Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

• 23 (1) Paragraph 131(5)(a) of the Act is replaced by the following:

  • (a) is deemed for the purposes of paragraph 87(2)(aa) and section 129 to have been a private corporation throughout the year, except that its non-eligible refundable dividend tax on hand (as defined in subsection 129(4)) at the end of the year shall be determined without reference to paragraph (a) of that definition; and

• (2) Paragraph 131(11)(a) of the Act is replaced by the following:

  • (a) for the purposes of subparagraphs (a)(i) and (ii) of the definition non-eligible refundable dividend tax on hand in subsection 129(4), the amount deducted under paragraph 111(1)(b) from the corporation’s income for each taxation year ending after that time shall be deemed to be nil;

• (3) Subject to subsection 20(5), subsections (1) and (2) apply to taxation years that begin after 2018.

24 Clause (a)(ii)(B.1) of the definition disability savings plan in subsection 146.4(1) of the Act is replaced by the following:

• 25 (1) Subparagraph (a)(iv) of the definition qualified donee in subsection 149.1(1) of the Act is replaced by the following:

  • (iv) a university outside Canada, the student body of which ordinarily includes students from Canada, that has applied for registration, or

• (2) Subsection (1) is deemed to have come into force on February 27, 2018, except that

  • (a) if a university has applied for registration prior to February 27, 2018 and is registered by the Minister on or after that day, subsection (1) applies in respect of the university as of the day it applied for registration; and

  • (b) any university named in Schedule VIII to the Income Tax Regulations at the end of February 26, 2018 is deemed to have applied for registration.

• 26 (1) Subsection 160(1.2) of the Act is replaced by the following:

  • Marginal note:Joint and several, or solidary, liability — tax on split income

    (1.2) If an amount is required to be added because of subsection 120.4(2) in computing a specified individual’s tax payable under this Part for a taxation year and the specified individual has not attained the age of 24 years before the start of the year, the following rules apply:

    • (a) subject to paragraph (b), a particular individual is jointly and severally, or solidarily, liable with the specified individual for the amount if

      • (i) where the specified individual has not attained the age of 17 years before the year, the particular individual is a parent of the specified individual, and

      • (ii) where the specified individual has attained the age of 17 years before the year,

        • (A) the particular individual is a source individual in respect of the specified individual,

        • (B) the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and

        • (C) the particular individual meets the conditions in any of paragraphs (a) to (c) in the definition related business in subsection 120.4(1) in respect of the related business;

    • (b) the particular individual’s liability under paragraph (a) in respect of the specified individual for the year is to be determined as though the only amounts included in the specified individual’s split income for the year are amounts derived from the related business referred to in subparagraph (a)(ii); and

    • (c) nothing in this subsection limits the liability of

      • (i) the specified individual under any other provision of this Act, or

      • (ii) the particular individual for the interest that the particular individual is liable to pay under this Act on an assessment in respect of the amount that the particular individual is liable to pay because of this subsection.

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 27 (1) The portion of subsection 162(6) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Failure to provide identification number

    (6) Every person or partnership who fails to provide on request their business number, their Social Insurance Number, their trust account number or their U.S. federal taxpayer identifying number to a person required under this Act or the Regulations to make an information return requiring the number is liable to a penalty of $100 for each such failure, unless

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 28 (1) Paragraph (b) of the definition adjusted income in subsection 180.2(1) of the Act is replaced by the following:

  • (b) deductible under paragraph 20(1)(ww) or 60(w), (y) or (z); (revenu modifié)

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 29 (1) Subsection 186(5) of the Act is replaced by the following:

  • Marginal note:Deemed private corporation

    (5) A corporation that is at any time in a taxation year a subject corporation shall, for the purposes of paragraph 87(2)(aa) and section 129, be deemed to be a private corporation at that time, except that its non-eligible refundable dividend tax on hand (as defined in subsection 129(4)) at the end of the year shall be determined without reference to paragraph (a) of that definition.

• (2) Subject to subsection 20(5), subsection (1) applies to taxation years that begin after 2018.

• 30 (1) Subsection 188(1.3) of the Act is replaced by the following:

  • Marginal note:Eligible donee

    (1.3) In this Part, an eligible donee in respect of a particular charity is

    • (a) a registered charity

      • (i) of which more than 50% of the members of the board of directors or trustees of the registered charity deal at arm’s length with each member of the board of directors or trustees of the particular charity,

      • (ii) that is not the subject of a suspension under subsection 188.2(1),

      • (iii) that has no unpaid liabilities under this Act or under the Excise Tax Act,

      • (iv) that has filed all information returns required by subsection 149.1(14), and

      • (v) that is not the subject of a certificate under subsection 5(1) of the Charities Registration (Security Information) Act or, if it is the subject of such a certificate, the certificate has been determined under subsection 7(1) of that Act not to be reasonable; or

    • (b) a municipality in Canada that is approved by the Minister in respect of a transfer of property from the particular charity.

• (2) Subsection (1) applies in respect of transfers of property made after February 26, 2018.

• 31 (1) The portion of subsection 189(6.3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Reduction of liability for penalties

    (6.3) If the Minister has assessed a particular person in respect of the particular person’s liability for penalties under section 188.1 for a taxation year, and that liability exceeds $1,000, that liability is, at any particular time, reduced by the total of all amounts, each of which is an amount, in respect of a property transferred by the particular person after the day on which the Minister first assessed that liability and before the particular time to another person that was at the time of the transfer an eligible donee described in paragraph 188(1.3)(a) in respect of the particular person, equal to the amount, if any, by which the fair market value of the property, when transferred, exceeds the total of

• (2) Subsection (1) applies in respect of transfers of property made on or after February 27, 2018.

• 32 (1) Paragraph 221(1)(d.1) of the Act is replaced by the following:

  • (d.1) requiring any person or partnership to provide any information — including their name, address, business number, Social Insurance Number or trust account number — to any class of persons required to make an information return containing that information;

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 33 (1) Subsections 237(1.1) to (3) of the Act are replaced by the following:

  • Marginal note:Production of number

    (1.1) Every person and partnership shall provide their designated number

    • (a) in any return filed under this Act; and

    • (b) to another person or partnership at the request of the other person or partnership, if the other person or partnership is required to make an information return pursuant to this Act or the Regulations requiring the designated number.

  • Marginal note:Designated number

    (1.2) For the purpose of subsection (1.1), designated number, of a person or partnership, means

    • (a) in the case of an individual (other than a trust), their Social Insurance Number;

    • (b) in the case of a trust, its trust account number; and

    • (c) in any other case, the person’s or partnership’s business number.

  • Marginal note:Number required in information returns

    (2) For the purposes of this Act and the Regulations, a person or partnership required to make an information return requiring a business number, Social Insurance Number or trust account number of another person or partnership

    • (a) shall make a reasonable effort to obtain the number from the other person or partnership; and

    • (b) shall not knowingly use, communicate or allow to be communicated, otherwise than as required or authorized under this Act or a regulation, the number without the written consent of the other person or partnership.

  • Marginal note:Authority to communicate number

    (3) A particular person may communicate, or allow to be communicated, a business number, Social Insurance Number or trust account number to another person related to the particular person where the other person is required, by this Act or the Regulations, to make an information return that requires the number.

• (2) The portion of subsection 237(4) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Authority to communicate number

    (4) An insurance corporation may communicate, or allow to be communicated, to another person the business number, Social Insurance Number or trust account number of a particular person or partnership if

• (3) Paragraph 237(4)(c) of the Act is replaced by the following:

  • (c) the other person is required, by this Act or the Regulations, to make an information return, in respect of the disposition of the share or income from the share, that requires the number.

• (4) Subsections (1) to (3) apply to the 2018 and subsequent taxation years.

• 34 (1) Paragraph 237.1(7)(a) of the Act is replaced by the following:

  • (a) the name, address and the business number, Social Insurance Number or trust account number of each person who so acquires or otherwise invests in the tax shelter in the year,

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 35 (1) Subsection 239(2.3) of the Act is replaced by the following:

  • Marginal note:Offence with respect to an identification number

    (2.3) Every person to whom the business number of a taxpayer or partnership, to whom the Social Insurance Number of an individual or to whom the trust account number of a trust has been provided under this Act or the Regulations, and every officer, employee and agent of such a person, who without written consent of the individual, taxpayer, partnership or trust, as the case may be, knowingly uses, communicates or allows to be communicated the number (otherwise than as required or authorized by law, in the course of duties in connection with the administration or enforcement of this Act or for a purpose for which it was provided by the individual, taxpayer, partnership or trust, as the case may be) is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both.

• (2) Subsection (1) applies to the 2018 and subsequent taxation years.

• 36 (1) Paragraph 241(4)(j.1) of the Act is replaced by the following:

  • (j.1) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to a social assistance payment made on the basis of a means, needs or income test if the purpose of the adjustment is to take into account

    • (i) the amount determined in respect of a person for C in subsection 122.61(1), as it read before July 2018, in respect of a base taxation year (as defined in section 122.6) before 2017, or

    • (ii) an amount determined in respect of a person under subsection 122.61(1) or (1.1) in respect of a base taxation year (as defined in section 122.6) after 2014;

• (2) Subsection (1) comes into force or is deemed to have come into force on July 1, 2018.

• 37 (1) The portion of the definition business number in subsection 248(1) of the Act before paragraph (a) is replaced by the following:

  business number

  business number means the number (other than a Social Insurance Number or trust account number) used by the Minister to identify

• (2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

  trust account number

  trust account number means the number (other than a business number)

  • (a) used by the Minister to identify a trust, and

  • (b) of which the Minister has notified the trust; (numéro de compte en fiducie)

• (3) Subsections (1) and (2) apply to the 2018 and subsequent taxation years.

Deemed Coming into Force

Marginal note:Definition of eligible individual

38 Subparagraph (e)(v) of the definition eligible individual in section 122.6 of the Act, as enacted by subsection 28(1) of the Budget Implementation Act, 2016, No. 1, is deemed to have come into force on January 1, 2005.

2016, c. 14An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

39 Section 67 of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act is repealed.

40 Section 69 of the Act is repealed.