Bill C-48 (Historical)

Technical Tax Amendments Act, 2012

An Act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation

Part 1 of this enactment implements, in accordance with proposals announced in the March 4, 2010 Budget and released for comment on August 27, 2010, amendments to the provisions of the Income Tax Act governing the taxation of non-resident trusts and their beneficiaries and of Canadian taxpayers who hold interests in offshore investment fund property.
Parts 2 and 3 implement various technical amendments in respect of the Income Tax Act and the Income Tax Regulations relating to the taxation of Canadian multinational corporations with foreign affiliates. The amendments in Part 2 are based on draft proposals released on December 18, 2009. Among other things, Part 2 includes the amendments to the foreign affiliate surplus rules in the Income Tax Regulations that are consequential to the foreign affiliate changes to the Income Tax Act announced in the March 19, 2007 Budget. The amendments in Part 3 are based on draft proposals released on August 19, 2011. Among other things, Part 3 includes revisions to the measures proposed in a package of draft legislation released on February 27, 2004 dealing primarily with reorganizations of, and distributions from, foreign affiliates.
Part 4 deals with provisions of the Income Tax Act that are not amended in Parts 1, 2, 3 or 5 in which the following private law concepts are used: right and interest, real and personal property, life estate and remainder interest, tangible and intangible property and joint and several liability. It enacts amendments, released for comments on July 16, 2010, to ensure that those provisions are bijural, in other words, that they reflect both the common law and the civil law in both linguistic versions. Similar amendments are made in Parts 1, 2, 3 and 5 to ensure that any provision of the Act enacted or amended by those Parts are also bijural.
Part 5 implements a number of income tax measures proposed in the March 4, 2010 Budget and released for comment on May 7, 2010 and August 27, 2010. Most notably, it enacts amendments
(a) relating to specified leasing property;
(b) to provide that conversions of specified investment flow-through (SIFT) trusts and partnerships into corporations are subject to the same loss utilization restrictions as are transactions between corporations;
(c) to prevent foreign tax credit generators; and
(d) implementing a regime for information reporting of tax avoidance transactions.
Part 5 also implements certain income tax measures that were previously announced. Most notably, it enacts amendments announced
(a) on January 27, 2009, relating to the Apprenticeship Completion Grant;
(b) on May 3, 2010, to clarify that computers continue to be eligible for the Atlantic investment tax credit;
(c) on July 16, 2010, relating to technical changes to the Income Tax Act which include amendments relating to the income tax treatment of restrictive covenants;
(d) on August 27, 2010, relating to the introduction of the Fairness for the Self-Employed Act;
(e) on November 5, 2010 and October 31, 2011, relating to technical changes to the Income Tax Act;
(f) on December 16, 2010, relating to changes to the income tax rules concerning real estate investment trusts; and
(g) on March 16, 2011, relating to the deductibility of contingent amounts, withholding tax applicable to certain interest payments made to non-residents, and certain life insurance corporation reserves.
Finally, Part 5 implements certain further technical income tax measures. Most notably, it enacts amendments relating to
(a) labour-sponsored venture capital corporations;
(b) the allocation of income of airline corporations; and
(c) the tax treatment of shares owned by short-term residents.
Part 6 amends the Excise Tax Act to implement technical and housekeeping amendments that include relieving the goods and services tax and the harmonized sales tax on the administrative service of collecting and distributing the levy on blank media imposed under the Copyright Act announced on October 31, 2011.
Part 7 amends the Federal-Provincial Fiscal Arrangements Act to clarify, for greater certainty, the authority of the Minister of Finance and of the Minister of National Revenue to amend administration agreements if the change in question is explicitly contemplated by the language of the agreement and to confirm any amendments that may have been made to those agreements. Part 7 also amends the Federal-Provincial Fiscal Arrangements Act and the First Nations Goods and Services Tax Act to enable the First Nations goods and services tax, imposed under a tax administration agreement between the federal government and an Aboriginal government, to be administered through a provincial administration system, if the province also administers the federal goods and services tax.
Part 8 contains coordinating amendments in respect of those provisions of the Income Tax Act that are amended by this Act and also by the Jobs and Growth Act, 2012 or that need coordination with the Pooled Registered Pension Plans Act.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, let me wish you and all hon. members a happy new year.

I believe that 2013 will be a very productive year in the House of Commons.

The House has been a productive place in the last 200 sitting days. Between the election and today, Parliament has seen three-quarters of the government's legislation pass through at least one of the two chambers, and in fact a majority of the bills we have introduced have made it all the way to entering the statute books. I do look forward to seeing the government add to this record of accomplishment.

On the question of Bill C-32, I will again offer to my friend that we could pass that bill right now, at all stages, if the NDP is agreeable. I believe that would be a reasonable course of action.

Today, of course, we are debating an opposition day motion for the New Democratic Party. Tomorrow and Monday will see us start to consider second reading of Bill C-52, the fair rail freight service act. If we have time, we will go back to the second reading debate on Bill C-48, the technical tax amendments act, 2012. Wednesday will see us finish third reading of Bill C-43, the faster removal of foreign criminals act. Tuesday and Thursday shall be the second and third allotted days. I understand that both of those days will go to the official opposition. Then, if we have not previously finished Bill C-52 and Bill C-48, we will return to them next Friday.

Finally, there have been consultations among the parties respecting a take note debate on the situation in Mali. I am pleased to move:

That a take-note debate on the subject of the conflict in Mali take place, pursuant to Standing Order 53.1, on Tuesday, February 5, 2013.

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I want to start by thanking everyone involved in supporting us as members of Parliament in Tuesday’s voting. Despite all of the amendments at committee and in the House, the balance of the government’s 2012 economic action plan will become law shortly.

This afternoon, the House will resume consideration of second reading of Bill C-15, the Strengthening Military Justice in the Defence of Canada Act. Once that has concluded, we will turn to report stage of Bill C-37, the Increasing Offenders' Accountability for Victims Act, Bill C-42, the Enhancing Royal Canadian Mounted Police Accountability Act, and Bill C-43, the Faster Removal of Foreign Criminals Act.

We will continue working on these bills tomorrow.

Monday shall be the seventh allotted day, which goes to the New Democrats. This gives the official opposition one last opportunity before the new year to lay out its plans and schemes for a $21.5 billion job-killing carbon tax that will raise the price of everything.

For the rest of the week, I hope to advance a lot of legislation that continues to sit on the order paper. In addition to the bills I mentioned already, we will also consider Bill C-48, the technical tax amendments act, 2012; Bill S-8, the safe drinking water for first nations act; Bill S-2, the family homes on reserves and matrimonial interests or rights act; Bill S-6, the first nations elections act; Bill S-10, the prohibiting cluster munitions act; Bill C-49, the Canadian museum of history act; Bill C-17, the Air Canada and its associates act; and Bill S-7, the combating terrorism act, once that bill has been reported back from committee next week, which I anticipate.