Bill C-10

2nd Session, 40th Parliament,

57-58 Elizabeth II, 2009

house of commons of canada

BILL C-10

An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Budget Implementation Act, 2009.

PART 1

AMENDMENTS IN RESPECT OF INCOME TAX

Income Tax Act

2. (1) Subparagraph 6(1)(g)(ii) of the Income Tax Act is replaced by the following:

(ii) a return of amounts contributed to the plan by the taxpayer or a deceased employee of whom the taxpayer is an heir or legal representative, to the extent that the amounts were not deducted in computing the taxable income of the taxpayer or the deceased employee for any taxation year, or

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

3. (1) Paragraph 7(1.4)(b) of the Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v):

(2) Subsection (1) applies after December 19, 2007.

4. (1) Subsection 12(1) of the Act is amended by adding the following after paragraph (z.4):

(2) The definition “investment contract” in subsection 12(11) of the Act is amended by adding the following after paragraph (d):

(3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

5. (1) The Act is amended by adding the following after section 12.4:

(2) Subsection (1) applies to taxation years that begin after September 2006.

6. (1) Section 18.2 of the Act is repealed.

(2) Subsection (1) applies in respect of interest and other borrowing costs paid or payable in respect of a period or periods that begin after 2011.

7. (1) Subsection 20(3) of the Act is replaced by the following:

(3) For greater certainty, if a taxpayer uses borrowed money to repay money previously borrowed, or to pay an amount payable for property described in subparagraph (1)(c)(ii) previously acquired (which previously borrowed money or amount payable in respect of previously acquired property is, in this subsection, referred to as the “previous indebtedness”), subject to subsection 20.1(6), for the purposes of paragraphs (1)(c), (e) and (e.1), subsections 20.1(1) and (2), section 21 and subparagraph 95(2)(a)(ii), and for the purpose of paragraph 20(1)(k) of the Income Tax Act, Chapter 148 of the Revised Statutes of Canada, 1952, the borrowed money is deemed to be used for the purpose for which the previous indebtedness was used or incurred, or was deemed by this subsection to have been used or incurred.

(2) Subsection (1) applies in respect of interest paid or payable in respect of a period or periods that begin after January 27, 2009.

8. (1) The Act is amended by adding the following after section 20.3:

(2) Subsection (1) applies to taxation years that begin after September 2006.

9. (1) Subparagraph 39(1)(a)(ii.2) of the Act is replaced by the following:

(ii.2) a property if the disposition is a disposition to which subsection 142.4(4) or (5) or 142.5(1) applies,

(2) Subsection (1) applies to taxation years that begin after September 2006.

10. (1) Subsection 40(3.5) of the Act is amended by adding the following after paragraph (b):

(2) Section 40 of the Act is amended by adding the following after subsection (9):

(3) Subsection (1) applies to dispositions that occur on or after November 28, 2008.

(4) Subsection (2) applies after 2005.

11. (1) Paragraph 53(1)(e) of the Act is amended by adding “and” at the end of subparagraph (xii), by striking out “and” at the end of subparagraph (xiii) and by repealing subparagraph (xiv).

(2) Paragraph 53(2)(c) of the Act is amended by adding “and” at the end of subparagraph (xi), by striking out “and” at the end of subparagraph (xii) and by repealing subparagraph (xiii).

(3) Subsections (1) and (2) apply after 2011.

12. (1) Paragraph (c) of the definition “superficial loss” in section 54 of the Act is replaced by the following:

(c) a disposition deemed to have been made by paragraph 33.1(11)(a), subsection 45(1), section 48 as it read in its application before 1993, section 50 or 70, subsection 104(4), section 128.1, paragraph 132.2(1)(f), subsection 138(11.3) or 142.5(2), section 142.6, or any of subsections 144(4.1) and (4.2) and 149(10),

(2) The portion of the definition “superficial loss” in section 54 of the Act after paragraph (h) is replaced by the following:

and, for the purpose of this definition,

(i) a right to acquire a property (other than a right, as security only, derived from a mortgage, hypothec, agreement for sale or similar obligation) is deemed to be a property that is identical to the property, and

(3) Subsection (1) applies to taxation years that begin after September 2006.

(4) Subsection (2) applies to dispositions that occur after February 2, 2009.

13. (1) Paragraph 56(1)(d) of the Act is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

(2) Paragraph 56(1)(r) of the Act is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after subparagraph (iii):

(3) Subsection (1) applies to the 2009 and subsequent taxation years.

(4) Subsection (2) applies to the 2003 and subsequent taxation years except that, in its application to the 2003 to 2007 taxation years, paragraph 56(1)(r) of the Act, as amended by subsection (2), is to be read without reference to its subparagraph (v).

14. (1) Paragraph 60(i) of the Act is replaced by the following:

(i) any amount that is deductible under section 146 or 146.3 or subsection 147.3(13.1) in computing the income of the taxpayer for the year;

(2) Subsection (1) applies in respect of a registered retirement income fund in respect of which the last payment out of the fund is made after 2008.

15. (1) The Act is amended by adding the following after section 60.02:

(2) Amounts paid by a taxpayer, to a registered retirement savings plan or registered retirement income fund under which the taxpayer is the annuitant, during the period that begins on March 2, 2009 and that ends on the day that is 30 days after the day on which this Act is assented to, are deemed for the purpose of paragraph 60(l) of the Act to have been made on March 1, 2009, and not when they were actually made, except that the amounts so deemed shall not exceed the total of all amounts each of which is

(a) the taxpayer’s eligible RRIF withdrawal amount for 2008 in respect of a registered retirement income fund, or

(b) the taxpayer’s eligible variable benefit withdrawal amount for 2008 in respect of an account of the taxpayer under a money purchase provision of a registered pension plan.

16. (1) Subparagraph 62(1)(c)(i) of the Act is replaced by the following:

(i) in any case described in subparagraph (a)(i) of the definition “eligible relocation” in subsection 248(1), the total of all amounts, each of which is an amount included in computing the taxpayer’s income for the taxation year from the taxpayer’s employment at a new work location or from carrying on the business at the new work location, or because of subparagraph 56(1)(r)(v) in respect of the taxpayer’s employment at the new work location, and

(2) Subsection (1) applies to the 2008 and subsequent taxation years.

17. (1) Section 80.01 of the Act is amended by adding the following after subsection (5):

(2) Subsection (1) applies after July 14, 2008.

18. (1) Section 85.1 of the Act is amended by adding the following after subsection (6):

(2) Subsection (1) applies to

(a) dispositions that occur on or after July 14, 2008; and

(b) a disposition, by a taxpayer to a corporation, that occurs on or after December 20, 2007 and before July 14, 2008, if the corporation (jointly with the taxpayer, if the taxpayer and the corporation have validly elected that subsection 85(1) or (2) of the Act apply to the disposition) elects in writing, filed with the Minister of National Revenue on or before the corporation’s filing-due date for its taxation year that includes the day on which this Act is assented to, that this subsection apply to the disposition.

19. (1) Paragraph 87(2)(g.2) of the Act is replaced by the following:

(g.2) for the purposes of paragraphs 142.4(4)(c) and (d) and subsections 142.5(5) and (7), 142.51(11) and 142.6(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

(2) Subsection 87(2) of the Act is amended by adding the following after paragraph (s):

(3) Subsection 87(2.2) of the Act is replaced by the following:

(2.2) Where there has been an amalgamation and one or more of the predecessor corporations was an insurer, the new corporation is, notwithstanding subsection (2), deemed, for the purposes of paragraphs 12(1)(d), (e), (e.1), (i) and (s), subsection 12.5(8), paragraphs 20(1)(l), (l.1), (p) and (jj) and 20(7)(c), subsections 20(22) and 20.4(4), sections 138, 138.1, 140, 142 and 148 and Part XII.3, to be the same corporation as, and a continuation of, each of those predecessor corporations.

(4) Subsections (1) and (3) apply to taxation years that begin after September 2006.

(5) Subsection (2) applies after December 19, 2007.

20. (1) Subparagraph 88(1)(g)(i) of the Act is replaced by the following:

(i) for the purposes of paragraphs 12(1)(d), (e), (e.1), (i) and (s), subsection 12.5(8), paragraphs 20(1)(l), (l.1), (p) and (jj) and 20(7)(c), subsections 20(22) and 20.4(4), sections 138, 138.1, 140, 142 and 148 and Part XII.3, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary, and

(2) Subsection (1) applies to taxation years that begin after September 2006.

21. (1) The Act is amended by adding the following after section 88:

(2) Subsection (1) applies after July 14, 2008, except that subsection 88.1(1) of the Act, as enacted by subsection (1), is to be read without reference to its paragraph (c) in its application to a trust’s distribution of property, if the distribution occurs no more than 60 days after the day on which this Act is assented to.

22. (1) The definition “general rate income pool” in subsection 89(1) of the Act is replaced by the following:

“general rate income pool” at the end of a particular taxation year, of a taxable Canadian corporation that is a Canadian-controlled private corporation or a deposit insurance corporation in the particular taxation year, is the positive or negative amount determined by the formula

A – B

where

A      is the positive or negative amount that would, before taking into consideration the specified future tax consequences for the particular taxation year, be determined by the formula

where

C      is the corporation’s general rate income pool at the end of its preceding taxation year,

E      is the total of all amounts each of which is

(a) an eligible dividend received by the corporation in the particular taxation year, or

(b) an amount deductible under section 113 in computing the taxable income of the corporation for the particular taxation year,

F      is the total of all amounts determined under subsections (4) to (6) in respect of the corporation for the particular taxation year, and

G      is

(a) unless paragraph (b) applies, the amount, if any, by which

(i) the total of all amounts each of which is the amount of an eligible dividend paid by the corporation in its preceding taxation year

exceeds

(ii) the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year, or

(b) if subsection (4) applies to the corporation in the particular taxation year, nil, and

B       is the amount determined by the formula

I       is the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for the corporation’s preceding three taxation years, determined without taking into consideration the specified future tax consequences, for those preceding taxation years, that arise in respect of the particular taxation year, and

J       is the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for those preceding taxation years;

(2) Subparagraph (b)(iii) of the definition “paid-up capital” in subsection 89(1) of the Act is replaced by the following:

(iii) where the particular time is after March 31, 1977, an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act except subsections 51(3) and 66.3(2) and (4), sections 84.1 and 84.2, subsections 85(2.1), 85.1(2.1) and (8), 86(2.1), 87(3) and (9), 128.1(2) and (3), 138(11.7), 139.1(6) and (7), 192(4.1) and 194(4.1) and section 212.1,

(3) Subsection 89(1) of the Act is amended by adding the following in alphabetical order:

(4) Subsections (1) and (3) apply to the 2006 and subsequent taxation years.

(5) Subsection (2) applies after December 19, 2007.

23. (1) Subsections 91(5.1) to (5.3) of the Act are repealed.

(2) Subsection (1) applies after 2011.

24. (1) Subsection 92(1) of the Act is replaced by the following:

92. (1) In computing, at any time in a taxation year, the adjusted cost base to a taxpayer resident in Canada of any share owned by the taxpayer of the capital stock of a foreign affiliate of the taxpayer,

(a) there shall be added in respect of that share any amount included in respect of that share under subsection 91(1) or (3) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been required to have been so included in computing the taxpayer’s income but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952); and

(b) there shall be deducted in respect of that share

(i) any amount deducted by the taxpayer under subsection 91(2) or (4), and

(ii) any dividend received by the taxpayer before that time, to the extent of the amount deducted by the taxpayer, in respect of the dividend, under subsection 91(5)

in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been deductible by the taxpayer but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952).

(2) Subsection (1) applies after 2011.

25. (1) Subsection 95(1) of the Act is amended by adding the following in alphabetical order:

(2) Paragraph 95(2)(f) of the Act is replaced by the following:

(3) The portion of subsection 95(2.2) of the Act before paragraph (a) is replaced by the following:

(2.2) For the purposes of paragraphs (2)(a) and (g), a non-resident corporation that is not a foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest throughout a particular taxation year is deemed to be a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout that particular taxation year if

(4) Section 95 of the Act is amended by adding the following after subsection (2.2):

(5) Section 95 of the Act is amended by adding the following after subsection (2.5):

(6) Subsections (1), (2) and (5) apply to taxation years of a foreign affiliate of a taxpayer that begin after October 2, 2007. However,

(a) for taxation years of a foreign affiliate that begin before 2009, subparagraph 95(2)(f)(ii) of the Act, as enacted by subsection (2), shall be read as follows:

(ii) income or loss from a property or from a business other than an active business;

(b) if the taxpayer elects in writing in respect of all of its foreign affiliates and files the election with the Minister of National Revenue on or before the day (referred to in this subsection as the taxpayer’s “election day”) that is the later of the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to and the day that is one year after the day on which this Act is assented to, subsection 95(2.6) of the Act, as enacted by subsection (5), shall, in its application to a taxation year of a foreign affiliate of the taxpayer that begins after October 2, 2007 and before July 14, 2008, be read as follows:

(2.6) For the purposes of paragraphs (a) to (d) of the definition “specified person or partnership” in subsection (1), in determining whether, at a particular time, a person was not, at a time (referred to in this subsection as the “prior time”) that is before the particular time and at which that person did not exist, dealing at arm’s length with another person, where the person exists at the particular time but did not exist at the prior time

(a) the person is deemed to exist at the prior time; and

(b) where the person is related to another person at the particular time, the person is deemed to have been related to that other person at the prior time.

(c) if the taxpayer elects in writing in respect of all of its foreign affiliates and files the election with the Minister of National Revenue on or before the taxpayer’s election day, subsections (1), (2) and (5) also apply to taxation years of a foreign affiliate of the taxpayer that begin before October 2, 2007 and after the date chosen by the taxpayer under paragraph (d), except that subparagraph 95(2)(f)(ii) of the Act, as enacted by subsection (2), shall be read in its application to those taxation years in the manner described in paragraph (a); and

(d) to be valid, an election under paragraph (c) must include the identification by the taxpayer of its choice of one of the following dates:

(i) December 31, 1994,

(ii) December 20, 2002, or

(iii) February 27, 2004.

(7) Subsection (3) applies to taxation years of a foreign affiliate of a taxpayer that begin after 1994. However, the portion of subsection 95(2.2) of the Act before paragraph (a), as enacted by subsection (3), shall, in its application to taxation years of a foreign affiliate that begin after 1994 and before 2009, be read as follows:

(2.2) For the purposes of paragraphs (2)(a) and (g),

(8) Subsection (4) applies to taxation years of a foreign affiliate of a taxpayer that end after 1999. However,

(a) subject to paragraph (b), for taxation years of a foreign affiliate that begin before December 21, 2002, the reference to “for the purposes of paragraphs (2)(a) and (g)” in subsection 95(2.201) of the Act, as enacted by subsection (4), shall be read as a reference to “for the purpose of paragraph (2)(a)”; and

(b) if the taxpayer has made a valid election under subsection 26(46) of the Budget and Economic Statement Implementation Act, 2007, subsection (4) applies to taxation years of a foreign affiliate of the taxpayer that begin after 1994.

(9) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest and penalties payable under the Act for any taxation year shall be made that is necessary to take into account the provisions of subsections (1) to (8).

26. (1) The portion of subsection 107(2) of the Act before paragraph (a) is replaced by the following:

(2) Subject to subsections (2.001), (2.002) and (4) to (5), if at any time a property of a personal trust or a prescribed trust is distributed (otherwise than as a SIFT trust wind-up event) by the trust to a taxpayer who was a beneficiary under the trust and there is a resulting disposition of all or any part of the taxpayer’s capital interest in the trust,

(2) The portion of subsection 107(2.1) of the Act before paragraph (a) is replaced by the following:

(2.1) Where at any time a property of a trust is distributed by the trust to a beneficiary under the trust, there would, if this Act were read without reference to paragraphs (h) and (i) of the definition “disposition” in subsection 248(1), be a resulting disposition of all or any part of the beneficiary’s capital interest in the trust (which interest or part, as the case may be, is in this subsection referred to as the “former interest”) and the rules in subsections (2) and (3.1) and sections 88.1 and 132.2 do not apply in respect of the distribution,

(3) Section 107 of the Act is amended by adding the following after subsection (2.2):

(4) Subsections (1) to (3) apply after July 14, 2008, except that

(a) paragraph 107(3)(b) of the Act, as enacted by subsection (3), is to be read without reference to “of a single class” in its application to a trust’s distribution of property before February 3, 2009; and

(b) subsection 107(3) of the Act, as enacted by subsection (3), is to be read without reference to its paragraph (c) in its application to a trust’s distribution of property, if the distribution occurs no more than 60 days after the day on which this Act is assented to.

27. (1) Paragraph 107.4(3)(f) of the Act is replaced by the following:

(f) if the property was deemed to be taxable Canadian property of the transferor by this paragraph or paragraph 44.1(2)(c), 51(1)(f), 85(1)(i) or 85.1(1)(a) or (8)(b), subsection 85.1(5) or 87(4) or (5) or paragraph 97(2)(c) or 107(2)(d.1) or (3.1)(d), the property is deemed to be taxable Canadian property of the transferee trust;

(2) Subsection (1) applies

(a) to dispositions that occur after December 23, 1998; and

(b) in respect of the 1996 and subsequent taxation years, to transfers of capital property that occurred before December 24, 1998.

28. (1) The portion of the definition “cost amount” in subsection 108(1) of the Act before paragraph (a) is replaced by the following:

“cost amount” to a taxpayer at any time of a capital interest or part of it, as the case may be, in a trust, means (notwithstanding subsection 248(1) and except for the purposes of subsection 107(3.1) and section 107.4 and except in respect of a capital interest in a trust that is at that time a foreign affiliate of the taxpayer),

(2) Subsection (1) applies after July 14, 2008.

29. (1) Paragraph 110.1(8)(e) of the English version of the Act is replaced by the following:

(e) the donee is a registered charity that, in the opinion of the Minister for International Cooperation (or, if there is no such Minister, the Minister responsible for the Canadian International Development Agency) meets conditions prescribed by regulation.

(2) Section 110.1 of the Act is amended by adding the following after subsection (8):

(3) Subsections (1) and (2) apply in respect of gifts made after June 2008.

30. (1) Subsection 111(8) of the Act is amended by adding the following in alphabetical order:

(2) Section 111 of the Act is amended by adding the following after subsection (11):

(3) Subsections (1) and (2) apply to any acquisition of control of a corporation that occurs

(a) after March 7, 2008, other than an acquisition of control that occurs before 2009 under the terms of an agreement made in writing on or before March 7, 2008; or

(b) after 2005, if the corporation so elects in writing and files the election with the Minister of National Revenue on or before the corporation’s filing-due date for the corporation’s taxation year that includes the day on which this Act is assented to.

(4) If an election under paragraph (3)(b) is made by the corporation in respect of an acquisition of control, a designation under paragraph 111(4)(e) of the Act by the corporation for its taxation year that ended immediately before the acquisition of control is deemed to have been made in a timely manner if that designation is made on or before the corporation’s filing-due date for its taxation year that includes the day on which this Act is assented to.

31. (1) Subparagraph 115(1)(a)(iii.21) of the Act is replaced by the following:

(iii.21) the total of all amounts, each of which is an amount included under subparagraph 56(1)(r)(v) or section 56.3 in computing the non-resident person’s income for the year,

(2) Subsection (1) applies to the 2008 and subsequent taxation years.

32. (1) Paragraph 116(6)(b) of the Act is replaced by the following:

(b) a security that is

(i) listed on a recognized stock exchange, and

(ii) either

(A) a share of the capital stock of a corporation, or

(2) Subsection (1) applies after July 14, 2008.

33. (1) Subsection 117(2) of the Act is replaced by the following:

(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for a taxation year is

(a) 15% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $40,726;

(b) if the amount taxable is greater than $40,726 and is equal to or less than $81,452, the maximum amount determinable in respect of the taxation year under paragraph (a), plus 22% of the amount by which the amount taxable exceeds $40,726 for the year;

(c) if the amount taxable is greater than $81,452, but is equal to or less than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (b), plus 26% of the amount by which the amount taxable exceeds $81,452 for the year; and

(d) if the amount taxable is greater than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (c), plus 29% of the amount by which the amount taxable exceeds $126,264 for the year.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

34. (1) The portion of paragraph (a) of the description of B in subsection 118(1) of the Act before the description of C in subparagraph (ii) is replaced by the following:

(a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual’s spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of

(i) $10,320, and

(ii) the amount determined by the formula

$10,320 – C

where

(2) The description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the English version of the Act is replaced by the following:

C      is the income of the individual’s spouse or common-law partner for the year or, where the individual and the individual’s spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the spouse’s or common-law partner’s income for the year while married to, or in a common-law partnership with, the individual and not so separated,

(3) The portion of paragraph 118(1)(b) of the French version of the Act before the description of D is replaced by the following:

(4) Subparagraphs (b)(iii) and (iv) of the description of B in subsection 118(1) of the English version of the Act are replaced by the following:

(iii) $10,320, and

(iv) the amount determined by the formula

$10,320 – D

where

D      is the dependent person’s income for the year,

(5) Paragraph (c) of the description of B in subsection 118(1) of the Act is replaced by the following:

(c) except in the case of an individual entitled to a deduction because of paragraph (a) or (b), $10,320,

(6) The formula in subsection 118(2) of the Act is replaced by the following:

A × ($6,408 – B)

(7) Subsections 118(3.1), (3.2) and (9) of the Act are repealed.

(8) Paragraph (b) of the description of B in subsection 118(10) of the Act is replaced by the following:

(9) Subsections (1) and (2) to (7) apply to the 2009 and subsequent taxation years.

(10) Subsection (3) applies to the 2007 and subsequent taxation years.

(11) Subsection (8) applies to the 2008 and subsequent taxation years.

35. (1) The portion of subsection 118.1(5.3) of the Act before paragraph (a) is replaced by the following:

(5.3) If as a consequence of an individual’s death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from an arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier) that is a registered retirement savings plan or registered retirement income fund or that was, immediately before the individual’s death, a TFSA to a qualified donee, solely because of the donee’s interest or, for civil law, a right as a beneficiary under the arrangement, the individual was the annuitant under, or the holder of, the arrangement immediately before the individual’s death and the transfer occurs within the 36-month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances),

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

36. (1) The definition “investment” in subsection 122.1(1) of the Act is replaced by the following:

“investment”, in a trust or partnership,

(a) means

(i) a property that is a security of the trust or partnership, or

(ii) a right which may reasonably be considered to replicate a return on, or the value of, a security of the trust or partnership; but

(b) does not include

(2) The portion of paragraph (a) of the definition “non-portfolio property” in subsection 122.1(1) of the Act before subparagraph (i) is replaced by the following:

(a) a security of a subject entity (other than a portfolio investment entity), if at that time the trust or partnership holds

(3) Paragraph (a) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following:

(a) a real or immovable property;

(4) Subparagraph (c)(i) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following:

(i) legal title to real or immovable property of the trust or of another subject entity all of the securities of which are held by the trust (including real or immovable property that the trust or the other subject entity holds together with one or more other persons or partnerships), and

(5) Paragraphs (c) and (d) of the definition “real estate investment trust” in subsection 122.1(1) of the Act are replaced by the following:

(c) not less than 75% of the trust’s revenues for the taxation year are derived from one or more of the following:

(i) rent from real or immovable properties,

(ii) interest from mortgages, or hypothecs, on real or immovable properties, and

(iii) capital gains from dispositions of real or immovable properties; and

(d) at each time in the taxation year an amount, that is equal to 75% or more of the equity value of the trust at that time, is the amount that is the total fair market value of all properties held by the trust each of which is real or immovable property, indebtedness of a Canadian corporation represented by a bankers’ acceptance, property described by either paragraph (a) or (b) of the definition “qualified investment” in section 204, or a deposit with a credit union.

(6) Subparagraph (a)(ii) of the definition “rent from real or immovable properties” in subsection 122.1(1) of the Act is replaced by the following:

(ii) payment for services ancillary to the rental of real or immovable properties and customarily supplied or rendered in connection with the rental of real or immovable properties, and

(iii) a payment that is included under paragraph 104(13)(a) in computing the recipient’s income and that was made from the part of a trust’s income (determined without reference to subsection 104(6)) that was derived from rent from real or immovable properties; but

(7) The portion of the definition “SIFT trust” in subsection 122.1(1) of the Act before paragraph (a) is replaced by the following:

“SIFT trust”, being a specified investment flow-through trust, for a taxation year means a trust (other than an excluded subsidiary entity, or a real estate investment trust, for the taxation year) that meets the following conditions at any time during the taxation year:

(8) Subsection 122.1(1) of the Act is amended by adding the following in alphabetical order:

(9) Subsections (1) to (8) are deemed to have come into force on October 31, 2006.

37. (1) Paragraph (c) of the definition “eligible individual” in subsection 122.51(1) of the Act is replaced by the following:

(c) the total of whose incomes for the year from the following sources is at least $2,500:

(i) offices and employments (computed without reference to paragraph 6(1)(f)),

(ii) businesses each of which is a business carried on by the individual either alone or as a partner actively engaged in the business, and

(iii) the program established under the Wage Earner Protection Program Act.

(2) Subsection (1) applies to the 2008 and subsequent taxation years.

38. (1) Paragraph (b) of the definition “working income” in subsection 122.7(1) of the Act is replaced by the following:

(b) all amounts that are included, or that would, but for paragraph 81(1)(a), be included, because of paragraph 56(1)(n) or (o) or subparagraph 56(1)(r)(v) in computing the individual’s income for a period in the taxation year; and

(2) Subsection (1) applies to the 2008 and subsequent taxation years.

39. (1) Subsection 125(2) of the Act is replaced by the following:

(2) For the purpose of this section, a corporation’s business limit for a taxation year is $500,000 unless the corporation is associated in the taxation year with one or more other Canadian-controlled private corporations, in which case, except as otherwise provided in this section, its business limit is nil.

(2) Paragraph 125(3)(a) of the Act is replaced by the following:

(a) if the total of the percentages assigned in the agreement does not exceed 100%, $500,000 multiplied by the percentage assigned to that corporation in the agreement; and

(3) In applying subsection 125(5) of the Act to a corporation for a 2009 or 2010 taxation year of the corporation that began before 2009, subparagraph 125(5)(a)(i) of the Act is to be read as follows:

(i) the amount that would have been its business limit determined under subsection (3) or (4) for the first such taxation year ending in the calendar year if the reference to $400,000 in subsection (3), as it applied in respect of that first such taxation year, had been read in the same manner as it is read in respect of the particular taxation year ending in the calendar year, and

(4) The description of M in the definition “specified partnership income” in subsection 125(7) of the Act is replaced by the following:

M      is the lesser of

(i) $500,000, and

(ii) the product obtained when $1,370 is multiplied by the total of all amounts each of which is the number of days in a fiscal period of the partnership that ends in the year, and

(5) Subsection (1) applies to the 2009 and subsequent taxation years except that, for a 2009 or 2010 taxation year that began before 2009, the reference in subsection 125(2) of the Act, as enacted by subsection (1), to “$500,000” shall be read as a reference to the total of

(a) that proportion of $400,000 that the number of days in the taxation year that are before 2009 is of the number of days in the taxation year, and

(b) that proportion of $500,000 that the number of days in the taxation year that are after 2008 is of the number of days in the taxation year.

(6) Subsection (2) applies to the 2009 and subsequent taxation years except that, for a 2009 or 2010 taxation year that began before 2009, the reference in paragraph 125(3)(a) of the Act, as enacted by subsection (2), to “$500,000” is to be read as a reference to “the amount that would, if the corporation were not associated in the year with any other corporation, be its business limit for the year determined without reference to subsections (5) and (5.1)”.

(7) Subsection (4) applies to fiscal periods of a partnership that end after 2008.

40. (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 2009 and before 2011 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2011) 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 2009 and before April 2010, 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 2009 and before April 2010;

(3) Paragraph 127(9.01)(b) of the Act is replaced by the following:

(b) the number that is the total of 10 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 1997 exceeds 11.

(4) Paragraph 127(9.02)(b) of the Act is replaced by the following:

(b) the number that is the total of 9 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 1997 exceeds 11.

(5) The formula in subsection 127(10.2) of the Act is replaced by the following:

($8 million – 10A) × [($40 million – B)/$40 million]

(6) Paragraph (a) of the description of A in subsection 127(10.2) of the Act is replaced by the following:

(a) $500,000, and

(7) Subparagraphs (a)(i) and (ii) of the description of B in subsection 127(10.2) of the Act are replaced by the following:

(i) if the particular corporation is not associated with any other corporation in the particular taxation year, the amount that is its taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year, or

(ii) if the particular corporation is associated with one or more other corporations in the particular taxation year, the amount that is the total of all amounts, each of which is the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of the particular corporation for its, or of one of the other corporations for its, last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or

(8) Subsection 127(10.22) of the Act is replaced by the following:

(10.22) If a particular Canadian-controlled private corporation is associated with another corporation in circumstances where those corporations would not be associated if the Act were read without reference to paragraph 256(1.2)(a), the particular corporation has issued shares to one or more persons who have been issued shares by the other corporation and there is at least one shareholder of the particular corporation who is not a shareholder of the other corporation or one shareholder of the other corporation who is not a shareholder of the particular corporation, the particular corporation is deemed not to be associated with the other corporation for the purpose of determining the particular corporation’s expenditure limit under subsection (10.2).

(9) Paragraph 127(10.6)(c) of the Act is replaced by the following:

(c) for the purpose of subsection (10.2), where a Canadian-controlled private corporation has a taxation year that is less than 51 weeks, the taxable income of the corporation for the year shall be determined by multiplying that amount by the ratio that 365 is of the number of days in that year.

(10) Paragraph 127(36)(b) of the Act is replaced by the following:

(b) the number that is the total of 10 and the number of taxation years or fiscal periods, as the case may be, by which the number of taxation years or fiscal periods of the taxpayer that have ended after 1997 exceeds 11.

(11) Subsections (1) and (2) apply to expenses renounced under a flow through share agreement made after March 2009.

(12) Subsections (3), (4) and (10) apply in respect of the 2008 and subsequent taxation years.

(13) Subsections (5) and (6) apply to the 2010 and subsequent taxation years, except that the expenditure limit in subsection 127(10.2) of the Act in respect of a corporation for 2010 taxation years that begin before 2010, be determined by the formula

A + [(B – A) × (C/D)]

where

A      is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Act as that subsection read in its application to taxation years that end in 2009;

B      is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Act, as that subsection would apply to the taxation year in the absence of this exception;

C      is the number of days in the taxation year that are after 2009; and

D      is the total number of days in the taxation year.

(14) Subsection (7) applies to taxation years that end on or after February 26, 2008.

(15) Subsections (8) and (9) apply to taxation years that end on or after March 9, 2009.

41. (1) The definition “qualifying corporation” in subsection 127.1(2) of the Act is replaced by the following:

“qualifying corporation” for a particular taxation year that ends in a calendar year means a particular corporation that is a Canadian-controlled private corporation in the particular taxation year the taxable income of which for its immediately preceding taxation year — together with, if the particular corporation is associated in the particular taxation year with one or more other corporations (in this subsection referred to as “associated corporations”), the taxable income of each associated corporation for its last taxation year that ended in the preceding calendar year (determined before taking into consideration the specified future tax consequences for that last year) — does not exceed the qualifying income limit of the particular corporation for the particular taxation year;

(2) Subsection 127.1(2) of the Act is amended by adding the following in alphabetical order:

(3) Section 127.1 of the Act is amended by adding the following after subsection (3):

(4) Subsections (1) and (2) apply to taxation years that end on or after February 26, 2008, except that

(a) for taxation years that include February 26, 2008, the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act and the portion of that definition that follows that formula, as enacted by subsection (2), shall be read as follows:

A + [($400,000 × [($40 million – B)/$40 million] – A) × (C/D)]

where

A      is the business limit of the corporation for the particular taxation year determined in accordance with section 125 — together with, if the particular corporation is associated in the particular taxation year with one or more other corporations the business limit of each of those associated corporations for its last taxation year that ends in the particular taxation year (determined in accordance with section 125),

B      is

(a) nil, if $10 million is greater than or equal to the amount (in paragraph (b) referred to as the “taxable capital amount”) that is the total of the corporation’s taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year and the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of each associated corporation for the associated corporation’s last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or

(b) in any other case, the lesser of $40 million and the amount by which the taxable capital amount exceeds $10 million,

C      is the number of days in the particular taxation year that are after February 25, 2008, and

D      is the total number of days in the particular taxation year;

(b) for taxation years that begin after February 26, 2008 and end before 2010, the reference to “$500,000” in the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act, as enacted by subsection (2), shall be read as a reference to “$400,000”; and

(c) for 2010 taxation years that begin before 2010, the reference to “$500,000” in the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act, as enacted by subsection (2), shall be read as a reference to an amount that is the total of $400,000 and that proportion of $100,000 that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year.

(5) Subsection (3) applies in respect of the 2008 and subsequent taxation years.

42. (1) The definition “qualifying trust” in subsection 127.4(1) of the Act is replaced by the following:

“qualifying trust” for an individual in respect of a share means

(a) a trust governed by a registered retirement savings plan, under which the individual is the annuitant, that is not a spousal or common-law partner plan (in this definition having the meaning assigned by subsection 146(1)) in relation to another individual,

(b) a trust governed by a registered retirement savings plan, under which the individual or the individual’s spouse or common-law partner is the annuitant, that is a spousal or common-law partner plan in relation to the individual or the individual’s spouse or common-law partner, if the individual and no other person claims a deduction under subsection (2) in respect of the share, or

(c) a trust governed by a TFSA of which the individual is the holder;

(2) Subsection (1) applies to the 2001 and subsequent taxation years, except that the definition “qualifying trust” in subsection 127.4(1) of the Act, as enacted by subsection (1),

(a) shall, for taxation years before 2009, be read without reference to its paragraph (c); and

(b) if a taxpayer and a person have jointly elected under section 144 of the Modernization of Benefits and Obligations Act in respect of the 1998, 1999 or 2000 taxation year, applies to the taxpayer and the person in respect of that taxation year and subsequent taxation years.

43. (1) Section 128.3 of the Act is replaced by the following:

128.3 If, in a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and (ii), subsection 85.1(8) or section 86 or 87 applies, a person acquires a share (in this section referred to as the “new share”) in exchange for another share or equity in a SIFT wind-up entity (in this section referred to as the “old share”), for the purposes of section 119, subsections 126(2.21) to (2.23), 128.1(6) to (8), 180.1(1.4) and 220(4.5) and (4.6), the person is deemed not to have disposed of the old share, and the new share is deemed to be the same share as the old share.

(2) Subsection (1) applies after December 19, 2007.

44. (1) The portion of the definition “qualifying exchange” in subsection 132.2(2) of the Act before paragraph (a) is replaced by the following:

“qualifying exchange” means a transfer at any time (in this section referred to as the “transfer time”) of all or substantially all of the property of a mutual fund corporation (other than a SIFT wind-up corporation) or mutual fund trust to a mutual fund trust (in this section referred to as the “transferor” and “transferee”, respectively, and as the “funds”), if

(2) Subsection (1) applies after December 19, 2007.

45. (1) The portion of subsection 138(10) of the Act before paragraph (b) is replaced by the following:

(10) Notwithstanding sections 142.3, 142.4, 142.5 and 142.51, where in a taxation year an insurer (other than an insurer resident in Canada that does not carry on a life insurance business) carries on an insurance business in Canada and in a country other than Canada, in computing its income for the year from carrying on an insurance business in Canada,

(a) sections 142.3, 142.5 and 142.51 apply only in respect of property that is designated insurance property for the year in respect of the business; and

(2) Subsection 138(12) of the Act is amended by adding the following in alphabetical order:

(3) Section 138 of the Act is amended by adding the following after subsection (15):

(4) Subsections (1) to (3) apply to taxation years that begin after September 2006.

46. (1) Paragraph (a) of the definition “bien évalué à la valeur du marché” in subsection 142.2(1) of the French version of the Act is replaced by the following:

(2) Paragraph (d) of the definition “mark-to-market property” in subsection 142.2(1) of the Act is replaced by the following:

(d) a share of a corporation in which the taxpayer has a significant interest at any time in the year,

(3) The definition “mark-to-market property” in subsection 142.2(1) of the Act, as amended by subsection (2), is replaced by the following:

“mark-to-market property” of a taxpayer for a taxation year means property (other than an excluded property) held at any time in the taxation year by the taxpayer that is

(a) a share,

(b) if the taxpayer is not an investment dealer, a specified debt obligation that is a fair value property of the taxpayer for the taxation year,

(c) if the taxpayer is an investment dealer, a specified debt obligation, or

(d) a tracking property of the taxpayer that is a fair value property of the taxpayer for the taxation year;

(4) Subsection 142.2(1) of the Act is amended by adding the following in alphabetical order:

(5) The portion of subsection 142.2(2) of the Act before paragraph (a) is replaced by the following:

(2) For the purposes of the definitions “excluded property”, “mark-to-market property” and “specified debt obligation” in subsection (1) and subsections (5) and 142.6(1.6), a taxpayer has a significant interest in a corporation at any time if

(6) Subsections 142.2(4) and (5) of the Act are replaced by the following:

(4) For the purposes of this subsection and subsections (2) and (3), in determining if, at a particular time, a person or partnership is related to another person or partnership, the rules in section 251 are to be applied as if,

(i) the fair market value of the beneficiary’s beneficial interest in the trust at the particular time

is of

(ii) the fair market value at that time of all beneficial interests in the trust.

(7) Subsections (1) and (2) apply to taxation years that end after February 22, 1994, except that any election made under paragraph (d.3) of the definition “mark-to-market property” in subsection 142.2(1) of the Act, as enacted by subsection (2), is deemed to have been made on a timely basis if it is filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to.

(8) Subsection (3) applies to taxation years that begin after September 2006 except that for taxation years that begin before November 7, 2007, the definition “mark-to-market property” in subsection 142.2(1) of the Act, as enacted by subsection (3), is to be read without its paragraph (d).

(9) Subsections (4) to (6) apply to taxation years that begin after September 2006 except that any election made under paragraph (d) of the definition “excluded property” in subsection 142.2(1) of the Act, as enacted by subsection (4), is deemed to have been made on a timely basis if it is filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to.

47. (1) Section 142.5 of the Act is amended by adding the following after subsection (8):

(2) Subsection (1) applies to taxation years that begin after September 2006.

48. (1) The Act is amended by adding the following after section 142.5:

(2) Subsection (1) applies to taxation years that begin after September 2006.

49. (1) Section 142.6 of the Act is amended by adding the following after subsection (1.3):

(2) Subsection 142.6(2) of the Act is replaced by the following:

(2) For the purposes of this Act, the determination of when a taxpayer acquired a share shall be made without regard to a disposition or acquisition that occurred because of subsection 142.5(2) or subsection (1), (1.1), (1.2), (1.4), (1.5) or (1.6).

(3) Subsection 142.6(1.4) of the Act, as enacted by subsection (1), applies to taxation years that end after February 22, 1994.

(4) Subsection 142.6(1.5) of the Act, as enacted by subsection (1), applies to taxation years that begin after 1998.

(5) Subsection 142.6(1.6) of the Act, as enacted by subsection (1), applies to taxation years that begin after September 2006.

(6) Subsection (2) applies to taxation years that begin after September 2006.

50. (1) Subsection 143.1(1) of the Act is replaced by the following:

(2) Subsection (1) applies to the 2008 and subsequent taxation years except that, if the individual in respect of an amateur athlete trust elects under this subsection in writing filed with the Minister of National Revenue on or before the individual’s filing-due date for the 2008 taxation year, in its application to the individual and the amateur athlete trust for the 2008 taxation year, paragraph 143.1(1.2)(c) of the Act, as enacted by subsection (1), is to be read as follows:

(c) if, at any time before March 3, 2009, the sport organization or the issuer, as the case may be, receives an amount under the arrangement and the amount would, in the absence of this subsection, be included in computing the income of the individual in respect of the arrangement for the 2008 taxation year, the amount is deemed to be income of the amateur athlete trust for its 2009 taxation year and not to be income of the individual;

51. (1) Paragraph (b) of the definition “earned income” in subsection 146(1) of the Act is replaced by the following:

(b) an amount included under paragraph 56(1)(b), (c.2), (g) or (o) or subparagraph 56(1)(r)(v) in computing the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada,

(2) The description of D in paragraph (b) of the definition “unused RRSP deduction room” in subsection 146(1) of the Act is replaced by the following:

D      is the total of all amounts each of which is an amount deducted by the taxpayer,

(i) under subsection (5) or (5.1) or paragraph 60(v), in computing the taxpayer’s income for the year, or

(3) Section 146 of the Act is amended by adding the following after subsection (8.91):

(4) Subsection (1) applies to the 1997 and subsequent taxation years, except that in its application to the 1997 to 2007 taxation years, paragraph (b) of the definition “earned income” in subsection 146(1) of the Act, as enacted by subsection (1), is to be read without reference to “or subparagraph 56(1)(r)(v)”.

(5) Subsection (2) applies to the 2009 and subsequent taxation years.

(6) Subsection (3) applies in respect of a registered retirement savings plan in respect of which the last payment out of the plan is made after 2008.

52. (1) Paragraph (h) of the definition “regular eligible amount” in subsection 146.01(1) of the Act is replaced by the following:

(h) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000, and

(2) Paragraph (g) of the definition “supplemental eligible amount” in subsection 146.01(1) of the Act is replaced by the following:

(g) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000, and

(3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years in respect of withdrawals made after January 27, 2009.

53. (1) Subparagraph (b)(ii) of the definition “qualifying arrangement” in subsection 146.2(1) of the Act is replaced by the following:

(ii) an annuity contract with an issuer that is a licensed annuities provider, or

(2) Subsections 146.2(3) to (9) of the Act are replaced by the following:

(5) If the issuer of an arrangement that is, at the time it is entered into, a qualifying arrangement files with the Minister, before March of the calendar year following the calendar year in which the arrangement was entered into, an election in prescribed form and manner to register the arrangement as a TFSA under the Social Insurance Number of the individual with whom the arrangement was entered into, the arrangement becomes a TFSA at the time the arrangement was entered into and ceases to be a TFSA at the earliest of the following times:

(a) the time at which the last holder of the arrangement dies;

(b) the time at which the arrangement ceases to be a qualifying arrangement; or

(c) the earliest time at which the arrangement is not administered in accordance with the conditions in subsection (2).

(6) No tax is payable under this Part by a trust that is governed by a TFSA on its taxable income for a taxation year, except that, if at any time in the taxation year, it carries on one or more businesses or holds one or more properties that are non-qualified investments (as defined in subsection 207.01(1)) for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or capital losses other than from dispositions of those properties, and for that purpose,

(a) “income” includes dividends described in section 83; and

(b) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition.

(7) An amount that is credited or added to a deposit that is a TFSA as interest or other income in respect of the TFSA is deemed not to be received by the holder of the TFSA solely because of that crediting or adding.

(8) If an arrangement that governs a trust ceases, at a particular time, to be a TFSA,

(a) the trust is deemed

(i) to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time, and

(ii) to have acquired, at the particular time, each such property at a cost equal to that fair market value;

(b) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time; and

(c) a taxation year of the trust is deemed to begin at the particular time.

(10) If an annuity contract ceases, at a particular time, to be a TFSA,

(a) the holder of the TFSA is deemed to have disposed of the contract immediately before the particular time for proceeds equal to its fair market value immediately before the particular time;

(b) the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a TFSA; and

(c) each person who has an interest or, for civil law, a right in the separate annuity contract at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.

(11) If a deposit ceases, at a particular time, to be a TFSA,

(a) the holder of the TFSA is deemed to have disposed of the deposit immediately before the particular time for proceeds equal to its fair market value immediately before the particular time; and

(b) each person who has an interest or, for civil law, a right in the deposit at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.

(12) An arrangement that is a qualifying arrangement at the time it is entered into is deemed not to be a retirement savings plan, an education savings plan, a retirement income fund or a disability savings plan.

(3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

54. (1) Section 146.3 of the Act is amended by adding the following after subsection (1):

(2) Section 146.3 of the Act is amended by adding the following after subsection (6.2):

(3) Subsection (2) applies in respect of a registered retirement income fund in respect of which the last payment out of the fund is made after 2008.

55. (1) The definition “entrusted shares percentage” in subsection 149.1(1) of the Act is repealed.

(2) The definition “divestment obligation percentage” in subsection 149.1(1) of the Act is replaced by the following:

“divestment obligation percentage” of a private foundation for a particular taxation year, in respect of a class of shares of the capital stock of a corporation, is the percentage, if any, that is the lesser of

(a) the excess, if any, at the end of the taxation year, of the percentage of issued and outstanding shares of that class that are held by the private foundation over the exempt shares percentage of the private foundation, and

(b) the percentage determined by the formula

A + B – C

where

A      is the percentage determined under this paragraph in respect of the private foundation in respect of the class for the preceding taxation year,

B      is the total of all percentages, each of which is the portion of a net increase in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accord- ance with subsection 149.2(5), and

C      is the total of all percentages, each of which is the portion of a net decrease in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accord- ance with subsection 149.2(7);

(3) Paragraph (c) of the definition “excess corporate holdings percentage” in subsection 149.1(1) of the Act is replaced by the following:

(c) in any other case, the number of percent- age points, if any, by which the total corporate holdings percentage of the private foundation in respect of the class, at that time, exceeds the greater of 20% and the exempt shares percentage, at that time, of the private foundation in respect of the class;

(4) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:

(5) Subsection 149.1(15) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and’’ at the end of paragraph (c) and by adding the following after paragraph (c):

(6) Subsections (1) to (4) apply after March 18, 2007.

56. (1) Section 149.2 of the Act is amended by adding the following after subsection (2):

(2) Section 149.2 of the Act is amended by adding the following after subsection (8):

(3) Subsection (1) applies after March 18, 2007.

(4) Subsection (2) applies to taxation years, of private foundations, that begin on or after February 26, 2008.

(5) If a registered charity was on March 19, 2007 a private foundation, in applying paragraphs 149.2(5)(b) and (c) of the Act to the first taxation year of the registered charity that begins after that date, the reference in those paragraphs to “in the current year” shall be read as a reference to “in the period that begins on March 18, 2007 and ends at the end of the current year”.

57. (1) Section 150.1 of the Act is amended by adding the following after subsection (2):

(2) Subsection (1) applies to taxation years that end after 2009.

58. (1) Subsection 152(4) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after paragraph (b):

(2) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following:

(4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,

(3) The portion of paragraph 152(4.01)(b) of the Act before subparagraph (i) is replaced by the following:

(b) where paragraph 4(b) or (c) applies to the assessment, reassessment or additional assessment,

(4) Subsection 152(6) of the Act is amended by adding the following after paragraph (f.2):

(5) Section 152 of the Act is amended by adding the following after subsection (6.1):

(6) Subsection (4) applies in respect of a registered retirement income fund or a registered retirement savings plan in respect of which the last payment out of the fund or plan is made after 2008.

(7) Subsection (5) applies to taxation years that begin after 2001, except that

(a) for taxation years that begin before October 1, 2006, each reference in subsection 152(6.2) of the Act, as enacted by subsection (5), to paragraph (d) of the definition “excluded property” shall be read as a reference to paragraph (d.3) of the definition “mark-to-market property”; and

(b) a prescribed form referred to in paragraph 152(6.2)(b) of the Act, as enacted by subsection (5), is deemed to have been filed by a taxpayer on a timely basis if it is filed by the taxpayer on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to.

59. (1) Paragraph 157(1.2)(a) of the Act is replaced by the following:

(a) for which the amount determined under subsection (1.3) for the taxation year, or for the preceding taxation year, does not exceed $500,000;

(2) Subsection (1) applies to taxation years ending after 2008, except that for taxation years that end in 2009, paragraph 157(1.2)(a) of the Act, as enacted by subsection (1), shall be read as follows:

(a) for which

(i) the amount determined under subsection (1.3) for the taxation year does not exceed the amount that is the total of $400,000 and that proportion of $100,000 that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year, or

(ii) the amount determined under subsection (1.3) for the preceding taxation year does not exceed $400,000;

60. (1) Section 162 of the Act is amended by adding the following after subsection (7):

(2) Section 162 of the Act is amended by adding the following after subsection (7.1):

(3) Subsection (1) applies to returns required to be filed after 2009.

(4) Subsection (2) applies to taxation years that end after 2010 except that, in its application to the 2011 and 2012 taxation years, the reference to $1,000 in subsection 162(7.2) of the Act, as enacted by subsection (2), is to be read as

(a) $250, for the 2011 taxation year; and

(b) $500, for the 2012 taxation year.

61. (1) Clause 181.3(1)(c)(ii)(B) of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after September 2006.

62. (1) Paragraph 188.1(3.2)(c) of the Act is replaced by the following:

(c) each of those shares is deemed to have a fair market value, at the particular time, equal to the fair market value, at the particular time, of a share of the class issued by the corporation, determined without reference to this subsection.

(2) Section 188.1 of the Act is amended by adding the following after subsection (3.2):

(3) Subsections (1) and (2) apply to taxation years, of private foundations, that begin on or after February 26, 2008.

63. (1) Subparagraph 190.11(b)(ii) of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after September 2006.

64. (1) Subparagraph 190.13(c)(iv) of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after September 2006.

65. (1) The portion of the definition “SIFT partnership” in subsection 197(1) of the Act before paragraph (a) is replaced by the following:

“SIFT partnership”, being a specified investment flow-through partnership, for any taxation year, means a partnership other than an excluded subsidiary entity (as defined in subsection 122.1(1)) for the taxation year that meets the following conditions at any time during the taxation year:

(2) Subsection (1) is deemed to have come into force on October 31, 2006.

66. (1) Paragraph (c.1) of the definition “qualified investment” in section 204 of the Act is replaced by the following:

(c.1) debt obligations that meet the following criteria, namely,

(i) any of

(A) the debt obligations had, at the time of acquisition by the trust, an investment grade rating with a prescribed credit rating agency,

(ii) either

(A) the debt obligations were issued as part of a single issue of debt of at least $25 million, or

(B) in the case of debt obligations that are issued on a continuous basis under a debt issuance program, the issuer of the debt obligations had issued and outstanding debt under the program of at least $25 million,

(2) Subsection (1) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment.

67. (1) The portion of clause 204.81(1)(c)(ii)(A) of the Act before subclause (I) is replaced by the following:

(A) Class A shares that are issuable only to individuals (other than trusts), trusts governed by registered retirement savings plans and trusts governed by TFSAs and that entitle their holders

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

68. (1) The definition “restricted property” in subsection 207.01(1) of the Act is repealed.

(2) Paragraph (a) of the definition “advantage” in subsection 207.01(1) of the Act is amended by striking out “and” at the end of subparagraphs (i) and (ii) and by adding the following after subparagraph (ii):

(3) Paragraph (b) of the definition “advantage” in subsection 207.01(1) of the Act is replaced by the following:

(c) a prescribed benefit.

(4) The description of E in the definition “excess TFSA amount” in subsection 207.01(1) of the Act is replaced by the following:

E      is the total of all amounts each of which is the qualifying portion of a distribution made in the calendar year and at or before the particular time under a TFSA of which the individual was the holder at the time of the distribution and, for this purpose, the qualifying portion of a distribution is

(a) nil, if the distribution is a qualifying transfer or a prescribed distribution, and

(5) The portion of the definition “prohibited investment” in subsection 207.01(1) of the Act before paragraph (a) is replaced by the following:

“prohibited investment”, at any time, for a trust governed by a TFSA means property (other than prescribed property) that is at that time

(6) Paragraph (d) of the definition “prohibited investment” in subsection 207.01(1) of the Act is replaced by the following:

(d) prescribed property.

(7) Subsection 207.01(1) of the Act is amended by adding the following in alphabetical order:

(8) Subsection 207.01(2) of the Act is repealed.

(9) The portion of subsection 207.01(3) of the Act before paragraph (a) is replaced by the following:

(3) If an individual’s survivor becomes the holder of a TFSA as a consequence of the individual’s death and, immediately before the individual’s death, the individual had an excess TFSA amount, the survivor is deemed (other than for the purposes of the definition “exempt contribution”) to have made, at the beginning of the month following the individual’s death, a contribution under a TFSA equal to the amount, if any, by which

(10) Subsections (1) to (9) apply to the 2009 and subsequent taxation years.

69. (1) The portion of section 207.03 of the Act before paragraph (a) is replaced by the following:

207.03 If, at a particular time, a non-resident individual makes a contribution under a TFSA (other than a contribution that is a qualifying transfer or an exempt contribution), the individual shall pay a tax under this Part equal to 1% of the amount of the contribution in respect of each month that ends after the particular time and before the earlier of

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

70. (1) Subsection 207.04(3) of the Act is replaced by the following:

(3) For the purposes of this section and subsection 146.2(6), if a trust governed by a TFSA holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.

(2) The portion of subsection 207.04(7) of the Act before paragraph (b) is replaced by the following:

(7) The amount of tax payable under subsection (6) for a calendar year is 150% of the amount of tax that would be payable under Part I by the trust for the taxation year that ends in the calendar year if

(a) the Act were read without reference to paragraph 82(1)(b), section 121 and subsection 146.2(6); and

(3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

71. (1) The portion of subsection 207.06(2) of the Act before paragraph (a) is replaced by the following:

(2) If a person would otherwise be liable to pay a tax under this Part because of subsection 207.04(1) or section 207.05, the Minister may waive or cancel all or part of the liability where the Minister considers it just and equitable to do so having regard to all the circumstances, including

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

72. (1) Paragraph (a) of the definition “registered life insurance policy” in subsection 211(1) of the Act is replaced by the following:

(a) as a registered retirement savings plan, or

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

73. (1) Paragraph 212(1)(p) of the Act is replaced by the following:

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

74. (1) The definition “assessable distribution” in subsection 218.3(1) of the Act is replaced by the following:

“assessable distribution”, in respect of a Canadian property mutual fund investment, means the portion of any amount that is paid or credited (otherwise than as a SIFT trust wind-up event), by the mutual fund that issued the investment, to a non-resident investor who holds the investment, and that is not otherwise subject to tax under Part I or Part XIII.

(2) Subsection (1) applies after July 14, 2008.

75. (1) The portion of subsection 241(1) of the Act before paragraph (a) is replaced by the following:

241. (1) Except as authorized by this section, no official or other representative of a government entity shall

(2) Subsection 241(2) of the Act is replaced by the following:

(2) Notwithstanding any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any taxpayer information.

(3) Paragraph 241(4)(l) of the Act is replaced by the following:

(l) subject to subsection (9.2), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate information and registration information in respect of, the holder of a business number (other than an excluded individual), if the information is provided solely for the purposes of the administration or enforcement of

(i) an Act of Parliament or of a legislature of a province, or

(4) The portion of subsection 241(5) of the Act before paragraph (a) is replaced by the following:

(5) An official or other representative of a government entity may provide taxpayer information relating to a taxpayer

(5) The portion of subsection 241(6) of the Act before paragraph (a) is replaced by the following:

(6) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official, other representative of a government entity or authorized person to give or produce evidence relating to any taxpayer information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to

(6) Section 241 of the Act is amended by adding the following after subsection (9.1):

(7) The portion of the definition “taxpayer information” in subsection 241(10) of the Act after paragraph (b) is replaced by the following:

but does not include information that does not directly or indirectly reveal the identity of the taxpayer to whom it relates and, for the purposes of applying subsections (2), (5) and (6) to a representative of a government entity that is not an official, taxpayer information includes only the information referred to in paragraph (4)(l);

(8) Subsection 241(10) of the Act is amended by adding the following in alphabetical order:

76. (1) The definition “functional currency” in subsection 248(1) of the Act is repealed.

(2) The definitions “amateur athlete trust”, “personal trust” and “TFSA” in subsection 248(1) of the Act are replaced by the following:

“amateur athlete trust” has the meaning assigned by subsection 143.1(1.2);

“personal trust” means a trust (other than a trust that is, or was at any time after 1999, a unit trust) that is

(a) a testamentary trust, or

(b) an inter vivos trust no beneficial interest in which was acquired for consideration payable directly or indirectly to

(i) the trust, or

(ii) any person or partnership that has made a contribution to the trust by way of transfer, assignment or other disposition of property;

“TFSA”, being a tax-free savings account, has the meaning assigned by subsection 146.2(5);

(3) Paragraph (d) of the definition “Canadian real, immovable or resource property” in subsection 248(1) of the Act is replaced by the following:

(d) a share of the capital stock of a corporation, an income or capital interest in a trust or an interest in a partnership (other than a taxable Canadian corporation, a SIFT trust or a SIFT partnership), if more than 50% of the fair market value of the share or interest is derived directly or indirectly from one or any combination of properties described in paragraphs (a) to (c), or

(4) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

(5) Subsection 248(3) of the Act is replaced by the following:

(6) Subsection 248(25.1) of the Act is replaced by the following:

(25.1) Where at any time a particular trust transfers property to another trust (other than a trust governed by a registered retirement savings plan or by a registered retirement income fund) in circumstances to which paragraph (f) of the definition “disposition” in subsection (1) applies, without affecting the personal liabilities under this Act of the trustees of either trust or the application of subsection 104(5.8) and paragraph 122(2)(f), the other trust is deemed to be after that time the same trust as, and a continuation of, the particular trust, and, for greater certainty, if the property was deemed to be taxable Canadian property of the particular trust by paragraph 51(1)(f), 85(1)(i) or 85.1(1)(a) or (8)(b), subsection 85.1(5) or 87(4) or (5) or paragraph 97(2)(c) or 107(2)(d.1) or (3.1)(d), the property is deemed to be taxable Canadian property of the other trust.

(7) Subsection (1) applies in respect of taxation years that begin after December 13, 2007.

(8) The definition “amateur athlete trust” in subsection 248(1) of the Act, as enacted by subsection (2), applies to the 2008 and subsequent taxation years.

(9) The definition “personal trust” in subsection 248(1) of the Act, as enacted by subsection (2), applies after July 14, 2008.

(10) The definition “TFSA” in subsection 248(1) of the Act, as enacted by subsection (2), applies to the 2009 and subsequent taxation years.

(11) Subsection (3) is deemed to have come into force on October 31, 2006.

(12) The definition “foreign currency debt” in subsection 248(1) of the Act, as enacted by subsection (4), applies after 2005.

(13) The definitions “SIFT trust wind-up event”, “SIFT wind-up corporation”, “SIFT wind-up entity” and “SIFT wind-up entity equity” in subsection 248(1) of the Act, as enacted by subsection (4), apply after December 19, 2007.

(14) Subsections 248(3) and (3.2) of the Act, as enacted by subsection (5), apply to taxation years that begin after October 30, 2003 except that

(a) for taxation years that end before 2008,

(i) subparagraph 248(3)(c)(ii) of the Act, as enacted by subsection (5), shall be read without reference to the expression “a holder”, and

(ii) paragraph 248(3.2)(d) of the Act, as enacted by subsection (5), shall be read without reference to registered disability savings plans and TFSAs; and

(b) for taxation years that end in 2008, paragraph 248(3.2)(d) of the Act, as enacted by subsection (5), shall be read without reference to TFSAs.

(15) For taxation years that begin after 1988 and before October 31, 2003, paragraph 248(3)(d) of the Act shall, in its application to each arrangement that is entered into between an individual and a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee and that is accepted by the Minister for registration under section 146 or 146.3 of the Act, be read without reference to

(a) clause (i)(B) of that paragraph, if the arrangement is presented as a declaration of trust but does not provide that, for the purposes of the Act, the arrangement shall be considered to be a trust; and

(b) subparagraph (ii) of that paragraph.

(16) Subsection 248(3.1) of the Act, as enacted by subsection (5), applies to dispositions that occur after July 18, 2005.

(17) Subsection (6) applies after December 19, 2007.

77. (1) Section 253.1 of the Act is replaced by the following:

253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b) and 132(6)(b), subsection 146.2(6), paragraphs 146.4(5)(b) and 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.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

78. (1) Subsection 256(7) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e):

(2) Subsection 256(9) of the Act is replaced by the following:

(9) For the purposes of this Act, other than for the purposes of determining if a corporation is, at any time, a small business corporation or a Canadian-controlled private corporation, where control of a corporation is acquired by a person or group of persons at a particular time on a day, control of the corporation shall be deemed to have been acquired by the person or group of persons, as the case may be, at the beginning of that day and not at the particular time unless the corporation elects in its return of income under Part I filed for its taxation year that ends immediately before the acquisition of control not to have this subsection apply.

(3) Subsection (1) applies after July 14, 2008.

(4) Subsection (2) applies in respect of an acquisition of control of a corporation that occurs after 2005, other than in respect of such an acquisition of control that occurs before January 28, 2009 and in respect of which the taxpayer elects in writing, filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s 2009 taxation year, that subsection (2) not apply.

(5) A taxpayer is deemed to have made the election described in subsection (4) in respect of an acquisition of control of a corporation that occurs before January 28, 2009 if it can reasonably be considered, having regard to a return of income, notice of objection, or notice of appeal, filed or served by the taxpayer under the Act before January 28, 2009, that the taxpayer has interpreted and applied subsection 256(9) of the Act for the purposes of determining if the corporation was a small business corporation or a Canadian-controlled private corporation at the time of the transfer of shares of the corporation that caused the acquisition of control to occur.

79. (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following:

259. (1) For the purposes of subsections 146(6), (10) and (10.1), 146.2(6) and 146.3(7), (8) and (9) and Parts X, X.2 and XI to XI.1, if at any time a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

80. (1) Section 261 of the Act is replaced by the following:

(2) The definitions in subsection 261(1) (other than the definition “Canadian tax results”) and subsections 261(3) to (14) and (16) to (22) of the Act, as enacted by subsection (1), apply in respect of taxation years that begin after December 13, 2007, except that

(a) where a taxpayer has, on or before June 27, 2008, made an election under paragraph 261(3)(b) of the Act,

(i) if the taxpayer makes a further election in writing, and files it with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to, the relevant spot rate for a particular day is deemed, for the purposes of subsections 261(7) to (10) of the Act, as enacted by subsection (1), to be the average of the rates that would, in the absence of this subparagraph, be the relevant spot rates for each day in the 12-month period that ends on the particular day, and

(ii) subsections 261(20) and (21) of the Act, as enacted by subsection (1), apply in respect of taxation years that begin after June 27, 2008; and

(b) in applying paragraph 261(3)(b) of the Act, as enacted by subsection (1), if the day that is six months before the end of the particular taxation year referred to in that paragraph is before December 15, 2008, the reference in that paragraph to “the day that is six months before the end of the particular taxation year” is, in respect of that particular taxation year, to be read as a reference to “December 15, 2008”.

(3) The definition “Canadian tax results” in subsection 261(1) of the Act, and subsection 261(2) of the Act, as enacted by subsection (1), apply for all taxation years.

(4) Subsection 261(15) of the Act, as enacted by subsection (1), applies after December 13, 2007.

81. (1) For the purposes of the Income Tax Act and the Canada Disability Savings Act, specified RDSP events are deemed to have occurred, in the order that they actually occurred, on December 31, 2008 and not on the day or days that they actually occurred.

(2) For the purposes of subsection (1), “specified RDSP event” means an event occurring after 2008 and before March 3, 2009 that

(a) establishes a “disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act;

(b) satisfies conditions in subsection 146.4(2) of the Income Tax Act;

(c) establishes a “registered disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act for a beneficiary who is, in respect of the 2008 taxation year, a “DTC-eligible individual” as defined in subsection 146.4(1) of the Income Tax Act and who was resident in Canada at the end of that year;

(d) is the making of any contribution to the registered disability savings plan;

(e) satisfies the requirement in paragraph 3(b) of the Canada Disability Savings Regulations; or

(f) is the taking of any other action to ensure that the registered disability savings plan is validly established and contributions to the plan are validly made.