Archived - Explanatory Notes Relating to the Income Tax Act, the Income Tax Regulations, the Canada Education Savings Act, the Canada Education Savings Regulations and the Excise Tax Act

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Published by
The Honourable Jim Flaherty, P.C., M.P.
Minister of Finance

June 2007


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These explanatory notes are provided to assist in an understanding of the proposed amendments to which they relate. These notes are intended for information purposes and should not be construed as an official interpretation of the provisions they describe.

Table of Contents


Clause in Legislation

Section of the Act Amended

Topic


Preface

Part 1 - Amendments Related to Income Tax

Income Tax Act

2

53(2)(h)(i.1)

ACB deduction – capital interest in trust.

3

56

Amounts to be included in income.

4

60

Other deductions

5

60.03

Pension income reallocation

6

89(1)

Eligible dividend.

7

96

Partnerships and their members

8

104

Trusts and their beneficiaries

9

118

Personal credits

10

118.8

Transfer of unused credits to spouse or common-law partner

11

120(3)

Integration with provincial taxes – individual income for the year

12

122(1)

Tax payable by inter vivos trusts.

13

122.1(1)

Definitions.

14

123.4(1)(e)

General rate reduction percentage – corporate tax reductions

15

126(8)

Deemed dividend – partnership

16

132(7)(a)

Mutual fund trust.

17

146

Registered retirement savings plans.

18

146.1

Registered education savings plans.

19
Erratum

146.3(1)

Registered retirement income funds – definitions

20

147

Deferred profit sharing plans

21

147.4

Registered pension plan annuity contract

22

153

Payment of tax

23

160

Tax liability re property transferred not at arm’s length

24

197

Part IX.1 – Tax on SIFT partnerships.

25

198(6)

Taxes on deferred profit sharing plans and revoked plans.

26

204

DPSP qualified investments.

27

204.9(1)

Tax in respect of overpayments to RESPs

28

248(1)

Definitions.

29

249(1)

Definition of “taxation year”

Income Tax Regulations

30

229(1)

Partnership return.

31

2608

SIFT trusts.

32

4900

Qualified investments

33

8308.3(1)(c)

Specified retirement arrangements

34

8502(e)

Conditions applicable to RPPs.

35

8503

Permissible benefits for defined benefit RPPs.

36

8506

Money purchase RPPs

Canada Education Savings Act

37

5

Amount of grant.

Canada Education Savings Regulations

38

4(1)(d)

Conditions for payment of CES grants

Coordinating Amendments

39 to 42

104(24), 106(1), 106(3) & 249(1)

Bill C-33


Part 2 - Amendments to the Excise Tax Act 
(Other than with Respect to the Goods and Services Tax/Harmonized Sales Tax)

Excise Tax Act

43

68, 68.01 & 68.02

Payment where error and end-user refunds

44

I/6

Green Levy.


Part 3 - Amendments in Respect of the Goods and Services Tax/Harmonized Sales Tax

Excise Tax Act

45

234

Late filing of information and adjustment for failure to file.

46

252

Non-resident rebate in respect of exported goods.

47

252.1

Accommodation rebate for tour packages

48

252.2

Restriction on rebates

49

252.4

Rebate in respect of foreign conventions.

50

V/II/1

Definition “practitioner”.

51

V/II/7

Midwives’ services.

52

VI/V/10.1

Exports of intangible personal property

Coordinating Amendments

53

252.1 & V/II/1

Bill C-40