Budget Implementation Act, 2005 (S.C. 2005, c. 30)
Full Document:
Assented to 2005-06-29
10. (1) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order:
“specified plan”
« régime déterminé »
“specified plan” means an education savings plan
(a) that does not allow more than one beneficiary under the plan at any one time,
(b) under which the beneficiary is an individual in respect of whom paragraphs 118.3(1)(a) to (b) apply for the beneficiary’s taxation year that ends in the 21st year following the year in which the plan was entered into, and
(c) that provides that, at all times after the end of the 25th year following the year in which the plan was entered into, no other individual may be designated as a beneficiary under the plan;
(2) Clause 146.1(2)(d.1)(iii)(B) of the Act is replaced by the following:
(B) the payment is made in the year in which the plan is required to be terminated in accordance with paragraph (i), or
(3) Paragraphs 146.1(2)(h) and (i) of the Act are replaced by the following:
(h) the plan provides that no contribution (other than a contribution made by way of a transfer from another registered education savings plan) may be made into the plan after
(i) in the case of a specified plan, the 25th year following the year in which the plan was entered into, and
(ii) in any other case, the 21st year following the year in which the plan was entered into;
(i) the plan provides that it must be terminated on or before the last day of
(i) in the case of a specified plan, the 30th year following the year in which the plan was entered into, and
(ii) in any other case, the 25th year following the year in which the plan was entered into;
(4) The portion of paragraph 146.1(6.1)(b) of the Act before subparagraph (i) is replaced by the following:
(b) for the purposes of this paragraph, the definition “specified plan” in subsection (1) and paragraphs (2)(d.1), (h) and (i), the transferee plan is deemed to have been entered into on the day that is the earlier of
(5) Subsections (1) to (4) apply to the 2005 and subsequent taxation years.
11. (1) Paragraph (k) of the definition “money purchase limit” in subsection 147.1(1) of the Act is replaced by the following:
(k) for 2006, the greater of $19,000 and the former limit for the year,
(l) for 2007, the greater of $20,000 and the former limit for the year,
(m) for 2008, the greater of $21,000 and the former limit for the year,
(n) for 2009, the greater of $22,000 and the former limit for the year, and
(o) for each year after 2009, the greater of
(i) the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of
(A) the money purchase limit for 2009, and
(B) the quotient obtained when the average wage for the year is divided by the average wage for 2009, and
(ii) the money purchase limit for the preceding year;
(2) Subsection 147.1(1) of the Act is amended by adding the following in alphabetical order:
“former limit”
« ancien plafond »
“former limit” for each calendar year after 2005 and before 2010 means the greater of
(a) the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of
(i) $18,000, and
(ii) the quotient obtained when the average wage for the year is divided by the average wage for 2005, and
(b ) for 2006, $18,000, and for any other of those calendar years, the former limit for the preceding calendar year;
(3) Subsections (1) and (2) apply after 2004.
12. (1) Clauses 204.4(2)(a)(i)(A) and (B) of the Act are replaced by the following:
(A) not fewer than 20 beneficiaries are taxpayers described in any of paragraphs 149(1)(o) to (o.2), (o.4) or (s), or
(B) not fewer than 100 beneficiaries are taxpayers described in paragraph 149(1)(r) or (x),
(2) Subparagraphs 204.4(2)(a)(vi) and (vii) of the Act are replaced by the following:
(vi) the total value of all interests in the applicant owned by all trusts or corporations described in any of paragraphs 149(1)(o) to (o.2), (o.4) or (s) to which any one employer, either alone or together with persons with whom the employer was not dealing at arm’s length, has made contributions does not exceed 25% of the value of all its property,
(vii) the total value of all interests in the applicant owned by all trusts described in paragraph 149(1)(r) or (x) to which any one taxpayer, either alone or together with persons with whom the taxpayer was not dealing at arm’s length, has made contributions does not exceed 25% of the value of all its property, and
(3) Subsection 204.4(4) of the Act is replaced by the following:
Marginal note:Suspension of revocation
(4) Notwithstanding a notification to a taxpayer under subsection (3), for the purposes of sections 204.6 and 204.7, the taxpayer is deemed to be a registered investment for each month or part of a month after the notification during which an interest in, or a share of the capital stock of, the taxpayer continues, by virtue of having been a registered investment, to be a qualified investment for a plan or fund referred to in subsection (1).
(4) Subsections (1) to (3) apply to taxation years that begin after 2004.
13. (1) Clause (b)(iii)(A) of the definition “eligible investment” in subsection 204.8(1) of the Act is replaced by the following:
(A) a debt obligation, issued by the entity, that is prescribed to be a small business security, or
(2) Subsection (1) applies to taxation years that begin after 2004.
14. (1) Part XI of the Act is repealed.
(2) Subsection (1) applies to months that end after 2004.
15. (1) The heading of Part X1.1 of the Act is replaced by the following:
TAX IN RESPECT OF DEFERRED INCOME PLANS AND OTHER TAX EXEMPT PERSONS
(2) Subsection (1) applies to months that end after 2004.
16. (1) Section 207.1 of the Act is amended by adding the following after subsection (4):
Marginal note:Tax payable in respect of agreement to acquire shares
(5) Where at any time a taxpayer whose taxable income is exempt from tax under Part I makes an agreement (otherwise than as a consequence of the acquisition or writing by it of an option listed on a prescribed stock exchange) to acquire a share of the capital stock of a corporation (otherwise than from the corporation) at a price that may differ from the fair market value of the share at the time the share may be acquired, the taxpayer shall, in respect of each month during which the taxpayer is a party to the agreement, pay a tax under this Part equal to the total of all amounts each of which is the amount, if any, by which the amount of a dividend paid on the share at a time in the month at which the taxpayer is a party to the agreement exceeds the amount, if any, of the dividend that is received by the taxpayer.
(2) Subsection (1) applies to months that end after 2004.
17. (1) The definition “automobile” in subsection 248(1) of the Act is amended by adding the following after paragraph (b.1):
(b.2) a clearly marked emergency medical response vehicle that is used, in connection with or in the course of an individual’s office or employment with an emergency medical response or ambulance service, to carry emergency medical equipment together with one or more emergency medical attendants or paramedics,
(2) Paragraph (c) of the definition “disposition” in subsection 248(1) of the Act is replaced by the following:
(c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by paragraph (f) or (k), and
(3) Paragraph (g) of the definition “disposition” in subsection 248(1) of the Act is repealed.
(4) Subsection (1) applies to the 2005 and subsequent taxation years.
(5) Subsections (2) and (3) apply to dispositions that occur after 2004.
18. (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Proportional holdings in trust property
259. (1) For the purposes of subsections 146(6), (10) and (10.1) and 146.3(7), (8) and (9) and Parts X, X.2 and XI.1, if at any time a taxpayer that is a registered investment or that is described in paragraph 149(1)(r), (s), (u) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,
(2) Paragraph 259(1)(c) of the Act is repealed.
(3) Subsection 259(2) of the Act is repealed.
(4) Subsections 259(3) and (4) of the Act are replaced by the following:
Marginal note:Election
(3) An election by a qualified trust under subsection (1) shall be made by the qualified trust filing a prescribed form with the Minister and shall apply for the period
(a) that begins on the later of
(i) the day that is 15 months before the day on which the election is filed, and
(ii) the day, if any, that is designated by the qualified trust in the election; and
(b) that ends on the earlier of
(i) the day on which the qualified trust files with the Minister a notice of revocation of the election, and
(ii) the day, if any, that is designated by the qualified trust in the notice of revocation and that is not before the day that is 15 months before the day on which the notice of revocation is filed.
Marginal note:Requirement to provide information
(4) Where a qualified trust elects under subsection (1),
(a) it shall provide notification of the election
(i) within 30 days after making the election, to each person who held a unit in the qualified trust at any time in the period before the election was made and during which the election is applicable, and
(ii) at the time of acquisition, to each person who acquires a unit in the qualified trust at any time in the period after the election was made and during which the election is applicable; and
(b) if a person who holds a unit in the qualified trust at any time in the period during which the election is applicable makes a written request to the qualified trust for information that is necessary for the purpose of determining the consequences under this Act of the election for that person, the qualified trust shall provide to the person that information within 30 days after receiving the request.
(5) The definition “qualified corporation” in subsection 259(5) of the Act is repealed.
(6) Subsections (1) to (5) apply to taxation years that begin after 2004.
- Date modified: