Budget Implementation Act, 2024, No. 1 (S.C. 2024, c. 17)
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Assented to 2024-06-20
PART 1Amendments to the Income Tax Act and Other Legislation (continued)
R.S., c. 1 (5th Supp.)Income Tax Act (continued)
57 (1) Paragraph 153(1)(d.1) of the Act is replaced by the following:
(d.1) an amount described in subparagraph 56(1)(a)(iv), (vii) or (viii),
(2) Section 153 of the Act is amended by adding the following after subsection (1.04):
Marginal note:Canada Emergency Wage Subsidy claimed
(1.05) Despite subsection (1.02), an amount is not deemed to have been remitted to the Receiver General if
(a) the eligible employer made an application in respect of section 125.7 for a qualifying period in respect of which the eligible employer was, without reference to this subsection, deemed under subsection (1.02) to have remitted the amount to the Receiver General; and
(b) the amount was not included under the description of B in subsection 125.7(2) for the eligible employer.
(3) Subsection (1) is deemed to have come into force on April 1, 2019.
(4) Subsection (2) is deemed to have come into force on March 18, 2020.
58 (1) Paragraph 157(3)(e) of the Act is replaced by the following:
(e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 127.48(2) to have been paid on account of the corporation’s tax payable under this Part for the year.
(2) Paragraph 157(3)(e) of the Act, as enacted by subsection (1), is replaced by the following:
(e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.48(2) or 127.49(2) to have been paid on account of the corporation’s tax payable under this Part for the year.
(3) Paragraph 157(3.1)(c) of the Act is replaced by the following:
(c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3)or 127.48(2) to have been paid on account of the corporation’s tax payable under this Part for the taxation year.
(4) Paragraph 157(3.1)(c) of the Act, as enacted by subsection (3), is replaced by the following:
(c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.48(2) or 127.49(2) to have been paid on account of the corporation’s tax payable under this Part for the taxation year.
(5) Subsections (1) and (3) are deemed to have come into force immediately after the expiration of March 27, 2023.
(6) Subsections (2) and (4) are deemed to have come into force on January 1, 2024.
59 (1) Subsection 163(2) of the Act is amended by adding the following before paragraph (e):
(d.1) the amount, if any, by which
(i) the amount that would be deemed by subsection 127.48(2), as the case may be, to be paid for the year by the person if that amount were calculated by reference to the information provided in the return or form filed for the year under that subsection
exceeds
(ii) the amount that is deemed by subsection 127.48(2), as the case may be, to be paid for the year by the person,
(2) Paragraph 163(2)(d.1) of the Act, as enacted by subsection (1), is replaced by the following:
(d.1) the amount, if any, by which
(i) the amount that would be deemed by subsection 127.48(2) or 127.49(2), as the case may be, to be paid for the year by the person if that amount were calculated by reference to the information provided in the return or form filed for the year under that subsection
exceeds
(ii) the amount that is deemed by subsection 127.48(2) or 127.49(2), as the case may be, to be paid for the year by the person,
(3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023.
(4) Subsection (2) is deemed to have come into force on January 1, 2024.
60 (1) The portion of subsection 164(3) of the Act before paragraph (a) is replaced by the following:
Marginal note: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 paragraph 60(n.2) or section 122.5, 122.61, 122.72, 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:
(2) The portion of subsection 164(3) of the Act before paragraph (a), as enacted by subsection (1), is replaced by the following:
Marginal note: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 paragraph 60(n.2) or section 122.5, 122.61, 122.72, 122.8, 125.7 or 127.421) 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) Subsection (1) applies to the 2019 and subsequent taxation years.
61 Subsection 204.1(4) of the French version of the Act is replaced by the following:
Marginal note:Renonciation
(4) Le ministre peut renoncer à l’impôt dont un particulier serait, compte non tenu du présent paragraphe, redevable pour un mois selon les paragraphes (1) ou (2.1), si celui-ci établit à la satisfaction du ministre que l’excédent ou l’excédent cumulatif qui est frappé de l’impôt fait suite à une erreur raisonnable et que des mesures adéquates sont prises pour éliminer l’excédent.
62 (1) Paragraph (b) of the description of H in subsection 204.2(1.2) of the Act is replaced by the following:
(b) the total of the amounts, each of which is an amount that is
(i) deducted in or before that preceding year, under subsections 146(5) and 146(5.1) in computing the individual’s income for the immediately preceding taxation year, to the extent that each amount was deducted in respect of premiums paid under registered retirement savings plans, or
(ii) contributed in the immediately preceding taxation year by the individual’s employer or former employer to an account of the individual under a pooled registered pension plan,
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
63 The portion of subsection 204.91(2) of the French version of the Act before paragraph (b) is replaced by the following:
Marginal note:Renonciation
(2) Le ministre peut renoncer à tout ou partie de l’impôt dont le souscripteur d’un régime enregistré d’épargne-études serait redevable pour un mois selon le paragraphe (1), si ce n’était le présent paragraphe, ou l’annuler en tout ou en partie, dans le cas où il est juste et équitable de le faire compte tenu des circonstances, y compris :
a) le fait que l’impôt fasse suite à une erreur raisonnable;
64 Subsection 205(3) of the French version of the Act is replaced by the following:
Marginal note:Renonciation
(3) Le ministre peut renoncer à la totalité ou à une partie de l’impôt dont un particulier serait, compte non tenu du présent paragraphe, redevable pour un mois selon le paragraphe (2), ou l’annuler en tout ou en partie, si celui-ci établit à la satisfaction du ministre que l’excédent cumulatif qui est frappé de l’impôt fait suite à une erreur raisonnable et que des mesures adéquates sont prises pour éliminer l’excédent.
65 (1) Subsection 207.01(10) of the Act is amended by striking out “and” after paragraph (c) and by replacing paragraph (d) with the following:
(d) the transferor and the recipient — or, if the property is transferred as a consequence of the death of the transferor, the transferor’s legal representative and the recipient — jointly elect in prescribed form that subsection (11) apply in respect of the property and the election is filed with the Minister on or before the day that is 90 days after the end of the
(i) recipient’s taxation year that includes the transfer time, if the property is transferred as a consequence of the death of the transferor, or
(ii) transferor’s taxation year that includes the transfer time, in any other case; and
(e) an amount (in subsection (11) referred to as the “designated amount”) is designated on the prescribed form described in paragraph (d) in respect of the property that
(i) is not less than the adjusted cost base to the transferor trust of the property immediately before the transfer time, and
(ii) does not exceed the greater of the amount determined under subparagraph (i) and the fair market value of the property at the transfer time.
(2) Subsection (1) is deemed to have come into force on January 1, 2020.
66 (1) The portion of subsection 207.5(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Election
(2) Despite the definition refundable tax in subsection 207.5(1), where the custodian of a retirement compensation arrangement so elects in the return under this Part for a taxation year of an RCA trust under the arrangement and all the subject property, if any, of the arrangement (other than a right to claim a refund under subsection 164(1) or 207.7(2)) at the end of the year consists only of cash, debt obligations, shares listed on a designated stock exchange, units of a mutual fund trust that are listed on a designated stock exchange, or any combination thereof, an amount equal to the total of
(2) Paragraph 207.5(2)(c) of the Act is replaced by the following:
(c) the fair market value of those shares or units at the end of the year
(3) Subsections (1) and (2) apply to elections made in respect of the 2020 and subsequent taxation years.
67 Paragraph 207.64(a) of the French version of the Act is replaced by the following:
a) le fait que l’impôt fasse suite à une erreur raisonnable;
68 (1) Subsection 220(2.2) of the Act is replaced by the following:
Marginal note:Exception
(2.2) Subsection (2.1) does not apply in respect of a prescribed form, receipt or document, or prescribed information, that is filed with the Minister on or after the day specified, in respect of the form, receipt, document or information, in subsection 37(11), paragraph (m) of the definition investment tax credit in subsection 127(9) or subsection 127.48(4).
(2) Subsection 220(2.2) of the Act, as enacted by subsection (1), is replaced by the following:
Marginal note:Exception
(2.2) Subsection (2.1) does not apply in respect of a prescribed form, receipt or document, or prescribed information, that is filed with the Minister on or after the day specified, in respect of the form, receipt, document or information, in subsection 37(11), paragraph (m) of the definition investment tax credit in subsection 127(9) or subsection 127.48(4) or 127.49(3).
(3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023.
(4) Subsection (2) is deemed to have come into force on January 1, 2024.
69 Paragraph 223(1)(b.1) of the Act is repealed.
70 Subsection 227(9.1) of the Act is replaced by the following:
Marginal note:Penalty
(9.1) Despite any other provision of this Act, any other enactment of Canada, any enactment of a province or any other law, the penalty for failure to remit an amount required to be remitted by a person on or before a prescribed date under subsection 153(1), subsection 21(1) of the Canada Pension Plan and subsection 82(1) of the Employment Insurance Act shall, unless the person who is required to remit the amount has, knowingly or under circumstances amounting to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances amounting to gross negligence, remitted an amount less than the amount required, apply only to the amount by which the total of all so required to be remitted on or before that date exceeds $500.
71 The portion of subsection 231.2(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Judicial authorization
(3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this subsection referred to as the “group”) if the judge is satisfied by information on oath that
72 Paragraph (a) of the description of A in section 235 of the Act is replaced by the following:
(a) 0.0005% of the corporation’s taxable capital employed in Canada (within the meaning assigned in Part I.3) at the end of the taxation year, and
73 (1) The portion of subsection 238(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Offences and punishment
238 (1) Every person who has failed to file or make a return — other than a return under section 237.3 or 237.4 — as and when required by or under this Act or a regulation or who has failed to comply with subsection 116(3), 127(3.1) or (3.2), 147.1(7) or 153(1), any of sections 230 to 232, 244.7 and 267 or a regulation made under subsection 147.1(18) or with an order made under subsection (2) is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to
(2) Subsection (1) is deemed to have come into force on June 22, 2023.
74 (1) Paragraph 241(1)(c) of the Act is replaced by the following:
(c) knowingly use any taxpayer information otherwise than in the course of the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act or for the purpose for which it was provided under this section.
(2) Paragraph 241(3)(b) of the Act is replaced by the following:
(b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act or any other Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty.
(3) Paragraph 241(4)(a) of the Act is replaced by the following:
(a) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act, solely for that purpose;
(4) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vi.1):
(vi.2) to a person employed or engaged in the service of an office or agency of the Government of Canada solely for the purposes of administering or enforcing sections 127.48, 127.49 and 127.491 or the evaluation or formulation of related policies or guidelines,
(5) Subparagraph 241(4)(d)(vii.10) of the Act is renumbered as subparagraph 241(4)(d)(vii.91).
(6) Paragraph 241(4)(h) of the Act is replaced by the following:
(h) use, or provide to any person, taxpayer information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by His Majesty in right of Canada in respect of a period during which the authorized person was employed by or engaged by or on behalf of His Majesty in right of Canada to assist in the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act, to the extent that the information is relevant for the purpose;
(7) The definition authorized person in subsection 241(10) of the Act is replaced by the following:
- authorized person
authorized person means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of His Majesty in right of Canada to assist in carrying out the provisions of this Act, the Canada Pension Plan or the Employment Insurance Act; (personne autorisée)
(8) Subsection (4) is deemed to have come into force on March 28, 2023, except that, before January 1, 2024, subparagraph 241(4)(d)(vi.2) of the Act (as enacted by subsection (4)) is to be read without reference to section 127.49.
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