• 94. (1) The Act is amended by adding the following after section 256:

  Marginal note:Definitions

  • 256.1 (1) The following definitions apply in this section.

    “attribute trading restriction”

    « restriction au commerce d’attributs »

    “attribute trading restriction” means a restriction on the use of a tax attribute arising on the application, either alone or in combination with other provisions, of any of this section, subsections 10(10) and 13(24), section 37, subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 88(1.1) and (1.2), sections 111 and 127 and subsections 181.1(7), 190.1(6), 249(4) and 256(7).

    “person”

    « personne »

    “person” includes a partnership.

    “specified provision”

    « dispositions déterminées »

    “specified provision” means any of subsections 10(10) and 13(24), paragraph 37(1)(h), subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 111(4), (5), (5.1), (5.2) and (5.3), paragraphs (j) and (k) of the definition “investment tax credit” in subsection 127(9), subsections 181.1(7) and 190.1(6) and any provision of similar effect.

  • Marginal note:Application of subsection (3)

    (2) Subsection (3) applies at a particular time in respect of a corporation if

    • (a) shares of the capital stock of the corporation held by a person, or the total of all shares of the capital stock of the corporation held by members of a group of persons, as the case may be, have at the particular time a fair market value that exceeds 75% of the fair market value of all the shares of the capital stock of the corporation;

    • (b) shares, if any, of the capital stock of the corporation held by the person, or the total of all shares, if any, of the capital stock of the corporation held by members of the group, have immediately before the particular time a fair market value that does not exceed 75% of the fair market value of all the shares of the capital stock of the corporation;

    • (c) the person or group does not control the corporation at the particular time; and

    • (d) it is reasonable to conclude that one of the main reasons that the person or group does not control the corporation is to avoid the application of one or more specified provisions.

  • Marginal note:Deemed acquisition of control

    (3) If this subsection applies at a particular time in respect of a corporation, then for the purposes of the attribute trading restrictions,

    • (a) the person or group referred to in subsection (2)

      • (i) is deemed to acquire control of the corporation, and each corporation controlled by the corporation, at the particular time, and

      • (ii) is not deemed to have control of the corporation, and each corporation controlled by the corporation, at any time after the particular time solely because this paragraph applied at the particular time; and

    • (b) during the period that the condition in paragraph (2)(a) is satisfied, each corporation referred to in paragraph (a)  —  and any corporation incorporated or otherwise formed subsequent to that time and controlled by that corporation  —  is deemed not to be related to, or affiliated with, any person to which it was related to, or affiliated with, immediately before paragraph (a) applies.

  • Marginal note:Special rules

    (4) For the purpose of applying paragraph (2)(a) in respect of a person or group of persons,

    • (a) if it is reasonable to conclude that one of the reasons that one or more transactions or events occur is to cause a person or group of persons not to hold shares having a fair market value that exceeds 75% of the fair market value of all the shares of the capital stock of a corporation, the paragraph is to be applied without reference to those transactions or events; and

    • (b) the person, or each member of the group, is deemed to have exercised each right that is held by the person or a member of the group and that is referred to in paragraph 251(5)(b) in respect of a share of the corporation referred to in paragraph (2)(a).

  • Marginal note:Deeming rules  —  if share value nil

    (5) For the purposes of subsections (2) to (4), if the fair market value of the shares of the capital stock of a corporation is nil at any time, then for the purpose of determining the fair market value of those shares, the corporation is deemed, at that time, to have assets net of liabilities equal to $100,000 and to have $100,000 of income for the taxation year that includes that time.

  • Marginal note:Deemed acquisition of control

    (6) If, at any time as part of a transaction or event or series of transactions or events, control of a particular corporation is acquired by a person or group of persons and it can reasonably be concluded that one of the main reasons for the acquisition of control is so that a specified provision does not apply to one or more corporations, the attribute trading restrictions are deemed to apply to each of those corporations as if control of each of those corporations were acquired at that time.

• (2) Subsection (1) is deemed to have come into force on March 21, 2013, except that it does not apply to an event or transaction that occurs

  • (a) before March 21, 2013, or

  • (b) after March 20, 2013 pursuant to an obligation created by the terms of an agreement in writing entered into between parties before March 21, 2013, and for the purposes of this paragraph, parties will be considered not to be obligated if one or more of those parties may be excused from fulfilling the obligation as a result of changes to the Act.

2011, c. 24Keeping Canada’s Economy and Jobs Growing Act

• 95. (1) Paragraph 64(6)(a) of the Keeping Canada’s Economy and Jobs Growing Act is replaced by the following:

  • (a) after 2021 in relation to a swap transaction undertaken to remove a property from a RRIF or RRSP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if

    • (i) that Part were read without reference to subsection 207.05(4) of the Act, and

    • (ii) the property were retained in the RRIF or RRSP; and

• (2) Subsection (1) is deemed to have come into force on December 15, 2011.

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

• 96. (1) Section 201 of the Income Tax Regulations is amended by adding the following after subsection (5):

  • (5.1) Subsection (5) applies to an insurer in respect of an LIA policy in respect of a calendar year only if

    • (a) the insurer is notified in writing  —  before the end of the calendar year and by, or on behalf, of the policyholder  —  that the policy is an LIA policy; or

    • (b) it is reasonable to conclude that the insurer knew, or ought to have known, before the end of the calendar year, that the policy is an LIA policy.

• (2) Subsection (1) applies to taxation years that end after March 20, 2013.

• 97. (1) The portion of subsection 306(1) of the Regulations before paragraph (a) is replaced by the following:

  • 306. (1) For the purposes of this Part and subsection 12.2(11) of the Act, “exempt policy” at any time means a life insurance policy (other than an annuity contract, LIA policy or a deposit administration fund policy) in respect of which the following conditions are met at that time:

• (2) Subsection (1) applies to taxation years that end after March 20, 2013.

• 98. (1) Paragraph 600(b) of the Regulations is replaced by the following:

  • (b) subsections 13(4), (7.4) and (29), 14(6), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;

• (2) Subsection (1) is deemed to have come into force on March 21, 2013.

• 99. (1) The portion of section 806.2 of the Regulations before paragraph (a) is replaced by the following:

  806.2 For the purposes of the definition “participating debt interest” in subsection 212(3) of the Act, an obligation is a prescribed obligation if it is an indexed debt obligation and no amount payable in respect of it is

• (2) Subsection (1) is deemed to have come into force on January 1, 2008.

• 100. (1) Paragraph 1100(1)(a) of the Regulations is amended by adding the following after subparagraph (xxvii.1):

  • (xxvii.2) of Class 41.2, 25 per cent,

• (2) Subparagraph 1100(1)(w)(i) of the Regulations is replaced by the following:

  • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.1), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

• (3) Subparagraph 1100(1)(x)(i) of the Regulations is replaced by the following:

  • (i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

• (4) Subparagraph 1100(1)(y)(i) of the Regulations is replaced by the following:

  • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

• (5) Subparagraph (i) of the description of A in paragraph 1100(1)(y.1) of the Regulations is replaced by the following:

  • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

• (6) The description of B in paragraph 1100(1)(y.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

  • (vi) 0%, if one or more days in the year are after 2014;

• (7) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (y.1):

  Additional Allowances  —  Class 41.2  —  Single Mine Properties

   

  • (y.2) such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4g), not exceeding the amount determined by the formula

    A × B

    where

    A

    is the lesser of

    • (i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

    • (ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

      • (A) without reference to subsection (2),

      • (B) after making any deduction under paragraph (a) for the year, and

      • (C) before making any deduction under this paragraph, and

    B

    is the percentage that is the total of

    • (i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

    • (ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

    • (iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

    • (iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

    • (v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

    • (vi) 0%, if one or more days in the year are after 2020;

• (8) Subparagraph (i) of the description of A in paragraph 1100(1)(ya.1) of the Regulations is replaced by the following:

  • (i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

• (9) The description of B in paragraph 1100(1)(ya.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

  • (vi) 0%, if one or more days in the year are after 2014;

• (10) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (ya.1):

  Additional allowances Class 41.2  —  Multiple Mine Properties

   

  • (ya.2) such additional amount as the taxpayer may claim in respect of a property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4h), not exceeding the amount determined by the formula

    A × B

    where

    A

    is the lesser of

    • (i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

    • (ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

      • (A) without reference to subsection (2),

      • (B) after making any deduction under paragraph (a) for the year, and

      • (C) before making any deduction under this paragraph, and

    B

    is the percentage that is the total of

    • (i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

    • (ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

    • (iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

    • (iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

    • (v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

    • (vi) 0%, if one or more days in the year are after 2020;

• (11) Paragraph 1100(12)(b) of the Regulations is replaced by the following:

  • (b) a partnership each member of which was

    • (i) a corporation described in paragraph (a), or

    • (ii) another partnership described in this paragraph.

• (12) Paragraph 1100(16)(b) of the Regulations is replaced by the following:

  • (b) a partnership each member of which was

    • (i) a corporation described in paragraph (a), or

    • (ii) another partnership described in this paragraph.

• (13) Subparagraph 1100(25)(b)(iv) of the Regulations is replaced by the following:

  • (iv) a partnership each member of which was

    • (A) a corporation described in subparagraph (iii) or paragraph (26)(a), or

    • (B) another partnership described in this subparagraph.

• (14) Paragraph 1100(26)(b) of the Regulations is replaced by the following:

  • (b) a partnership each member of which was

    • (i) a corporation described in paragraph (a), or

    • (ii) another partnership described in this paragraph.

• (15) Subsections (1) to (10) apply to taxation years that end after March 20, 2013.

• (16) Subsections (11) to (14) apply to fiscal periods that end after October 2010.