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(ii) no amount had been remitted under
section 153 to the Receiver General on
account of the taxpayer's tax for the year,
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|
(iii) the rate of interest prescribed for the
purpose of subsection (1) were
prescribed for the purpose of subsection
164(3), and
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|
(iv) the latest of the days described in
paragraphs 164(3)(a), (b) and (c) were
the first day of the year.
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|
(3) Paragraph 161(4)(a) of the Act is
replaced by the following:
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(a) the amount, if any, by which
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(i) the tax payable under this Part by the
individual for the year, determined
before taking into consideration the
specified future tax consequences for the
year,
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(ii) the amount deemed by subsection
120(2) to have been paid on account of
the individual's tax under this Part for the
year, determined before taking into
consideration the specified future tax
consequences for the year,
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|
(4) Paragraph 161(4.01)(a) of the Act is
replaced by the following:
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(a) the amount, if any, by which
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(i) the tax payable under this Part by the
individual for the year, determined
before taking into consideration the
specified future tax consequences for the
year,
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(ii) the amount deemed by subsection
120(2) to have been paid on account of
the individual's tax under this Part for the
year, determined before taking into
consideration the specified future tax
consequences for the year,
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|
(5) Paragraph 161(4.1)(a) of the Act is
replaced by the following:
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(a) the total of the taxes payable under this
Part and Parts I.3, VI and VI.1 by the
corporation for the year, determined before
taking into consideration the specified
future tax consequences for the year,
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(6) Section 161 of the Act is amended by
adding the following after subsection (6.1):
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| Flow-through
share
renunciations
|
(6.2) Where the tax payable under this Part
by a taxpayer for a taxation year is more than
it otherwise would be because of a
consequence for the year described in
paragraph (b) of the definition ``specified
future tax consequence'' in subsection 248(1)
in respect of an amount purported to be
renounced in a calendar year, for the purposes
of the provisions of this Act (other than this
subsection) relating to interest payable under
this Act, an amount equal to the additional tax
payable is deemed
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(a) to have been paid on the taxpayer's
balance-due day for the taxation year on
account of the taxpayer's tax payable under
this Part for the year; and
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(b) to have been refunded on April 30 of the
following calendar year to the taxpayer on
account of the taxpayer's tax payable under
this Part for the taxation year.
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(7) Subparagraphs 161(7)(a)(ix) and (x)
of the English version of the Act are
replaced by the following:
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(ix) any amount deducted under
subsection 181.1(4) in respect of any
unused surtax credit (within the meaning
assigned by subsection 181.1(6)) of the
taxpayer for a subsequent taxation year,
or
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(x) any amount deducted under
subsection 190.1(3) in respect of any
unused Part I tax credit (within the
meaning assigned by subsection
190.1(5)) of the taxpayer for a
subsequent taxation year, and
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|
(8) Paragraph 161(11)(b) of the Act is
replaced by the following:
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(b) in the case of a penalty payable for a
taxation year because of section 163.1,
from the taxpayer's balance-due day for
the year to the day of payment of the
penalty;
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|
(9) Subsections (1) to (6) and (8) apply to
the 1996 and subsequent taxation years.
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|
(10) Subparagraph 161(7)(a)(ix) of the
Act, as enacted by subsection (7), applies to
the 1992 and subsequent taxation years.
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|
(11) Subparagraph 161(7)(a)(x) of the
Act, as enacted by subsection (7), applies to
the 1991 and subsequent taxation years.
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51. (1) Subsections 162(7) and (7.1) of the
Act are replaced by the following:
|
|
| Failure to
comply
|
(7) Every person (other than a registered
charity) or partnership who fails
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(a) to file an information return as and when
required by this Act or the regulations, or
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|
(b) to comply with a duty or obligation
imposed by this Act or the regulations
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is liable in respect of each such failure, except
where another provision of this Act (other than
subsection (10) or (10.1) or 163(2.22)) sets out
a penalty for the failure, to a penalty equal to
the greater of $100 and the product obtained
when $25 is multiplied by the number of days,
not exceeding 100, during which the failure
continues.
|
|
| Failure to
make
partnership
information
return
|
(7.1) Where a member of a partnership fails
to file an information return as a member of
the partnership for a fiscal period of the
partnership as and when required by this Act
or the regulations and subsection (10) does not
set out a penalty for the failure, the partnership
is liable to a penalty equal to the greater of
$100 and the product obtained when $25 is
multiplied by the number of days, not
exceeding 100, during which the failure
continues.
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|
(2) Subsection 162(8.1) of the Act is
replaced by the following:
|
|
| Where
partnership
liable to
penalty
|
(8.1) Where a partnership is liable to a
penalty under subsection (7), (7.1), (8), (10) or
(10.1), sections 152, 158 to 160.1, 161 and 164
to 167 and Division J apply, with any
modifications that the circumstances require,
to the penalty as if the partnership were a
corporation.
|
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|
(3) Subsection 162(10) of the Act is
replaced by the following:
|
|
| Failure to
furnish
foreign-based
information
|
(10) Every person or partnership who,
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|
(a) knowingly or under circumstances
amounting to gross negligence, fails to file
an information return as and when required
by any of sections 233.1 to 233.4, or
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|
(b) where paragraph (a) does not apply,
knowingly or under circumstances
amounting to gross negligence, fails to
comply with a demand under section 233 to
file a return
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|
is liable to a penalty equal to the amount
determined by the formula
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|
($500 x A x B) - C
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|
where
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|
A is
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|
(c) where paragraph (a) applies, the
lesser of 24 and the number of months,
beginning with the month in which the
return was required to be filed, during
any part of which the return has not been
filed, and
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|
(d) where paragraph (b) applies, the
lesser of 24 and the number of months,
beginning with the month in which the
demand was served, during any part of
which the return has not been filed,
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|
B is
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|
(e) where the person or partnership has
failed to comply with a demand under
section 233 to file a return, 2, and
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|
(f) in any other case, 1, and
|
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|
|
C is the penalty to which the person or
partnership is liable under subsection (7) in
respect of the return.
|
|
| Additional
penalty
|
(10.1) Where
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|
(a) a person or partnership is liable to a
penalty under subsection (10) for the failure
to file a return (other than an information
return required to be filed under section
233.1),
|
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|
(b) if paragraph (10)(a) applies, the number
of months, beginning with the month in
which the return was required to be filed,
during any part of which the return has not
been filed exceeds 24, and
|
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|
|
(c) if paragraph (10)(b) applies, the number
of months, beginning with the month in
which the demand referred to in that
paragraph was served, during any part of
which the return has not been filed exceeds
24,
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|
the person or partnership is liable, in addition
to the penalty determined under subsection
(10), to a penalty equal to the amount
determined by the formula
|
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|
|
A - B
|
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|
|
where
|
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|
|
A is
|
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|
|
(d) where the return is required to be filed
under section 233.2, 5% of the total of all
amounts each of which is the fair market
value of property transferred or loaned
(determined as of the time of the transfer
or loan) because of which there would, if
no other transfer or loan were taken into
account, be an obligation to file the
return,
|
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|
(e) where the return is required to be filed
under section 233.3 for a taxation year or
fiscal period, 5% of the greatest of all
amounts each of which is the total of the
cost amounts to the person or partnership
at any time in the year or period of a
specified foreign property (as defined by
subsection 233.3(1)) of the person or
partnership, and
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|
(f) where the return is required to be filed
under section 233.4 for a taxation year or
fiscal period in respect of a foreign
affiliate of the person or partnership, 5%
of the greatest of all amounts each of
which is the total of the cost amounts to
the person or partnership at any time in
the year or period of a property of the
person or partnership that is a share of the
capital stock or indebtedness of the
affiliate, and
|
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|
|
B is the total of the penalties to which the
person or partnership is liable under
subsections (7) and (10) in respect of the
return.
|
|
| Shares or debt
owned by
controlled
foreign
affiliate
|
(10.2) For the purpose of paragraph (f) of
the description of A in subsection (10.1),
|
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|
|
(a) shares or indebtedness owned by a
controlled foreign affiliate of a person or
partnership are deemed to be owned by the
person or partnership; and
|
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|
|
(b) the cost amount at any time of such
shares or indebtedness to the person or
partnership is deemed to be equal to 20% of
the cost amount at that time to the
controlled foreign affiliate of the shares or
indebtedness.
|
|
| Application to
partnerships
|
(10.3) For the purposes of paragraph (f) of
the description of A in subsection (10.1) and
subsection (10.2), in determining whether a
non-resident corporation or trust is a foreign
affiliate or a controlled foreign affiliate of a
partnership,
|
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|
|
(a) the definitions ``direct equity
percentage'' and ``equity percentage'' in
subsection 95(4) shall be read as if a
partnership were a person; and
|
|
|
|
(b) the definitions ``controlled foreign
affiliate'' and ``foreign affiliate'' in
subsection 95(1) shall be read as if a
partnership were a taxpayer resident in
Canada.
|
|
| Application to
non-resident
trusts
|
(10.4) For the purposes of this subsection,
paragraph (f) of the description of A in
subsection (10.1) and subsection (10.2),
|
|
|
|
(a) a non-resident trust is deemed to be a
controlled foreign affiliate of each
beneficiary of which the trust is a controlled
foreign affiliate for the purpose of section
233.4;
|
|
|
|
(b) the trust is deemed to be a non-resident
corporation having a capital stock of a
single class divided into 100 issued shares;
|
|
|
|
(c) each beneficiary under the trust is
deemed to own at any time the number of
the issued shares of the corporation that is
equal to the proportion of 100 that
|
|
|
|
(i) the fair market value at that time of the
beneficiary's beneficial interest in the
trust
|
|
|
|
|
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|
|
(ii) the fair market value at that time of all
beneficial interests in the trust; and
|
|
|
|
(d) the cost amount to a beneficiary at any
time of a share of the corporation is deemed
to be equal to the amount determined by the
formula
|
|
|
|
A/B
|
|
|
|
|
|
|
|
A is the fair market value at that time of
the beneficiary's beneficial interest in
the trust, and
|
|
|
|
B is the number of shares deemed under
paragraph (c) to be owned at that time
by the beneficiary in respect of the
corporation.
|
|
|
|
(4) Subsection 162(11) of the Act is
replaced by the following:
|
|
| Effect of
subsequent
events
|
(11) For the purpose of computing a penalty
under subsection (1) or (2) in respect of a
person's return of income for a taxation year,
the person's tax payable under this Part for the
year shall be determined before taking into
consideration the specified future tax
consequences for the year.
|
|
|
|
(5) Subsections (1) and (2) apply to
returns required to be filed on or before a
day that is after 1997 and to duties and
obligations first imposed after 1997.
|
|
|
|
(6) Subsection (3) applies to returns
required to be filed on or before a day that
is after April 29, 1998.
|
|
|
|
(7) Subsection (4) applies to the 1996 and
subsequent taxation years.
|
|
|
|
52. (1) The portion of subsection 163(2.2)
of the Act before paragraph (a) is replaced
by the following:
|
|
| False
statement or
omission
|
(2.2) Every person who, knowingly or
under circumstances amounting to gross
negligence, has made or has participated in,
assented to or acquiesced in the making of, a
false statement or omission in a renunciation
that was to have been effective as of a
particular date and that is purported to have
been made under any of subsections 66(10) to
(10.3), (12.6), (12.601) and (12.62), otherwise
than because of the application of subsection
66(12.66), is liable to a penalty of 25% of the
amount, if any, by which
|
|
|
|
(2) Section 163 of the Act is amended by
adding the following after subsection (2.2):
|
|
| False
statement or
omissions
with respect to
look-back rule
|
(2.21) A person is liable to the penalty
determined under subsection (2.22) where the
person,
|
|
|
|
(a) knowingly or under circumstances
amounting to gross negligence has made or
has participated in, assented to or
acquiesced in the making of, a false
statement or omission in a document
required to be filed under subsection
66(12.73) in respect of a renunciation
purported to have been made because of the
application of subsection 66(12.66); or
|
|
|
|
(b) fails to file the document on or before
the day that is 24 months after the day on or
before which it was required to be filed.
|
|
| Penalty
|
(2.22) For the purpose of subsection (2.21),
the penalty to which a person is liable in
respect of a document required to be filed
under subsection 66(12.73) is equal to 25% of
the amount, if any, by which
|
|
|
|
(a) the portion of the excess referred to in
subsection 66(12.73) in respect of the
document that was known or that ought to
have been known by the person
|
|
|
|
exceeds
|
|