Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)
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Assented to 2017-12-14
PART 1Amendments to the Income Tax Act and to Related Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
69 (1) 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), 146.1(5), 146.2(6), 146.3(9), 146.4(5) 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.
(2) Section 207.04 of the Act is amended by adding the following after subsection (4):
Marginal note:Apportionment of refund
(5) If more than one person is entitled to a refund under subsection (4) for a calendar year in respect of the disposition of a property, the total of all amounts so refundable shall not exceed the amount that would be so refundable for the year to any one of those persons in respect of that disposition if that person were the only person entitled to a refund for the year under that subsection in respect of the disposition. If the persons cannot agree as to what portion of the refund each can so claim, the Minister may fix the portions.
Marginal note:Liability for tax
(6) Each person who is a holder of a RDSP or a subscriber of a RESP at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax.
(3) Subsections (1) and (2) are deemed to have come into force on March 23, 2017.
70 (1) Paragraph 207.05(2)(c) of the Act is replaced by the following:
(c) in the case of a registered plan strip, the amount of the registered plan strip.
(2) Subsection 207.05(3) of the Act is replaced by the following:
Marginal note:Liability for tax
(3) Each controlling individual of a registered plan in connection with which a tax is imposed under subsection (1) is jointly and severally, or solidarily, liable to pay the tax except that, if the advantage is extended by the issuer, carrier or promoter of the registered plan or by a person with whom the issuer, carrier or promoter is not dealing at arm’s length, the issuer, carrier or promoter, and not the controlling individual, is liable to pay the tax.
(3) Subsections (1) and (2) are deemed to have come into force on March 23, 2017.
71 (1) Section 207.07 of the Act is amended by adding the following after subsection (1):
Marginal note:Multiple holders or subscribers
(1.1) If two or more holders of a RDSP, or two or more subscribers of a RESP, are jointly and severally, or solidarily, liable with each other to pay a tax under this Part for a calendar year in connection with the plan,
(a) a payment by any of the holders, or any of the subscribers, on account of that tax liability shall to the extent of the payment discharge the joint liability; and
(b) a return filed by one of the holders, or one of the subscribers, as required by this Part for the year is deemed to have been filed by each other holder, or each other subscriber, in respect of the joint liability to which the return relates.
(2) Subsection (1) is deemed to have come into force on March 23, 2017.
(2) Subsection (1) applies in respect of
73 (1) Section 207.31 of the Act is replaced by the following:
Marginal note:Ecological gift — tax payable
207.31 (1) A charity, municipality in Canada or municipal or public body performing a function of government in Canada (each of which is referred to in this section as the “recipient”) shall, in respect of a property, pay a tax under this Part in respect of a taxation year if
(a) at any time in the year, the recipient
(b) the property is described in paragraph 110.1(1)(d) or in the definition total ecological gifts in subsection 118.1(1); and
(c) the disposition or change is made without the authorization of the Minister of the Environment or a person designated by that Minister.
Marginal note:Ecological gift — amount of tax
(2) The amount of tax to be paid under subsection (1) is equal to 50% of the amount that would be determined for the purposes of section 110.1 or 118.1, if this Act were read without reference to subsections 110.1(3) and 118.1(6), to be the fair market value of the property referred to in subsection (1) if the property were given to the recipient immediately before the disposition or change referred to in paragraph (1)(a).
(2) Subsection (1) applies in respect of dispositions made, and changes of use that occur, after March 21, 2017.
74 (1) The portion of subparagraph 212(1)(h)(iii.1) of the Act before clause (A) is replaced by the following:
(iii.1) the portion of the payment that is transferred by the payer on behalf of the non-resident person, pursuant to an authorization in prescribed form, to a pooled registered pension plan, registered pension plan, registered retirement savings plan, registered retirement income fund or specified pension plan and that
(2) Subsection (1) is deemed to have come into force on January 1, 2010, except that in its application before December 14, 2012, the portion of subparagraph 212(1)(h)(iii.1) of the Act before clause (A), as enacted by subsection (1), is to be read without reference to “pooled registered pension plan”.
75 (1) Paragraph 212.3(1)(a) of the Act is replaced by the following:
(a) the subject corporation is immediately after the investment time, or becomes as part of a transaction or event or series of transactions or events that includes the making of the investment, a foreign affiliate of
(2) The portion of paragraph 212.3(1)(b) of the Act before subparagraph (ii) is replaced by the following:
(b) the CRIC or an other Canadian corporation is immediately after the investment time, or becomes after the investment time and as part of a transaction or event or series of transactions or events that includes the making of the investment, controlled by a non-resident corporation (in this section referred to as the “parent”), and any of the following conditions is satisfied:
(i) if, at the investment time, the parent owned all shares of the capital stock of the CRIC and the other Canadian corporation, if applicable, that are owned — determined without reference to paragraph (25)(b) in the case of partnerships referred to in this subparagraph and as if all rights referred to in paragraph 251(5)(b), of the parent, each person that does not deal at arm’s length with the parent and all of those partnerships, were immediate and absolute and the parent and each of the other persons and partnerships had exercised those rights at the investment time — by the parent, persons that are not dealing at arm’s length with the parent and partnerships of which the parent or a non-resident person that is not dealing at arm’s length with the parent is a member (other than a limited partner within the meaning assigned by subsection 96(2.4)), the parent would own shares of the capital stock of the CRIC or the other Canadian corporation that
(A) give the holders of those shares 25% or more of all of the votes that could be cast at any annual meeting of the shareholders in respect of all shares of the capital stock of the CRIC or the other Canadian corporation, as the case may be, or
(B) have a fair market value of 25% or more of the fair market value of all of the issued and outstanding shares of the capital stock of the CRIC or the other Canadian corporation, as the case may be,
(3) Section 212.3 of the Act is amended by adding the following after subsection (7):
Marginal note:Election to not reduce deemed dividend
(7.1) Subsection (7) does not apply in respect of an investment made by a CRIC if
(a) the investment was made after March 28, 2012 and before August 16, 2013;
(b) at the investment time, each share of the capital stock of the CRIC, and each qualifying substitute corporation in respect of the CRIC, that was not owned by the parent was owned by persons or partnerships with which the parent did not deal at arm’s length; and
(c) the CRIC files an election with the Minister before 2017 to have this subsection apply in respect of the investment.
(4) Subsections (1) and (2) apply in respect of transactions or events that occur after September 15, 2016. For this purpose, a portion of a particular amount owing by, or debt obligation of, a subject corporation is deemed to be a separate amount owing or debt obligation that became owing or was acquired, as the case may be, on January 1, 2017 in the same manner and on the same terms as the particular amount owing or debt obligation, if
(a) subsection 212.3(2) of the Act would not apply in respect of the separate amount owing or debt obligation absent the application of subsections (1) and (2);
(b) the particular amount owing or debt obligation became owing to, or was acquired by, a CRIC
(c) the portion is the amount outstanding in respect of the particular amount owing or debt obligation on January 1, 2017.
(5) Subsection (3) is deemed to have come into force on March 29, 2012.
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