Economic Action Plan 2013 Act, No. 2 (S.C. 2013, c. 40)
Full Document:
Assented to 2013-12-12
75. (1) Subsection 207.04(1) of the Act is replaced by the following:
Marginal note:Tax payable on prohibited or non-qualified investment
207.04 (1) The controlling individual of a registered plan that governs a trust shall pay a tax under this Part for a calendar year if, at any time in the year, the trust acquires property that is a prohibited investment, or a non-qualified investment, for the trust.
(2) Subsection 207.04(3) of the Act is replaced by the following:
Marginal note:Both prohibited and non-qualified investment
(3) For the purposes of this section and subsections 146(10.1), 146.2(6), 146.3(9) and 207.01(6), if a trust governed by a registered plan holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.
(3) Subsection 207.04(5) of the Act is repealed.
(4) Subsections (1) to (3) are deemed to have come into force on March 23, 2011.
76. (1) The portion of subsection 207.05(4) of the Act before paragraph (b) is replaced by the following:
Marginal note:Transitional rule
(4) If an individual so elects before March 2, 2013 in prescribed form, subsection (1) does not apply in respect of any advantage that is an amount included in the calculation of the transitional prohibited investment benefit of the individual for a taxation year provided that the transitional prohibited investment benefit
(a) is paid to the individual, from a RRIF or RRSP of the individual, on or before the later of April 2, 2013 and the day that is 90 days after the end of the taxation year; and
(2) Subsection (1) is deemed to have come into force on March 23, 2011.
77. (1) Subsection 207.06(2) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) the extent to which payments have been made from the person’s registered plan.
(2) Subsection 207.06(3) of the Act is repealed.
(3) Subsections (1) and (2) are deemed to have come into force on March 23, 2011.
78. (1) Section 207.061 of the Act is replaced by the following:
Marginal note:Income inclusion
207.061 A holder of a TFSA shall include in computing the holder’s income for a taxation year under Part I any portion of a distribution made in the year that is described in subparagraph (a)(ii) of the definition “specified distribution” in subsection 207.01(1) or subparagraph 207.06(1)(b)(ii) or that is specified by the Minister as part of an agreement to waive or cancel a liability for tax under this Part.
(2) Subsection (1) is deemed to have come into force on March 23, 2011.
79. The portion of subsection 207.07(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Return and payment of tax
207.07 (1) A person who is liable to pay tax under this Part for all or any part of a calendar year shall before July of the following calendar year
80. (1) The definition “labour-sponsored funds tax credit” in subsection 211.7(1) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:
(b) if the original acquisition of the share occurred after 1995 and before March 2, 2017, the amount that would be determined under subsection 127.4(6) — as that subsection would apply in respect of a claim made by the taxpayer under subsection 127.4(2) in respect of the original acquisition if subsection 127.4(6) were read without reference to paragraphs 127.4(6)(b) and (d) — in respect of the share; and
(c) in any other case, nil.
(2) Subsection (1) is deemed to have come into force on March 21, 2013.
81. (1) Section 211.81 of the Act is replaced by the following:
Marginal note:Tax for failure to reacquire certain shares
211.81 If a particular amount is payable under a prescribed provision of a provincial law for a taxation year of an individual as determined for the purposes of that provincial law (referred to in this section as the “relevant provincial year”), and an amount has been included in the computation of the labour-sponsored funds tax credit of the individual under subsection 127.4(6) in respect of an approved share that has been disposed of by a qualifying trust in respect of the individual, the individual shall pay a tax for the taxation year in which the relevant provincial year ends equal to the amount deducted by the individual under subsection 127.4(2) in respect of the share.
(2) Subsection (1) is deemed to have come into force on October 24, 2012.
82. (1) Subparagraph 212.1(3)(b)(iv) of the English version of the Act is replaced by the following:
(iv) a partnership of which the taxpayer or a person described in one of subparagraphs (i) to (iii) is a majority-interest partner or a member of a majority-interest group of partners (as defined in subsection 251.1(3))
(2) Paragraph 212.1(3)(e) of the Act is replaced by the following:
(e) a “designated partnership” means a partnership of which either a majority-interest partner or every member of a majority-interest group of partners (as defined in subsection 251.1(3)) is a non-resident person; and
83. (1) Paragraph 214(3)(f) of the Act is replaced by the following:
(f) where subsection 104(13) would, if Part I were applicable, require any part of an amount payable by a trust in its taxation year to a beneficiary to be included in computing the income of the non-resident person who is a beneficiary of the trust, that part is deemed to be an amount paid or credited to that person as income of or from the trust
(i) on, or at, the earliest of
(A) the day on which the amount was paid or credited,
(B) the day that is 90 days after the end of the taxation year, and
(C) if the taxation year is deemed by subparagraph 128.1(4)(a)(i) to end after July 25, 2012, the time that is immediately before the end of the taxation year, and
(ii) not at any later time;
(2) Subsection (1) is deemed to have come into force on July 25, 2012.
84. (1) Subparagraph 219(1)(d)(ii) of the Act is replaced by the following:
(ii) an amount deductible because of paragraphs 111(1)(b) and 115(1)(d) in computing the corporation’s base amount,
(2) Subsection 219(1.1) of the Act is replaced by the following:
Marginal note:Excluded gains
(1.1) For the purposes of subsection (1), the definition “taxable Canadian property” in subsection 248(1) shall be read without reference to paragraphs (a) and (c) to (e) of that definition and as if the only options, interests or rights referred to in paragraph (f) of that definition were those in respect of property described in paragraph (b) of that definition.
(3) Subsection (1) applies to the 1998 and subsequent taxation years.
(4) Subsection (2) is deemed to have come into force on March 5, 2010.
85. (1) Paragraph 239(2.21)(b) of the Act is replaced by the following:
(b) who is an official to whom taxpayer information has been provided for a particular purpose under paragraph 241(4)(a), (d), (f), (f.1), (i), (j.1) or (j.2)
(2) Subsection 239(3) of the Act is replaced by the following:
Marginal note:Penalty on conviction
(3) If a person is convicted under this section, the person is not liable to pay a penalty imposed under any of sections 162, 163, 163.2 and 163.3 for the same contravention unless the penalty is assessed before the information or complaint giving rise to the conviction was laid or made.
(3) Subsection (2) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.
86. (1) The Act is amended by adding the following after section 239:
Marginal note:Definitions
239.1 (1) The definitions in subsection 163.3(1) apply in this section.
Marginal note:Offences
(2) Every person that, without lawful excuse, the proof of which lies on the person,
(a) uses an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 230,
(b) acquires or possesses an electronic suppression of sales device, or a right in respect of an electronic suppression of sales device, that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230,
(c) designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230,
(d) supplies installation, upgrade or maintenance services for an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230, or
(e) participates in, assents to or acquiesces in the commission of, or conspires with any person to commit, an offence described in any of paragraphs (a) to (d),
is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $10,000 and not more than $500,000 or to imprisonment for a term not exceeding two years, or to both.
Marginal note:Prosecution on indictment
(3) Every person that is charged with an offence described in subsection (2) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to a fine of not less than $50,000 and not more than $1,000,000 or to imprisonment for a term not exceeding five years, or to both.
Marginal note:Penalty on conviction
(4) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 162, 163, 163.2 and 163.3 for the same action unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.
Marginal note:Stay of appeal
(5) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court of Canada and, upon that filing, the proceedings before that Court are stayed pending final determination of the outcome of the prosecution.
(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.
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