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

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Regulations are current to 2023-01-11 and last amended on 2023-01-01. Previous Versions

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. 70

      • 70 (1) The definition remuneration in subsection 100(1) of the Income Tax Regulations is amended by striking out “or” at the end of paragraph (o), by adding “or” at the end of paragraph (p) and by adding the following after paragraph (p):

        • (q) a payment described in paragraph 153(1)(v) of the Act; (rémunération)

      • (2) Subsection 100(3) of the Regulations is amended by striking out “or” at the end of paragraph (c) and by adding the following after that paragraph:

        • (c.1) a contribution to or under a FHSA, to the extent that the employer believes on reasonable grounds that the contribution is deductible under subsection 146.6(5) of the Act in computing the employee’s income for the taxation year in which the payment of remuneration is made, or

      • (3) Subsections (1) and (2) come into force on April 1, 2023.

  • — 2022, c. 19, s. 71

      • 71 (1) Subsection 103(6) of the Regulations is amended by striking out “or” at the end of paragraph (g), by adding “or” at the end of paragraph (h) and by adding the following after paragraph (h):

        • (i) a payment described in paragraph 153(1)(v) of the Act.

      • (2) Subsection (1) comes into force on April 1, 2023.

  • — 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, s. 73

      • 73 (1) The table in subsection 205(3) of the Regulations is amended by adding the following in alphabetical order:

        First Home Savings Account (FHSA) Annual Information Return
      • (2) Subsection (1) comes into force on April 1, 2023.

  • — 2022, c. 19, s. 74

      • 74 (1) The table in subsection 205.1(1) of the Regulations is amended by adding the following in alphabetical order:

        First Home Savings Account (FHSA) Annual Information Return
      • (2) Subsection (1) comes into force on April 1, 2023.

  • — 2022, c. 19, s. 75

      • 75 (1) Subsection 209(1) of the Regulations is replaced by the following:

          • 209 (1) A person who is required by section 200, 201, 202, 203, 204, 212, 214, 215, 217 or 218, subsection 219(2) or 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer.

      • (2) The portion of subsection 209(5) of the Regulations before paragraph (a) is replaced by the following:

        • (5) A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate or a FHSA information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless

      • (3) Subsections (1) and (2) come into force on April 1, 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.

  • — 2022, c. 19, s. 88

      • 88 (1) Subsection 4900(5) of the Regulations is replaced by the following:

        • (5) For the purposes of paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (d) of the definition qualified investment in subsection 146.4(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a FHSA, a registered disability savings plan, a registered education savings plan or a TFSA at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year.

      • (2) The portion of subsection 4900(14) of the Regulations before paragraph (a) is replaced by the following:

        • (14) For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA at any time if, at the time the property was acquired by the trust, the property

      • (3) Subparagraph 4900(14)(a)(iii) of the Regulations is replaced by the following:

        • (iii) a qualifying share in respect of a specified cooperative corporation and the FHSA, RESP, RRIF, RRSP or TFSA; and

      • (4) Subsection 4900(15) of the Regulations is replaced by the following:

        • (15) For the purposes of the definition prohibited investment in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii).

      • (5) Subsections (1) to (4) come into force on April 1, 2023.

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