Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)

• 98 (1) The portion of subsection 6204(1) of the Regulations before paragraph (a) is replaced by the following:

  • 6204 (1) For the purposes of subparagraph 110(1)(d)(i.1) of the Act, a share is a prescribed share of the capital stock of a corporation at the time of its sale or issue, as the case may be, if, at that time,

• (2) Subsection (1) applies in respect of acquisitions of securities and transfers or dispositions of rights that occur after 4:00 pm Eastern Standard Time on March 4, 2010.

• 99 (1) Section 6503 of the Regulations is replaced by the following:

  6503 For the purposes of paragraphs 60(j.02) to (j.04) of the Act, subsection 41(5) of the Canadian Forces Superannuation Act, subsections 39(7) and 42(8) of the Public Service Superannuation Act and subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act are prescribed.

• (2) Subsection (1) applies in respect of repayments made after March 2007.

• 100 (1) Section 7300 of the Regulations is amended by striking out “or” at the end of paragraph (c) and by adding the following after that paragraph:

  • (c.1) an amount that is the portion of a student loan forgiven under a provincial program that would be a prescribed amount because of paragraph (c) if section 11.1 of the Canada Student Loans Act or 9.2 of the Canada Student Financial Assistance Act applied to loans under that program; or

• (2) Subsection (1) is deemed to have come into force on January 1, 2013.

• 101 (1) Subparagraph 8302(4)(b)(i) of the Regulations is replaced by the following:

  • (i) the election may be made only if the life expectancy of the individual is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the individual resides, and

• (2) Subsection (1) applies in respect of certifications made after September 7, 2017.

• 102 (1) Clause 8503(3)(a)(v)(A) of the Regulations is replaced by the following:

  • (A) both

    • (I) subparagraph (v.1) does not apply, and

    • (II) benefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, or

• (2) Paragraph 8503(3)(a) of the Regulations is amended by adding the following after subparagraph (v):

  • (v.1) a portion — determined by reference to the proportion of property that has been transferred, as described in clause (B) — of a period in respect of which

    • (A) benefits that are attributable to employment of the member with a former employer accrued to the member under a defined benefit provision of another registered pension plan, and

    • (B) pursuant to the Pension Benefits Standards Act, 1985 or a similar law of a province, a portion of property held in connection with the benefits described in clause (A) has been transferred to the provision and the balance of property is required to be transferred to the provision at a later date,

• (3) Paragraphs 8503(4)(e) and (f) of the Regulations are replaced by the following:

  • (e) where additional lifetime retirement benefits are provided under the provision to a member because the member is totally and permanently disabled, the additional benefits are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the member is totally and permanently disabled; and

  • (f) where lifetime retirement benefits are provided under the provision to a member in respect of a period of disability of the member, the benefits, to the extent that they would not be in accordance with paragraph (3)(a) if that paragraph were read without reference to subparagraph (iv) thereof, are not paid before the plan administrator has received from a medical doctor or a nurse practitioner who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the period is a period of disability.

• (4) Subsections (1) and (2) apply in respect of transfers of property that occur after 2012.

• (5) Subsection (3) applies in respect of reports made after September 7, 2017.

• 103 (1) Clause 8517(6)(b)(ii)(A) of the Regulations is replaced by the following:

  • (A) the election may be made only if the life expectancy of the person is significantly shorter than normal and has been so certified in writing by a medical doctor or a nurse practitioner licensed to practise under the laws of a province or of the place where the person resides, and

• (2) Subsection (1) applies in respect of certifications made after September 7, 2017.

• 104 (1) Subparagraph (d)(iv) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

  • (iv) heat recovery equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of conserving energy, reducing the requirement to acquire energy or extracting heat for sale, by extracting for reuse thermal waste that is generated directly in an industrial process (other than an industrial process that generates or processes electrical energy), including such equipment that consists of heat exchange equipment, compressors used to upgrade low pressure steam, vapour or gas, waste heat boilers and other ancillary equipment such as control panels, fans, instruments or pumps, but not including property that is employed in re-using the recovered heat (such as property that is part of the internal heating or cooling system of a building or electrical generating equipment), is a building or is equipment that recovers heat primarily for use for heating water in a swimming pool,

• (2) Subparagraph (d)(vii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

  • (vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy or heat energy, or both electrical and heat energy, solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of completing a well (including the wellhead and production string), or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, distribution equipment, equipment used to heat water for use in a swimming pool, equipment described in subclause (i)(A)(II), property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its paragraph (a.1),

• (3) Clause (d)(xv)(B) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

  • (B) is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv), (vii) or (ix) or would be described in those subparagraphs if owned by the taxpayer, and

• (4) Subsection (1) applies to property acquired after March 3, 2010.

• (5) Subsections (2) and (3) apply in respect of property acquired for use after March 21, 2017 that has not been used or acquired for use before March 22, 2017.

SOR/2011-188Regulations Amending the Income Tax Regulations (Omnibus, No. 3)

105 The reference in subsection 29(14) of the Regulations Amending the Income Tax Regulations (Omnibus, No. 3) to “1984” is deemed to have always been a reference to “1994”.

PART 2Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures)

R.S., c. E-15Excise Tax Act

• 106 (1) The definition Agency in subsection 123(1) of the Excise Tax Act is repealed.

• (2) The definition credit union in subsection 123(1) of the Act is replaced by the following:

  credit union

  credit union has the meaning assigned by subsection 137(6) of the Income Tax Act and includes a corporation described in paragraph (a) of the definition deposit insurance corporation in subsection 137.1(5) of that Act; (caisse de crédit)

• (3) The definition coopérative in subsection 123(1) of the French version of the Act is replaced by the following:

  cooperative corporation

  coopérative S’entend d’une coopérative d’habitation ou de toute autre société coopérative, au sens du paragraphe 136(2) de la Loi de l’impôt sur le revenu. (cooperative corporation)

• (4) Paragraph (a) of the definition pension entity in subsection 123(1) of the Act is replaced by the following:

  • (a) a trust governed by the pension plan,

• (5) Paragraph (a) of the definition pension plan in subsection 123(1) of the Act is replaced by the following:

  • (a) that governs a trust,

• (6) Subsection 123(1) of the Act is amended by adding the following in alphabetical order:

  master pension entity

  master pension entity of a pension plan means a person that is not a pension entity of the pension plan and that is

  • (a) a corporation described in paragraph 149(1)(o.2) of the Income Tax Act, one or more shares of which are owned by a pension entity of the pension plan, or

  • (b) a trust prescribed to be a master trust for the purposes of paragraph 149(1)(o.4) of the Income Tax Act, one or more units of which are owned by a pension entity of the pension plan; (entité de gestion principale)

  master pension factor

  master pension factor means, in respect of a pension plan for a fiscal year of a master pension entity, the amount (expressed as a percentage) determined by the formula

  A/B

  where

  A

  is the total value, on the first day of the fiscal year, of the units or shares of the master pension entity that are held by pension entities of the pension plan on that day, and

  B

  is the total value, on the first day of the fiscal year, of the units or shares of the master pension entity; (facteur d’entité de gestion principale)

• (7) Subsections (2) and (3) are deemed to have come into force on March 1, 1994.

• (8) Subsections (4) and (5) are deemed to have come into force on July 23, 2016.

• (9) The definition master pension entity in subsection 123(1) of the Act, as enacted by subsection (6), is deemed to have come into force on September 23, 2009.

• (10) The definition master pension factor in subsection 123(1) of the Act, as enacted by subsection (6), is deemed to have come into force on July 22, 2016.

• 107 (1) The Act is amended by adding the following after section 130:

  Marginal note:Arrangements deemed to be trusts

  130.1 If an arrangement is deemed to be a trust under paragraph 248(3)(b) or (c) of the Income Tax Act, the following rules apply for the purposes of this Part:

  • (a) the arrangement is deemed to be a trust;

  • (b) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise;

  • (c) in the case of an arrangement referred to in paragraph 248(3)(b) of that Act, a person that has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in that paragraph is deemed to be beneficially interested in the trust; and

  • (d) in the case of an arrangement referred to in paragraph 248(3)(c) of that Act, any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor.

• (2) Subsection (1) is deemed to have come into force on July 23, 2016.

• 108 (1) The portion of subsection 141.01(1.2) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Primes et subventions

    (1.2) Pour l’application du présent article, le montant d’aide — prime, subvention, prêt à remboursement conditionnel ou autre montant semblable — qu’un inscrit reçoit d’une des personnes suivantes et qui n’est pas la contrepartie d’une fourniture, mais qu’il est raisonnable de considérer comme étant accordé en vue de financer une activité de l’inscrit comportant la réalisation de fournitures taxables sans contrepartie, est réputé être la contrepartie de ces fournitures :

• (2) The portion of subsection 141.01(4) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Fournitures gratuites

    (4) Lorsqu’un fournisseur effectue, dans le cadre de son initiative, la fourniture taxable (appelée « fourniture gratuite » au présent paragraphe) d’un bien ou d’un service sans contrepartie ou pour une contrepartie symbolique et qu’il est raisonnable de considérer que la fourniture gratuite a pour objet notamment de faciliter, de favoriser ou de promouvoir soit une initiative, soit l’acquisition, la consommation ou l’utilisation d’autres biens ou services par une autre personne, les présomptions suivantes s’appliquent :

• (3) Subsections 141.01(6) and (7) of the French version of the Act are replaced by the following:

  • Marginal note:Présomption de faits ou de circonstances

    (6) Lorsqu’une présomption de faits ou de circonstances prévue par une disposition de la présente partie, sauf les paragraphes (2) à (4), s’applique à la condition qu’un bien ou un service soit, ou ait été, consommé ou utilisé, ou acquis, importé ou transféré dans une province participante pour consommation ou utilisation, dans une certaine mesure dans le cadre des activités, commerciales ou autres, d’une personne, ou hors de ce cadre, cette mesure est déterminée en conformité avec les paragraphes (2) ou (3) en vue d’établir si la condition est remplie. Toutefois, si cette condition est ainsi remplie et que les autres conditions d’application de la disposition sont réunies, la présomption prévue par cette disposition s’applique malgré les paragraphes (2) et (3).

  • Marginal note:Exception

    (7) Les dispositions de la présente partie portant que la contrepartie d’une fourniture est réputée ne pas en être une, qu’une fourniture est réputée effectuée sans contrepartie ou qu’une personne est réputée ne pas avoir effectué une fourniture ne s’appliquent pas aux paragraphes (1) à (4).

• 109 (1) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (iv):

  • (iv.1) a TFSA,

• (2) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (vi):

  • (vi.1) a registered disability savings plan,

• (3) Subparagraph 149(5)(a)(xi) of the Act is repealed.

• (4) Paragraphs 149(5)(b) to (e) of the French version of the Act are replaced by the following:

  • b) la société de placement, au sens de cette loi;

  • c) la société de placement hypothécaire, au sens de cette loi;

  • d) la société de placement à capital variable, au sens de cette loi;

  • e) la société de placement appartenant à des non-résidents, au sens de cette loi;

• (5) Paragraph 149(5)(g) of the Act is replaced by the following:

  • (g) a prescribed person or a person of a prescribed class.

• (6) Subsections (1) to (3) and (5) apply in respect of any taxation year of a person that begins after July 22, 2016.

• (7) Subsection (4) is deemed to have come into force on March 1, 1994.