Notice of Ways and Means Motion to introduce an Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures
Budget Implementation Act, 2022, No. 1
That it is expedient to
introduce an Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other
measures, the provisions of which are as follows:
Short Title
Short title
1 This Act may be cited as
the Budget Implementation Act, 2022, No. 1.
PART 1
Amendments to the Income Tax Act and Other Legislation
R.S., c. 1 (5th Supp.)
Income Tax Act
2 (1) Subsection 8(1)
of the Income Tax Act is amended by striking out
“and” at the end of paragraph (r), by adding “and” at the end of paragraph (s) and by
adding the following after paragraph (s):
Labour mobility deduction
(t) if the taxpayer is an eligible tradesperson for the year,
an amount equal to the lesser of
(i) $4,000, and
(ii) the total of all amounts each of which is a temporary
relocation deduction of the taxpayer for the year in respect of an eligible temporary relocation of the
taxpayer.
(2) Section 8 of the Act is amended by adding the following after subsection
(13):
Labour mobility deduction –
interpretation
(14) For the purposes of this subsection and paragraph
(1)(t),
(a) a taxpayer is an eligible tradesperson for a taxation year
if, in the taxation year, the taxpayer has income from employment as a tradesperson or apprentice and performs
their duties of employment in construction activities described in subsection 238(1) of the Income Tax Regulations;
(b) a temporary work location of a taxpayer is a location in
Canada
(i) at which the taxpayer performs their duties of employment
under a temporary employment contract, and
(ii) that is not situated in the locality where the taxpayer is
ordinarily employed or carrying on business;
(c) an eligible temporary relocation of a taxpayer is a
temporary relocation that meets the following conditions:
(i) the relocation is undertaken by the taxpayer to enable the
taxpayer to perform their duties of employment as an eligible tradesperson at one or more temporary work
locations of the taxpayer within the same locality,
(ii) prior to the relocation, the taxpayer ordinarily resided
at a residence in Canada (in this subsection referred to as the “ordinary residence”),
(iii) the taxpayer was required by their duties of employment
referred to in subparagraph (i) to be away from the ordinary residence for a period of not less than 36
hours,
(iv) during the temporary relocation, the taxpayer temporarily
resided at one or more lodgings in Canada (in this subsection referred to as the “temporary
lodging”), and
(v) the distance between the ordinary residence and each
temporary work location of the taxpayer referred to in subparagraph (i) is not less than 150 kilometres greater
than the distance between each temporary lodging referred in subparagraph (iv) and each temporary work location
of the taxpayer referred to in subparagraph (i);
(d) subject to paragraph (e), an eligible temporary relocation
expense of a taxpayer for a taxation year is a reasonable expense incurred by the taxpayer during the taxation
year, the previous taxation year or prior to February 1 of the following taxation year, in respect of
(i) transportation for one round trip per eligible temporary
relocation by the taxpayer between the ordinary residence and the temporary lodging,
(ii) meals consumed by the taxpayer during the round trip
described in subparagraph (i), and
(iii) the taxpayer’s temporary lodging if, throughout the
period of the taxpayer’s temporary relocation,
(A) the taxpayer maintains their ordinary residence as their
principal place of residence, and
(B) the ordinary residence remains available for the
taxpayer’s occupancy and is not rented to any other person;
(e) an eligible temporary relocation expense described in
paragraph (d) does not include an expense incurred by the taxpayer to the extent that
(i) the expense is deducted (other than under paragraph
(1)(t)) in computing the taxpayer’s income for any taxation year,
(ii) the expense was deductible under paragraph (1)(t) by the
taxpayer for the immediately preceding taxation year, or
(iii) the taxpayer is entitled to receive a reimbursement,
allowance or any other form of assistance (other than an amount that is included in computing the income for any
taxation year of the taxpayer and that is not deductible in computing the income of the taxpayer) in respect of
the expense; and
(f) a taxpayer’s temporary relocation deduction for a
taxation year in respect of an eligible temporary relocation of the taxpayer is the lesser of
(i) the total eligible temporary relocation expenses of the
taxpayer for the taxation year incurred in respect of the eligible temporary relocation, and
(ii) half of the taxpayer’s total income for the taxation
year from employment as an eligible tradesperson at all temporary work locations referred to in subparagraph
(c)(i) in respect of the eligible temporary relocation (computed without reference to this section).
(3) Subsections (1) and (2) apply to the 2022 and subsequent taxation
years.
3 (1) Subsection 13(2)
of the Act is replaced by the following:
Recapture – Class 10.1 Passenger Vehicle
(2) Notwithstanding subsection
13(1), where an excess amount is determined under that subsection at the end of a taxation year in respect of a
passenger vehicle having a cost to a taxpayer in excess of $20,000 or such other amount as may be prescribed,
unless it was, at any time, designated immediate expensing
property as defined in subsection 1104(3.1) of the Income Tax Regulations, that excess
amount shall not be included in computing the taxpayer’s income for the year but shall be deemed, for the
purposes of B in the definition undepreciated capital cost
in subsection 13(21), to be an amount included in the taxpayer’s income for the year by reason of this
section.
(2) The portion of paragraph 13(7)(i) of the Act before subparagraph (ii) is
replaced by the following:
(i) if the cost to a taxpayer of a zero-emission passenger vehicle exceeds the prescribed amount
in subsection 7307(1.1) of the Income Tax Regulations, or if the cost of a passenger vehicle that was, at any time, designated immediate expensing
property as defined in subsection 1104(3.1) of the Income Tax Regulations exceeds
the prescribed amount in subsection 7307(1) of the Income Tax Regulations,
(i) the capital cost to the
taxpayer of the vehicle is deemed to be equal to the prescribed amount under subsection 7307(1) or (1.1), as the case may be, and
(3) Subsections (1) and (2) are deemed to have come into force for taxation
years ending on or after April 19, 2021.
4 (1) The portion of
paragraph 81(1)(h) before subparagraph (i) of the Act is replaced by the following:
Social assistance
(h) where the taxpayer is an
individual (other than a trust), a social assistance payment (other than a prescribed payment) ordinarily made
on the basis of a means, needs or income test under a program provided for by an Act of Parliament, a law of a
province or a law of an Indigenous governing body (as defined in section 2 of the Children’s Special Allowances
Act), to the extent that it is received directly or
indirectly by the taxpayer for the benefit of another individual (other than the taxpayer’s spouse or
common-law partner or a person who is related to the taxpayer or to the taxpayer’s spouse or common-law
partner), if
(2) The portion of paragraph 81(1)(h.1) before subparagraph (i) of the Act is
replaced by the following:
Social assistance for informal care programs
(h.1) if the taxpayer is an
individual (other than a trust), a social assistance payment ordinarily made on the basis of a means, needs or
income test provided for under a program of the Government of Canada, the government of a province or of an Indigenous governing body (as defined in section 2 of the Children’s Special Allowances
Act), to the extent that it is received directly or
indirectly by the taxpayer for the benefit of a particular individual, if
(3) Subsections (1) and (2) are deemed to have come into force on January 1,
2020.
5 (1) Paragraph (a) of
the description of B in subsection 118.041(3) of the Act is replaced by the following:
(a) $20,000, and
(2) Paragraphs 118.041(5)(a) and (b) of the Act are replaced by the
following:
(a) a maximum of $20,000 of qualifying
expenditures for a taxation year in respect of a qualifying individual can be claimed under subsection (3) by
the qualifying individual and all eligible individuals in respect of the qualifying individual;
(b) if there is more than one
qualifying individual in respect of an eligible dwelling, a maximum of $20,000 of qualifying expenditures for a taxation year in respect of
the eligible dwelling can be claimed under subsection (3) by the qualifying individuals and all eligible
individuals in respect of the qualifying individuals; and
(3) Subsections (1) and (2) apply to the 2022 and subsequent taxation
years.
6 (1) Subparagraph
118.3(1)(a.1)(ii) of the Act is replaced by the following:
(ii) is required to be administered at least two times each week for a total duration averaging not less than 14
hours a week, and
(2) The portion of subsection 118.3(1.1) of the Act before paragraph (a) is
replaced by the following:
Time spent on therapy
(1.1) For the purpose of
paragraph 118.3(1)(a.1), in determining whether therapy is required to be administered at least two times each week for a total duration averaging not less than an
average of 14 hours a week, the time spent on administering therapy
(3) Paragraphs 118.3(1.1)(b) to (d) of the Act are replaced by the
following:
(b) in the case of therapy that requires
(i) a regular dosage of medication that is required to be adjusted on a daily basis,
includes time spent on activities that are directly related to the determination of the dosage of the
medication, and
(ii) the daily consumption of a medical food or medical formula
to limit intake of a particular compound to levels required for the proper development or functioning of the
body, includes the time spent on activities that are directly related to the determination of the amount of the
compound that can be safely consumed;
(c) in the case of
(i) a child who is unable to perform the activities related to the administration of the
therapy as a result of the child’s age, includes the time spent by another person to perform or supervise those activities for the
child, and
(ii) an individual who is unable to perform the activities
related to the administration of the therapy because of the effects of an impairment or impairments in physical
or mental functions, includes the time required to be spent by another person to assist the individual in
performing those activities; and
(d) does not include time spent
on
(i) activities (other than activities described
in paragraph (b)) related to dietary or exercise restrictions or regimes,
(ii) travel time,
(iii) medical appointments (other than medical appointments to
receive therapy or to determine the daily dosage of medication, medical food or medical formula),
(iv) shopping for medication, or
(v) recuperation after therapy (other than
medically required recuperation).
(4) Subsections (1) to (3) apply to the 2021 and subsequent taxation years in
respect of certificates described in paragraph 118.3(1)(a.2) or (a.3) of the Income Tax Act that are filed with the Minister of National
Revenue after this Act receives royal assent.
7 (1) Subparagraphs
118.4(1)(c.1)(i) to (iii) of the Act are replaced by the following:
(i) attention,
(ii) concentration,
(iii) memory,
(iv) judgement,
(v) perception of reality,
(vi) problem solving,
(vii) goal setting,
(viii) regulation of behaviour and emotions,
(ix) verbal and non-verbal comprehension, and
(x) adaptive functioning;
(2) Subsection (1) applies to the 2021 and subsequent taxation years in respect
of certificates described in paragraph 118.3(1)(a.2) or (a.3) of the Income Tax Act that are filed with the Minister of National
Revenue after this Act receives royal assent.
8 (1) Subsection
122.5(3.001) of the Act is replaced by the following:
COVID-19 — additional deemed payment
(3.001) An eligible individual in relation to a month specified for a taxation year who files
a return of income for the taxation year is deemed to have paid during the specified month on account of their
tax payable under this Part for the taxation year an amount determined by the formula
A − B − C
where
A is the
total of
(a) $580,
(b) $580 for the qualified
relation, if any, of the individual in relation to the specified month,
(c) if the individual has no
qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year
under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a
qualified dependant of the individual in relation to the specified month, $580,
(d) $306 times the number of
qualified dependants of the individual in relation to the specified month, other than a qualified dependant in
respect of whom an amount is included under paragraph (c) in computing the total for the specified month,
(e) if the individual has no
qualified relation and has one or more qualified dependants, in relation to the specified month, $306,
and
(f) if the individual has no
qualified relation and no qualified dependant, in relation to the specified month, the lesser of $306 and 2% of
the amount, if any, by which the individual’s income for the taxation year exceeds $9,412;
B is 5% of
the amount, if any, by which the individual’s adjusted income for the taxation year in relation to the
specified month exceeds $37,789; and
C is the total amount that the eligible individual is
deemed to have paid under subsection (3) on account of their tax payable for the specified months of July 2019,
October 2019, January 2020 and April 2020.
(2) Subsection (1) is deemed to have come into effect on March 25, 2020.
9 (1) Paragraph (i) of
the definition eligible individual in section 122.6 of the
Act is replaced by the following:
(i) an individual shall not fail to qualify as a parent (within the meaning assigned by
section 252) of another individual solely because of the receipt of a social assistance amount that is payable
under a program of the Government of Canada, the government of a province or an Indigenous governing body (as defined in section 2 of the Children’s Special Allowances
Act) for the benefit of the other
individual; (particulier
admissible)
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
10 (1) Subsection
122.7(1.2) of the Act is replaced by the following:
Receipt of social assistance
(1.2) For the purposes of
applying the definitions eligible dependant and eligible individual in subsection (1) for a taxation year, an
individual shall not fail to qualify as a parent (within the meaning assigned by section 252) of another
individual solely because of the receipt of a social assistance amount that is payable under a program of the
Government of Canada, the government of a province or an Indigenous governing body (as defined in section 2 of the Children’s Special Allowances
Act) for the benefit of the other individual, unless the
amount is a special allowance under the Children’s
Special Allowances Act in respect of the other individual in the taxation year.
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
11 (1) The definitions
eligible individual, qualified dependant and qualified relation in subsection 122.8(1) of the Act are
replaced by the following:
eligible individual, in relation to a month specified for
a taxation year, means an individual (other than a trust) who
(a) has, before the specified month, attained the age of 19
years; or
(b) was, at any time before the specified month,
(i) a parent who resided with their child,
or
(ii) married or in a common-law partnership. (particulier admissible)
qualified dependant, of an individual in relation to a month
specified for a taxation year, means a person who at the beginning of the specified
month
(a) is the individual’s
child or is dependent for support on the individual or on the individual’s cohabiting spouse or common-law
partner;
(b) resides with the
individual;
(c) is under the age of 19 years;
(d) is not an eligible
individual in relation to the specified month; and
(e) is not a qualified relation
of any individual in relation to the specified month. (personne à charge admissible)
qualified relation, of an individual in relation to a month
specified for a taxation year, means the person, if any, who, at the beginning of the specified
month, is the individual’s cohabiting spouse or common-law partner. (proche admissible)
(2) Subsection 122.8(2) of the Act is replaced by the following:
Persons not eligible or qualified
(2) Despite subsection
(1), a person is not an eligible individual, is not a qualified relation and is not a qualified dependant, in relation to a month specified for a taxation year, if the
person
(a) died before the specified month;
(b) is confined to a prison or
similar institution for a period of at least 90 days that includes the
first day of the specified month;
(c) is at the beginning of the specified month a non-resident
person, other than a non-resident person who
(i) is at that time the cohabiting spouse or common-law
partner of a person who is deemed under subsection 250(1) to be resident in Canada throughout the taxation year
that includes the first day of the specified month, and
(ii) was resident in Canada at any time before the specified
month;
(d) is at the beginning of the
specified month a person described in paragraph 149(1)(a) or (b); or
(e) is a person in respect of
whom a special allowance under the Children’s Special
Allowances Act is payable for the specified month.
(3) Subsections 122.8(4) to (8) of the Act are replaced by the
following:
Deemed payment on account of tax
(4) An eligible individual
in relation to a month
specified for a taxation year who files a return of income for the taxation year is deemed to have paid, during the specified month, on account of their tax payable under this Part for the taxation year, an amount
equal to the amount, if any, determined by the formula
(A + B + C
× D) × E
where
A is the
amount specified by the Minister of Finance for an eligible individual in relation to the specified
month for the province (in this subsection and subsection (6) referred to as the “relevant
province”) in which the eligible individual resides at the beginning of the specified
month;
B is
(a) the amount specified by the
Minister of Finance for a qualified relation in relation to the
specified month for the relevant province, if
(i) the eligible individual has
a qualified relation at the beginning of the specified month, or
(ii) subparagraph (i) does not
apply and the eligible individual has a qualified dependant at the beginning of the specified
month, and
(b) in any other case,
nil;
C is the
amount specified by the Minister of Finance for a qualified dependant in
relation to the specified month for the relevant
province;
D is the
number of qualified dependants of the eligible individual at the beginning of the specified
month, other than a qualified dependant in respect of whom an amount is included because of
subparagraph (a)(ii) of the description of B in relation to the
specified month; and
E is
(a) 1.1, if there is a census
metropolitan area, as determined in the last census published by Statistics Canada before the taxation year, in
the relevant province and the individual does not reside in a census metropolitan area at the beginning of the specified
month, and
(b) 1, in any other
case.
Shared-custody parent
(4.1) Despite subsection (4), if an eligible individual is a shared-custody parent (as defined in section 122.6, but the
definition qualified dependent in that section having the
meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month,
the amount deemed by subsection (4) to have been paid during a specified month is equal to the amount determined
by the formula
0.5(A + B)
where
A is the amount determined under subsection (4),
calculated without reference to this subsection; and
B is the amount determined under subsection (4),
calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6.
Months specified
(4.2) For the purposes of this section, the months specified for
a taxation year are April, July and October of the immediately following taxation year and January of the second
immediately following taxation year.
Authority to specify amounts
(5) The Minister of Finance may
specify amounts for a province in relation to a month specified
for a taxation year for the purposes of this section. If the Minister of Finance does not specify a particular
amount that is relevant for the purposes of this section, that particular amount is deemed to be nil for the
purpose of applying this section.
Deemed rebate in respect of fuel charges
(6) The amount deemed by this
section to have been paid during a specified month on account of
tax payable for a taxation year is deemed to have been paid during the specified
month as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the
relevant province.
Only one eligible individual
(7) If an individual is a
qualified relation of another individual in relation to a month
specified for a taxation year and both those individuals would be, but for this subsection, eligible
individuals in relation to the specified month, only the individual that the Minister designates is
the eligible individual in relation to the specified month.
Exception — qualified dependant
(8) If a person would, if this
Act were read without reference to this subsection, be the qualified dependant of two or more individuals, in relation to a month specified for a taxation year,
(a) the person is deemed to be
a qualified dependant, in relation to that month, of the one of
those individuals on whom those individuals agree;
(b) in the absence of an agreement referred to in paragraph
(a), the person is deemed to be, in relation to that month, a qualified dependant of the individuals, if any,
who are, at the beginning of that month, eligible
individuals (as defined in section 122.6, but the definition qualified dependant in that section having the meaning assigned
by subsection (1)) in respect of that person; and
(c) in any other case, the person is deemed to be, in relation to that month, a qualified dependant only of the
individual that the Minister designates.
Notification to Minister
(8.1) An individual shall notify the Minister of the occurrence
of any of the following events before the end of the month following the month in which the event occurs:
(a) the individual ceases to be an eligible individual;
(b) a person becomes or ceases to be the individual’s
qualified relation; and
(c) a person ceases to be a qualified dependant of the
individual, otherwise than because of attaining the age of 19 years.
(4) Subsections (1) to (3) apply to payments made after June 2022 in respect of
the 2021 and subsequent taxation years.
12 (1) The Act is
amended by adding the following after section 125.1:
125.2
Definitions
(1) The following definitions apply in this section.
adjusted business
income, of a corporation for a taxation
year, has the same meaning as in Part LII of the Income Tax
Regulations. (revenu rajusté
tiré d’une entreprise)
cost of capital, of a corporation for a taxation year, has the same
meaning as in Part LII of the Income Tax Regulations.
(coût en capital)
cost of labour, of a corporation for a taxation year, has the same
meaning as in Part LII of the Income Tax Regulations.
(coût en main-d’oeuvre)
zero-emission technology
manufacturing profits, of a corporation for a
taxation year, means the amount determined by the formula
A × B × C
where
A is the corporation’s adjusted business income
for the taxation year;
B is the fraction determined by the formula
D ÷ E
where
D is the total of the corporation’s ZETM cost
of capital and ZETM cost of labour for the taxation year, and
E is the total of the corporation’s cost of
capital and cost of labour for the taxation year; and
C is
(a) if the fraction determined for B is at least 0.9, the
fraction determined by the formula
F ÷ G
where
F is the amount determined for E, and
G is the amount determined for D; and
(b) 1, in any other case. (bénéfices de fabrication de technologies à zéro
émission)
ZETM cost of
capital, of a corporation for a taxation
year, has the same meaning as in Part LII of the Income Tax
Regulations. (coût en capital de
FTZE)
ZETM cost of
labour, of a corporation for a taxation year,
has the same meaning as in Part LII of the Income Tax
Regulations. (coût en
main-d’œuvre de FTZE)
Zero-emission technology
manufacturing
(2) There may be deducted from the tax otherwise payable under
this Part by a corporation for a taxation year the amount determined by the formula
(A × B) + (C × D)
where
A is
(a) 0.075, if the taxation year begins after 2021 and before
2029,
(b) 0.05625, if the taxation year begins after 2028 and before
2030,
(c) 0.0375, if the taxation year begins after 2029 and before
2031,
(d) 0.01875, if the taxation year begins after 2030 and before
2032, and
(e) nil, in any other case;
B is the least of
(a) the corporation’s zero-emission technology
manufacturing profits for the taxation year,
(b) the amount of the corporation’s adjusted business
income for the taxation year (determined without reference to section 5203 of the Income Tax Regulations) less
(i) if the corporation was a Canadian-controlled private
corporation throughout the taxation year, the least of the amounts, if any, determined under paragraphs
125(1)(a) to (c) in respect of the corporation for the taxation year, and
(ii) in any other case, nil, and
(c) the amount, if any, by which the corporation’s
taxable income for the taxation year exceeds the total of
(i) if the corporation was a Canadian-controlled private
corporation throughout the taxation year, the least of the amounts, if any, determined under paragraphs
125(1)(a) to (c) in respect of the corporation for the taxation year,
(ii) the corporation’s aggregate investment income (as defined in subsection 129(4))
for the taxation year, and
(iii) the amount determined by multiplying the total of the
amounts deducted under subsection 126(2) from its tax for the taxation year otherwise payable under this Part,
by the relevant factor for the taxation year;
C is
(a) 0.045, if the taxation year begins after 2021 and before
2029,
(b) 0.03375, if the taxation year begins after 2028 and before
2030,
(c) 0.0225, if the taxation year begins after 2029 and before
2031,
(d) 0.01125, if the taxation year begins after 2030 and before
2032, and
(e) nil, in any other case; and
D is
(a) if the corporation was a Canadian-controlled private
corporation throughout the taxation year, the lesser of
(i) the least of the amounts, if any, determined under
paragraphs 125(1)(a) to (c) in respect of the corporation for the taxation year, and
(ii) the amount determined by the formula
E − F
where
E is the corporation’s zero-emission technology
manufacturing profits for the taxation year, and
F is the amount determined for B, and
(b) nil, in any other case.
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
13 Section 125.4 of the Act is amended by adding the following after
subsection (1):
COVID-19 — production commencement
time
(1.1) The reference to “two years” in subparagraph
(b)(iii) of the definition production commencement time in
subsection (1) is to be read as a reference to “three years” in respect of film or video productions
for which the labour expenditure of the corporation in respect of the production for the taxation year ending in
2020 or 2021 was greater than nil.
14 (1) Section 125.7 of
the Act is amended by adding the following after subsection (15):
Extension of time by Minister
(16) For the purposes of determining whether an eligible entity
is a qualifying entity, a qualifying recovery entity or a qualifying renter, the Minister may, at any time,
extend the time for filing an application under this section.
(2) Subsection (1) is deemed to have come into force on April 11, 2020.
15 (1) The definition
earned income in subsection 146(1) of the Act
is amended by adding the following after paragraph (b):
(b.01) an amount included under paragraph 56(1)(n) in computing
the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada in
connection with a program that consists primarily of research and does not lead to a diploma from a college or a
collège d’enseignement général et professionnel, or a bachelor, masters, doctoral or
equivalent degree,
(2) Subject to subsection (3), subsection (1) applies in respect of income
received in the 2021 and subsequent taxation years.
(3) Before 2026, the taxpayer may file an election with the Minister of
National Revenue to include income that is described in paragraph (b.01) of the definition earned income in subsection 146(1) of the Act, and received by
the taxpayer after 2010 and before 2021, for the purposes of computing the taxpayer’s RRSP deduction limit (as defined in that subsection) on or
after the date the election is filed.
16 (1) The definition
charitable purposes in subsection 149.1(1) of the Act is
replaced by the following:
charitable purposes includes making qualifying
disbursements; (fins de bienfaisance)
(2) Paragraph (a.1) of the definition charitable organization in subsection 149.1(1) of the Act is
replaced by the following:
(a.1) all the resources of which are devoted to charitable activities carried on by the
organization itself or to making qualifying disbursements,
(3) Subsection 149.1(1) of the Act is amended by adding the following in
alphabetical order:
grantee
organization includes a person, club,
society, association or organization or prescribed entity, but does not include a qualified donee; (organisation donataire)
qualifying
disbursement means a disbursement by a
charity, by way of a gift or by otherwise making resources available,
(a) subject to subsection (6.001), to a qualified donee,
or
(b) to a grantee organization, if
(i) the disbursement is in furtherance of a charitable purpose
(determined without reference to the definition charitable
purposes in this subsection) of the charity,
(ii) the charity ensures that the disbursement is exclusively
applied to charitable activities in furtherance of a charitable purpose of the charity, and
(iii) the disbursement meets prescribed conditions; (versement admissible)
(4) Paragraphs 149.1(2)(b) and (c) of the Act are replaced by the
following:
(b) fails to expend in any taxation year, on charitable activities carried on by it and
by way of gifts made by it that are qualifying disbursements,
amounts the total of which is at least equal to the organization’s disbursement quota for that year; or
(c) makes a disbursement, other
than
(i) a disbursement made in the course of charitable activities carried on
by it, or
(ii) a qualifying disbursement.
(5) Paragraphs 149.1(3)(b) and (b.1) of the Act are replaced by the
following:
(b) fails to expend in any taxation year, on charitable activities carried on by it and
by way of gifts made by it that are qualifying disbursements,
amounts the total of which is at least equal to the foundation’s disbursement quota for that year;
(b.1) makes a disbursement, other
than
(i) a disbursement made in the course of charitable activities carried on
by it, or
(ii) a qualifying disbursement;
(6) Paragraphs 149.1(4)(b) and (b.1) of the Act are replaced by the
following:
(b) fails to expend in any taxation year, on charitable activities carried on by it and
by way of gifts made by it that are qualifying disbursements,
amounts the total of which is at least equal to the foundation’s disbursement quota for that year;
(b.1) makes a disbursement, other
than
(i) a disbursement made in the course of charitable activities carried on
by it, or
(ii) a qualifying disbursement;
(7) Paragraph 149.1(4.1)(d) of the Act is replaced by the following:
(d) of a registered charity, if it has in a taxation year received a gift of property
(other than a designated gift) from another registered charity with which it does not deal at arm’s length
and it has expended, before the end of the next taxation year, in addition to its disbursement quota for each of
those taxation years, an amount that is less than the fair market value of the property, on charitable
activities carried on by it or by way of gifts that are qualified
disbursements to qualified donees or grantee
organizations, with which it deals at arm’s length;
(8) Subsection 149.1(6) of the Act is replaced by the following:
Devotion of resources — charitable activity
(6) A charitable organization
shall be considered to be devoting its resources to charitable activities carried on by it to the extent that it
uses those resources in carrying on a related business.
Qualifying disbursement limit –
charitable organizations
(6.001) In any taxation year, disbursements of income of a
charitable organization by way of gifts to a qualified donee (other than disbursements of income to a registered
charity that the Minister has designated in writing as a charity associated with the charitable organization) in
excess of 50% of the charitable organization’s income for that year are not qualifying
disbursements.
(9) Subsection 149.1(10) of the Act is repealed.
(10) Subsections 149.1(20) and (21) of the Act are replaced by the
following:
Rule regarding disbursement excess
(20) Where a registered charity
has expended a disbursement excess for a taxation year, the charity may, for the purpose of determining whether
it complies with the requirements of paragraph (2)(b), (3)(b) or (4)(b), as the case may be, for the immediately
preceding taxation year of the charity and five or less of its immediately subsequent taxation years, include in
the computation of the amounts expended on charitable activities carried on by it and by way of gifts made by it
that are qualifying disbursements, such portion of that
disbursement excess as was not so included under this subsection for any preceding taxation year.
Definition of disbursement excess
(21) For the purpose of
subsection (20), disbursement
excess, for a taxation year of a charity, means the amount, if any, by which the total of amounts
expended in the year by the charity on charitable activities carried on by it and by way of gifts made by it
that are qualifying disbursements exceeds its disbursement quota
for the year.
17 (1) Paragraph
152(1.2)(d) of the Act is replaced by the following:
(d) if the Minister determines the amount deemed by subsection 122.5(3), (3.001) or 122.8(4) to have been paid by an individual for a taxation year to
be nil, subsection (2) does not apply to the determination unless the individual requests a notice of
determination from the Minister.
(2) Subsection (1) applies to payments made after June 2022 in respect of the
2021 and subsequent taxation years.
18 (1) Paragraph
160.1(1)(b) of the Act is replaced by the following:
(b) the taxpayer shall pay to the Receiver General interest at the prescribed rate on the
excess (other than any portion thereof that can reasonably be considered to arise as a consequence of the
operation of section 122.5, 122.61 or 122.8) from the day it
became payable to the date of payment.
(2) Section 160.1 of the Act is amended by adding the following after
subsection (1.1):
Liability for refund – Climate
Action Incentive
(1.2) If a person is a qualified relation of an individual
(within the meaning assigned by subsection 122.8(1)), in relation to one or more months specified for a taxation
year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of
(a) any excess described in subsection (1) that was refunded
in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the
operation of section 122.8; and
(b) the total of the amounts deemed by subsection 122.8(4) to
have been paid by the individual during those specified months.
(3) Subsection 160.1(2) of the Act is replaced by the following:
Liability under other provisions
(2) Subsections (1.1)
and (1.2) do not limit a person’s liability under any other
provision of this Act.
(4) Subsection 160.1(3) of the Act is replaced by the following:
Assessment
(3) The Minister may at any
time assess a taxpayer in respect of any amount payable by the taxpayer because of any of subsections (1) to
(1.2) or for which the taxpayer is liable because of subsection (2.1) or (2.2), and the provisions of
this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any
modifications that the circumstances require, in respect of an assessment made under this section, as though it
were made under section 152 in respect of taxes payable under this Part, except that no interest is payable on
an amount assessed in respect of an excess referred to in subsection (1) that can reasonably be considered to
arise as a consequence of the operation of section 122.5, 122.61 or
122.8.
(5) Subsections (1) to (4) apply to payments made after June 2022 in respect of
the 2021 and subsequent taxation years.
19 (1) Paragraph
163(2)(c.4) of the Act is replaced by the following:
(c.4) the amount, if any, by which
(i) the total of all amounts
each of which is an amount that would be deemed by section 122.8 to be paid by that person during a month specified for the year or, where that person is the
qualified relation of an individual in relation to that specified month (within the meaning assigned by
subsection 122.8(1)), by that individual, if that total were calculated by reference to the information provided
in the person’s return of income (within the meaning
assigned by subsection 122.8(1)) for the year
exceeds
(ii) the total of all amounts
each of which is an amount that is deemed by section 122.8 to be paid by that person or by an individual of whom
the person is the qualified relation in relation to a month specified for the year (within the meaning
assigned by subsection 122.8(1)),
(2) Subsection (1) applies to payments made after June 2022 in respect of the
2021 and subsequent taxation years.
20 (1) Section 164 of
the Act is amended by adding the following after subsection (2.2):
Application respecting refunds –
Climate Action Incentive
(2.21) Where an amount deemed under section 122.8 to be paid by
an individual during a month specified for a taxation year is applied under subsection (2) to a liability of the
individual and the individual’s return of income for the year is filed on or before the individual’s
balance-due day for the year, the amount is deemed to have been so applied on the day on which the amount would
have been refunded if the individual were not liable to make a payment to Her Majesty in right of Canada.
(2) The portion of subsection 164(3) of the Act before paragraph (a) is
replaced by the following:
Interest on refunds and repayments
(3) If, under this section, an
amount in respect of a taxation year (other than an amount, or a portion of the amount, that can reasonably be
considered to arise from the operation of section 122.5, 122.61, 122.8
or 125.7) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the
Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is
the latest of the days referred to in the following paragraphs and that ends on the day on which the amount is
refunded, repaid or applied:
(3) Subsections (1) and (2) apply to payments made after June 2022 in respect
of the 2021 and subsequent taxation years.
21 Paragraph 168(1)(f) of the Act is replaced by the following:
(f) in the case of a registered charity,
registered Canadian amateur athletic association or registered journalism organization, accepts a gift the
granting of which was expressly or implicitly conditional on the charity, association or organization making a gift to another person,
club, society, association or organization other than a qualified
donee.
22 (1) Subsection
188(1.2) of the Act is replaced by the following:
Winding-up period
(1.2) In this Part, the
winding-up period of a charity is the period
(a) that begins immediately
after the earliest of the days on which
(i) the Minister issues a notice of intention to revoke the registration of the charity under any of subsections 149.1(2) to (4.1) and
168(1),
(ii) the charity becomes a listed terrorist entity, and
(iii) it is determined, under subsection 7(1) of the Charities Registration (Security Information) Act, that a
certificate served in respect of the charity under subsection 5(1) of that Act is reasonable on the basis of
information and evidence available, and
(b) that ends on the day that
is the latest of
(i) the day, if any, on which the charity files a return under subsection 189(6.1) for
the taxation year deemed by subsection (1) to have ended, but not later than the day on which the charity is
required to file that return,
(ii) the day on which the Minister last issues a notice of assessment of tax payable under
subsection (1.1) for that taxation year by the charity, and
(iii) if the charity has filed a notice of objection or appeal in respect of that
assessment, the day on which the Minister may take a collection action under section 225.1 in respect of that
tax payable.
(2) Subsection (1) is deemed to have come into force on June 29, 2021.
23 (1) Paragraph
188.1(5)(c) of the Act is replaced by the following:
(c) a qualifying disbursement.
(2) Subsection 188.1(12) of the Act is replaced by the following:
Gifts not at arm’s length
(12) If a registered charity has
in a taxation year received a gift of property (other than a designated gift) from another registered charity
with which it does not deal at arm’s length and it has expended, before the end of the next taxation year
— in addition to its disbursement quota for each of those taxation years — an amount that is less
than the fair market value of the property on charitable activities carried on by it or by way of gifts made
by it that are qualifying disbursements to qualified donees or grantee organizations, with which it deals at arm’s length,
the registered charity is liable to a penalty under this Act for that subsequent taxation year equal to 110% of
the difference between the fair market value of the property and the additional amount expended.
24 Paragraph 241(4)(d) of the Act is amended by striking out “or”
at the end of subparagraph (xvii), by adding “or” at the end of subparagraph (xviii) and by adding
the following after subparagraph (xviii):
(xix) to an official of the Canada Revenue Agency solely for the
purpose of the collection of amounts owing to Her Majesty in right of Canada under the Canada Emergency Business
Account program established by Export Development Canada in accordance with an authorization made under
subsection 23(1) of the Export Development Act;
R.S., c. E-15
Excise Tax Act
25 Paragraph 295(5)(d) of the Excise Tax Act is amended by striking out “or”
at the end of subparagraph (viii), by adding “or” at the end of subparagraph (ix) and by adding the
following after subparagraph (ix):
(x) to an official of the Canada Revenue Agency solely for the
purpose of the collection of amounts owing to Her Majesty in right of Canada under the Canada Emergency Business
Account program established by Export Development Canada in accordance with an authorization made under
subsection 23(1) of the Export Development Act;
1992, c. 48, Sch.
Children’s Special Allowances Act
26 (1) Section 2 of the
Children’s Special Allowances Act is amended by
adding the following in alphabetical order:
Indigenous governing
body means an Indigenous governing body (as defined in section 1 of An Act respecting First Nations, Inuit and Métis children,
youth and families) that
(a) has given notice under subsection 20(1) of that
Act;
(b) has requested a coordination agreement under subsection
20(2) of that Act; or
(c) meets prescribed conditions. (corps dirigeant autochtone)
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
27 (1) Paragraphs
3(1)(a) and (b) of the Act are replaced by the following:
(a) resides in an institution, a group foster home, the private home of foster parents or
in the private home of a guardian, tutor or other individual occupying a similar role for the month, under a
decree, order or judgment of a competent tribunal and is maintained by
(i) a department or agency of
the government of Canada or a province, or
(ii) an agency appointed by a
province, including an authority established under the laws of a province, or by an agency appointed by such an
authority, for the purpose of administering any law of the province for the protection and care of
children;
(b) is maintained by an
institution licensed or otherwise authorized under the law of the province to have the custody or care of
children; or
(c) resides in an institution, a group foster home, the
private home of foster parents or in the private home of a guardian, tutor or other individual occupying a
similar role for the month, under the laws of an Indigenous governing body and is maintained by
(i) the Indigenous governing body,
(ii) a department or agency of the Indigenous governing body,
or
(iii) an agency appointed by the Indigenous governing body,
including an authority established under the laws of the Indigenous governing body, or by an agency appointed by
such an authority, for the purpose of administering any law of the Indigenous governing body for the protection
and care of children.
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
28 (1) Paragraph 4(1)(a)
of the Act is replaced by the following:
(a) an application therefor has been made in the prescribed manner by the department,
agency, institution or Indigenous governing body referred to in
subsection 3(1) that maintains the child; and
(2) Subsection 4(3) of the Act is replaced by the following:
No allowance payable
(3) No special allowance is
payable for the month in which the child in respect of whom the special allowance is payable commences to be
maintained by a department, agency, institution or Indigenous governing
body, and no special allowance is payable in respect of a child for the month in which the child is
born or commences to reside in Canada.
(3) Paragraph 4(4)(a) of the Act is replaced by the following:
(a) ceases to be maintained by the department, agency, institution or Indigenous governing body;
(4) Subsections (1) to (3) are deemed to have come into force on January 1,
2020.
29 (1) Sections 5 and 6
of the Act are replaced by the following:
Recipient of special allowance
5 Where payment of a special
allowance is approved in respect of a child, the special allowance shall, in such manner and at such times as
are determined by the Minister, be paid to the department, agency, institution or Indigenous governing body referred to in subsection 3(1) that maintains the child or, in the prescribed
circumstances, to a foster parent.
Report
6 Where a special allowance
ceases to be payable in respect of a child for a reason referred to in paragraph 4(4)(a), (b) or (c), the chief
executive officer of the department, agency, institution or Indigenous
governing body that made the application under paragraph 4(1)(a) in respect of the child shall, as soon
as possible after the special allowance ceases to be payable in respect of the child, notify the Minister in the
prescribed form and manner.
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
30 (1) Subsections 9(1)
and (2) of the English version of the Act are replaced by the following:
Return of special allowance
9 (1) Any person, department, agency, institution or Indigenous governing body that has received or obtained by cheque or
otherwise payment of a special allowance under this Act to which the person, department, agency, institution or
Indigenous governing body is not entitled, or payment in excess
of the amount to which the person, department, agency, institution or Indigenous governing body is entitled, shall, as soon as possible,
return the cheque or the amount of the payment, or the excess amount, as the case may be.
Recovery of amount of payment
(2) Where a person, department,
agency, institution or Indigenous governing body has received or
obtained payment of a special allowance under this Act to which the person, department, agency, institution or
Indigenous governing body is not entitled, or payment in excess
of the amount to which the person, department, agency, institution or Indigenous governing body is entitled, the amount of the special
allowance or the amount of the excess, as the case may be, constitutes a debt due to Her Majesty.
(2) Subsection 9(3) of the Act is replaced by the following:
Deduction from subsequent special allowance
(3) Where any person,
department, agency, institution or Indigenous governing body has
received or obtained payment of a special allowance under this Act to which the person, department, agency,
institution or Indigenous governing body is not entitled, or
payment in excess of the amount to which the person, department, agency, institution or Indigenous governing body is entitled, the amount of the special
allowance or the amount of the excess, as the case may be, may be deducted and retained in such manner as is
prescribed out of any special allowance to which the person, department, agency, institution or Indigenous governing body is or subsequently becomes entitled under
this Act.
(3) Subsections (1) and (2) are deemed to have come into force on January 1,
2020.
31 (1) Section 11 of the
Act is replaced by the following:
Agreements for exchange of information
11 The Minister may enter into
an agreement with the government of any province, or an Indigenous
governing body, for the purpose of obtaining information in connection with the administration or
enforcement of this Act or the regulations and of furnishing to that government, or Indigenous governing body, under prescribed conditions, any
information obtained by or on behalf of the Minister in the course of the administration or enforcement of this
Act or the regulations, if the Minister is satisfied that the information to be furnished to that government,
or Indigenous governing body, under the agreement is to be used
for the purpose of the administration of a social program, income assistance program or health insurance program
in the province or of the Indigenous governing body.
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
32 (1) Paragraph 13(a)
of the English version of the Act is replaced by the following:
(a) providing for the suspension of payment of a special allowance during any
investigation respecting the eligibility of a department, agency, institution or Indigenous governing body to receive the special allowance and
specifying the circumstances in which payment of a special allowance, the payment of which has been suspended,
may be resumed;
(2) Paragraph 13(c) of the Act is replaced by the following:
(c) specifying for the purposes of this Act the circumstances in which a child shall be
considered to be maintained by a department, agency, institution or Indigenous governing body; and
(3) Subsections (1) and (2) are deemed to have come into force on January 1,
2020.
2002, c. 22
Excise Act, 2001
33 Paragraph 211(6)(e) of the Excise Act, 2001 is amended by striking out “or”
at the end of subparagraph (ix), by adding “or” at the end of subparagraph (x) and by adding the
following after subparagraph (x):
(xi) to an official of the Agency solely for the purpose of the
collection of amounts owing to Her Majesty in right of Canada under the Canada Emergency Business Account
program established by Export Development Canada in accordance with an authorization made under subsection 23(1)
of the Export Development Act;
C.R.C., c. 945
Income Tax Regulations
34 (1) Section 1100 of
the Income Tax Regulations is amended by adding the following
before subsection (1):
Immediate expensing
(0.1) For the purposes of paragraph 20(1)(a) of the Act, a
deduction is allowed in computing an eligible person or partnership’s income for each taxation year equal
to the lesser of
(a) the eligible person or partnership’s immediate
expensing limit for the taxation year,
(b) the undepreciated capital cost to the eligible person or
partnership as of the end of the taxation year (before making any deduction under this Part for the taxation
year) of property that is designated immediate expensing property for the taxation year, and
(c) if the eligible person or partnership is not a
Canadian-controlled private corporation, the amount of income, if any, earned from the source of income that is
a business or property (computed without regard to paragraph 20(1)(a) of the Act) in which the relevant
designated immediate expensing property is used for the eligible person or partnership’s taxation
year.
Undepreciated capital cost —
immediate expensing
(0.2) Before computing any other deduction permitted under this
Part and Schedules II to VI, the amount of any deduction made under subsection (0.1) by an eligible person or
partnership in respect of a designated immediate expensing property of a prescribed class shall be deducted from
the undepreciated capital cost of the particular class to which the property belongs.
Expenditures excluded from paragraph
(0.1)(b)
(0.3) For the purposes of paragraph (0.1)(b), in respect of
property of a class in Schedule II that is immediate expensing property of an eligible person or partnership
solely because of subparagraph (c)(i) of the definition immediate
expensing property in subsection 1104(3.1), amounts incurred by any person or partnership in respect of
the property are not to be included in determining the undepreciated capital cost to the eligible person or
partnership as of the end of the taxation year (before making any deduction under this Part for the taxation
year) of property that is designated immediate expensing property for the taxation year if the amounts are
incurred before April 19, 2021 (if the eligible person or partnership is a Canadian-controlled private
corporation) or before 2022 (if the eligible person or partnership is an individual or Canadian partnership),
unless
(a) the property was acquired by an eligible person or
partnership from another person or partnership (referred to in this paragraph as the “transferee”
and the “transferor”, respectively)
(i) if the transferee is a Canadian-controlled private
corporation, after April 18, 2021, or
(ii) if the transferee is an individual or a Canadian
partnership, after December 31, 2021;
(b) the transferee was either
(i) the eligible person or partnership, or
(ii) a person or partnership that does not deal at arm’s
length with the eligible person or partnership; and
(c) the transferor
(i) dealt at arm’s length with the transferee,
and
(ii) held the property as inventory.
(2) The portion of subsection 1100(1.1) of the Regulations before paragraph (a)
is replaced by the following:
(1.1) Despite
subsections (0.1), (1) and (3), the amount deductible by a
taxpayer for a taxation year in respect of a property that is a specified leasing property at the end of the
year is the lesser of
(3) Subsection 1100(1.12) of the Regulations is replaced by the
following:
(1.12) Despite
subsections (0.1), (1) and (1.1), where, in a taxation year, a
taxpayer has acquired a property that was not used by the taxpayer for any purpose in that year and the first
use of the property by the taxpayer is a lease of the property in respect of which subsection (1.1) applies, the
amount allowed to the taxpayer under subsections (0.1) and (1) in
respect of the property for the year shall be deemed to be nil.
(4) The portion of subsection 1100(11) of the Regulations before paragraph (a)
is replaced by the following:
(11) Despite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in
respect of property of a prescribed class owned by a taxpayer that includes rental property owned by him,
otherwise allowed to the taxpayer by virtue of subsection (0.1)
or (1) in computing his income for a taxation year, exceed the amount, if any, by which
(5) The portion of subsection 1100(15) of the Regulations before paragraph (a)
is replaced by the following:
(15) Despite subsections (0.1) and (1), in no case shall the aggregate of deductions, each of which is a deduction in
respect of property of a prescribed class that is leasing property owned by a taxpayer, otherwise allowed to the
taxpayer under subsection (0.1) or (1) in computing his income
for a taxation year, exceed the amount, if any, by which
(6) The portion of subsection 1100(20.1) of the Regulations before paragraph
(a) is replaced by the following:
(20.1) The total of all amounts each of which is a deduction in respect of computer tax
shelter property allowed to the taxpayer under subsection (0.1)
or (1) in computing a taxpayer’s income for a taxation year shall not exceed the amount, if any,
by which
(7) Subsection 1100(21.1) of the Regulations is replaced by the
following:
(21.1) Despite subsections (0.1) and (1), where a taxpayer has acquired property described in paragraph (s) of Class 10
in Schedule II, or in paragraph (m) of Class 12 of Schedule II, the deduction in respect of the property
otherwise allowed to the taxpayer under subsection (0.1) or (1)
in computing the taxpayer’s income for a taxation year shall not exceed the amount that it would be if the
capital cost to the taxpayer of the property were reduced by the portion of any debt obligation of the taxpayer
outstanding at the end of the year that is convertible into an interest or, for civil law, a right in the property or an interest in the taxpayer.
(8) The portion of subsection 1100(24) of the Regulations before paragraph (a)
is replaced by the following:
(24) Despite subsections (0.1) and (1), in no case shall the total of deductions, each of which is a deduction in
respect of property of Class 34, 43.1, 43.2, 47 or 48 in Schedule II that is specified energy property owned by
a taxpayer, otherwise allowed to the taxpayer under subsection (0.1)
or (1) in computing the taxpayer’s income for a taxation year, exceed the amount, if any, by
which
(9) Subsections (1) to (8) are deemed to have come into force on April 19,
2021.
35 (1) Subsection
1102(20.1) of the Regulations is replaced by the following:
(20.1) For the purposes of subsections 1100(0.3)
and (2.02) and 1104(3.1) and (4), a particular person or
partnership and another person or partnership shall be considered not to be dealing at arm’s length with
each other in respect of the acquisition or ownership of a property if, in the absence of this subsection, they
would be considered to be dealing at arm’s length with each other and it may reasonably be considered that
the principal purpose of any transaction or event, or a series of transactions or events, is to cause
(a) the property to qualify as
accelerated investment incentive property or immediate expensing
property; or
(b) the particular person or
partnership and the other person or partnership to satisfy the condition in subclause 1100(2.02)(a)(i)(C)(I)
or subparagraph 1100(0.3)(c)(i).
(2) Subsection (1) is deemed to have come into force on April 19,
2021.
36 (1) Section 1104 of
the Regulations is amended by adding the following after subsection (3):
Definitions
(3.1) The following definitions apply in this Part and Schedules
II to VI.
designated immediate
expensing property for a taxation year, means
property of an eligible person or partnership that
(a) is immediate expensing property of the eligible person or
partnership;
(b) became available for use by the eligible person or
partnership in the taxation year; and
(c) is designated as designated immediate expensing property
in prescribed form filed by the eligible person or partnership with the Minister for the taxation year
(i) if the eligible person or partnership is a partnership, on
or before the day that is 12 months after the day on which any member of the partnership is required to file an
information return under section 229 for the fiscal period to which the designation relates, and
(ii) in any other case, on or before the day that is 12 months
after the eligible person or partnership’s filing-due date for the taxation year to which the designation
relates. (bien relatif à la passation en charges
immédiate désigné)
eligible person or
partnership for a taxation year, means
(a) a corporation that was a Canadian-controlled private
corporation throughout the year;
(b) an individual (other than a trust) who was resident in
Canada throughout the year; or
(c) a Canadian partnership all of the members of which were,
throughout the period, persons described in paragraph (a) or (b). (personne ou société de personnes admissible)
immediate expensing
property for a taxation year, means property
of a prescribed class (other than property included in any of Classes 1 to 6, 14.1, 17, 47, 49 and 51 in
Schedule II) of an eligible person or partnership that
(a) is acquired by the eligible person or partnership
(i) if the eligible person or partnership is a
Canadian-controlled private corporation, after April 18, 2021, or
(ii) if the eligible person or partnership is an individual or
a Canadian partnership, after December 31, 2021;
(b) becomes available for use
(i) if the eligible person or partnership is an individual or
a Canadian partnership all the members of which are individuals throughout the taxation year, before 2025,
and
(ii) in any other case, before 2024; and
(c) meets either of the following conditions:
(i) the property
(A) has not been used for any purpose before it was acquired
by the eligible person or partnership, 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 any person or partnership for a taxation
year ending before the time the property was acquired by the eligible person or partnership, or
(ii) the property was not
(A) acquired in circumstances where
(I) the eligible person or partnership 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 eligible person or partnership was reduced by an amount determined by reference to the
amount by which the capital cost of the property to the eligible person or partnership exceeds its cost amount,
or
(B) previously owned or acquired by the eligible person or
partnership or by a person or partnership with which the eligible person or partnership did not deal at
arm’s length at any time when the property was owned or acquired by the person or partnership. (bien relatif à la passation en charges
immédiate)
taxpayer unless the context otherwise requires, includes an
eligible person or partnership. (contribuable)
Immediate expensing limit
(3.2) For the purposes of this Part and Schedules II to VI, an
eligible person or partnership’s immediate expensing limit for a taxation year is $1,500,000 unless the
eligible person or partnership is associated (within the meaning of section 256 of the Act, as modified by
subsection (3.6)) in the taxation year with one or more other eligible persons or partnerships, in which case,
except as otherwise provided in this section, its immediate expensing limit is nil.
Associated eligible persons or
partnerships
(3.3) Despite subsection (3.2), if all the eligible persons or
partnerships that are associated with each other (within the meaning of section 256 of the Act, as modified by
subsection (3.6)) in a taxation year file with the Minister in prescribed form an agreement that assigns for the
purpose of this Part and Schedules II to VI a percentage to one or more of them for the year, the immediate
expensing limit for the year of each of the eligible persons or partnerships is
(a) if the total of the percentages assigned in the agreement
does not exceed 100%, $1,500,000 multiplied by the percentage assigned to that eligible person or partnership in
the agreement; and
(b) in any other case, nil.
Failure to file agreement
(3.4) If any of the eligible persons or partnerships that are
associated with each other (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in a
taxation year has failed to file with the Minister an agreement described in subsection (3.3) within 30 days
after notice in writing by the Minister has been forwarded to any of them that such an agreement is required for
the purpose of any assessment of tax under Part I of the Act, the Minister shall, for the purpose of this Part
and Schedules II to VI, allocate an amount to one or more of them for the taxation year.
Special rules for immediate expensing
limit
(3.5) Despite subsections (3.2) to (3.4),
(a) where an eligible person or partnership (in this paragraph
referred to as the “first person”) has more than one taxation year ending in the same calendar year
and it is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in two or
more of those taxation years with another eligible person or partnership (in this paragraph referred to as the
“other person”) that has a taxation year ending in that calendar year, the immediate expensing limit
of the first person for each taxation year ending in the calendar year in which it is associated (within the
meaning of section 256 of the Act, as modified by subsection (3.6)) with the other person that ends after the
first such taxation year ending in that calendar year is, subject to the application of paragraph (b), an amount
equal to the lesser of
(i) its immediate expensing limit determined under subsection
(3.3) or (3.4) for the first such taxation year ending in the calendar year, and
(ii) its immediate expensing limit determined under subsection
(3.3) or (3.4) for the particular taxation year ending in the calendar year; and
(b) where an eligible person or partnership has a taxation
year that is less than 51 weeks, its immediate expensing limit for the year is that proportion of its immediate
expensing limit for the year determined without reference to this paragraph that the number of days in the year
is of 365.
Associated - interpretation
(3.6) For the purposes of this Part and Schedules II to VI, in
determining whether an eligible person or partnership is associated (within the meaning of section 256 of the
Act, as modified by this subsection) with another eligible person or partnership in a taxation year
(a) if the eligible person or partnership is a
partnership,
(i) the partnership is deemed to be a corporation (in this
subsection referred to as a “deemed corporation”) for the year,
(ii) the deemed corporation is deemed to have a capital stock
of a single class of shares, with a total of 100 issued and outstanding shares,
(iii) each member (in this subsection referred to as a
“deemed shareholder”) of the deemed corporation is deemed to be a shareholder of the deemed
corporation,
(iv) each deemed shareholder of the deemed corporation is
deemed to hold a number of shares in the capital stock of the deemed corporation determined by the
formula
A × 100
where
A is equal to
(A) the deemed shareholder’s specified proportion for
the last fiscal period of the deemed corporation, or
(B) if the deemed shareholder does not have a specified
proportion described in clause (A), the proportion that the fair market value of the deemed shareholder’s
interest in the deemed corporation at that time is of the fair market value of all interests in the deemed
corporation at that time, and
(v) the deemed corporation’s fiscal period is deemed to
be its taxation year; and
(b) if the eligible person or partnership is an individual
(other than a trust) who carries on a business or has acquired immediate expensing property
(i) the individual, in respect of that business or property,
is deemed to be a corporation that is controlled by the individual, and
(ii) the corporation’s taxation year is deemed to be the
same as the individual’s taxation year.
(2) Subsection (1) is deemed to have come into force on April 19, 2021.
37 (1) The definitions
biogas and producer gas in subsection 1104(13) of the Regulations are
replaced by the following:
biogas means
the gas produced by the anaerobic digestion of specified waste
material. (biogaz)
producer gas means
(a) in respect of a property of a taxpayer that becomes
available for use by the taxpayer before 2025, fuel the composition of
which, excluding its water content, is all or substantially all non-condensable gases that is generated
primarily from eligible waste fuel or specified waste material
using a thermo-chemical conversion process and that is not generated from any feedstock
other than eligible waste fuel, specified waste material or
fossil fuel; and
(b) in respect of a property of a taxpayer that becomes
available for use by the taxpayer after 2024, fuel
(i) the composition of which, excluding its water content, is
all or substantially all non-condensable gases,
(ii) that is generated using a thermo-chemical conversion
process,
(iii) that is generated from feedstock of which no more than 25%
is fossil fuel when measured in terms of energy content (expressed as a higher heating value of the feedstock),
and
(iv) that is not generated from any feedstock other than
eligible waste fuel, specified waste material or fossil fuel. (gaz de gazéification)
(2) The definitions plant residue and separated organics in subsection 1104(13) of the Regulations
are replaced by the following:
plant residue
means residue of plants (not including wood waste and waste that no longer has the chemical properties of the
plants of which it is a residue) that would otherwise be waste material. (résidus végétaux)
separated organics means organic waste (other than waste that is considered to be toxic or
hazardous waste under any law of Canada or a province) that could be disposed of in an eligible waste management
facility or eligible landfill site. (matières
organiques séparées)
(3) Subsection 1104(13) of the Regulations is amended by adding the following
in alphabetical order:
gaseous biofuel means a fuel produced all or substantially all from
specified waste material that is a gas at a temperature of 15.6°C (60°F) and a pressure of 101 kPa
(14.7 psia). (biocarburants gazeux)
liquid biofuel means a fuel produced all or substantially all from
specified waste material or carbon dioxide that is a liquid at a temperature of 15.6°C (60°F) and a
pressure of 101 kPa (14.7 psia). (biocarburants
liquides)
solid biofuel means a fuel produced all or substantially all
from specified waste material that is a solid at a temperature of 15.6°C (60°F) and a pressure of 101
kPa (14.7 psia) (other than charcoal that is used for cooking or fuels with fossil fuel-derived ignition
accelerants) and that has undergone
(a) a thermo-chemical conversion process to increase its
carbon fraction and densification; or
(b) densification into pellets or briquettes. (biocarburants solides)
specified waste
material means wood waste, plant
residue, municipal waste, sludge from an eligible sewage treatment facility, spent pulping liquor, food and
animal waste, manure, pulp and paper by-product and separated organics. (déchets déterminés)
(4) Subsection (1) applies in respect of property acquired after April 18, 2021
that has not been used or acquired for use before April 19, 2021.
(5) Subsections (2) and (3) are deemed to have come into force on April 19,
2021.
38 (1) Clause
1104(17)(a)(ii)(A) of the Regulations is replaced by the following:
(A) any of subparagraphs (d)(vii) to (ix), (xi), (xiii), (xiv), (xvi), (xvii) and (xix) to (xxii) of Class 43.1, or
(2) Subsection (1) applies to property acquired after April 18, 2021 that has
not been used or acquired for use before April 19, 2021.
39 Section 1106 of the Regulations is amended by adding the following after
subsection (1):
COVID-19 — Application for a Certificate of Completion
(1.1) In respect of applications filed with the Minister of
Canadian Heritage in respect of film or video productions for which the labour expenditure of the corporation in
respect of the production for the taxation years ending in 2020 or 2021 was greater than nil, the definition
application for a certificate of completion in subsection
(1) is to be read as follows:
application for a certificate of completion, in respect of a film or video production, means an application by a prescribed
taxable Canadian corporation in respect of the production, filed with the Minister of Canadian Heritage before
the day (in this Division referred to as “the production’s application deadline”) that is the
later of
(a) the day that is 24 months
after the end of the corporation’s taxation year in which the production’s principal photography
began,
(b) the day that is 18 months
after the day referred to in paragraph (a), if the corporation has filed, with the Canada Revenue Agency, and
provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the
Act, within the normal reassessment period for the corporation in respect of the first and second taxation years
ending after the production’s principal photography began, or
(c) the day that is 12 months
after the day referred to in paragraph (b), if the corporation has filed, with the Canada Revenue Agency, and
provided to the Minister of Canadian Heritage a copy of, a waiver described in subparagraph 152(4)(a)(ii) of the
Act, within the normal reassessment period for the corporation in respect of the first, second and third
taxation years ending after the production’s principal photography began. (demande de certificat d’achèvement)
COVID-19 — Excluded Production
(1.2) The reference to “2-year period” in
subparagraph (a)(iv) of the definition excluded production
in subsection (1) is to be read as a reference to “three-year period” in respect of film or video
productions for which the labour expenditure of the corporation in respect of the production for the taxation
years ending in 2020 or 2021 was greater than nil.
40 The Regulations are amended by adding the following after section
3702:
Qualifying Disbursement – Grantee Organization
3703 For the purpose of subparagraph (b)(iii) of the definition
qualifying disbursement in subsection 149.1(1) of the Act,
a disbursement by a charity meets prescribed conditions if all of the following conditions are met:
(a) the disbursement is subject to an agreement in writing
between the charity and the grantee organization that includes
(i) the terms and conditions of the disbursement, including a
requirement that all resources be used exclusively for charitable activities in furtherance of a charitable
purpose of the charity (determined without reference to the definition charitable purposes in subsection 149.1(1)),
(ii) a description of the charitable activities that the
grantee organization will undertake,
(iii) a requirement that any resources not used exclusively for
the purposes for which they were disbursed be returned to the charity,
(iv) a requirement that periodic reports be made by the grantee
organization, at least annually, which are to include details on the use of the disbursed resources, compliance
with the terms of the agreement and progress made toward the purposes of the disbursement,
(v) a requirement for the provision to the charity, in a
timely manner, of a written final report from the grantee organization, which includes a summary of the results
achieved with the charity’s resources, details on how the resources were used and documentary evidence to
demonstrate that resources were used exclusively for the purposes for which they were disbursed,
(vi)
a requirement that the books and records relating to the use of the disbursement (containing information in such
form as will enable the Minister to determine whether the disbursement is a qualifying disbursement) be
transferred to the charity or be kept by the grantee organization for a minimum of six years following the end
of the last taxation year of the charity to which the books and records of account relate, and
(vii)
a requirement that, upon request by the charity, books and records relating to the use of the disbursement be
made available in a timely manner to the charity to inspect, audit, examine or copy;
(b) prior to making the disbursement, the charity undertakes
an inquiry sufficient to obtain reasonable assurances that the provisions in the agreement referred to in
paragraph (a) will be complied with, including a review of the identity, prior history, practices, activities
and areas of expertise of the grantee organization and its directors, officers and like officials;
(c) the charity provides ongoing monitoring of the grantee
organization, including receiving periodic reports and verifying that the disbursement is being applied for the
purposes for which it was disbursed;
(d) the charity receives, reviews and approves the final
report of the grantee organization referred to in subparagraph (a)(v) in a timely manner; and
(e) if the charity becomes aware that any part of the
agreement referred to in paragraph (a) is not being complied with, the charity undertakes adequate remedial
action including, where appropriate, withholding further disbursements and attempting to recover
disbursements.
Information Returns
3704 For the purpose of subsection 149.1(14) of the Act, the
following is prescribed information for the public information return of a charity in a taxation year:
(a) in respect of each grantee organization that received
total qualifying disbursements from the charity in excess of $5,000 in the taxation year, the name of the
grantee organization;
(b) the purpose of each qualifying disbursement made to a
grantee organization referred to in paragraph (a) in the taxation year; and
(c) the total amount disbursed by the charity to each grantee
organization referred to in paragraph (a) in the taxation year.
41 (1) Section 5202 of
the Regulations is amended by adding the following in alphabetical order:
qualified zero-emission
technology manufacturing activities
means
(a) qualified activities that are
(i) performed in connection with the manufacturing or
processing of
(A) solar energy conversion equipment, including solar thermal
collectors, photovoltaic solar arrays and custom supporting structures or frames, but excluding passive solar
heating equipment,
(B) wind energy conversion equipment, including wind turbine
towers, nacelles and rotor blades,
(C) water energy conversion equipment, including
hydroelectric, water current, tidal and wave energy conversion equipment,
(D) geothermal energy equipment,
(E) equipment for a ground source heat pump system,
(F) electrical energy storage equipment used for storage of
renewable energy or for providing grid-scale storage or other ancillary services, including battery, compressed
air and flywheel storage systems,
(G) equipment used to charge, or to dispense hydrogen to,
property included in clause (J),
(H) equipment used for the production of hydrogen by
electrolysis of water,
(I) equipment that is a component of property included in
clauses (A) to (H), if such equipment is purpose-built or designed exclusively to form an integral part of that
property,
(J) property that
(I) would be a zero-emission vehicle (as defined in subsection 248(1) of the
Act if that definition were read without reference to its paragraphs (b) and (c)), or
(II) is described in subparagraph (a)(i) of Class 56 of
Schedule II, and
(K) integral components of the powertrain of property included
in clause (J), including batteries or fuel cells, and
(ii) not the manufacturing or processing of general purpose
components or equipment which components or equipment are suitable for integration into property other than
property described in subparagraph (i);
(b) qualified activities that are performed in connection with
production in Canada of
(i) hydrogen by electrolysis of water,
(ii) gaseous
biofuel (as defined in subsection
1104(13)),
(iii) liquid
biofuel (as defined in subsection 1104(13)),
and
(iv) solid biofuel (as defined in subsection 1104(13)); and
(c) the conversion of a vehicle, performed in Canada, into a
property described in clause (a)(i)(J); (activités admissibles de fabrication de technologies à
zéro émission)
ZETM cost of
capital, of a corporation for a
taxation year, means the portion of the cost of capital of the corporation for the year that reflects the extent
to which each property included in the calculation of the cost of capital was used directly in qualified
zero-emission technology manufacturing activities of the corporation during the year; (coût en capital de FTZE)
ZETM cost of
labour, of a corporation for a taxation year,
means the portion of the cost of labour of the corporation for that year that reflects the extent to
which
(a) the salaries and wages included in the calculation of the
cost of labour were paid or payable to persons for the portion of their time that they were directly engaged in
qualified zero-emission technology manufacturing activities of the corporation during the year, and
(b) the other amounts included in the calculation of the cost
of labour were paid or payable to persons for the performance of functions that would be directly related to
qualified zero-emission technology manufacturing activities of the corporation during the year if those persons
were employees of the corporation; (coût en
main-d’œuvre de FTZE)
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
42 (1) The portion of
section 5204 of the Regulations before the definition cost of
capital is replaced by the following:
5204 If a corporation
is a member of a partnership at any time in a taxation year of the corporation, the following definitions apply:
(2) Section 5204 of the Regulations is amended by adding the following in
alphabetical order:
ZETM cost of
capital, of the corporation for the year,
means the portion of the cost of capital of the corporation for that year that reflects the extent to which each
property included in the calculation of the cost of capital was used directly in qualified zero-emission
technology manufacturing activities
(a) of the corporation during the year, or
(b) of the partnership during its fiscal period coinciding
with or ending in the year, as the case may be; (coût en capital de FTZE)
ZETM cost of
labour, of the corporation for the year,
means the portion of the cost of labour of the corporation for that year that reflects the extent to which
(a) the salaries and wages included in the calculation of the
cost of labour were paid or payable to persons for the portion of their time that they were directly engaged in
qualified zero-emission technology manufacturing activities
(i) of the corporation during the year, or
(ii) of the partnership during its fiscal period coinciding
with or ending in the year, and
(b) the other amounts included in the calculation of the cost
of labour were paid or payable to persons for the performance of functions that would be directly related to
qualified zero-emission technology manufacturing activities of the corporation during the year, or of the
partnership during its fiscal period coinciding with or ending in the year, if those persons were employees of
the corporation or the partnership, as the case may be; (coût en main-d’œuvre de FTZE)
(3) Subsections (1) and (2) are deemed to have come into force on January 1,
2022.
43 Section 9300 of the Regulations is amended by adding the following after
subsection (1):
(1.1) The references to “24 months” in paragraphs
9300(1)(a) and (b) are to be read as references to “36 months” in respect of film or video
productions for which the Canadian labour expenditure of the corporation in respect of the production for the
taxation years ending in 2020 or 2021 was greater than nil.
44 (1) Subparagraphs
(c)(i) and (ii) of Class 43.1 in Schedule II to the Regulations are replaced by the following:
(i) part of a system that
(A) is used by the taxpayer, or
by a lessee of the taxpayer, to generate electrical energy, or both electrical and heat energy, using only fuel
that is eligible waste fuel, fossil fuel, producer gas, spent pulping liquor or any combination of those
fuels,
(B) if the system is rated to generate more than three
megawatts of electrical energy, meets the following condition on an annual basis:
A ≥ (2 × B + C)/(D + E/3412)
where
A is 11,000 BTU per kilowatt-hour,
B is the energy content of fossil fuel other than
solution gas (expressed as the higher heating value of the fuel) consumed by the system in BTU,
C is the energy content of the eligible waste fuel,
producer gas and spent pulping liquor (expressed as the higher heating value of the fuel) consumed by the system
in BTU,
D is the gross electrical energy produced by the
system in kilowatt-hours, and
E is the net useful energy in the form of heat
exported from the system to a thermal host in BTU, and
(C) uses fuel of which no more than 25% of the energy content
(expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis,
or
(2) Clause (d)(i)(B) of Class 43.1 in Schedule II to the Regulations is
replaced by the following:
(B) it is not a building, part of a building (other than a solar collector that is not a
window and that is integrated into a building), energy equipment that backs up equipment described in subclause
(A)(I) or (II) nor equipment that distributes heated or cooled air or water in a building,
(3) 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) or is a building,
(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 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
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),
(5) Subparagraph (d)(ix) of Class 43.1 in Schedule II to the Regulations is
replaced by the following:
(ix) equipment that
(A) is used by the
taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, not using any fuel
other than eligible waste fuel, fossil fuel, producer gas or a combination of those fuels,
(B) uses fuel of which no more than 25% of the energy content
(expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual
basis,
(C) may include
(I) fuel handling equipment used to upgrade the combustible portion of the fuel,
(II) control, feedwater and condensate systems, and
(III) other ancillary equipment, and
(D) does not include
(I) equipment used for the purpose of producing heat energy to operate electrical
generating equipment,
(II) buildings or other structures,
(III) heat rejection equipment (such as condensers and cooling water systems),
(IV) fuel storage facilities,
(V) other fuel handling equipment, and
(VI) property otherwise included in Class 10 or 17,
(6) Subparagraphs (d)(xi) and (xii) of Class 43.1 in Schedule II to the
Regulations are replaced by the following:
(xi) equipment all or substantially all of the use of which by
the taxpayer, or by a lessee of the taxpayer, is to produce liquid biofuel, including storage, materials
handling and ash-handling equipment and equipment used to remove non-combustibles and contaminants from the
fuels produced, but not including
(A) equipment used to produce spent pulping liquor,
(B) equipment used for the
collection or transportation of specified waste material or carbon
dioxide,
(C) equipment used for the transmission or distribution of
liquid biofuel,
(D) property that would otherwise be
included in Class 17,
(E) automotive vehicles, and
(F) buildings or other structures,
(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 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, 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) Subparagraph (d)(xvi) of Class 43.1 in Schedule II to the Regulations is
replaced by the following:
(xvi) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the
purpose of generating producer gas (other than producer gas that is to be converted into liquid fuels or chemicals), including related piping (including fans and
compressors), air separation equipment, storage equipment, equipment used for drying or shredding feedstock, ash-handling equipment, equipment used to upgrade the
producer gas into biomethane and equipment used to remove non-combustibles and contaminants from the producer
gas, but not including, buildings or other structures, heat rejection equipment (such as condensers and cooling
water systems), equipment used to convert producer gas into liquid fuels or chemicals, and property otherwise included in Class 10 or
17,
(9) Subparagraph (d)(xvi) of Class 43.1 in Schedule II to the Regulations is
replaced by the following:
(xvi) equipment that
(A) is used by the taxpayer, or
by a lessee of the taxpayer, primarily for the purpose of generating producer gas (other than producer gas that
is to be converted into liquid fuels or chemicals),
(B) uses feedstock of which no
more than 25% of the energy content (expressed as the higher heating value of the feedstock) is from fossil
fuel, as determined on an annual basis,
(C) may include
(I) related piping (including
fans and compressors),
(II) air separation
equipment,
(III) storage equipment,
(IV) equipment used for drying
or shredding feedstock,
(V) ash-handling
equipment,
(VI) equipment used to upgrade
the producer gas into biomethane, and
(VII) equipment used to remove non-combustibles and contaminants from the producer gas,
and
(D) does not include
(I) buildings or other
structures,
(II) heat rejection equipment
(such as condensers and cooling water systems),
(III) equipment used to convert producer gas into liquid fuels or chemicals, and
(IV) property otherwise included
in Class 10 or 17,
(10) Paragraph (d) of Class 43.1 in Schedule II to the Regulations is amended by
striking out “or” at the end of subparagraph (xvii) and by adding the following after subparagraph
(xviii):
(xix) a pumped hydroelectric energy storage installation all or
substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to store electrical
energy including reversing turbines, transmission equipment, dams, reservoirs and related structures, and that
meets the condition in either subclause (d)(xviii)(B)(I) or (II) in this Class, but not including
(A) property used solely for backup electrical energy,
and
(B) buildings,
(xx) equipment all or substantially all of the use of which by
the taxpayer, or by a lessee of the taxpayer, is to produce solid biofuel, including storage, materials handling
and ash-handling equipment, but not including
(A) equipment used to make wood chips, hog fuel or black
liquor,
(B) property that would otherwise be included in Class
17,
(C) automotive vehicles, and
(D) buildings and other structures,
(xxi) equipment used by the taxpayer, or by a lessee of the
taxpayer, to dispense hydrogen for use in automotive equipment powered by hydrogen, including vaporization,
compression, cooling and storage equipment, but not including
(A) equipment used for the production or transmission of
hydrogen,
(B) equipment used for the transmission or distribution of
electricity,
(C) automotive vehicles,
(D) auxiliary electrical generating equipment, and
(E) buildings and other structures, or
(xxii) equipment all or substantially all of the use of which by
the taxpayer, or by a lessee of the taxpayer, is to produce hydrogen through electrolysis of water, including
electrolysers, rectifiers and other ancillary electrical equipment, water treatment and conditioning equipment
and equipment used for hydrogen compression and storage, but not including
(A) equipment used for the transmission or distribution of
hydrogen,
(B) equipment used for the transmission or distribution of
electricity,
(C) automotive vehicles,
(D) auxiliary electrical generating equipment, and
(E) buildings and other structures, and
(11) Subsections (1), (5) and (9) apply in respect of property of a taxpayer
that becomes available for use by the taxpayer after 2024.
(12) Subsections (2) to (4), (6) to (8) and (10) apply to property acquired
after April 18, 2021 that has not been used or acquired for use before April 19, 2021.
45 (1) Paragraph (a) of
Class 43.2 in Schedule II to the Regulations is replaced by the following:
(a) otherwise than because of paragraph (d) of that Class; or
(2) Subparagraph (b)(i) of Class 43.2 in Schedule II to the Regulations is
repealed.
(3) Subsections (1) and (2) apply in respect of property of a taxpayer that
becomes available for use by the taxpayer after 2024.
SOR/93-12
Children’s Special Allowance Regulations
46 (1) The definition
applicant in section 2 of the Children’s Special Allowance Regulations is replaced by the
following:
applicant means a department, agency, institution or Indigenous governing body referred to in subsection 3(1) of the
Act; (demandeur)
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
47 (1) The portion of
section 7 of the Regulations before paragraph (a) is replaced by the following:
7 The information referred to in section 11 of the Act may be furnished to the
government of a province or to an Indigenous governing body,
under the terms of an agreement between the Minister and that government or Indigenous governing body, for the purpose of the administration
of a social, income assistance or health insurance program of that province or Indigenous governing body that is specified in the agreement, on
condition that
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
48 (1) Paragraphs 9(a)
and (b) of the Regulations are replaced by the following:
(a) the applicant, at the end of the month, provides for the child’s care,
maintenance, education, training and advancement to a greater extent than any other department, agency,
institution, Indigenous governing body or any person; or
(b) the applicant is an entity
referred to in any of paragraphs 3(1)(a) to (c) of the Act that has applied in respect of a child who
(i) was formerly in the care of
foster parents or was formerly maintained by an entity referred to in any of paragraphs 3(1)(a) to
(c) of the Act, and
(ii) has been placed in the
permanent or temporary custody of a guardian, tutor or other individual occupying a similar role for the month,
under a decree, order or judgment of a competent tribunal, or under the
laws of an Indigenous governing body, who has received financial assistance from the applicant for the
month in respect of the child’s maintenance.
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
Coordinating Amendments
Bill C-222
49 If
Bill C-222, introduced in the 1st session of the 44th Parliament and entitled An Act to amend the Income Tax Act (travel expenses deduction for
tradespersons), receives royal assent before or
on the same day as this Act receives royal assent, then, on the day this Act receives royal assent, that Act is
deemed never to have come into force and is repealed.
Bill C-241
50 If
Bill C-241, introduced in the 1st session of the 44th Parliament and entitled An Act to amend the Income Tax Act (deduction of travel expenses for
tradespersons), receives royal assent before or
on the same day as this Act receives royal assent, then, on the day this Act receives royal assent, that Act is
deemed never to have come into force and is repealed.
Bill S-216
51 If
Bill S-216, introduced in the 1st session of the 44th Parliament and entitled An Act to amend the Income Tax Act (use of resources of a registered
charity), receives royal assent before or on
the same day as this Act receives royal assent, then, on the day this Act receives royal assent, that Act is
deemed never to come into force and is repealed.
Report a problem on this page
- Date modified: