|
|
(i) in exchange for another security
acquired before that time by the taxpayer,
and
|
|
|
|
|
|
|
|
(A) a corporate merger or
reorganization of capital,
|
|
|
|
(B) a transaction or series of
transactions in which control of the
corporation that issued the other
security is acquired by a person or
group of persons, or
|
|
|
|
(C) a transaction or series of
transactions in which all or
substantially all of the issued and
outstanding shares (other than shares
held immediately before the
transaction or the beginning of the
series by a particular person or related
group) of the corporation that issued
the other security are acquired by the
particular person or related group; or
|
|
|
|
(b) a security acquired by a taxpayer from
a corporation pursuant to a distribution with
respect to another security that is an eligible
distribution described in subsection
86.1(2).
|
|
|
|
(4) Subsection 206(4) of the Act is
replaced by the following:
|
|
| Non-arm's
length
transactions
|
(4) For the purposes of this Part, where at
any time a taxpayer acquires property,
otherwise than pursuant to a transfer of
property to which paragraph (f) or (g) of the
definition ``disposition'' in subsection 248(1)
applies, from a person with whom the
taxpayer does not deal at arm's length for no
consideration or for consideration less than
the fair market value of the property at that
time, the taxpayer is deemed to acquire the
property at that fair market value, and for
those purposes, a particular trust is deemed not
to deal at arm's length with another trust if a
person who is beneficially interested in the
particular trust is at that time also beneficially
interested in the other trust.
|
|
|
|
(5) Subsection (1) applies after June 27,
1999.
|
|
|
|
(6) Subsection (2) applies to months that
end after February 2001.
|
|
|
|
(7) Subsection (3) applies to months that
end after 1997.
|
|
|
|
(8) Subsection (4) applies in respect of
property acquired after December 23,
1998.
|
|
|
|
170. (1) Section 207.31 of the Act is
replaced by the following:
|
|
| Tax payable
by recipient of
an ecological
gift
|
207.31 Any charity or municipality that at
any time in a taxation year, without the
authorization of the Minister of the
Environment or a person designated by that
Minister, disposes of or changes the use of a
property described in paragraph 110.1(1)(d) or
in the definition ``total ecological gifts'' in
subsection 118.1(1) and given to the charity or
municipality after February 27, 1995 shall, in
respect of the year, pay a tax under this Part
equal to 50% of the amount that would be
determined for the purposes of section 110.1
or 118.1, if this Act were read without
reference to subsections 110.1(3) and
118.1(6), to be the fair market value of the
property if the property were given to the
charity or municipality immediately before
the disposition or change.
|
|
|
|
(2) Subsection (1) applies in respect of
dispositions or changes of use that occur
after November 1999.
|
|
|
|
171. (1) Paragraph 210.1(d) of the Act is
replaced by the following:
|
|
|
|
(d) a trust described in paragraph (a), (a.1)
or (c) of the definition ``trust'' in subsection
108(1); or
|
|
|
|
(2) Subsection (1) applies to the 1999 and
subsequent taxation years.
|
|
|
|
172. (1) Paragraph 210.2(2)(b) of the Act
is replaced by the following:
|
|
|
|
(b) the only taxable capital gains and
allowable capital losses referred to in
paragraph 3(b) were from dispositions of
taxable Canadian property; and
|
|
|
|
(2) Subsection (1) applies after October 1,
1996.
|
|
|
|
173. (1) Subclause 212(1)(b)(ii)(C)(IV) of
the Act is replaced by the following:
|
|
|
|
(IV) of a corporation, commission
or association to which any of
paragraphs 149(1)(d) to (d.6)
applies, or
|
|
|
|
(2) Subparagraph 212(1)(c)(i) of the Act
is replaced by the following:
|
|
|
|
(i) is included in computing the income
of the non-resident person under
subsection 104(13), except to the extent
that the amount is deemed by subsection
104(21) to be a taxable capital gain of the
non-resident person, or
|
|
|
|
(3) Section 212 of the Act is amended by
adding the following after subsection
212(5):
|
|
| Acting
services
|
(5.1) Notwithstanding any regulation made
under paragraph 214(13)(c), every person
who is either a non-resident individual who is
an actor or that is a corporation related to such
an individual shall pay an income tax of 23%
on every amount paid or credited, or provided
as a benefit, to or on behalf of the person for
the provision in Canada of the acting services
of the actor in a film or video production.
|
|
| Relief from
double
taxation
|
(5.2) Where a corporation is liable to tax
under subsection (5.1) in respect of an amount
for acting services of an actor (in this
subsection referred to as the ``corporation
payment'') and the corporation pays, credits
or provides as a benefit to the actor an amount
for those acting services (in this subsection
referred to as the ``actor payment''), no tax is
payable under subsection (5.1) with respect to
the actor payment except to the extent that it
exceeds the corporation payment.
|
|
| Reduction of
withholding
|
(5.3) If the Minister is satisfied that the
deduction or withholding otherwise required
by section 215 from an amount described in
subsection (5.1), would cause undue hardship,
the Minister may determine a lesser amount to
be deducted or withheld and that lesser
amount is deemed to be the amount so
required to be deducted or withheld.
|
|
|
|
(4) Subsection 212(13.1) of the Act is
amended by striking out the word ``and'' at
the end of paragraph (a) and by adding the
following after paragraph (a):
|
|
|
|
(a.1) where a partnership pays, credits or
provides to a non-resident person an
amount described in subsection (5.1), the
partnership is deemed in respect of the
amount to be a person; and
|
|
|
|
(5) Section 212 of the Act is amended by
adding the following after subsection
(13.2):
|
|
| Application of
Part XIII to
authorized
foreign bank
|
(13.3) An authorized foreign bank is
deemed to be resident in Canada for the
purposes of
|
|
|
|
(a) this Part, in respect of any amount paid
or credited to or by the bank in respect of its
Canadian banking business; and
|
|
|
|
(b) the application in paragraph (13.1)(b) of
the definition ``Canadian partnership'' in
respect of a partnership interest held by the
bank in the course of its Canadian banking
business.
|
|
|
|
(6) Subsection (1) applies to amounts paid
or credited after 1998.
|
|
|
|
(7) Subsection (2) applies to amounts paid
or credited after December 17, 1999.
|
|
|
|
(8) Subsections (3) and (4) apply to
amounts paid, credited or provided after
2000.
|
|
|
|
(9) Subsection (5) applies after June 27,
1999.
|
|
|
|
174. (1) Subsection 215(1) of the Act is
replaced by the following:
|
|
| Withholding
and
remittance of
tax
|
215. (1) When a person pays, credits or
provides, or is deemed to have paid, credited
or provided, an amount on which an income
tax is payable under this Part, or would be so
payable if this Part were read without
reference to subsection 216.1(1), the person
shall, notwithstanding any agreement or law
to the contrary, deduct or withhold from it the
amount of the tax and forthwith remit that
amount to the Receiver General on behalf of
the non-resident person on account of the tax
and shall submit with the remittance a
statement in prescribed form.
|
|
|
|
(2) Subsection 215(5) of the Act is
replaced by the following:
|
|
| Regulations
reducing
deduction or
withholding
|
(5) The Governor in Council may make
regulations in respect of any non-resident
person or class of non-resident persons to
whom any amount is paid or credited as, on
account of, in lieu of payment of or in
satisfaction of, any amount described in any of
paragraphs 212(1)(h), (j) to (m) and (q)
reducing the amount otherwise required by
any of subsections (1) to (3) to be deducted or
withheld from the amount so paid or credited.
|
|
|
|
(3) Subsection (1) applies to amounts
paid, credited or provided after 2000.
|
|
|
|
(4) Subsection (2) applies after April
1997.
|
|
|
|
175. (1) The Act is amended by adding the
following after section 216:
|
|
| Alternative re:
acting
services
|
216.1 (1) No tax is payable under this Part
on any amount described in subsection
212(5.1) that is paid, credited or provided to a
non-resident person in a taxation year if the
person
|
|
|
|
(a) files with the Minister, on or before the
person's filing-due date for the year, a
return of income under Part I for the year;
and
|
|
|
|
(b) elects in the return to have this section
apply for the year.
|
|
| Deemed Part I
payment
|
(2) If in respect of a particular amount paid,
credited or provided in a taxation year, a
non-resident person has complied with
paragraphs (1)(a) and (b), any amount
deducted or withheld and remitted to the
Receiver General on behalf of the person on
account of tax under subsection 212(5.1) in
respect of the particular amount is deemed to
have been paid on account of the person's tax
under Part I.
|
|
| Deemed
election and
restriction
|
(3) Where a corporation payment (within
the meaning assigned by subsection 212(5.2))
has been made to a non-resident corporation in
respect of an actor and at any time the
corporation makes an actor payment (within
the meaning assigned by subsection 212(5.2))
to or for the benefit of the actor, if the
corporation makes an election under
subsection (1) for the taxation year in which
the corporation payment is made, the actor is
deemed to make an election under subsection
(1) for the taxation year of the actor in which
the corporation makes the actor payment.
|
|
|
|
(2) Subsection (1) applies to the 2001 and
subsequent taxation years.
|
|
|
|
176. (1) The Act is amended by adding the
following after section 218.1:
|
|
|
|
|
|
|
|
|
|
| Branch
interest tax
|
218.2 (1) Every authorized foreign bank
shall pay a tax under this Part for each taxation
year equal to 25% of its taxable interest
expense for the year.
|
|
| Taxable
interest
expense
|
(2) The taxable interest expense of an
authorized foreign bank for a taxation year is
15% of the amount, if any, by which
|
|
|
|
(a) the total of all amounts on account of
interest that are deducted under section 20.2
in computing the bank's income for the year
from its Canadian banking business
|
|
|
|
exceeds
|
|
|
|
(b) the total of all amounts that are included
in paragraph (a) and that are in respect of a
liability of the bank to another person or
partnership.
|
|
| Where tax not
payable
|
(3) No tax is payable under this Part for a
taxation year by an authorized foreign bank if
|
|
|
|
(a) the bank is resident in a country with
which Canada has a tax treaty at the end of
the year; and
|
|
|
|
(b) no tax similar to the tax under this Part
would be payable in that country for the
year by a bank resident in Canada carrying
on business in that country during the year.
|
|
| Rate
limitation
|
(4) Notwithstanding any other provision of
this Act, the reference in subsection (1) to 25%
shall, in respect of a taxation year of an
authorized foreign bank that is resident in a
country with which Canada has a tax treaty on
the last day of the year, be read as a reference
to,
|
|
|
|
(a) if the treaty specifies the maximum rate
of tax that Canada may impose under this
Part for the year on residents of that country,
that rate;
|
|
|
|
(b) if the treaty does not specify a maximum
rate as described in paragraph (a) but does
specify the maximum rate of tax that
Canada may impose on a payment of
interest in the year by a person resident in
Canada to a related person resident in that
country, that rate; and
|
|
|
|
(c) in any other case, 25%.
|
|
| Provisions
applicable to
Part
|
(5) Sections 150 to 152, 158, 159, 160.1 and
161 to 167 and Division J of Part I apply to this
Part with any modifications that the
circumstances require.
|
|
|
|
(2) Subsection (1) applies to taxation
years that end after June 27, 1999.
|
|
|
|
177. (1) Paragraph 219(1)(b) of the Act is
replaced by the following:
|
|
|
|
(b) the amount deducted because of section
112 and paragraph 115(1)(e) in computing
the corporation's base amount,
|
|
|
|
(2) Paragraph 219(1)(d) of the Act is
amended by replacing the reference to the
expression ``1/3 of the amount'' with a
reference to the expression ``the amount''.
|
|
|
|
(3) Subsection 219(1.1) of the Act is
replaced by the following:
|
|
| Excluded
gains
|
(1.1) For the purpose of subsection (1), the
definition ``taxable Canadian property'' in
subsection 248(1) shall be read without
reference to paragraphs (a) and (c) to (k) of
that definition and as if the only interests or
options referred to in paragraph (l) of that
definition were those in respect of property
described in paragraph (b) of that definition.
|
|
|
|
(4) Paragraph 219(2)(a) of the Act is
repealed.
|
|
|
|
(5) Subsection (1) applies to the 1998 and
subsequent taxation years.
|
|
|
|
(6) Subsection (2) applies to taxation
years that end after February 27, 2000
except that, for such taxation years that
ended before October 18, 2000, the
reference in paragraph 219(1)(d) of the Act,
as enacted by subsection (2), to the
expression ``the amount'' shall be read as a
reference to the expression ``1/2 of the
amount''.
|
|
|
|
(7) Subsection (3) applies after October 1,
1996.
|
|
|
|
(8) Subsection (4) applies to taxation
years that end after June 27, 1999.
|
|
|
|
178. (1) Section 220 of the Act is amended
by adding the following after subsection
(4.4):
|
|
| Security for
departure tax
|
(4.5) If an individual who is deemed by
subsection 128.1(4) to have disposed of a
property (other than a right to a benefit under,
or an interest in a trust governed by, an
employee benefit plan) at any particular time
in a taxation year (in this section referred to as
the individual's ``emigration year'') elects, in
prescribed manner on or before the
individual's balance-due day for the
emigration year, that this subsection and
subsections (4.51) to (4.54) apply in respect of
the emigration year,
|
|
|
|
(a) the Minister shall, until the individual's
balance-due day for a particular taxation
year that begins after the particular time,
accept adequate security furnished by or on
behalf of the individual on or before the
individual's balance-due day for the
emigration year for the lesser of
|
|
|
|
(i) the amount determined by the formula
|
|
|
|
A - B - [((A - B)/A) x C]
|
|
|
|
|
|
|
|
A is the total amount of taxes under
Parts I and I.1 that would be payable
by the individual for the emigration
year if the exclusion or deduction of
each amount referred to in paragraph
161(7)(a) were not taken into
account,
|
|
|
|
B is the total amount of taxes under
those Parts that would have been so
payable if each property (other than a
right to a benefit under, or an interest
in a trust governed by, an employee
benefit plan) deemed by subsection
128.1(4) to have been disposed of at
the particular time, and that has not
been subsequently disposed of before
the beginning of the particular year,
were not deemed by subsection
128.1(4) to have been disposed of by
the individual at the particular time,
and
|
|
|
|
C is the total of all amounts deemed
under this or any other Act to have
been paid on account of the
individual's tax under this Part for the
emigration year, and
|
|