Economic Action Plan 2015 Act, No. 1 (S.C. 2015, c. 36)
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Assented to 2015-06-23
PART 1AMENDMENTS TO THE INCOME TAX ACT AND TO RELATED LEGISLATION
R.S., c. 1 (5th Supp.)Income Tax Act
9. (1) Section 118.92 of the Act, as enacted by subsection 31(2), 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, 118.031, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
10. (1) Paragraph 121(a) of the Act is replaced by the following:
(a) the product of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be included in computing the individual’s income for the year multiplied by
(i) for the 2016 taxation year, 21/29,
(ii) for the 2017 and 2018 taxation years, 20/29, and
(iii) for taxation years after 2018, 9/13; and
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
11. (1) Paragraphs 125(1.1)(a) and (b) of the Act are replaced by the following:
(a) that proportion of 17% that the number of days in the taxation year that are in 2015 is of the number of days in the taxation year,
(b) that proportion of 17.5% that the number of days in the taxation year that are in 2016 is of the number of days in the taxation year,
(c) that proportion of 18% that the number of days in the taxation year that are in 2017 is of the number of days in the taxation year,
(d) that proportion of 18.5% that the number of days in the taxation year that are in 2018 is of the number of days in the taxation year, and
(e) that proportion of 19% that the number of days in the taxation year that are after 2018 is of the number of days in the taxation year.
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
12. (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 2015 and before 2017 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2017) 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 2015 and before April 2016, 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 2015 and before April 2016;
(3) Subsections (1) and (2) apply to expenses renounced under a flow-through share agreement entered into after March 2015.
13. Paragraph (a) of the definition “tax deferred cooperative share” in subsection 135.1(1) of the Act is replaced by the following:
(a) issued, after 2005 and before 2021, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage;
14. (1) Paragraph 137(4.3)(a) of the Act is replaced by the following:
(a) the preferred-rate amount of a corporation at the end of a taxation year is determined by the formula
A + B/C
where
- A
- is its preferred-rate amount at the end of its immediately preceding taxation year,
- B
- is the amount deductible under section 125 from the tax for the taxation year otherwise payable by it under this Part, and
- C
- is its small business deduction rate for the taxation year within the meaning of subsection 125(1.1);
(2) Subsection (1) applies to the 2016 and subsequent taxation years.
15. Section 146.3 of the Act is amended by adding the following after subsection (1.2):
Marginal note:Exceptions
(1.3) For the purposes of subsections (5.1) and 153(1) and the definition “periodic pension payment” in section 5 of the Income Tax Conventions Interpretation Act, the minimum amount under a retirement income fund for 2015 is the amount that would be the minimum amount under the fund for the year if it were determined using the prescribed factors under subsection 7308(3) or (4), as the case may be, of the Income Tax Regulations as they read on December 31, 2014.
16. Clause (a)(ii)(B.1) of the definition “disability savings plan” in subsection 146.4(1) of the Act is replaced by the following:
(B.1) if the arrangement is entered into before 2019, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,
17. Paragraph 147.5(3)(b) of the Act is replaced by the following:
(b) a contribution is made to the plan in respect of a member after the calendar year in which the member attains 71 years of age, other than an amount
(i) described in subparagraph (a)(iii), or
(ii) if subsection 60.022(1) applies, described in any of subclauses 60(l)(v)(B.2)(II) to (IV) as read in that subsection;
18. (1) Subparagraph (a)(v) of the definition “qualified donee” in subsection 149.1(1) of the Act is replaced by the following:
(v) a foreign charity that has applied to the Minister for registration under subsection (26),
(2) The portion of subsection 149.1(26) of the Act before subparagraph (b)(i) is replaced by the following:
Marginal note:Foreign charities
(26) For the purposes of subparagraph (a)(v) of the definition “qualified donee” in subsection (1), the Minister may register, in consultation with the Minister of Finance, a foreign charity for a 24-month period that includes the time at which Her Majesty in right of Canada has made a gift to the foreign charity, if
(a) the foreign charity is not resident in Canada; and
(b) the Minister is satisfied that the foreign charity is
(3) Subsections (1) and (2) apply to applications made on or after the day on which this Act receives royal assent.
19. The definition “TFSA dollar limit” in subsection 207.01(1) of the Act is replaced by the following:
“TFSA dollar limit”
« plafond CÉLI »
“TFSA dollar limit” for a calendar year means,
(a) for 2009 to 2012, $5,000;
(b) for 2013 and 2014, $5,500; and
(c) for each year after 2014, $10,000.
C.R.C., c. 945Income Tax Regulations
20. (1) Subsection 108(1) of the Income Tax Regulations is replaced by the following:
108. (1) Subject to subsections (1.1) to (1.13), amounts deducted or withheld in a month under subsection 153(1) of the Act shall be remitted to the Receiver General on or before the 15th day of the following month.
(2) Section 108 of the Regulations is amended by adding the following after subsection (1.12):
(1.13) If an employer is a new employer throughout a particular month in a particular calendar year, all amounts deducted or withheld from payments described in the definition “remuneration” in subsection 100(1) that are made by the employer in the month may be remitted to the Receiver General
(a) in respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;
(b) in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;
(c) in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and
(d) in respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.
(3) Section 108 of the Regulations is amended by adding the following after subsection (1.2):
(1.21) For the purposes of subsection (1.4), the monthly withholding amount, in respect of an employer for a month, is the total of all amounts each of which is an amount required to be remitted with respect to the month by the employer or, if the employer is a corporation, by each corporation associated with the corporation, under
(a) subsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, if the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition “remuneration” in subsection 100(1);
(b) subsection 21(1) of the Canada Pension Plan; or
(c) subsection 82(1) of the Employment Insurance Act.
(4) Section 108 of the Regulations is amended by adding the following after subsection (1.3):
(1.4) For the purposes of subsection (1.13) an employer
(a) becomes a new employer at the beginning of any month after 2015 in which the employer first becomes an employer; and
(b) ceases to be a new employer at a specified time in a particular year, if in a particular month the employer does not meet any of the following conditions:
(i) the monthly withholding amount in respect of the employer for the particular month is less than $1,000,
(ii) throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, subsection 21(1) of the Canada Pension Plan, subsection 82(1) of the Employment Insurance Act or Part IX of the Excise Tax Act, and
(iii) throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under the Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts.
(1.41) For the purposes of subsection (1.4), the specified time is the end of
(a) March of the particular year, if the particular month is January, February or March of that year;
(b) June of the particular year, if the particular month is April, May or June of that year;
(c) September of the particular year, if the particular month is July, August or September of that year; and
(d) December of the particular year, if the particular month is October, November or December of that year.
(5) Subsections (1) to (4) apply in respect of amounts deducted or withheld after 2015.
- Date modified: