Source: http://lois-laws.justice.gc.ca/eng/AnnualStatutes/2007_29/page-1.html
Timestamp: 2013-05-24 17:06:34
Document Index: 115199104

Matched Legal Cases: ['art 1', 'art 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 6', 'art 7', 'art 8', 'art 9', 'art 10', 'art 11', 'art 12', 'art 13', 'art 14', 'ART 1']

Budget Implementation Act, 2007S.C. 2007, c. 29Assented to 2007-06-22An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007
SUMMARYPart 1 implements income tax measures proposed or referenced in Budget 2007 to(a) introduce a tax on distributions from certain publicly traded income trusts and limited partnerships, effective beginning with the 2007 taxation year;(b) reduce the general corporate income tax rate by one half of a percentage point, effective January 1, 2011;(c) increase the age credit amount by $1,000 from $4,066 to $5,066, effective January 1, 2006;(d) permit income splitting for pensioners, effective beginning in 2007;(e) introduce a new child tax credit of $2,000 multiplied by the appropriate percentage for a taxation year, effective beginning in 2007;(f) increase the spousal and other amounts to equal the basic personal amount, effective beginning in 2007;(g) increase the age limit for maturing registered retirement savings plans, registered pension plans and deferred profit sharing plans to 71 years of age, effective beginning in 2007;(h) expand the types of investments eligible for registered retirement savings plans and other deferred income plans, effective March 19, 2007; and(i) increase the contribution limits for registered education savings plans and expand eligible payments for part-time studies, effective beginning in 2007.Part 1 also amends the Canada Education Savings Act to increase the maximum annual grant payable on contributions made to a registered education savings plan after 2006.Part 2 amends the Excise Tax Act to clarify the legislative authority that allows the Canada Revenue Agency to pay refunds of excise tax directly to end-users, where fuel subject to excise has been used in tax-exempt circumstances. It also amends that Act to repeal the excise tax on heavy vehicles and to implement the Green Levy on vehicles with fuel consumption of 13 litres or more per 100 kilometres. It also provides an authority for the Canada Revenue Agency to pay a refund of the Green Levy for vans equipped for wheelchair access.Part 3 implements goods and services tax/harmonized sales tax (GST/HST) measures proposed or referenced in Budget 2007. It amends the Excise Tax Act to exempt midwifery services from the GST/HST and to zero-rate certain supplies of intangible personal property made to non-GST/HST registered non-residents. It also amends that Act to repeal the GST/HST Visitor Rebate Program and to implement a new Foreign Convention and Tour Incentive Program, which provides rebates of tax in respect of certain property and services used in the course of conventions held in Canada and the accommodation portion of tour packages for non-residents, and establishes new information requirements in the case where rebates are credited by the vendor.Part 4 implements other measures relating to taxation. It amends the Customs Tariff to increase the duty-free exemption for returning Canadian residents, from $200 to $400, for absences from Canada of not less than 48 hours. It amends the Federal-Provincial Fiscal Arrangements Act to clarify that when a federal corporation listed in Schedule I to that Act pays provincial taxes or fees, wholly-owned subsidiaries of that corporation also pay provincial taxes or fees. It also authorizes the Minister of Finance to make payments totaling $400 million out of the Consolidated Revenue Fund to the Province of Ontario to assist the province in the transition to a single corporate tax administration. This last measure is consequential to the October 6, 2006 Canada-Ontario Memorandum of Agreement Concerning a Single Administration of Ontario Corporate Tax.Part 5 enacts the Tax-back Guarantee Act, which legislates the Government’s commitment to dedicate all effective interest savings from federal debt reduction each year to ongoing personal income tax reductions. That Part also commits the Minister of Finance to report publicly at least once a year on personal income tax relief provided under the Guarantee to Canadians.Part 6 amends the Federal-Provincial Fiscal Arrangements Act to set out the amounts of the fiscal equalization payments to the provinces and the territorial formula financing payments to the territories for the fiscal year beginning on April 1, 2007 and to provide for the method by which those amounts will be calculated for subsequent fiscal years. It also authorizes certain deductions from those amounts that would otherwise be payable under that Act. In addition, it makes consequential amendments to other Acts.Part 6 also amends that Act to provide increased funding for the Canada Social Transfer beginning on April 1, 2007, and to provide for the method by which the Canada Social Transfer and the Canada Health Transfer amounts will be calculated for subsequent fiscal years, including per capita cash allocations. It also provides for transition protection.Part 7 amends the Financial Administration Act to modernize Crown borrowing authorities.Part 8 amends the Canada Mortgage and Housing Corporation Act to permit the Minister of Finance to lend money to the Canada Mortgage and Housing Corporation.Part 9 amends the Bankruptcy and Insolvency Act, the Canada Deposit Insurance Corporation Act, the Companies’ Creditors Arrangement Act, the Payment Clearing and Settlement Act and the Winding-up and Restructuring Act to allow the Governor in Council to prescribe the meaning of “eligible financial contract”. Those Acts are also amended to provide that, after an insolvency event occurs, a party to an eligible financial contract can deal with supporting collateral in accordance with the terms of the contract despite any stay of proceedings or court order to the contrary. This Part also includes amendments to the Bankruptcy and Insolvency Act and the Winding-up and Restructuring Act to provide that collateral transactions executed in accordance with the terms of an eligible financial contract are not void only because they occurred in the prescribed pre-insolvency or winding-up period.Part 10 authorizes payments to provinces and territories.Part 11 authorizes payments to certain entities.Part 12 extends the sunset provisions of financial institutions statutes by six months from April 24, 2007 to October 24, 2007.Part 13 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with the power to authorize another minister, to whom he or she has delegated powers under that Act, to subdelegate those powers to the chief executive of the relevant department. That Act is also amended with respect to the application of section 9 to certain departments.Part 14 amends the Financial Consumer Agency of Canada Act to allow the Minister of Finance to provide funding to the Agency for activities related to financial education.Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:SHORT TITLEMarginal note:Short title1. This Act may be cited as the Budget Implementation Act, 2007.
PART 1AMENDMENTS RELATED TO INCOME TAXMarginal note:R.S., c. 1 (5th Supp.)Income Tax Act2. (1) Subparagraph 53(2)(h)(i.1) of the Income Tax Act is amended by striking out the word “or” at the end of clause (A) and by adding the following after that clause:(A.1) that was deemed by subsection 104(16) to be a dividend received by the taxpayer, or(2) Subsection (1) is deemed to have come into force on October 31, 2006.
3. (1) Subsection 56(1) of the Act is amended by adding the following after paragraph (a.1):Marginal note:Pension income reallocation(a.2) where the taxpayer is a pension transferee (as defined in subsection 60.03(1)), any amount that is a split-pension amount (as defined in that subsection) in respect of the pension transferee for the taxation year;(2) Subsection (1) applies to the 2007 and subsequent taxation years.
4. (1) Section 60 of the Act is amended by adding the following after paragraph (b):Marginal note:Pension income reallocation(c) where the taxpayer is a pensioner (as defined in subsection 60.03(1)), any amount that is a split-pension amount (as defined in that subsection) in respect of the pensioner for the taxation year;(2) Subsection (1) applies to the 2007 and subsequent taxation years.
5. (1) The Act is amended by adding the following after section 60.02:Marginal note:Definitions60.03 (1) The following definitions apply in this section.“eligible pension income”« revenu de pension déterminé »“eligible pension income” has the same meaning as in subsection 118(7).“joint election”« choix conjoint »“joint election” in respect of a pensioner and a pension transferee for a taxation year means an election made jointly in prescribed form by the pensioner and the pension transferee and filed with the Minister with both the pensioner’s and the pension transferee’s returns of income for the taxation year in respect of which the election is made, on or before their respective filing-due dates for the taxation year. “pensioner”« pensionné »“pensioner” for a taxation year means an individual who(a) receives eligible pension income in the taxation year; and(b) is resident in Canada,(i) if the individual dies in the taxation year, at the time that is immediately before the individual’s death, or(ii) in any other case, at the end of the calendar year in which the taxation year ends.“pension income”« revenu de pension »“pension income” has the meaning assigned by section 118.“pension transferee”« cessionnaire »“pension transferee” for a taxation year means an individual who (a) is resident in Canada,(i) if the individual dies in the taxation year, at the time that is immediately before the individual’s death, or(ii) in any other case, at the end of the calendar year in which the taxation year ends; and(b) at any time in the taxation year is married to, or in a common-law partnership with, a pensioner and is not, by reason of the breakdown of their marriage or common-law partnership, living separate and apart from the pensioner at the end of the taxation year and for a period of at least 90 days commencing in the taxation year.“qualified pension income”« revenu de pension admissible »“qualified pension income” has the meaning assigned by section 118.“split-pension amount”« montant de pension fractionné »“split-pension amount” for a taxation year is the amount elected by a pensioner and a pension transferee in a joint election for the taxation year not exceeding the amount determined by the formula 0.5A × B/CwhereA is the eligible pension income of the pensioner for the taxation year;B is the number of months in the pensioner’s taxation year at any time during which the pensioner was married to, or was in a common-law partnership with, the pension transferee; andC is the number of months in the pensioner’s taxation year.Marginal note:Effect of pension income split(2) For the purpose of subsection 118(3), if a pensioner and a pension transferee have made a joint election in a taxation year,(a) the pensioner is deemed not to have received the portion of the pensioner’s pension income or qualified pension income, as the case may be, for the taxation year that is equal to the amount of the pensioner’s split-pension amount for that taxation year; and(b) the pension transferee is deemed to have received the split-pension amount(i) as pension income, to the extent that the split-pension amount was pension income to the pensioner, and(ii) as qualified pension income, to the extent that the split-pension amount was qualified pension income to the pensioner.Marginal note:Limitation(3) A pensioner may file only one joint election for a particular taxation year.Marginal note:False declaration(4) A joint election is invalid if the Minister establishes that a pensioner or a pension transferee has knowingly or under circumstances amounting to gross negligence made a false declaration in the joint election.(2) Subsection (1) applies to the 2007 and subsequent taxation years.