Archived - Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures

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MINISTER OF FINANCE
90769WMC
     That it is expedient to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures as follows:
SHORT TITLE
   1.  This Act may be cited as the Economic Action Plan 2015 Act, No. 1.

Part 1

Amendments to the Income Tax Act and to Related Legislation

R.S., c. 1 (5th Supp.)

Income Tax Act

   2.  The Income Tax Act is amended by adding the following after section 60.021:
Additions to clause 60(l)(v)(B.2) for 2015
   60.022  (1)  In determining the amount that may be deducted because of paragraph 60(l) in computing a taxpayer's income for the 2015 taxation year, clause 60(l)(v)(B.2) is to be read as follows:
(B.2)  the total of all amounts each of which is
(I)  the taxpayer's eligible amount (within the meaning of subsection 146.3(6.11)) for the year in respect of a registered retirement income fund,
(II)  the taxpayer's eligible RRIF withdrawal amount (within the meaning of subsection 60.022(2)) for the year in respect of a RRIF,
(III)  the taxpayer's eligible variable benefit withdrawal amount (within the meaning of subsection 60.022(3)) for the year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan, or
(IV)  the taxpayer's eligible PRPP withdrawal amount (within the meaning of subsection 60.022(4)) for the year in respect of an account of the taxpayer under a PRPP,
Eligible RRIF withdrawal amount
(2)  A taxpayer's eligible RRIF withdrawal amount for the taxation year in respect of a RRIF under which the taxpayer is the annuitant at the beginning of the taxation year is the amount determined by the formula
A – B
where
A is the lesser of
(a)  the total of all amounts included, because of subsection 146.3(5), in computing the taxpayer's income for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or to a registered retirement savings plan), and
(b)  the amount that would be the minimum amount under the fund for the 2015 taxation year if it were determined using the prescribed factors under subsection 7308(3) or (4), as the case may be, of the Income Tax Regulations as they read on December 31, 2014; and
B is the minimum amount under the fund for the taxation year.
Eligible variable benefit withdrawal amount
(3)  A taxpayer's eligible variable benefit withdrawal amount for a taxation year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan is the amount determined by the formula
A – B – C
where
A is the lesser of
(a)  the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs 8506(1)(a) to (e) of the Income Tax Regulations) paid from the plan in the taxation year in respect of the account and included, because of paragraph 56(1)(a), in computing the taxpayer's income for the taxation year, and
(b)  the amount that would be the minimum amount for the account for the 2015 taxation year if it were determined using the factor designated under subsection 7308(4) of the Income Tax Regulations as they read on December 31, 2014;
B is the minimum amount for the account for the taxation year; and
C is the total of all contributions made by the taxpayer under the provision and designated for the purposes of subsection 8506(12) of the Income Tax Regulations.
Eligible PRPP withdrawal amount
(4)  A taxpayer's eligible PRPP withdrawal amount for a taxation year in respect of an account of the taxpayer under a PRPP is the amount determined by the formula
A – B
where
A is the lesser of
(a)  the total of all amounts each of which is the amount of a distribution made from the account in the taxation year and included, because of subsection 147.5(13), in computing the taxpayer's income for the taxation year, and
(b)  the amount that would be the minimum amount for the account for the 2015 taxation year if it were determined using the factor designated under subsection 7308(4) of the Income Tax Regulations as they read on December 31, 2014, and
B is the minimum amount for the account for the taxation year.
Expressions used in this section
(5)  For the purposes of this section,
(a)  "money purchase provision" has the same meaning as in subsection 147.1(1);
(b)  "retirement benefits" has the same meaning as in subsection 8500(1) of the Income Tax Regulations;
(c)  the minimum amount for an account of a taxpayer under a money purchase provision of a registered pension plan is the amount determined under subsection 8506(5) of the Income Tax Regulations; and
(d)  the minimum amount for an account of a taxpayer under a PRPP is the amount that would be the minimum amount for the calendar year under subsection 8506(5) of the Income Tax Regulations if the taxpayer's account were an account under a money purchase provision of a registered pension plan.
   3.  (1)  Paragraph 81(1)(d.1) of the Act is replaced by the following:
Canadian Forces members and veterans amounts
(d.1)  the total of all amounts received by the taxpayer in the year on account of a Canadian Forces income support benefit payable to the taxpayer under Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act, on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under Part 3 of that Act or on account of a family caregiver relief benefit payable to the taxpayer under Part 3.1 of that Act;
(2)  Subsection (1) applies to the 2015 and subsequent taxation years.
   4.  (1)  Subparagraph 82(1)(b)(i) of the Act is replaced by the following:
(i)  the product of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year multiplied by
(A)  for the 2016 and 2017 taxation years, 17%,
(B)  for the 2018 taxation year, 16%, and
(C)  for taxation years after 2018, 15%, and
(2)  Subsection (1) applies to the 2016 and subsequent taxation years.
   5.  (1)  Section 104 of the Act is amended by adding the following after subsection (21.2):
Beneficiaries QFFP taxable capital gain
(21.21)  If clause (21.2)(b)(ii)(A) applies to deem, for the purposes of section 110.6, the beneficiary under a trust to have a taxable capital gain (referred to in this subsection as the "QFFP taxable capital gain") from a disposition of capital property that is qualified farm or fishing property of the beneficiary, for the beneficiary's taxation year that ends on or after April 21, 2015, and in which the designation year of the trust ends, for the purposes of subsection 110.6(2.2), the beneficiary is, if the trust complies with the requirements of subsection (21.22), deemed to have a taxable capital gain from the disposition of qualified farm or fishing property of the beneficiary on or after April 21, 2015 equal to the amount determined by the formula
A × B/C
where
A is the amount of the QFFP taxable capital gain;
B is, if the designation year of the trust ends on or after April 21, 2015, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties of the trust that were disposed of by the trust on or after April 21, 2015; and
C is, if the designation year of the trust ends on or after April 21, 2015, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties.
  
Trusts to designate amounts
(21.22)  A trust shall determine and designate, in its return of income under this Part for a designation year of the trust, the amount that is determined under subsection (21.21) to be the beneficiary's taxable capital gain from the disposition on or after April 21, 2015 of qualified farm or fishing property of the beneficiary.
  
(2)  Subsection (1) applies in respect of taxation years that end after April 20, 2015.
   6.  (1)  Subsection 108(1.1) of the Act is replaced by the following:
Credits — home renovation
(1.1)  For the purpose of the definition "testamentary trust" in subsection (1), a contribution to a trust does not include a qualifying expenditure (within the meaning of section 118.04 or 118.041) of a beneficiary under the trust.
  
(2)  Subsection (1) applies to the 2016 and subsequent taxation years.
   7.  (1)  Section 110.6 of the Act is amended by adding the following after subsection (2.1):
Additional deduction — qualified farm or fishing property
(2.2)  In computing the taxable income for a taxation year of an individual (other than a trust) who was resident in Canada throughout the year and who disposed of qualified farm or fishing property in the year or a preceding taxation year and after April 20, 2015, there may be deducted an amount claimed by the individual that does not exceed the least of
(a)  the amount, if any, by which $500,000 exceeds the total of
(i)  $400,000 adjusted for each year after 2014 in the manner set out by section 117.1, and
(ii)  the total of all amounts each of which is an amount deducted under this subsection in computing the individual's taxable income for a preceding taxation year that ended after 2014,
(b)  the amount, if any, by which the individual's cumulative gains limit at the end of the year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2) or (2.1) in computing the individual's taxable income for the year,
(c)  the amount, if any, by which the individual's annual gains limit for the year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2) or (2.1) in computing the individual's taxable income for the year, and
(d)  the amount that would be determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties disposed of by the individual after April 20, 2015.
  
Additional deduction — ordering rule
(2.3)  Subsection (2.2) does not apply in computing the taxable income for a taxation year of an individual unless the individual has claimed the maximum amount that could be claimed under subsections (2) and (2.1) for the taxation year.
  
(2)  Subsection 110.6(4) of the Act is replaced by the following:
Maximum capital gains deduction
(4)  Notwithstanding subsections (2) and (2.1), the total amount that may be deducted under this section in computing an individual's income for a taxation year shall not exceed the total of the amount determined by the formula in paragraph (2)(a) and the amount that may be deducted under subsection (2.2), in respect of the individual for the year.
  
(3)  The portion of subsection 110.6(5) of the Act before paragraph (a) is replaced by the following:
Deemed resident in Canada
(5)  For the purposes of subsections (2) to (2.2), an individual is deemed to have been resident in Canada throughout a particular taxation year if
  
(4)  The portion of subsection 110.6(6) of the Act before paragraph (a) is replaced by the following:
Failure to report capital gain
(6)  Notwithstanding subsections (2) to (2.2), no amount may be deducted under this section in respect of a capital gain of an individual for a particular taxation year in computing the individual's taxable income for the particular taxation year or any subsequent year, if
  
(5)  The portion of subsection 110.6(7) of the Act before paragraph (a) is replaced by the following:
Deduction not permitted
(7)  Notwithstanding subsections (2) to (2.2), no amount may be deducted under this section in computing an individual's taxable income for a taxation year in respect of a capital gain of the individual for the taxation year if the capital gain is from a disposition of property which disposition is part of a series of transactions or events
  
(6)  Subsection 110.6(8) of the Act is replaced by the following:
Deduction not permitted
(8)  Notwithstanding subsections (2) to (2.2), if an individual has a capital gain for a taxation year from the disposition of a property and it can reasonably be concluded, having regard to all the circumstances, that a significant part of the capital gain is attributable to the fact that dividends were not paid on a share (other than a prescribed share) or that dividends paid on such a share in the taxation year or in any preceding taxation year were less than 90% of the average annual rate of return on that share for that year, no amount in respect of that capital gain shall be deducted under this section in computing the individual's taxable income for the year.
  
(7)  Subsections (1) to (6) apply to taxation years that end after April 20, 2015.
   8.  (1)  The Act is amended by adding the following after section 118.04:
Definitions
   118.041  (1)  The following definitions apply in this section.
"eligible dwelling"
« logement admissible »
"eligible dwelling" of an individual, at any time in a taxation year, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of that land that exceeds the greater of ½ hectare and the portion of that land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if
(a)  the individual (or a trust under which the individual is a beneficiary) owns — whether jointly with another person or otherwise — at that time, the housing unit or a share of the capital stock of a cooperative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and
(b)  the housing unit is ordinarily inhabited, or is reasonably expected to be ordinarily inhabited, at any time in the taxation year
(i)  by the individual, if the individual is a qualifying individual, or
(ii)  by the individual and a qualifying individual, if
(A)  the individual is an eligible individual in respect of the qualifying individual, and
(B)  the qualifying individual does not, throughout the taxation year, own — whether jointly with another person or otherwise — and ordinarily inhabit another housing unit in Canada.
"eligible individual"
« particulier admissible »
"eligible individual", in respect of a qualifying individual for a taxation year, means
(a)  an individual who is the qualifying individual's spouse or common-law partner in the year;
(b)  except if paragraph (c) applies, an individual who is entitled to deduct an amount under subsection 118.3(2) for the year in respect of the qualifying individual or would be if no amount was claimed for the year by the qualifying individual under subsection 118.3(1) or by the qualifying individual's spouse or common-law partner under section 118.8; or
(c)  in the case of a qualifying individual who has attained the age of 65 before the end of the year, an individual who
(i)  claimed for the year a deduction under subsection 118(1) in respect of the qualifying individual because of
(A)  paragraph (b) of the description of B in that subsection, or
(B)  paragraph (c.1) or (d) of the description of B in that subsection where the qualifying individual is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual's spouse or common-law partner, or
(ii)  could have claimed for the year a deduction referred to in subparagraph (i) in respect of the qualifying individual if
(A)  the qualifying individual had no income for the year,
(B)  in the case of a deduction referred to in clause (i)(A), the individual were not married and not in a common-law partnership, and
(C)  in the case of a deduction under subsection 118(1) because of paragraph (d) of the description of B in that subsection in respect of a qualifying individual who is a dependant (within the meaning of subsection 118(6)) of the individual, the qualifying individual was dependent on the individual because of mental or physical infirmity.
"individual"
« particulier »
"individual" does not include a trust.
"qualifying expenditure"
« dépense admissible »
"qualifying expenditure" of an individual means an outlay or expense that is made or incurred, during a taxation year, that is directly attributable to a qualifying renovation — of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual — and that is the cost of goods acquired or services received during the year and includes an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include an outlay or expense
(a)  to acquire a property that can be used independently of the qualifying renovation;
(b)  that is the cost of annual, recurring or routine repair or maintenance;
(c)  to acquire a household appliance;
(d)  to acquire an electronic home-entertainment device;
(e)  that is the cost of housekeeping, security monitoring, gardening, outdoor maintenance or similar services;
(f)  for financing costs in respect of the qualifying renovation;
(g)  made or incurred primarily for the purpose of increasing or maintaining the value of the eligible dwelling;
(h)  made or incurred for the purpose of gaining or producing income from a business or property;
(i)  in respect of goods or services provided by a person not dealing at arm's length with the qualifying individual or the eligible individual, unless the person is registered for the purposes of Part IX of the Excise Tax Act; or
(j)  to the extent that the outlay or expense can reasonably be considered to be have been reimbursed, otherwise than as assistance from the federal or a provincial government including a grant, subsidy, forgivable loan or a deduction from tax.
"qualifying individual"
« particulier déterminé »
"qualifying individual", in respect of a taxation year, means an individual
(a)  who has attained the age of 65 years before the end of the taxation year; or
(b)  in respect of whom an amount is deductible, or would be deductible if this Act were read without reference to paragraph 118.3(1)(c), under section 118.3 in computing a taxpayer's tax payable under this Part for the taxation year.
"qualifying renovation"
« travaux de rénovation admissibles »
"qualifying renovation" means a renovation or alteration of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual that
(a)  is of an enduring nature and integral to the eligible dwelling; and
(b)  is undertaken to
(i)  enable the qualifying individual to gain access to, or to be mobile or functional within, the eligible dwelling, or
(ii)  reduce the risk of harm to the qualifying individual within the eligible dwelling or in gaining access to the dwelling.
Qualifying expenditure rules
(2)  For the purpose of this section,
(a)  a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a cooperative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the "corporation"), in respect of a property that is owned, administered or managed by that corporation and that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, if
(i)  the outlay or expense would be a qualifying expenditure of the corporation if the corporation were an individual and the property were an eligible dwelling of that individual, and
(ii)  the corporation has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling; and
(b)  a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling (including, for this purpose, common areas relevant to more than one eligible dwelling), if
(i)  the outlay or expense would be a qualifying expenditure of the trust if the trust were an individual and the property were an eligible dwelling of that individual, and
(ii)  the trust has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling.
Home accessibility tax credit
(3)  For the purpose of computing the tax payable under this Part by a qualifying individual or an eligible individual, in respect of an eligible dwelling for a taxation year, there may be deducted the amount determined by the formula
A × B
where
A is the appropriate percentage for the taxation year; and
B is the lesser of
(a)  $10,000, and
(b)  the total of all amounts, each of which is a qualifying expenditure of the individual in respect of the eligible dwelling for the taxation year.
Interaction with medical expense credit
(4)  Despite paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.
Limits
(5)  For the purpose of this section,
(a)  a maximum of $10,000 of qualifying expenditures for a taxation year in respect of a qualifying individual can be claimed under subsection (3) by the qualifying individual and all eligible individuals in respect of the qualifying individual;
(b)  if there is more than one qualifying individual in respect of an eligible dwelling, a maximum of $10,000 of qualifying expenditures for a taxation year in respect of the eligible dwelling can be claimed under subsection (3) by the qualifying individuals and all eligible individuals in respect of the qualifying individuals; and
(c)  if more than one individual is entitled to a deduction under subsection (3) for a taxation year in respect of the same qualifying individual or the same eligible dwelling and the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
Effect of bankruptcy
(6)  For the purpose of subsection (5), if an individual becomes bankrupt in a particular calendar year, despite subsection 128(2), any reference to the taxation year of the individual is deemed to be a reference to the particular calendar year.
In the event of death and bankruptcy
(7)  For the purpose of this section,
(a)  if an individual dies during a calendar year and would have attained 65 years of age if the individual were alive at the end of the year, the individual is deemed to have attained 65 years of age at the beginning of the year;
(b)  if an individual becomes a qualifying individual during a calendar year and becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of that year; and
(c)  if an individual becomes a qualifying individual during a calendar year and an eligible individual in respect of the qualifying individual becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of the year.
(2)  Subsection (1) applies to the 2016 and subsequent taxation years.
   9.  (1)  Section 118.92 of the Act, as enacted by subsection 31(2), is replaced by the following:
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, 118.031, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.
(2)  Subsection (1) applies to the 2016 and subsequent taxation years.
   10.  (1)  Paragraph 121(a) of the Act is replaced by the following:
(a)  the product of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be included in computing the individual's income for the year multiplied by
(i)  for the 2016 taxation year, 21/29,
(ii)  for the 2017 and 2018 taxation years, 20/29, and
(iii)  for taxation years after 2018, 9/13; and
(2)  Subsection (1) applies to the 2016 and subsequent taxation years.
   11.  (1)  Paragraphs 125(1.1)(a) and (b) of the Act are replaced by the following:
(a)  that proportion of 17% that the number of days in the taxation year that are in 2015 is of the number of days in the taxation year,
(b)  that proportion of 17.5% that the number of days in the taxation year that are in 2016 is of the number of days in the taxation year,
(c)  that proportion of 18% that the number of days in the taxation year that are in 2017 is of the number of days in the taxation year,
(d)  that proportion of 18.5% that the number of days in the taxation year that are in 2018 is of the number of days in the taxation year, and
(e)  that proportion of 19% that the number of days in the taxation year that are after 2018 is of the number of days in the taxation year.
(2)  Subsection (1) applies to the 2016 and subsequent taxation years.
   12.  (1)  Paragraph (a) of the definition "flow-through mining expenditure" in subsection 127(9) of the Act is replaced by the following:
(a)  that is a Canadian exploration expense incurred by a corporation after March 2015 and before 2017 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2017) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition "mineral resource" in subsection 248(1),
(2)  Paragraphs (c) and (d) of the definition "flow-through mining expenditure" in subsection 127(9) of the Act are replaced by the following:
(c)  an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2015 and before April 2016, and
(d)  that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2015 and before April 2016;
(3)  Subsections (1) and (2) apply to expenses renounced under a flow-through share agreement entered into after March 2015.
   13.  Paragraph (a) of the definition "tax deferred cooperative share" in subsection 135.1(1) of the Act is replaced by the following:
(a)  issued, after 2005 and before 2021, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage;
   14.  (1)  Paragraph 137(4.3)(a) of the Act is replaced by the following:
(a)  the preferred-rate amount of a corporation at the end of a taxation year is determined by the formula
A + B/C
where
A is its preferred-rate amount at the end of its immediately preceding taxation year,
B is the amount deductible under section 125 from the tax for the taxation year otherwise payable by it under this Part, and
C is its small business deduction rate for the taxation year within the meaning of subsection 125(1.1);
(2)  Subsection (1) applies to the 2016 and subsequent taxation years.
   15.  Section 146.3 of the Act is amended by adding the following after subsection (1.2):
Exceptions
(1.3)  For the purposes of subsections (5.1) and 153(1) and the definition "periodic pension payment" in section 5 of the Income Tax Conventions Interpretation Act, the minimum amount under a retirement income fund for 2015 is the amount that would be the minimum amount under the fund for the year if it were determined using the prescribed factors under subsection 7308(3) or (4), as the case may be, of the Income Tax Regulations as they read on December 31, 2014.
  
   16.  Clause (a)(ii)(B.1) of the definition "disability savings plan" in subsection 146.4(1) of the Act is replaced by the following:
(B.1)  if the arrangement is entered into before 2019, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,
   17.  Paragraph 147.5(3)(b) of the Act is replaced by the following:
(b)  a contribution is made to the plan in respect of a member after the calendar year in which the member attains 71 years of age, other than an amount
(i)  described in subparagraph (a)(iii), or
(ii)  if subsection 60.022(1) applies, described in any of subclauses 60(l)(v)(B.2)(II) to (IV) as read in that subsection;
   18.  (1)  Subparagraph (a)(v) of the definition "qualified donee" in subsection 149.1(1) of the Act is replaced by the following:
 
(v)  a foreign charity that has applied to the Minister for registration under subsection (26),
(2)  The portion of subsection 149.1(26) of the Act before subparagraph (b)(i) is replaced by the following:
Foreign charities
(26)  For the purposes of subparagraph (a)(v) of the definition "qualified donee" in subsection (1), the Minister may register, in consultation with the Minister of Finance, a foreign charity for a 24-month period that includes the time at which Her Majesty in right of Canada has made a gift to the foreign charity, if
(a)  the foreign charity is not resident in Canada; and
(b)  the Minister is satisfied that the foreign charity is
  
(3)  Subsections (1) and (2) apply to applications made on or after the day on which this Act receives royal assent.
   19.  The definition "TFSA dollar limit" in subsection 207.01(1) of the Act is replaced by the following:
"TFSA dollar limit"
« plafond CÉLI »
"TFSA dollar limit" for a calendar year means,
(a)  for 2009 to 2012, $5,000;
(b)  for 2013 and 2014, $5,500; and
(c)  for each year after 2014, $10,000.
C.R.C., c. 945

Income Tax Regulations

   20.  (1)  Subsection 108(1) of the Income Tax Regulations is replaced by the following:
   108.  (1)  Subject to subsections (1.1) to (1.13), amounts deducted or withheld in a month under subsection 153(1) of the Act shall be remitted to the Receiver General on or before the 15th day of the following month.
(2)  Section 108 of the Regulations is amended by adding the following after subsection (1.12):
(1.13)  If an employer is a new employer throughout a particular month in a particular calendar year, all amounts deducted or withheld from payments described in the definition "remuneration" in subsection 100(1) that are made by the employer in the month may be remitted to the Receiver General
(a)  in respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;
(b)  in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;
(c)  in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and
(d)  in respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.
  
(3)  Section 108 of the Regulations is amended by adding the following after subsection (1.2):
(1.21)  For the purposes of subsection (1.4), the monthly withholding amount, in respect of an employer for a month, is the total of all amounts each of which is an amount required to be remitted with respect to the month by the employer or, if the employer is a corporation, by each corporation associated with the corporation, under
(a)  subsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, if the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition "remuneration" in subsection 100(1);
(b)  subsection 21(1) of the Canada Pension Plan; or
(c)  subsection 82(1) of the Employment Insurance Act.
  
(4)  Section 108 of the Regulations is amended by adding the following after subsection (1.3):
(1.4)  For the purposes of subsection (1.13) an employer
(a)  becomes a new employer at the beginning of any month after 2015 in which the employer first becomes an employer; and
(b)  ceases to be a new employer at a specified time in a particular year, if in a particular month the employer does not meet any of the following conditions:
(i)  the monthly withholding amount in respect of the employer for the particular month is less than $1,000,
(ii)  throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, subsection 21(1) of the Canada Pension Plan, subsection 82(1) of the Employment Insurance Act or Part IX of the Excise Tax Act, and
(iii)  throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under the Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts.
  
(1.41)  For the purposes of subsection (1.4), the specified time is the end of
(a)  March of the particular year, if the particular month is January, February or March of that year;
(b)  June of the particular year, if the particular month is April, May or June of that year;
(c)  September of the particular year, if the particular month is July, August or September of that year; and
(d)  December of the particular year, if the particular month is October, November or December of that year.
  
(5)  Subsections (1) to (4) apply in respect of amounts deducted or withheld after 2015.
   21.  Paragraph 1100(1)(a) of the Regulations is amended by striking out "and" at the end of subparagraph (xxxvii), by adding "and" at the end of subparagraph (xxxviii) and by adding the following after subparagraph (xxxviii):
 
(xxxix)  of Class 53, 50 per cent,
   22.  Paragraph 4600(2)(k) of the Regulations is replaced by the following:
(k)  a property included in Class 21, 24, 27, 29, 34, 39, 40, 43, 45, 46, 50, 52 or 53 in Schedule II;
   23.  (1)  The table to subsection 7308(3) of the Regulations is replaced by the following:
Table
X Factor
Under 72 1/(90 – X)
72 0.0540
73 0.0553
74 0.0567
75 0.0582
76 0.0598
77 0.0617
78 0.0636
79 0.0658
80 0.0682
81 0.0708
82 0.0738
83 0.0771
84 0.0808
85 0.0851
86 0.0899
87 0.0955
88 0.1021
89 0.1099
90 0.1192
91 0.1306
92 0.1449
93 0.1634
94 0.1879
95 or older 0.2000
(2)  The table to subsection 7308(4) of the Regulations is replaced by the following:
Table
Y Factor
under 71 1/(90 – Y)
71 0.0528
72 0.0540
73 0.0553
74 0.0567
75 0.0582
76 0.0598
77 0.0617
78 0.0636
79 0.0658
80 0.0682
81 0.0708
82 0.0738
83 0.0771
84 0.0808
85 0.0851
86 0.0899
87 0.0955
88 0.1021
89 0.1099
90 0.1192
91 0.1306
92 0.1449
93 0.1634
94 0.1879
95 or older 0.2000
(3)  Subsections (1) and (2) apply to the 2015 and subsequent taxation years.
   24.  Section 8506 of the Regulations is amended by adding the following after subsection (10):
Recontribution for 2015
(11)    If a contribution made by a member of a registered pension plan and credited to the member's account under a money purchase provision of the plan complies with the conditions in subsection (12), the contribution
(a)    is deemed to have been made in accordance with the plan as registered;
(b)    is to be disregarded for the purposes of paragraph (2)(c.1); and
(c)    is deemed to be an excluded contribution for the purposes of paragraph 8301(4)(a).

Conditions Referred to in Subsection (11)
(12)    The conditions referred to in subsection (11) are as follows:
(a)    the contribution is made after December 31, 2014 and before March 1, 2016;
(b)    the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; and
(c)    the amount of the contribution does not exceed the amount determined by the formula
 
A – B – C
where
A    is the lesser of
(i)    the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2015 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer's income for the taxation year, and
(ii)    the amount that would be the minimum amount for the account for 2015 if it were determined using the factor designated under subsection 7308(4) as it read on December 31, 2014,
B    is the minimum amount for the account for 2015, and
C    is the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection.
   25.  Paragraph (a) of Class 43 of Schedule II to the Regulations is replaced by the following:
(a)    is not included in Class 29 or 53, but that would otherwise be included in Class 29 if that Class were read without reference to its subparagraphs (b)(iii) and (v) and paragraph (c); or
   26.  Schedule II to the Regulations is amended by adding the following after Class 52:
Class 53
Property acquired after 2015 and before 2026 that is not included in Class 29, but that would otherwise be included in that Class if
(a) subparagraph (a)(ii) of that Class were read without reference to "in Canadian field processing carried on by the lessee or"; and
(b) that Class were read without reference to its subparagraphs (b)(iv) to (vi) and paragraph (c).
C.R.C., c. 385

Canada Pension Plan Regulations

   27.  (1)  Subsection 8(1) of the Canada Pension Plan Regulations is replaced by the following:
   8.  (1)  Subject to subsections (1.1), (1.11), (1.12), (1.13) and (2), the employee's contribution and the employer's contribution shall be remitted to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the employee the remuneration in respect of which those contributions were required to be made.
(2)  Subsection 8(1.2) of the Regulations is replaced by the following:
(1.13)  If an employer is a new employer throughout a particular month in a particular calendar year, contributions payable in the month may be remitted by the employer to the Receiver General
(a)  in respect of those contributions paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;
(b)  in respect of those contributions paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;
(c)  in respect of those contributions paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and
(d)  in respect of those contributions paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.
  
(1.2)  For the purpose of this section,
(a)  the average monthly withholding amount of an employer for a calendar year is determined in accordance with subsections 108(1.2) and (1.3) of the Income Tax Regulations;
(b)  the determination as to whether an employer is a new employer is made in accordance with subsections 108(1.4) and (1.41) of the Income Tax Regulations; and
(c)  the monthly withholding amount in respect of a new employer for a month is determined in accordance with subsection 108(1.21) of the Income Tax Regulations.
  
(3)  Subsections (1) and (2) apply to amounts and contributions required to be remitted to the Receiver General after 2015.
SOR/97-33

Insurable Earnings and Collection of Premiums Regulations

   28.  (1)  Subsection 4(1) of the Insurable Earnings and Collection of Premiums Regulations is replaced by the following:
   4.  (1)  Subject to subsections (2), (3), (3.1), (3.2) and (5), every employer shall remit the employee's premiums and the employer's premiums payable under the Act and these Regulations to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the insured person insurable earnings in respect of which those premiums were required to be deducted or paid under the Act and these Regulations.
(2)  Subsection 4(4) of the Regulations is replaced by the following:
(3.2)  If an employer is a new employer throughout a particular month in a particular calendar year, premiums payable in the month may be remitted to the Receiver General
(a)  in respect of insurable earnings paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;
(b)  in respect of insurable earnings paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;
(c)  in respect of insurable earnings paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and
(d)  in respect of insurable earnings paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular year.
  
(4)  For the purpose of this section,
(a)  the average monthly withholding amount of an employer for a year is determined in accordance with subsections 108(1.2) and (1.3) of the Income Tax Regulations;
(b)  the determination as to whether an employer is a new employer is made in accordance with subsections 108(1.4) and (1.41) of the Income Tax Regulations; and
(c)  the monthly withholding amount in respect of a new employer for a month is determined in accordance with subsection 108(1.21) of the Income Tax Regulations.
  
(3)  Subsections (1) and (2) apply to amounts and contributions required to be remitted to the Receiver General after 2015.

Part 2

Support for Families

R.S., c. 1 (5th Supp.)

Income Tax Act

   29.  (1)  Paragraphs (a) and (b) of the definition "annual child care expense amount" in subsection 63(3) of the Income Tax Act are replaced by the following:
(a)  $11,000, if the child is a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer's tax payable under this Part for the year, and
(b)  if the child is not a person referred to in paragraph (a),
(i)  $8,000, if the child is under 7 years of age at the end of the year, and
(ii)  $5,000, in any other case;
(2)  Subsection (1) applies to the 2015 and subsequent taxation years.
   30.  (1)  Paragraph (b.1) of the description of B in subsection 118(1) of the Act is replaced by the following:
Family caregiver amount for child
(b.1)  $2,000 for each child, who is under the age of 18 years at the end of the taxation year, of the individual and who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the child's personal needs and care, when compared to children of the same age if
(i)  the child ordinarily resides throughout the taxation year with the individual together with another parent of the child, or
(ii)  except if subparagraph (i) applies, the individual
(A)  may deduct an amount under paragraph (b) in respect of the child, or
(B)  could deduct an amount under paragraph (b) in respect of the child if
(I)  paragraph (4)(a) and the reference in paragraph (4)(b) to "or the same domestic establishment" did not apply to the individual for the taxation year, and
(II)  the child had no income for the year,
(2)  Subsection (1) applies to the 2015 and subsequent taxation years. For the purpose of making the adjustment provided under subsection 117.1(1) of the Act as it applies to paragraph (b.1) of the description of B in subsection 118(1) of the Act, as enacted by subsection (1), the amount to be used in the 2015 taxation year for the preceding taxation year is the amount under clause (b.1)(i)(B) of the description of B in subsection 118(1) of the Act that would, but for subsection 117.1(3) of the Act, be the amount to be used under that clause for the 2014 taxation year.
   31.  (1)  Section 118.92 of the Act is replaced by the following:
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, 118.03, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.
(2)  Section 118.92 of the Act, as enacted by subsection (1), is replaced by the following:
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, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.
(3)  Subsection (1) applies to the 2014 taxation year.
(4)  Subsection (2) applies to the 2015 taxation year.
   32.  (1)  The Act is amended by adding the following after section 119:
Definitions
   119.1  (1)  The following definitions apply in this section.
"adjusted base tax payable"
« impôt payable de base rajusté »
"adjusted base tax payable", of an individual for a taxation year, means the amount that would be the individual's tax payable under this Part for the year, if
(a)  the individual's taxable income for the year were the individual's split-adjusted income for the year; and
(b)  no amount were deductible under this Division other than the individual's adjusted non-refundable tax credits amount for the year.
"adjusted non-refundable tax credits amount"
« montant de crédits non remboursables rajustés »
"adjusted non-refundable tax credits amount", of an individual for a taxation year, means the amount determined by the formula
A + B
where
A is the total of all amounts, each of which is an amount claimed by the individual — not exceeding the amount that may be deducted by the individual — in computing the individual's tax payable for the taxation year
(a)  under any of subsections 118(2), (3) and (10) and sections 118.01 to 118.07, 118.1 to 118.3, 118.5 to 118.7 and 118.9, and
(b)  under section 118.8, not exceeding the amount determined by the formula
A1 – A2
where
A1 is the amount determined for the description of A in section 118.8 for the taxation year, and
A2 is the amount, if any, by which the amount determined for the description of C in section 118.8 for the taxation year exceeds the amount determined for the description of B in that section for the taxation year; and
B is the amount that would be deductible by the individual under subsection 118(1) in computing the individual's tax payable for the taxation year if
(a)  the dollar amount set out in the formula in subparagraph (a)(ii) of the description of B in that subsection were nil, and
(b)  the amount determined for the description of C.1 in subparagraph (a)(ii) of the description of B in that subsection were determined by the formula
C – D
where
C is the income of the individual's spouse or common-law partner for the year, and
D is the dollar amount set out in subparagraph (a)(i) of the description of B in that subsection.
"base tax payable"
« impôt payable de base »
"base tax payable", of an individual for a taxation year, means the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Division other than an amount deductible under any of sections 118 to 118.9.
"combined adjusted base tax payable"
« impôt payable de base rajusté réuni »
"combined adjusted base tax payable", of a qualifying individual for a taxation year, means the total of the qualifying individual's adjusted base tax payable for the year and the adjusted base tax payable for the year of the qualifying individual's eligible relation.
"combined base tax payable"
« impôt payable de base réuni »
"combined base tax payable", of a qualifying individual for a taxation year, means the total of the qualifying individual's base tax payable for the year and the base tax payable for the year of the qualifying individual's eligible relation.
"eligible relation"
« proche admissible »
"eligible relation", of a particular individual for a taxation year, means an individual who
(a)  is resident in Canada,
(i)  if the individual dies in the year, at the time that is immediately before the individual's death, and
(ii)  in any other case, at the end of the year; and
(b)  is at any time in the year, married to, or in a common-law partnership with, the particular individual and not, by reason of the breakdown of their marriage or common-law partnership, living separate and apart from the particular individual at the end of the year and for a period of at least 90 days commencing in the year.
"qualifying individual"
« particulier admissible »
"qualifying individual", for a taxation year, means an individual who
(a)  has an eligible relation for the year who has not deducted an amount under this section for the year;
(b)  has a child who
(i)  is under the age of 18 years at the end of the year, and
(ii)  ordinarily resides throughout the year with the individual or the individual's eligible relation for the year;
(c)  is resident in Canada,
(i)  if the individual dies in the year, at the time that is immediately before the individual's death, and
(ii)  in any other case, at the end of the year; and
(d)  is not confined to a prison or similar institution for a period of at least 90 days during the year.
"split-adjusted income"
« revenu rajusté par fractionnement »
"split-adjusted income", of an individual for a taxation year, means
(a)  if the individual's taxable income for the year is greater than the taxable income for the year of the individual's eligible relation, the amount that is the individual's taxable income less the individual's split adjustment for the year;
(b)  if the individual's taxable income for the year is less than the taxable income for the year of the individual's eligible relation, the amount that is the individual's taxable income plus the individual's split adjustment for the year; and
(c)  in any other case, the amount that is equal to the individual's taxable income for the year.
"split adjustment"
« rajustement par fractionnement »
"split adjustment", of an individual for a taxation year, means the lesser of $50,000 and one half of the absolute value of the positive or negative amount determined by the formula
A – B
where
A is the individual's taxable income for the year; and
B is the taxable income for the year of the individual's eligible relation.
Family tax cut credit
(2)  For the purpose of computing the tax payable under this Part by a qualifying individual for a taxation year, there may be deducted the lesser of $2,000 and the amount determined by the formula
A – B
where
A is the qualifying individual's combined base tax payable for the year; and
B is the qualifying individual's combined adjusted base tax payable for the year.
Deduction not available
(3)  No amount is deductible under subsection (2) in computing an individual's tax payable under this Part for a taxation year if the individual or the individual's eligible relation
(a)  does not file with the Minister a return of income in respect of the taxation year;
(b)  becomes bankrupt in the calendar year in which the taxation year ends; or
(c)  makes an election for the taxation year under section 60.03.
Taxation year deeming rules
(4)  For the purpose of applying the definition "qualifying individual" in subsection (1), in determining whether a child ordinarily resides throughout a taxation year with an individual or the individual's eligible relation, the taxation year is deemed not to include
(a)  in the case of a child who is born or is adopted in the year, the portion of the year before the child's birth or adoption;
(b)  in the case of an individual who marries or becomes a common-law partner at any time in the year, the portion of the year before that time;
(c)  in the case of an individual, an eligible relation of an individual or a child who dies in the year, the portion of the year after the death; and
(d)  in the case of an individual or an eligible relation of an individual who becomes resident in Canada in the year, any portion of the year in which the person is non-resident.
(2)  Subsection (1) applies to the 2014 and subsequent taxation years.
   33.  (1)  Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:
(A)  under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.6, 118.8, 118.9 and 119.1,
(2)  Subsection (1) applies to the 2014 and subsequent taxation years.
   34.  (1)  Subsection 153(1.3) of the Act is replaced by the following:
Reduction not permitted
(1.3)  The Minister shall not consider either of the following circumstances as a basis on which a lesser amount may be determined under subsection (1.1):
(a)  a joint election made or expected to be made under section 60.03; or
(b)  a deduction or an intention to claim a deduction under section 119.1.
  
(2)  Subsection (1) applies to the 2014 and subsequent taxation years.