- News Release 2007-058 -

Archived - Amendments to the Income Tax and Regulations Facilitating the Preparation of Information Slips Reporting Income from Certain Mutual Fund Trusts and Partnerships

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Explanatory Notes

Amendments To The Income Tax Act

ITA
221(1)

Subsection 221(1) of the Act provides that the Governor in Council may make regulations for certain purposes.

ITA
221(1)(d.2)

New paragraph 221(1)(d.2) is added to permit the Governor in Council to make regulations requiring the disclosure of information to the public for the purposes of making information returns respecting any class of information required in connection with assessments under the Income Tax Act. This amendment gives authority for proposed amendments to Part II of the Regulations.

New paragraph 221(1)(d.2) applies to information in respect of taxation years of taxpayers and fiscal periods of partnerships that end on or after ANNOUNCEMENT DATE. For further information, please see the commentary with respect to proposed new sections 204.1 and 229.1 of the Income Tax Regulations.


Amendments To The Regulations

New sections 204.1 and 229.1 of the Regulations provide for the disclosure to the public of certain information by public trusts and public partnerships. The purpose of these rules is to make information available with respect to distributions or allocations of income, losses and capital of a public trust or public partnership so that information returns such as the T3 information return in respect of trusts and T5013 information return in respect of partnerships can be prepared on a timely basis by those that require this information. The type of information that would be made available would be the information that is currently disclosed by public trusts and public partnerships on the Internet website of CDS Innovations Inc., a subsidiary of the Canada Depository for Canadian Securities Limited.

ITR
204.1

New section 204.1 of the Regulations provides for the disclosure, in prescribed form, to the public of information concerning public trusts that is required by the Minister of National Revenue.

These rules will apply to information in respect of taxation years that end on or after ANNOUNCEMENT DATE.

ITR
204.1(1)

New subsection 204.1(1) of the Regulations defines terms used in new section 204.1.

“public investment trust”

A “public investment trust” is, at any time, defined as a trust that is a public trust all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the trust that is

“public trust”

A “public trust” is, at any time, defined a mutual fund trust the units of which are listed, at that time, on a prescribed stock exchange in Canada.

ITR
204.1(2)

New subsection 204.1(2) of the Regulations sets out that a public trust must make public, in prescribed form, information in respect of the trust for the taxation year by posting that information on the Internet website of CDS Innovations Inc. In addition the trust must notify the Minister as to when this posting requirement has been satisfied.

ITR
204.1(3)

New subsection 204.1(3) of the Regulations provides that the time on or before which a public trust is required meet the requirements of subsection 204.1(2) is

ITR
229.1

New section 229.1 of the Regulations provides for the disclosure, in prescribed form, to the public of information concerning public partnerships that is required by the Minister of National Revenue.

These rules will apply to information in respect of fiscal periods that end on or after ANNOUNCEMENT DATE.

ITR
229.1(1)

New subsection 229.1(1) of the Regulations contains terms used in new section 229.1.

“public investment partnership”

A “public investment partnership” is, at any time, defined as a public partnership all or substantially all of the fair market value of the property of which is, at that time, attributable to the fair market value of property of the partnership that is

“public partnership”

A “public partnership” is, at any time, defined as a partnership, the partnership interests of which are listed on a prescribed stock exchange in Canada, that carries on a business in Canada or that is a Canadian partnership, at any time in a fiscal period of the partnership.

ITR
229.1(2)

New subsection 229.1(2) of the Regulations sets out that every member of a public partnership in a fiscal period of the partnership must make public, in prescribed form, information in respect of the partnership for its fiscal period by posting that information on the Internet website of CDS Innovations Inc. In addition, the Minister must be notified on behalf of the partnership as to when the posting requirement has been satisfied.

ITR
229.1(3)

New subsection 229.1(3) of the Regulations provides that the time on or before which a public partnership is required to meet the requirements of subsection 229.1(2) is

ITR
229.1(4)

New subsection 229.1(4) of the Regulations sets out that every member of a partnership that is required to satisfy the requirements of subsection 229.1(2) in respect of the partnership for a fiscal period of the partnership will be deemed to have satisfied those requirements if a member of the partnership with authority to act for the partnership has satisfied those requirements in respect of the partnership for that fiscal period.

- News Release 2007-058 -