respect of each beneficiary of the trust whose identity is known or ascertainable with reasonable effort by the person making the return at the time of filing the return;

          • (b) in respect of a trust, the beneficiaries of which are all of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982, or an identifiable class of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982, the person making the return provides a sufficiently detailed description of the class of beneficiaries to determine with certainty whether any particular person is a member of that class of beneficiaries;

          • (c) in respect of a trust that is not described in paragraph 150(1.2)(h) of the Act but which has one or more classes of units that are listed on a designated stock exchange, the person making the return provides the required information regarding the beneficiaries of those classes of units that are not listed on a designated stock exchange; and

          • (d) in respect of beneficiaries not described in paragraphs (a) to (c), the person making the return provides sufficiently detailed information to determine with certainty whether any particular person is a beneficiary of the trust.

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

• — 2022, c. 19, ss. 77(1), (4)

  • • 77 (1) Paragraphs 309.1(b) and (c) of the Regulations are replaced by the following:

      • (b) there shall be included the insurer’s maximum tax actuarial reserve (in this section as defined in subsection 138(12) of the Act) for the immediately preceding taxation year in respect of participating life insurance policies in Canada;

      • (c) there shall not be included any amount in respect of the insurer’s participating life insurance policies in Canada that was deducted under subparagraph 138(3)(a)(i) of the Act in computing its income for the immediately preceding taxation year;

    • (4) Subsection (1) applies to taxation years that begin after 2023.

• — 2022, c. 19, s. 87

  • • 87 (1) The portion of subsection 4802(1.1) of the Regulations before paragraph (a) is replaced by the following:

      • (1.1) For the purposes of subparagraph 127.55(f)(iii) and paragraphs 149(1)(o.4) and 150(1.2)(i) of the Act, a trust is prescribed at any particular time if, at all times after its creation and before the particular time,

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

• — 2023, c. 26, s. 97

  • • 97 (1) Subsection 205(3) of the Regulations is amended by adding the following in alphabetical order:

      Part XX Information Return – Digital Platform Operators

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

• — 2023, c. 26, s. 98

  • • 98 (1) The portion of subsection 205.1(1) of the Regulations, before the list of types of prescribed information returns, is replaced by the following:

      • • 205.1 (1) For the purpose of subsection 162(7.02) of the Act, the following types of information returns are prescribed and must be filed electronically if more than five information returns of that type are required to be filed for a calendar year:

    • (2) The portion of subsection 205.1(2) of the Regulations before paragraph (a) is replaced by the following:

      • (2) For purposes of subsection 150.1(2.1) of the Act, a prescribed corporation is any corporation except

    • (3) Subsection (1) applies in respect of information returns filed after 2023.

    • (4) Subsection (2) applies to taxation years that begin after 2023.