• 18. (1) Paragraph 147.2(2)(d) of the Act is replaced by the following:

  • (d) a recommendation with respect to the contributions required to be made by an employer in respect of the defined benefit provisions of a pension plan may be prepared without regard to such portion of the assets of the plan apportioned to the employer in respect of the employer’s employees and former employees as does not exceed the lesser of

    • (i) the amount of actuarial surplus in respect of the employer, and

    • (ii) 25% of the amount of actuarial liabilities apportioned to the employer in respect of the employer’s employees and former employees.

• (2) Subsection (1) applies to contributions made after 2009 to fund benefits provided in respect of periods of pensionable service after 2009.

• 19. (1) Subsection 164(1.5) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or’’ at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) to the extent that the overpayment relates to an assessment of another taxpayer under subsection 227(10) or (10.1) (in this paragraph referred to as the “other assessment”), if the taxpayer’s return of income under this Part for the taxation year is filed on or before the day that is two years after the date of the other assessment and if the other assessment relates to

    • (i) in the case of an amount assessed under subsection 227(10), a payment to the taxpayer of a fee, commission or other amount in respect of services rendered in Canada by a non-resident person or partnership, and

    • (ii) in the case of an amount assessed under subsection 227(10.1), an amount payable under subsection 116(5) or (5.3) in respect of a disposition of property by the taxpayer.

• (2) Subsection (1) applies to overpayments in respect of which applications for refunds are made after March 4, 2010.

• 20. (1) Paragraph (d) of the definition “advantage” in subsection 205(1) of the Act is replaced by the following:

  • (d) an amount paid under or because of the Canada Disability Savings Act or a designated provincial program as defined in subsection 146.4(1);

• (2) Subsection (1) applies to the 2009 and subsequent taxation years.

• 21. (1) Subparagraph 241(4)(d)(vii.1) of the Act is replaced by the following:

  • (vii.1) to an official solely for the purpose of the administration or enforcement of the Canada Education Savings Act or a designated provincial program as defined in subsection 146.1(1),

• (2) Subparagraph 241(4)(d)(vii.5) of the Act is replaced by the following:

  • (vii.5) to an official solely for the purposes of the administration or enforcement of the Canada Disability Savings Act or a designated provincial program as defined in subsection 146.4(1),

• (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

• 22. (1) The definition “taxable Canadian property” in subsection 248(1) of the Act is replaced by the following:

  “taxable Canadian property”

  « bien canadien imposable »

  “taxable Canadian property” of a taxpayer at any time in a taxation year means a property of the taxpayer that is

  • (a) real or immovable property situated in Canada,

  • (b) property used or held by the taxpayer in, eligible capital property in respect of, or property described in an inventory of, a business carried on in Canada, other than

    • (i) property used in carrying on an insurance business, and

    • (ii) where the taxpayer is non-resident, ships and aircraft used principally in international traffic and personal or movable property pertaining to their operation if the country in which the taxpayer is resident does not impose tax on gains of persons resident in Canada from dispositions of such property,

  • (c) if the taxpayer is an insurer, its designated insurance property for the year,

  • (d) a share of the capital stock of a corporation (other than a mutual fund corporation) that is not listed on a designated stock exchange, an interest in a partnership or an interest in a trust (other than a unit of a mutual fund trust or an income interest in a trust resident in Canada), if, at any particular time during the 60-month period that ends at that time, more than 50% of the fair market value of the share or interest, as the case may be, was derived directly or indirectly from one or any combination of

    • (i) real or immovable property situated in Canada,

    • (ii) Canadian resource properties,

    • (iii) timber resource properties, and

    • (iv) options in respect of, or interests in, or for civil law rights in, property described in any of subparagraphs (i) to (iii), whether or not the property exists,

  • (e) a share of the capital stock of a corporation that is listed on a designated stock exchange, a share of the capital stock of a mutual fund corporation or a unit of a mutual fund trust, if, at any particular time during the 60-month period that ends at that time,

    • (i) 25% or more of the issued shares of any class of the capital stock of the corporation, or 25% or more of the issued units of the trust, as the case may be, were owned by or belonged to one or any combination of

      • (A) the taxpayer, and

      • (B) persons with whom the taxpayer did not deal at arm’s length, and

    • (ii) more than 50% of the fair market value of the share or unit, as the case may be, was derived directly or indirectly from one or any combination of properties described under subparagraphs (d)(i) to (iv), or

  • (f) an option in respect of, or an interest in, or for civil law a right in, a property described in any of paragraphs (a) to (e), whether or not the property exists,

  and, for the purposes of section 2, subsection 107(2.001) and sections 128.1 and 150, and for the purpose of applying paragraphs 85(1)(i) and 97(2)(c) to a disposition by a non-resident person, includes

  • (g) a Canadian resource property,

  • (h) a timber resource property,

  • (i) an income interest in a trust resident in Canada,

  • (j) a right to a share of the income or loss under an agreement referred to in paragraph 96(1.1)(a), and

  • (k) a life insurance policy in Canada;

• (2) Subsection 248(25.1) of the Act is replaced by the following:

  • Marginal note:Trust-to-trust transfers

    (25.1) If, at any time, a particular trust transfers property to another trust (other than a trust governed by a registered retirement savings plan or by a registered retirement income fund) in circumstances to which paragraph (f) of the definition “disposition” in subsection (1) applies, without affecting the personal liabilities under this Act of the trustees of either trust or the application of subsection 104(5.8) and paragraph 122(2)(f),

    • (a) the other trust is deemed to be after that time the same trust as, and a continuation of, the particular trust; and

    • (b) for greater certainty, if, as a result of a transaction or event, the property was deemed to be taxable Canadian property of the particular trust by any of paragraphs 51(1)(f), 85(1)(i) and 85.1(1)(a), subsection 85.1(5), paragraph 85.1(8)(b), subsections 87(4) and (5) and paragraphs 97(2)(c) and 107(3.1)(d), the property is also deemed to be, at any time that is within 60 months after the transaction or event, taxable Canadian property of the other trust.

• (3) Subsections (1) and (2) apply in determining after March 4, 2010 whether a property is taxable Canadian property of a taxpayer.

C.R.C., c. 945Income Tax Regulations

• 23. (1) Subparagraph 4301(b)(ii) of the Income Tax Regulations is replaced by the following:

  • (ii) if the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent; and

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010.

• 24. (1) Subparagraph 8510(9)(c)(i) of the Regulations is replaced by the following:

  • (i) the contribution is a current service contribution that would be an eligible contribution under subsection 147.2(2) of the Act if no contributions were prescribed for the purposes of that subsection and if that subsection were read without reference to its subparagraph (d)(ii), and

• (2) Clause 8510(9)(c)(ii)(A) of the Regulations is replaced by the following:

  • (A) where the amount of actuarial surplus in respect of the employer is greater than the amount determined under subparagraph 147.2(2)(d)(ii) of the Act, 50% of the current service contribution that would be required to be made by the employer if there were no actuarial surplus under the provisions, and

• (3) Subsections (1) and (2) apply to contributions made after 2009 to fund benefits provided in respect of periods of pensionable service after 2009.

• 25. (1) Subsection 8516(1) of the Regulations is replaced by the following:

  • 8516. (1) For the purposes of subsection 147.2(2) of the Act, a contribution described in subsection (2) or (3) is a prescribed contribution.

• (2) Subsection 8516(4) of the Regulations and the heading before it are repealed.

• (3) Subsections (1) and (2) apply to contributions made after 2009 to fund benefits provided in respect of periods of pensionable service after 2009.

2007, c. 35, s. 136Canada Disability Savings Act

• 26. (1) The definition “contribution” in subsection 2(1) of the Canada Disability Savings Act is repealed.

• (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  “first threshold”

  « premier seuil »

  “first threshold” for a particular year means the dollar amount referred to in paragraph 117(2)(a) of the Income Tax Act, as adjusted under that Act for the particular year;

  “phase-out income”

  « revenu de transition »

  “phase-out income” for a particular year means the amount determined by the formula

  A – (B/0.122)

  where

  A

  is the first threshold for the particular year, and

  B

  is the amount referred to in paragraph (a) of the description of F in subsection 122.61(1) of the Income Tax Act, as adjusted under that Act for the particular year;

  “second threshold”

  « deuxième seuil »

  “second threshold” for a particular year means the higher dollar amount referred to in paragraph 117(2)(b) of the Income Tax Act, as adjusted under the Act for the particular year.

• (3) Paragraph 2(2)(b) of the Act is replaced by the following:

  • (b) the expressions “contribution”, “designated provincial program”, “holder”, “issuer” and “registered disability savings plan” have the same meanings as in section 146.4 of that Act; and

• (4) Subsections (1) to (3) apply to the 2009 and subsequent years.

• 27. (1) Subparagraphs 6(2)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to the second threshold for the particular year,

  • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to the second threshold for the particular year, or

• (2) Subsection 6(6) of the Act is repealed.

• (3) Subsections (1) and (2) apply to the 2009 and subsequent years.

• 28. (1) Subparagraphs 7(2)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to the phase-out income for the particular year,

  • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to the phase-out income for the particular year, or

• (2) Subparagraphs 7(2)(b)(i) and (ii) of the Act are replaced by the following:

  • (i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year, or

  • (ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is more than the phase-out income for the particular year but less than the first threshold for the particular year.

• (3) The descriptions of B and C in subsection 7(4) of the Act are replaced by the following:

  B

  is the phase-out income for the particular year; and

  C

  is the first threshold for the particular year.

• (4) Subsection 7(8) of the Act is repealed.

• (5) Subsections (1) to (4) apply to the 2009 and subsequent years.

SOR/2008-186Canada Disability Savings Regulations

• 29. (1) Subparagraph 4(d)(i) of the Canada Disability Savings Regulations is replaced by the following:

  • (i) all contributions, payments and transfers to, and all payments and transfers from, an RDSP,

• (2) Subsection (1) applies to the 2009 and subsequent years.

2004, c. 26Canada Education Savings Act

• 30. (1) Subsection 2(1) of the Canada Education Savings Act is amended by adding the following in alphabetical order:

  “first threshold”

  « premier seuil »

  “first threshold” for a particular year means the dollar amount referred to in paragraph 117(2)(a) of the Income Tax Act, as adjusted under that Act for the particular year;

  “second threshold”

  « deuxième seuil »

  “second threshold” for a particular year means the higher dollar amount referred to in paragraph 117(2)(b) of the Income Tax Act, as adjusted under that Act for the particular year.

• (2) Paragraph 2(2)(b) of the Act is replaced by the following:

  • (b) the expressions “beneficiary”, “contribution”, “designated provincial program”, “promoter”, “registered education savings plan”, “subscriber” and “trust” have the meanings assigned by section 146.1 of the Income Tax Act; and

• (3) Subsection (1) applies to 2009 and subsequent years.

• (4) Subsection (2) applies to the 2007 and subsequent years.

• 31. (1) Clause 5(4)(a)(i)(A) of the Act is replaced by the following:

  • (A) is a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is the first threshold for the particular year or less, or

• (2) Subparagraph 5(4)(a)(ii) of the Act is replaced by the following:

  • (ii) 10% of the contribution, if the beneficiary is a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is more than the first threshold for the particular year but not more than the second threshold for the particular year, and

• (3) Subsection 5(8) of the Act is repealed.

• (4) Subsections (1) to (3) apply to 2009 and subsequent years.