Economic Action Plan 2014 Act, No. 1 (S.C. 2014, c. 20)
Full Document:
Assented to 2014-06-19
13. (1) Paragraph (a) of the description of C in section 118.8 of the Act is replaced by the following:
(a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under subsection 118(1) because of paragraph (c) of the description of B in that subsection, under subsection 118(10) or under any of sections 118.01 to 118.07, 118.3, 118.61 and 118.7)
(2) Subparagraph (b)(ii) of the description of C in section 118.8 of the Act is replaced by the following:
(ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7).
(3) Subsections (1) and (2) apply to the 2014 and subsequent taxation years.
14. (1) The description of B in paragraph 118.81(a) of the Act is replaced by the following:
- B
- is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7), and
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
15. (1) Section 118.92 of the Act is replaced by the following:
Marginal note:Ordering of credits
118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
16. (1) Section 118.94 of the Act is replaced by the following:
Marginal note:Tax payable by non-residents (credits restricted)
118.94 Sections 118 to 118.07 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year.
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
17. (1) The portion of subsection 122.5(3) of the Act before the formula is replaced by the following:
Marginal note:Deemed payment on account of tax
(3) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to ¼ of the amount, if any, determined by the formula
(2) Subsection 122.5(5) of the Act is replaced by the following:
Marginal note:Only one eligible individual
(5) If an individual is a qualified relation of another individual in relation to a month specified for a taxation year and both those individuals would be, but for this subsection, eligible individuals in relation to the specified month, only the individual that the Minister designates is the eligible individual in relation to the specified month.
(3) Subsections (1) and (2) apply to the 2014 and subsequent taxation years.
18. (1) Paragraph (a) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act is replaced by the following:
(a) that is a Canadian exploration expense incurred by a corporation after March 2014 and before 2016 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2016) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1),
(2) Paragraphs (c) and (d) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act are replaced by the following:
(c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2014 and before April 2015, and
(d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2014 and before April 2015;
(3) Subsections (1) and (2) apply to expenses renounced under a flow-through share agreement entered into after March 2014.
19. (1) Paragraph 127.531(a) of the Act is replaced by the following:
(a) an amount deducted under any of subsections 118(1), (2) and (10), sections 118.01 to 118.07, subsection 118.3(1), sections 118.5 to 118.7 and 119 and subsection 127(1) in computing the individual’s tax payable for the year under this Part; or
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
20. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:
(A) under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.6, 118.8 and 118.9,
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
21. (1) Subsection 149.1(4.1) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e):
(f) of a registered charity, if it accepts a gift from a foreign state, as defined in section 2 of the State Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.
(2) Subsection 149.1(4.2) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) if the association accepts a gift from a foreign state, as defined in section 2 of the State Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.
(3) Subsection 149.1(25) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) the charity or association has accepted a gift from a foreign state, as defined in section 2 of the State Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.
(4) Subsections (1) to (3) apply in respect of gifts accepted after February 10, 2014.
22. (1) Subsection 152(1.2) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) if the Minister determines the amount deemed by subsection 122.5(3) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.
(2) Subsection 152(10) of the Act is replaced by the following:
Marginal note:Tax deemed not assessed
(10) Notwithstanding any other provision of this section, an amount of tax is deemed, for the purpose of any agreement entered into by or on behalf of the Government of Canada under section 7 of the Federal-Provincial Fiscal Arrangements Act, not to have been assessed under this Act until
(a) the end of the period during which the security is accepted by the Minister, if adequate security for the tax is accepted by the Minister under subsection 220(4.5) or (4.6); or
(b) the amount is collected by the Minister, if information relevant to the assessment of the amount was provided to the Canada Revenue Agency under a contract entered into by a person under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance.
(3) Subsection (1) applies to the 2014 and subsequent taxation years.
23. Paragraph 153(1)(s) of the Act is replaced by the following:
(s) an amount described in paragraph 56(1)(r), (z.2) or (z.4), or
24. (1) The portion of subsection 204.81(8.3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Transitional rules
(8.3) If a registered labour-sponsored venture capital corporation notifies the Minister in writing of its intent to revoke its registration under this Part, the following rules apply:
(2) Subsection (1) is deemed to have come into force on November 27, 2013.
25. (1) Paragraph 204.85(3)(d) of the Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v):
(vi) immediately before the amalgamation or merger, one or more of the predecessor corporations is a corporation that has given notification under subsection 204.81(8.3) and one or more of the predecessor corporations is a registered labour-sponsored venture capital corporation that has not given notification under that subsection;
(2) Subsection (1) is deemed to have come into force on November 27, 2013.
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