Legislative Proposals Relating to the Income Tax Act
1 (1) Paragraphs (e) to (g) of the definition public health restriction in subsection 125.7(1) of the Income Tax Act are replaced by the following:
(e) it does not result from a violation by the eligible entity – or a party with which the eligible entity does not deal at arm's length that rents, directly or indirectly, the qualifying property from the eligible entity (referred to in this definition as the "specified tenant") – of an order or decision that meets the conditions in paragraphs (a) to (d);
(f) as a result of the order or decision, some or all of the activities of the eligible entity – or the specified tenant – at, or in connection with, the qualifying property (that it is reasonable to expect the eligible entity – or the specified tenant – would, absent the order or decision, otherwise have engaged in) are required to cease (referred to in this definition as the "restricted activities") based, for greater certainty, on the type of activity rather than the extent to which an activity may be performed or limits placed on the time during which an activity may be performed;
(g) it is reasonable to conclude that at least approximately 25% of the qualifying revenues of the eligible entity – or the specified tenant – for the prior reference period that were earned from, or in connection with, the qualifying property were derived from the restricted activities; and
(2) Subsection (1) is deemed to have come into force on September 27, 2020.
2 (1) Section 125.7 of the Act is amended by adding the following after subsection (9):
Special case
(9.1) For the purposes of paragraph (9)(b), if the particular qualifying period is the period that begins on December 20, 2020 and ends on January 16, 2021, then the immediately preceding qualifying period is deemed to be the period that begins on October 25, 2020 and ends on November 21, 2020.
(2) Subsection (1) is deemed to have come into force on December 20, 2020.
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