Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)
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Assented to 2019-06-21
PART 1Income Tax Act and Other Legislation (continued)
C.R.C., c. 945Income Tax Regulations (continued)
53 (1) The portion of subsection 1102(14) of the Regulations before paragraph (a) is replaced by the following:
(14) Subject to subsections (14.11) to (14.13), for the purposes of this Part and Schedule II, if a property is acquired by a taxpayer
(2) Section 1102 of the Regulations is amended by adding the following after subsection (14.12):
(14.13) Subsection (14) does not apply to an acquisition of property by a taxpayer from a person in respect of which the property is a zero-emission vehicle included in Class 54 or 55.
(3) Section 1102 of the Regulations is amended by adding the following after subsection (20):
(20.1) For the purposes of subsection 1104(4), if, in the absence of this subsection, a taxpayer would be considered to be dealing at arm’s length with another person or partnership as a result of a transaction or series of transactions the principal purpose of which may reasonably be considered to have been to cause one or more properties of the taxpayer to qualify as accelerated investment incentive property, the taxpayer shall be considered not to be dealing at arm’s length with the other person or partnership in respect of the acquisition of those properties.
(4) Section 1102 of the Regulations is amended by adding the following after subsection (25):
(26) For the purpose of the definition zero-emission vehicle in subsection 248(1) of the Act,
(a) it is a prescribed condition that the motor vehicle has a battery capacity of at least 7 kWh; and
(b) the federal purchase incentive announced on March 19, 2019 is a prescribed program.
(5) Subsections (1), (2) and (4) are deemed to have come into force on March 19, 2019.
54 (1) Section 1103 of the Regulations is amended by adding the following after subsection (2i):
(2j) A taxpayer may, in its return of income filed with the Minister on or before its filing-due date for the taxation year in which a property is acquired, elect not to include the property in Class 54 or 55 in Schedule II, as the case may be.
(2) Subsection (1) is deemed to have come into force on March 19, 2019.
55 (1) Section 1104 of the Regulations is amended by adding the following after subsection (3):
(4) For the purposes of this Part and Schedules II to VI, accelerated investment incentive property means property of a taxpayer (other than property included in Class 54 or 55) that
(a) is acquired by the taxpayer after November 20, 2018 and becomes available for use before 2028; and
(b) meets either of the following conditions:
(i) the property
(A) has not been used for any purpose before it was acquired by the taxpayer, and
(B) is not a property in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act by another person or partnership, or
(ii) the property was not
(A) acquired in circumstances where
(I) the taxpayer was deemed to have been allowed or deducted an amount under paragraph 20(1)(a) of the Act in respect of the property in computing income for previous taxation years, or
(II) the undepreciated capital cost of depreciable property of a prescribed class of the taxpayer was reduced by an amount determined by reference to the amount by which the capital cost of the property to the taxpayer exceeds its cost amount, or
(B) previously owned or acquired by the taxpayer or by a person or partnership with which the taxpayer did not deal at arm’s length at any time when the property was owned or acquired by the person or partnership.
(2) Paragraph 1104(17)(a) of the Regulations is replaced by the following:
(a) the property is
(i) included in Class 43.1 because of its subparagraph (c)(i), or
(ii) described in
(A) any of subparagraphs (d)(vii) to (ix), (xi), (xiii), (xiv), (xvi) and (xvii) of Class 43.1, or
(B) paragraph (a) of Class 43.2; and
(3) Subsection (2) applies to property acquired after March 21, 2016 that has not been used or acquired for use before March 22, 2016. However, in respect of property acquired before March 22, 2017, clause 1104(17)(a)(ii)(A) of the Regulations, as enacted by subsection (2), is to be read as follows:
(A) any of subparagraphs (d)(viii), (ix), (xi), (xiii), (xiv), (xvi) and (xvii) of Class 43.1, or
56 (1) Subsection 1106(3) of the Regulations 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) the Memorandum of Understanding between the Government of Canada and the Respective Governments of the Flemish, French and German-Speaking Communities of the Kingdom of Belgium concerning Audiovisual Coproduction.
(2) Subsection (1) is deemed to have come into force on March 12, 2018.
57 (1) The definition registered organization in section 3500 of the Regulations is replaced by the following:
- registered organization
registered organization means a registered charity, a registered Canadian amateur athletic association, registered journalism organization or a registered national arts service organization. (organisation enregistrée)
(2) Subsection (1) comes into force on January 1, 2020.
58 (1) Paragraphs 5800(1)(d) and (e) of the Regulations are replaced by the following:
(d) in respect of
(i) any record of the minutes of meetings of the executive of a registered charity, registered Canadian amateur athletic association or registered journalism organization,
(ii) any record of the minutes of meetings of the members of a registered charity, registered Canadian amateur athletic association or registered journalism organization, and
(iii) all documents and by-laws governing a registered charity, registered Canadian amateur athletic association or registered journalism organization,
the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked;
(e) in respect of all records and books of account that are not described in paragraph (d) and that relate to a registered charity, registered Canadian amateur athletic association or registered journalism organization whose registration under the Act is revoked, and in respect of the vouchers and accounts necessary to verify the information in such records and books of account, the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked;
(2) Subsection (1) comes into force on January 1, 2020.
59 (1) Section 7307 of the Regulations is amended by adding the following after subsection (1):
(1.1) For the purposes of paragraph 13(7)(i) of the Act, the amount prescribed in respect of a zero-emission passenger vehicle of a taxpayer is the amount determined by the formula
A + B
where
- A
- is $55,000; and
- B
- is the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the vehicle if it had been acquired by the taxpayer at a cost equal to A, before the application of the federal and provincial sales taxes.
(2) Subsection (1) is deemed to have come into force on March 19, 2019.
60 (1) The portion of paragraph 8302(3)(j) of the Regulations before subparagraph (i) is replaced by the following:
(j) if the amount of the individual’s lifetime retirement benefits depends solely on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraph 46(1)(a) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to
(2) Subsection 8302(3) of the Regulations is amended by adding the following after paragraph (j):
(j.1) if the amount of the individual’s lifetime retirement benefits depends on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraphs 46(1)(a) and (b) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to
(i) the amount determined by the formula
A × B
where
- A
- is
(A) for 2018 and preceding years, 0.25,
(B) for 2019, 0.2625,
(C) for 2020, 0.275,
(D) for 2021, 0.29165,
(E) for 2022, 0.3125, and
(F) for 2023 and subsequent years, 1/3, and
- B
- is the lesser of the Year’s Maximum Pensionable Earnings for the particular year and,
(A) in the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual’s remuneration for the particular year from such an employer, and
(B) in any other case, the amount that it is reasonable to consider would be determined under clause (A) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, or
(ii) at the option of the plan administrator, any other amount determined in accordance with a method for estimating the statutory pension that can be expected to result in amounts substantially similar to amounts determined under subparagraph (i);
(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.
61 (1) Subclauses (d)(i)(A)(I) and (II) of Class 43.1 in Schedule II to the Regulations are replaced by the following:
(I) active solar heating equipment, including such equipment that consists of above ground solar collectors, solar energy conversion equipment, solar water heaters, thermal energy storage equipment, control equipment and equipment designed to interface solar heating equipment with other heating equipment, or
(II) equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), energy conversion equipment, thermal energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, and
(2) Subclause (d)(v)(B)(I) of Class 43.1 in Schedule II to the Regulations is replaced by the following:
(I) control and conditioning equipment,
(3) The portion of subparagraph (d)(vi) of Class 43.1 in Schedule II to the Regulations before clause (A) is replaced by the following:
(vi) fixed location photovoltaic equipment that is used by the taxpayer, or a lessee of the taxpayer, primarily for the purpose of generating electrical energy from solar energy if the equipment consists of solar cells or modules and related equipment including inverters, control and conditioning equipment, support structures and transmission equipment, but not including
(4) 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 solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, 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, transmission equipment, distribution equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),
(5) Subparagraph (d)(vii) of Class 43.1 in Schedule II to the Regulations, as enacted by subsection (4), 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),
(6) Subparagraph (d)(xii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:
(xii) fixed location fuel cell equipment used by the taxpayer, or by a lessee of the taxpayer, that uses hydrogen generated only from ancillary electrolysis equipment (or, if the fuel cell is reversible, the fuel cell itself) using electricity all or substantially all of which is generated by using kinetic energy of flowing water or wave or tidal energy (otherwise than by diverting or impeding the natural flow of the water or by using physical barriers or dam-like structures) or by geothermal, photovoltaic, wind energy conversion, or hydro-electric equipment, of the taxpayer or the lessee, and equipment ancillary to the fuel cell equipment other than buildings or other structures, transmission equipment, distribution equipment, auxiliary electrical generating equipment and property otherwise included in Class 10 or 17,
(7) Subparagraph (d)(xiv) of Class 43.1 in Schedule II to the Regulations is replaced by the following:
(xiv) property that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electricity using kinetic energy of flowing water or wave or tidal energy (otherwise than by diverting or impeding the natural flow of the water or by using physical barriers or dam-like structures), including support structures, control and conditioning equipment, submerged cables and transmission equipment, but not including buildings, distribution equipment, auxiliary electricity generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that class were read without reference to its subparagraph (a.1)(i),
(8) Paragraph (d) of Class 43.1 in Schedule II to the Regulations is amended by striking out “or” at the end of subparagraph (xv) and “and” at the end of subparagraph (xvi) and by adding the following after subparagraph (xvi):
(xvii) equipment used by the taxpayer, or by a lessee of the taxpayer, for the purpose of charging electric vehicles, including charging stations, transformers, distribution and control panels, circuit breakers, conduits and related wiring, if
(A) the equipment is situated
(I) on the load side of an electricity meter used for billing purposes by a power utility, or
(II) on the generator side of an electricity meter used to measure electricity generated by the taxpayer or the lessee, as the case may be,
(B) more than 75 per cent of the electrical equipment capacity is dedicated to charging electric vehicles, and
(C) the equipment is
(I) an electric vehicle charging station (other than a building) that supplies more than 10 kilowatts of continuous power, or
(II) used primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, or
(xviii) fixed location energy storage property that
(A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing electrical energy
(I) including batteries, compressed air energy storage, flywheels, ancillary equipment (including control and conditioning equipment) and related structures, and
(II) not including buildings, pumped hydroelectric storage, hydro electric dams and reservoirs, property used solely for backup electrical energy, batteries used in motor vehicles, fuel cell systems where the hydrogen is produced via steam reformation of methane and property otherwise included in Class 10 or 17, and
(B) either
(I) if the electrical energy to be stored is used in connection with property of the taxpayer or a lessee of the taxpayer, as the case may be, is described in paragraph (c) or would be described in this paragraph if it were read without reference to this subparagraph, or
(II) meets the condition that the efficiency of the electrical energy storage system that includes the property – computed by reference to the quantity of electrical energy supplied to and discharged from the electrical energy storage system – is greater than 50%, and
(9) Subsections (1) to (4) and (6) to (8) apply to property acquired after March 21, 2016 that has not been used or acquired for use before March 22, 2016.
(10) Subsection (5) applies in respect of property acquired for use after March 21, 2017 that has not been used or acquired for use before March 22, 2017.
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