Income Tax Application Rules (R.S.C., 1985, c. 2 (5th Supp.))

Marginal note:Non-resident-owned investment corporation

• 59 (2) In its application to the 1972 and subsequent taxation years of a corporation, section 133 of the amended Act shall be read as if, in respect of such portion of any period described in the definition non-resident-owned investment corporation in subsection 133(8) of that Act as ended before the beginning of the corporation’s 1976 taxation year, paragraph (a) of that definition were read as follows:

  • “(a) at least 95% of the total value of its issued shares, and all of its bonds, debentures and other funded indebtedness, were

    • (i) beneficially owned by non-resident persons (other than any foreign affiliate of a taxpayer resident in Canada),

    • (ii) owned by trustees for the benefit of non-resident persons or their unborn issue, or

    • (iii) owned by a corporation, whether incorporated in Canada or elsewhere, at least 95% of the total value of the issued shares of which and all of the bonds, debentures and other funded indebtedness of which were beneficially owned by non-resident persons or owned by trustees for the benefit of non-resident persons or their unborn issue, or by two or more such corporations,”

Marginal note:Taxes payable by insurer under Part IA of former Act

60.1 For the purposes of the description of F in the definition surplus funds derived from operations in subsection 138(12) of the amended Act, the reference in that description to “this Part” shall be deemed to be a reference to “this Part and Part IA of the former Act”.

Marginal note:Registered retirement savings plans

• 61 (1) For the purposes of the definition non-qualified investment in subsection 146(1) of the amended Act, property acquired after June 18, 1971 and before 1972 by a trust governed by a registered retirement savings plan shall, if owned or held by the trust on January 1, 1972, be deemed to have been acquired by the trust on January 1, 1972.

Marginal note:Assessments

• 62 (1) Subsections 152(4) and (5) of the amended Act apply in respect of any assessment made after December 23, 1971, except that subsection 152(5) of that Act does not apply in respect of any such assessment made in consequence of a waiver filed with the Minister before December 23, 1971 in the form and within the time referred to in subsection 152(4) of that Act.

• Marginal note:Interest

  (2) Subsections 161(1) and (2), 164(3) and (4), 202(5) and 227(8) and (9) of the amended Act, subsection 183(2) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and subsection 195(1) of that Act as it read in its application in respect of dividends paid or received before April 1, 1977, in so far as those subsections relate to the rate of interest payable thereunder, apply in respect of interest payable in respect of any period after December 23, 1971.

• Marginal note:Objections to assessment

  (4) Subsection 165(3) of the amended Act applies in respect of any notice of objection served on the Minister after December 23, 1971.

• Marginal note:Appeals

  (5) Division J of Part I of the amended Act applies in respect of any appeal or application instituted or made, as the case may be, after December 23, 1971.

• Marginal note:Appeals to Federal Court

  (6) Any appeal to the Federal Court instituted, within 2 years after December 23, 1971 and in accordance with Division J of Part I of the former Act and any rules made thereunder (as those rules read immediately before December 23, 1971), shall be deemed to have been instituted in the manner provided by the amended Act, and any document served on the Minister or a taxpayer in connection with an appeal so instituted in the manner provided in that Division and those rules shall be deemed to have been served in the manner provided by the amended Act.

65 [Repealed, 2005, c. 30, s. 19]

Marginal note:Part XV of amended Act

65.1 For greater certainty,

• (a) section 9 does not apply in respect of the repeal, by section 1 of chapter 63 of the Statutes of Canada, 1970-71-72, of Part V of the former Act and the substitution therefor, by that section, of Part XV of the amended Act, and

• (b) in its application in respect of any offence described in subsection 239(1) of the amended Act that was committed before December 23, 1971, paragraph 239(1)(f) of the amended Act shall be read as follows:

  • “(f) a fine of not less than $25 and not more than $10,000 plus, in an appropriate case, an amount not exceeding double the amount of the tax that should have been shown to be payable or that was sought to be evaded, or”

Marginal note:Part II of former Act

• 66 (1) For greater certainty, Part II of the former Act applies only in respect of elections made thereunder before 1972.

Marginal note:Prescription of unpaid amounts

• 67 (5) Her Majesty in right of Canada is not liable, and no action shall be taken, for or in respect of any unrefunded instalment of tax paid under Part IID of the former Act or any interest thereon where

  • (a) a repayment date with respect to the instalment was prescribed by regulation and reasonable efforts were made thereafter to locate the corporation or trust entitled to the refund;

  • (b) at least 5 years have elapsed since publication in the Canada Gazette of the regulation referred to in paragraph (a); and

  • (c) no claim whatever has been received by or on behalf of Her Majesty from the corporation or trust entitled to the refund.

PART IITransitional Concerning the 1985 Statute Revision

Definitions

Marginal note:Definitions

69 In this Act and the Income Tax Act, unless the context otherwise requires,

Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952

Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952 means that Act as amended by section 1 of chapter 63 of the Statutes of Canada, 1970-71-72, and by any subsequent Act that received royal assent before December, 1991; (Loi de l’impôt sur le revenu, chapitre 148 des Statuts revisés du Canada de 1952)

Income Tax Application Rules, 1971, Part III of chapter 63 of the Statutes of Canada, 1970-71-72

Income Tax Application Rules, 1971, Part III of chapter 63 of the Statutes of Canada, 1970-71-72 means that Act as amended by any subsequent Act that received royal assent before December, 1991. (Règles de 1971 concernant l’application de l’impôt sur le revenu, Partie III du chapitre 63 des Statuts du Canada de 1970-71-72)

Application of the 1971 Acts and the Revised Acts

Marginal note:Application of Income Tax Application Rules, 1971, 1970-71-72, c. 63

70 Subject to this Act and the Income Tax Act and unless the context otherwise requires,

• (a) sections 7 to 9 and 12 to 68 of the Income Tax Application Rules, 1971, Part III of chapter 63 of the Statutes of Canada, 1970-71-72, apply with respect to taxation years that ended before December, 1991; and

• (b) section 10 of the Income Tax Application Rules, 1971, Part III of chapter 63 of the Statutes of Canada, 1970-71-72, applies with respect to amounts paid or credited before December, 1991.

Marginal note:Application of this Act

71 Subject to this Act and the Income Tax Act and unless the context otherwise requires,

• (a) sections 7 to 9 and 12 to 78 of this Act apply with respect to taxation years that end after November, 1991; and

• (b) section 10 of this Act applies with respect to amounts paid or credited after November, 1991.

Marginal note:Application of Income Tax Act, R.S.C., 1952, c. 148

72 Subject to this Act and the Income Tax Act and unless the context otherwise requires, the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, applies as follows:

• (a) Parts I, I.1, 1.2, 1.3, II.1, IV, IV.1, V, VI, VI.1, VII, VIII, IX, X1.3, XII, XII.1, XII.2, XII.3 and XIV of that Act apply with respect to taxation years that ended before December 1991;

• (b) Part III of that Act applies with respect to dividends that became payable before December, 1991;

• (c) Parts X, X.1, X.2, XI, XI.1 and XI.2 of that Act apply with respect to calendar years that ended before December, 1991;

• (d) Part XIII of that Act applies with respect to amounts paid or credited before December, 1991; and

• (e) Parts XV, XVI and XVII of that Act apply before December, 1991.

Marginal note:Application of Income Tax Act

73 Subject to this Act and the Income Tax Act and unless the context otherwise requires, the Income Tax Act applies as follows:

• (a) Parts I, I.1, I.2, I.3, II.1, IV, IV.1, V, VI, VI.1, VII, VIII, IX, X1.3, XII, XII.1, XII.2, XII.3 and XIV of that Act apply with respect to taxation years that end after November 1991;

• (b) Part III of that Act applies with respect to dividends that become payable after November, 1991;

• (c) Parts X, X.1, X.2, XI, XI.1 and XI.2 of that Act apply with respect to calendar years that end after November, 1991;

• (d) Part XIII of that Act applies with respect to amounts paid or credited after November, 1991; and

• (e) Parts XV, XVI and XVII of that Act apply after November, 1991.

Application of Certain Provisions

Definition of provision

74 In sections 75 to 78, provision means the whole or part of a provision.

Marginal note:Continued effect of amending and application provisions

75 For greater certainty, where an enactment passed after 1971 in amendment of the Income Tax Application Rules, 1971, Part III of chapter 63 of the Statutes of Canada, 1970-71-72, or of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, contains an amending, repeal, application or other provision that, immediately before the coming into force of the fifth supplement to the Revised Statutes of Canada, 1985, has any effect on, or in connection with, the application of either or both of those Acts, that provision has, on the coming into force of that supplement, the same effect on, or in connection with, the application of either this Act or the Income Tax Act or both.

Marginal note:Application of s. 75

76 Section 75 is applicable whether or not this Act or the Income Tax Act, as the case may be, contains, or contains the tenor of or any reference to,

• (a) the amending, repeal, application or other provision referred to in that section; or

• (b) any provision of the Income Tax Application Rules, 1971, Part III of chapter 63 of the Statutes of Canada, 1970-71-72, or the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, expressed or intended to be the subject of or otherwise affected by that amending, repeal, application or other provision.

Marginal note:Continued effect of repealed provisions

77 For greater certainty, where a provision of the Income Tax Application Rules, 1971, Part III of chapter 63 of the Statutes of Canada, 1970-71-72, or the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, was repealed at any time after 1971 but, immediately before the coming into force of the fifth supplement to the Revised Statutes of Canada, 1985, continues to be applied to any extent or otherwise to have any effect on, or in connection with, the application of either or both of those Acts, the repealed provision, on the coming into force of that supplement, continues to be so applied or to have that effect on, or in connection with, the application of either this Act or the Income Tax Act or both.