Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)

• Marginal note:Gifts to institutions

  (c) the total of all amounts each of which is the eligible amount of a gift (other than a gift described in paragraph (d)) of an object that the Canadian Cultural Property Export Review Board has determined meets the criterion set out in paragraph 29(3)(b) of the Cultural Property Export and Import Act, which gift was made by the corporation in the year or in any of the five preceding taxation years to an institution or a public authority in Canada that was, at the time the gift was made, designated under subsection 32(2) of that Act either generally or for a specified purpose related to that object; and

Marginal note:Annual adjustment

• 117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1) and subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a), the amounts of $1,355 and $2,335 referred to in the description of A, and the amounts of $12,820 and $17,025 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $700 referred to in the description of C, and the amounts of $24,111 and $36,483 referred to in the description of D, in the formula in subsection 122.7(3), the amount of $10,000 referred to in the description of B in the formula in subsection 122.91(2), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

Marginal note:Definitions

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

  digital news subscription

  digital news subscription, of an individual with a qualified Canadian journalism organization, means an agreement entered into between the individual and the qualified Canadian journalism organization, if

  • (a) the agreement entitles an individual to access content of the qualified Canadian journalism organization in digital form; and

  • (b) the qualified Canadian journalism organization is primarily engaged in the production of original written news content and is not engaged in a broadcasting undertaking as defined in subsection 2(1) of the Broadcasting Act. (abonnement aux nouvelles numériques)

  qualifying subscription expense

  qualifying subscription expense, for a taxation year, means the amount paid in the year for a digital news subscription of an individual with a qualified Canadian journalism organization and, for this purpose, if the digital news subscription provides access to content in non-digital form or content other than content of qualified Canadian journalism organizations, the amount considered to be paid for the digital news subscription shall not exceed

  • (a) the cost of a comparable digital news subscription with the qualified Canadian journalism organization that solely provides access to content of qualified Canadian journalism organizations in digital form; and

  • (b) if there is no such comparable digital news subscription, 1/2 of the amount actually paid. (dépense pour abonnement admissible)

• Marginal note:Digital news subscription tax credit

  (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year that is before 2025, there may be deducted the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the year; and

  B

  is the lesser of

  • (a) $500, and

  • (b) the total of all amounts each of which is a qualifying subscription expense of the individual for the year.

• Marginal note:Apportionment of credit

  (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying subscription expense, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying subscription expense, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

• (a) of an object that the Canadian Cultural Property Export Review Board has determined meets the criterion set out in paragraph 29(3)(b) of the Cultural Property Export and Import Act,

• (u) on behalf of the patient who is the holder of a medical document (as defined in subsection 264(1) of the Cannabis Regulations) to support their use of cannabis for medical purposes, for the cost of cannabis, cannabis oil, cannabis plant seeds or cannabis products purchased for medical purposes from a holder of a licence for sale (as defined in subsection 264(1) of the Cannabis Regulations).

Marginal note:Tuition credit

• 118.5 (1) Subject to subsection (1.2), for the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted,

• Marginal note:Canada training credit reduction

  (1.2) The amount that may be deducted for a taxation year by an individual under subsection (1) is to be reduced by the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the taxation year; and

  B

  is the amount, if any, deemed to have been paid by the individual under subsection 122.91(1) in respect of the taxation year.

Marginal note:Ordering of credits

118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

• Marginal note: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 or the government of a province 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.

SUBDIVISION A.5Canada Training Credit

Marginal note:Claimed amount

• 122.91 (1) An individual who is resident in Canada throughout a taxation year, files a return of income for the taxation year and makes a claim under this subsection is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount claimed by the individual that does not exceed the lesser of

  • (a) the training amount limit of the individual for the taxation year, and

  • (b) 50% of the amount that would be deductible under paragraph 118.5(1)(a) or (d) in computing the individual’s tax payable under this Part for the taxation year if

    • (i) this Act were read without reference to subsections 118.5(1.2) and (2), and

    • (ii) the appropriate percentage for the taxation year were 100%.

• Marginal note:Training amount limit

  (2) For the purposes of this section, the training amount limit of an individual for a taxation year is

  • (a) if the taxation year is after 2019 and the individual has attained the age of 26 years, and has not attained the age of 66 years, before the end of the taxation year, the lesser of

    • (i) the amount determined by the formula

      A + B − C

      where

      A

      is the individual’s training amount limit for the preceding taxation year,

      B

      is

      • (A) $250, if

        • (I) the individual has filed a return of income for the preceding taxation year,

        • (II) the individual was resident in Canada throughout the preceding taxation year,

        • (III) the total of the following amounts is greater than or equal to $10,000:

          • 1 the amount that would be the individual’s working income (as defined in subsection 122.7(1)) for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a) and subsection 81(4),

          • 2 the total of all amounts each of which is an amount payable to the individual under subsection 22(1), 23(1), 152.04(1) or 152.05(1) of the Employment Insurance Act in the preceding taxation year, and

          • 3 the amount that would be included in the individual’s income because of subparagraph 56(1)(a)(vii) in computing the individual’s income for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a), and

        • (IV) the individual’s income for the preceding taxation year under this Part does not exceed the higher dollar amount referred to in paragraph 117(2)(c), as adjusted under this Act for the preceding taxation year, and

      • (B) nil, in any other case, and

      C

      is the amount deemed to have been paid by the individual under subsection (1) in respect of the preceding taxation year, and

    • (ii) the amount determined by the formula

      $5,000 − D

      where

      D

      is the total of all amounts deemed to have been paid by the individual under subsection (1) in respect of a preceding taxation year; and

  • (b) nil, in any other case.

• Marginal note:Effect of bankruptcy

  (3) For the purpose of this Subdivision, if an individual becomes bankrupt in a particular calendar year,

  • (a) notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and

  • (b) the individual’s working income and income under this Part for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s working income and the income under this Part for the taxation year that begins on January 1 of the particular calendar year.

• Marginal note:Special rules in the event of death

  (4) For the purposes of this section, if an individual dies in a calendar year,

  • (a) the individual is deemed to be resident in Canada from the time of death until the end of the year;

  • (b) the individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year; and

  • (c) any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.

• (i) the total of all amounts each of which is income (other than specified farming or fishing income of the corporation for the year) from an active business of the corporation for the year from the provision of services or property to a private corporation (directly or indirectly, in any manner whatever) if

specified farming or fishing income

specified farming or fishing income, of a particular corporation for a taxation year, means income of the particular corporation (other than an amount included in the particular corporation’s income under subsection 135(7)), if

• (a) the income is from the sale of the farming products or fishing catches of the particular corporation’s farming or fishing business to another corporation, and

• (b) the particular corporation deals at arm’s length with the other corporation; (revenu d’agriculture ou de pêche déterminé)

Marginal note:Definitions

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

  assistance

  assistance means an amount, other than an amount deemed under subsection (2) to have been paid, that would be included under paragraph 12(1)(x) in computing the income of a taxpayer for any taxation year if that paragraph were read without reference to

  • (a) subparagraphs 12(1)(x)(v) to (viii), if the amount were received

    • (i) from a person or partnership described in subparagraph 12(1)(x)(ii), or

    • (ii) in circumstances where clause 12(1)(x)(i)(C) applies; and

  • (b) subparagraphs 12(1)(x)(v) to (vii), in any other case. (montant d’aide)

  eligible newsroom employee

  eligible newsroom employee, in respect of a qualifying journalism organization in a taxation year, means an individual who

  • (a) is employed by the organization in the taxation year;

  • (b) works, on average, a minimum of 26 hours per week throughout the portion of the taxation year in which the individual is employed by the organization;

  • (c) at any time in the taxation year, has been, or is reasonably expected to be, employed by the organization for a minimum period of 40 consecutive weeks that includes that time;

  • (d) spends at least 75% of their time engaged in the production of news content, including by researching, collecting information, verifying facts, photographing, writing, editing, designing and otherwise preparing content; and

  • (e) meets any prescribed conditions. (employé de salle de presse admissible)

  qualifying journalism organization

  qualifying journalism organization, at any time, means a qualified Canadian journalism organization that meets the following conditions:

  • (a) it is primarily engaged in the production of original written news content;

  • (b) it does not carry on a broadcasting undertaking as defined in subsection 2(1) of the Broadcasting Act;

  • (c) it does not, in the taxation year in which the time occurs, receive an amount from the Aid to Publishers component of the Canada Periodical Fund; and

  • (d) if it is a corporation having share capital, it meets the conditions in subparagraph (e)(iii) of the definition Canadian newspaper in subsection 19(5). (organisation journalistique admissible)

  qualifying labour expenditure

  qualifying labour expenditure, of a taxpayer for a taxation year in respect of an eligible newsroom employee, means the lesser of

  • (a) the amount determined by the formula

    $55,000 × A/365

    where

    A

    is the lesser of 365 and the number of days in the taxation year, and

  • (b) the amount determined by the formula

    A − B

    where

    A

    is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization, and

    B

    is the total of all amounts each of which is an amount of assistance that

    • (i) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and

    • (ii) has not been repaid before the end of the year pursuant to a legal obligation to do so. (dépense de main-d’oeuvre admissible)

• Marginal note:Tax credit

  (2) A taxpayer that is a qualifying journalism organization at any time in a taxation year and that files a prescribed form containing prescribed information with its return of income for the year is deemed to have, on its balance-due day for the year, paid on account of its tax payable under this Part for the year an amount determined by the formula

  0.25(A)

  where

  A

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee.

• Marginal note:When assistance received

  (3) For the purposes of this Act other than this section, and for greater certainty, the amount that a qualifying journalism organization is deemed under subsection (2) to have paid for a taxation year is assistance received by it from a government immediately before the end of the year.