Economic Action Plan 2013 Act, No. 2 (S.C. 2013, c. 40)
Full Document:
Assented to 2013-12-12
25. (1) Subparagraph 56(1)(a)(i) of the Act is amended by striking out “and” at the end of clause (E), by adding “and” at the end of clause (F) and by adding the following after clause (F):
(G) an amount received out of or under a registered pension plan as a return of all or a portion of a contribution to the plan to the extent that the amount
(I) is a payment made to the taxpayer under subsection 147.1(19) or subparagraph 8502(d)(iii) of the Income Tax Regulations, and
(II) is not deducted in computing the taxpayer’s income for the year or a preceding taxation year,
(2) Subsection 56(8) of the French version of the Act is replaced by the following:
Marginal note:Prestations du RPC/RRQ pour années antérieures
(8) Malgré les paragraphes (1) et (6), dans le cas où une ou plusieurs sommes sont reçues par un particulier (sauf une fiducie) au cours d’une année d’imposition au titre ou en paiement intégral ou partiel d’une prestation prévue par le Régime de pensions du Canada ou par un régime provincial de pensions au sens de l’article 3 de cette loi ou seraient incluses, en l’absence du présent paragraphe, dans le calcul de son revenu pour une année d’imposition en application du paragraphe (6) et qu’une partie d’au moins 300 $ du total de ces sommes se rapporte à une ou plusieurs années d’imposition antérieures, le particulier n’a pas à inclure cette partie dans son revenu, s’il en fait le choix.
(3) Paragraph 56(8)(a) of the English version of the Act is replaced by the following:
(a) one or more amounts
(i) are received by an individual (other than a trust) in a taxation year as, on account of, in lieu of payment of or in satisfaction of, any benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, or
(ii) would be, but for this subsection, included in computing the income of an individual for a taxation year under subsection (6), and
(4) Subsection (1) applies to contributions made on or after the later of January 1, 2014 and the day on which this Act receives royal assent.
(5) Subsections (2) and (3) apply to the 2006 and subsequent taxation years.
26. (1) Subparagraph 60(q)(i) of the Act is replaced by the following:
(i) the amount has been included in computing the income of the taxpayer for the year or a preceding taxation year as an amount described in subparagraph 56(1)(n)(i) or paragraph 56(1)(o) paid to the taxpayer by the payer,
(2) Subsection (1) is deemed to have come into force on March 1, 1994.
27. (1) Section 60.001 of the Act is repealed.
(2) Subsection (1) applies to orders made after the day on which this Act receives royal assent.
28. The portion of subsection 60.1(1) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Pension alimentaire
60.1 (1) Pour l’application de l’alinéa 60b) et du paragraphe 118(5), dans le cas où une ordonnance ou un accord, ou une modification s’y rapportant, prévoit le paiement d’un montant par un contribuable à une personne ou à son profit, au profit d’enfants confiés à sa garde ou à la fois au profit de la personne et de ces enfants, le montant ou une partie de celui-ci est réputé :
29. Section 60.11 of the Act is repealed.
30. (1) Subsections 66(11.4) and (11.5) of the Act are replaced by the following:
Marginal note:Loss restriction event
(11.4) If
(a) at any time a taxpayer is subject to a loss restriction event,
(b) within the 12-month period that ended immediately before that time, the taxpayer, a partnership of which the taxpayer was a majority-interest partner or a trust of which the taxpayer was a majority-interest beneficiary (as defined in subsection 251.1(3)) acquired a Canadian resource property or a foreign resource property (other than a property that was held, by the taxpayer, partnership or trust or by a person that would be affiliated with the taxpayer if section 251.1 were read without reference to the definition “controlled” in subsection 251.1(3), throughout the period that began immediately before the 12-month period began and ended at the time the property was acquired by the taxpayer, partnership or trust), and
(c) immediately before the 12-month period began the taxpayer, partnership or trust was not, or would not be if it were a corporation, a principal-business corporation,
for the purposes of subsection (4) and sections 66.2, 66.21 and 66.4, except as those provisions apply for the purposes of section 66.7, the property is deemed not to have been acquired by the taxpayer, partnership or trust, as the case may be, before that time, except that if the property has been disposed of by it before that time and not reacquired by it before that time, the property is deemed to have been acquired by the taxpayer, partnership or trust, as the case may be, immediately before it disposed of the property.
Marginal note:Affiliation — subsection (11.4)
(11.5) For the purposes of subsection (11.4), if the taxpayer referred to in that subsection was formed or created in the 12-month period referred to in that subsection, the taxpayer is deemed to have been, throughout the period that began immediately before the 12-month period and ended immediately after it was formed or created,
(a) in existence; and
(b) affiliated with every person with whom it was affiliated (otherwise than because of a right referred to in paragraph 251(5)(b)) throughout the period that began when it was formed or created and that ended immediately before the time at which the taxpayer was subject to the loss restriction event referred to in that subsection.
Marginal note:Trust loss restriction event — successor
(11.6) If at any time a trust is subject to a loss restriction event,
(a) for the purposes of the provisions of this Act relating to deductions in respect of drilling and exploration expenses, prospecting, exploration and development expenses, Canadian exploration and development expenses, foreign resource pool expenses, Canadian exploration expenses, Canadian development expenses and Canadian oil and gas property expenses (in this subsection referred to as “resource expenses”) incurred by the trust before that time, the following rules apply:
(i) the trust is (other than for purposes of this subsection and subsections (11.4), (11.5) and 66.7(10) to (11)) deemed to be a corporation that
(A) after that time is a successor (within the meaning assigned by any of subsections 66.7(1), (2) and (2.3) to (5)), and
(B) at that time, acquired all the properties held by the trust immediately before that time from an original owner of those properties,
(ii) if the trust did not hold a foreign resource property immediately before that time, the trust is deemed to have owned a foreign resource property immediately before that time,
(iii) a joint election is deemed to have been filed in accordance with subsections 66.7(7) and (8) in respect of the acquisition described in clause (i)(B),
(iv) the resource expenses incurred by the trust before that time are deemed to have been incurred by an original owner of the properties and not by the trust,
(v) the original owner is deemed to have been resident in Canada at every time before that time at which the trust was resident in Canada,
(vi) if at that time the trust is a member of a partnership and the property of the partnership includes a Canadian resource property or a foreign resource property,
(A) for the purposes of clause (i)(B), the trust is deemed to have held immediately before that time that portion of the partnership’s property at that time that is equal to the trust’s percentage share of the total of amounts that would be paid to all members of the partnership if it were wound up at that time, and
(B) for the purposes of clauses 66.7(1)(b)(i)(C) and (2)(b)(i)(B), subparagraph 66.7(2.3)(b)(i) and clauses 66.7(3)(b)(i)(C), (4)(b)(i)(B) and (5)(b)(i)(B) for a taxation year that ends after that time, the lesser of the following amounts is deemed to be income of the trust for the year that can reasonably be regarded as attributable to production from the property:
(I) the trust’s share of the part of the income of the partnership for the fiscal period of the partnership that ends in the year that can reasonably be regarded as attributable to the production from the property, and
(II) an amount that would be determined under subclause (I) for the year if the trust’s share of the income of the partnership for the fiscal period of the partnership that ends in the year were determined on the basis of the percentage share referred to in clause (A), and
(vii) if after that time the trust disposes of property that was at that time held by the trust to another person, subsections 66.7(1) to (5) do not apply in respect of the acquisition by the other person of the property; and
(b) if before that time, the trust or a partnership of which the trust was a member acquired a property that is a Canadian resource property, a foreign resource property or an interest in a partnership and it can reasonably be considered that one of the main purposes of the acquisition is to avoid any limitation provided in any of subsections 66.7(1) to (5) on the deduction in respect of any expenses incurred by the trust, then the trust or the partnership, as the case may be, is deemed, for the purposes of applying those subsections to or in respect of the trust, not to have acquired the property.
(2) Subparagraph 66(12.66)(b)(ii) of the Act is replaced by the following:
(ii) would be described in paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) if the reference to “paragraphs (a) to (d) and (f) to (g.4)” in that paragraph were read as “paragraphs (a), (d), (f) and (g.1)”, or
(3) Subsection (1) is deemed to have come into force on March 21, 2013, except that subsection 66(11.4) of the Act, as enacted by subsection (1), is to be read as follows before September 13, 2013:
(11.4) If
(a) at any time a taxpayer is subject to a loss restriction event,
(b) within the 12-month period that ended immediately before that time, the taxpayer or a partnership of which the taxpayer was a majority-interest partner acquired a Canadian resource property or a foreign resource property (other than a property that was held, by the taxpayer or partnership or by a person that would be affiliated with the taxpayer if section 251.1 were read without reference to the definition “controlled” in subsection 251.1(3), throughout the period that began immediately before the 12-month period began and ended at the time the property was acquired by the taxpayer or partnership), and
(c) immediately before the 12-month period began the taxpayer or partnership was not, or would not be if it were a corporation, a principal-business corporation,
for the purposes of subsection (4) and sections 66.2, 66.21 and 66.4, except as those provisions apply for the purposes of section 66.7, the property is deemed not to have been acquired by the taxpayer or partnership, as the case may be, before that time, except that if the property has been disposed of by it before that time and not reacquired by it before that time, the property is deemed to have been acquired by the taxpayer or partnership, as the case may be, immediately before it disposed of the property.
(4) Subsection (2) is deemed to have come into force on March 22, 2011, except that before March 21, 2013 subparagraph 66(12.66)(b)(ii) of the Act, as enacted by subsection (2), is to be read as follows:
(ii) would be described in paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) if the reference to “paragraphs (a) to (d) and (f) to (g.2)” in that paragraph were read as “paragraphs (a), (d), (f) and (g.1)”, or
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