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Notice of Ways and Means Motion to amend the Income Tax Act, the Excise Tax Act and related legislation

PART 7
COORDINATING AMENDMENTS

2012, c. 16

417. (1) In this section, "other Act" means the Pooled Registered Pension Plans Act .

(2) On the first day on which the other Act is in force and this Act has received royal assent,

(athe portion of paragraph 60(n.1) of the Income Tax Act before subparagraph (i), as enacted by subsection 196 (4) of this Act, is replaced by the following:

Repayment of pension benefits

(n.1an amount paid by the taxpayer in the year to a pooled registered pension plan or registered pension plan if

(bsubparagraph 60(n.1)(iii) of the Income Tax Act , as enacted by subsection 196 (4) of this Act, is replaced by the following:

(iii) no portion of the amount is deductible under any of paragraph 8(1)(m) and subsections 146(5) to (5.2) in computing the taxpayer's income for the year;

(3) On the first day on which the other Act is in force and on which both this Act and the Jobs and Growth Act, 2012 have received royal assent

(asection 253.1 of the Income Tax Act , as enacted by subsection 363 (1) of this Act, is replaced by the following:

Investments in limited partnerships

253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 146.1(2.1)(c), subsection 146.2(6), paragraph 146.4(5)(b), subsection 147.5(8), paragraph 149(1)(o.2), the definition "private holding corporation" in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

(bsection 57 of the Jobs and Growth Act, 2012 is deemed never to have come into force and is repealed.

(4) Subsection (2) applies to the 2009 and subsequent taxation years, except that, before the day on which the other Act comes into force

(athe portion of paragraph 60(n.1) of the Income Tax Act before subparagraph (i), as enacted by paragraph (2)(a), is to be read without reference to "pooled registered pension plan or"; and

(bsubparagraph 60(n.1)(iii) of the Income Tax Act , as enacted by paragraph (2)(b), is to be read as follows:

(iii) no portion of the amount is deductible under paragraph 8(1)(m) in computing the taxpayer's income for the year;

Bill C-45

418. (1) Subsections (2) to (5) apply if Bill C-45, introduced in the 1st session of the 41st Parliament and entitled Jobs and Growth Act, 2012 (in this section referred to as the "other Act"), receives royal assent.

(2) On the first day on which both the other Act and this Act have received royal assent,

(athe portion of subsection 18(5) of the Income Tax Act before the definition "outstanding debts to specified non-residents" is replaced by the following:

Definitions

(5) Notwithstanding any other provision of this Act (other than subsection (5.1)), in this subsection and subsections (4) to (6),

(bthe definition "specified proportion" in subsection 18(5) of the Income Tax Act is repealed.

(cthe portion of subsection 93.1(1) of the Income Tax Act before paragraph (a) is replaced by the following:

Shares held by partnership

93.1 (1) For the purposes of determining whether a non-resident corporation is a foreign affiliate of a corporation resident in Canada for the purposes of subsections (2), 20(12) and 39(2.1), sections 90, 93 and 113, paragraphs 128.1(1)(c.3) and (d), section 212.3 and subsection 219.1(2), (and any regulations made for the purposes of those provisions), section 95 (to the extent that it is applied for the purposes of those provisions), paragraph 95(2)(g.04) and section 126, if, based on the assumptions contained in paragraph 96(1)(c), at any time shares of a class of the capital stock of a corporation are owned by a partnership or are deemed under this subsection to be owned by a partnership, then each member of the partnership is deemed to own at that time the number of those shares that is equal to the proportion of all those shares that

(dclause 212.3(9)(c)(ii)(B) of the Income Tax Act , as enacted by subsection 49(1) of the other Act, is replaced by the following:

(B) as a dividend or qualifying return of capital, within the meaning assigned by subsection 90(3), in respect of a class of subject shares, or the portion of a dividend or qualifying return of capital in respect of a class of substituted shares that may reasonably be considered to relate to the subject shares, or

(esubparagraph 212.3(18)(b)(vii) of the Income Tax Act , as enacted by subsection 49(1) of the other Act, is replaced by the following:

(vii) as a dividend or a qualifying return of capital, within the meaning assigned by subsection 90(3), in respect of the shares of another non-resident corporation that is, immediately before the investment time, a foreign affiliate of the CRIC;

(fparagraph 212.3(20)(a) of the Income Tax Act , as enacted by subsection 49(1) of the other Act, is replaced by the following:

(athe total of all amounts each of which is the amount of a debt obligation assumed by the CRIC in respect of the liquidation and dissolution, redemption, dividend or qualifying return of capital, as the case may be, and

(gthe portion of section 8201 of the Income Tax Regulations before paragraph (a) is replaced by the following:

8201. For the purposes of subsection 16.1(1), the definition "outstanding debts to specified non-residents" in subsection 18(5), subsections 100(1.3) and 112(2), the definition "qualified Canadian transit organization" in subsection 118.02(1), subsections 125.4(1) and 125.5(1), the definition "taxable supplier" in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), the definition "Canadian banking business" in subsection 248(1) and paragraph 260(5)(a) of the Act, a "permanent establishment" of a person or partnership (either of whom is referred to in this section as the "person") means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person's business is conducted, and

(3) Paragraph (2)(c) is deemed to have come into force on August 20, 2011, except that before March 29, 2012, the portion of subsection 93.1(1) of the Income Tax Act before paragraph (a), as enacted by subsection paragraph 2(c), is to be read as follows:

93.1 (1) For the purposes of determining whether a non-resident corporation is a foreign affiliate of a corporation resident in Canada for the purposes of subsections (2), 20(12) and 39(2.1), sections 90, 93 and 113, paragraph 128.1(1)(d), (and any regulations made for the purposes of those provisions), section 95 (to the extent that it is applied for the purposes of those provisions), paragraph 95(2)(g.04) and section 126, if, based on the assumptions contained in paragraph 96(1)(c), at any time shares of a class of the capital stock of a corporation are owned by a partnership or are deemed under this subsection to be owned by a partnership, then each member of the partnership is deemed to own at that time the number of those shares that is equal to the proportion of all those shares that

(4) Clause 212.3(9)(c)(ii)(B) of the Income Tax Act , as enacted by paragraph (2)(d), subparagraph 212.3(18)(b)(vii) of that Act, as enacted by paragraph (2)(e), and paragraph 212.3(20)(a) of that Act, as enacted by paragraph (2)(f), apply in respect of transactions and events that occur after March 28, 2012, other than transactions and events to which subsections 212.3(9), (18) and (20) of the Income Tax Act , as enacted by subsection 49(1) of the other Act, do not apply because of subsection 49(2) or (3) of the other Act.

(5) Paragraph (2)(g) applies to the 2012 and subsequent taxation years.

SCHEDULE  

(Section 366)

SCHEDULE  

(Subsection 181(1))

LISTED CORPORATIONS

2419726 Canada Inc.

Ally Credit Canada Limited/Ally Crédit Canada Limitée

AmeriCredit Financial Services of Canada Ltd.

AVCO Financial Services Quebec Limited

Bombardier Capital Ltd.

Canaccord Capital Credit Corporation/Corporation de crédit Canaccord capital

Canaccord Financial Holdings Inc./Corporation financière Canaccord Inc.

Canadian Cooperative Agricultural Financial Services

Canadian Home Income Plan Corporation

Citibank Canada Investment Funds Limited

Citicapital Commercial Corporation/Citicapital Corporation Commerciale

Citi Cards Canada Inc./Cartes Citi Canada Inc.

Citi Commerce Solutions of Canada Ltd.

CitiFinancial Canada East Corporation/CitiFinancière, corporation du Canada Est

CitiFinancial Canada, Inc./CitiFinancière Canada, Inc.

CitiFinancial Mortgage Corporation/CitiFinancière, corporation de prêts hypothécaires

CitiFinancial Mortgage East Corporation/CitiFinancière, corporation de prêts hypothécaires de l’Est

Citigroup Finance Canada Inc.

Crédit Industriel Desjardins

CU Credit Inc.

Ford Credit Canada Limited

GE Card Services Canada Inc./GE Services de Cartes du Canada Inc.

GMAC Residential Funding of Canada, Limited

Household Commercial Canada Inc.

Household Finance Corporation Limited

Household Finance Corporation of Canada

Household Realty Corporation Limited

Hudson’s Bay Company Acceptance Limited

John Deere Credit Inc./Crédit John Deere Inc.

Merchant Retail Services Limited

PACCAR Financial Ltd./Compagnie Financière Paccar Ltée

Paradigm Fund Inc./Le Fonds Paradigm Inc.

Prêts étudiants Atlantique Inc./Atlantic Student Loans Inc.

Principal Fund Incorporated

RT Mortgage-Backed Securities Limited

RT Mortgage-Backed Securities II Limited

State Farm Finance Corporation of Canada/Corporation de Crédit State Farm du Canada

Trans Canada Credit Corporation

Trans Canada Retail Services Company/Société de services de détails trans Canada

Wells Fargo Financial Canada Corporation

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