Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)

• (A) the employment income earned by the taxpayer as a member of the Canadian Forces, or as a police officer, while serving on a deployed operational mission (as determined by the Department of National Defence or the Department of Public Safety and Emergency Preparedness) that is

  • (I) assessed for risk allowance at level 3 or higher (as determined by the Department of National Defence), or

  • (II) assessed at a risk score greater than 1.99 and less than 2.50 (as determined by the Department of National Defence) and designated by the Minister of Finance, and

• (A) the employment income earned by the taxpayer as a member of the Canadian Forces, or as a police officer, while serving on a deployed international operational mission (as determined by the Minister of National Defence, the Minister of Public Safety and Emergency Preparedness or by a person designated by either Minister), and

• (b) the taxpayer establishes that, throughout the particular period, no tax-indifferent investor or group of tax-indifferent investors, each member of which is affiliated with every other member, has all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share.

• (ii) all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share during the particular period referred to in subsection (2.31) has not been eliminated and cannot reasonably be expected by it to be eliminated;

• (B) all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share during the particular period referred to in subsection (2.31) has not been eliminated and cannot reasonably be expected by it to be eliminated;

• (B) all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share during the particular period referred to in subsection (2.31) has not been eliminated and cannot reasonably be expected by it to be eliminated; or

• Marginal note:End of particular period

  (2.33) If, at a time during a particular period referred to in subsection (2.31), a counterparty, specified counterparty, affiliated counterparty or affiliated specified counterparty reasonably expects to become a tax-indifferent investor or — if it has provided a representation described by subparagraph (2.32)(a)(ii) or clause (2.32)(b)(iii)(B) or (c)(iii)(B) in respect of a share — that all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share will be eliminated, the particular period for which it has provided a representation in respect of the share is deemed to end at that time.

B

is

• (a) if the taxpayer received a dividend under subsection 84(3) in respect of the share, the total determined under subparagraph (b)(ii), and

• (b) in any other case, the lesser of

  • (i) the loss, if any, from the disposition of the share that would be determined before the application of this subsection if the cost of the share to any taxpayer were determined without reference to

    • (A) paragraphs 87(2)(e.2) and (e.4), 88(1)(c), 138(11.5)(e) and 142.5(2)(b),

    • (B) subsection 85(1), where the provisions of that subsection are required by paragraph 138(11.5)(e) to be applied, and

    • (C) paragraph 142.6(1)(d), and

  • (ii) the total of all amounts each of which is

    • (A) where the taxpayer is a corporation, a taxable dividend received by the taxpayer on the share, to the extent of the amount that was deductible under this section or subsection 115(1) or 138(6) in computing the taxpayer’s taxable income or taxable income earned in Canada for any taxation year,

    • (B) where the taxpayer is a partnership, a taxable dividend received by the taxpayer on the share, to the extent of the amount that was deductible under this section or subsection 115(1) or 138(6) in computing the taxable income or taxable income earned in Canada for any taxation year of members of the partnership,

    • (C) where the taxpayer is a trust, an amount designated under subsection 104(19) in respect of a taxable dividend on the share, or

    • (D) a dividend (other than a taxable dividend) received by the taxpayer on the share,

• (c) where the taxpayer is a partnership, a loss of a member of the partnership on a deemed disposition of the share before that time was reduced because of subsection (3.1) or (4), and

• Marginal note:Subsection (5.2) — excluded dividends

  (5.21) A dividend, other than a dividend received under subsection 84(3), shall not be included in the total determined under subparagraph (b)(ii) of the description of B in subsection (5.2) unless

• Marginal note:Exception

  (9.1) Subsection (8) does not apply for the purpose of paragraph (5.21)(b) in respect of a dividend received on a share, referred to in paragraph (a) of the description of B in subsection (5.2), during a synthetic disposition period of a synthetic disposition arrangement in respect of that share.

• (i) an individual shall not fail to qualify as a parent (within the meaning assigned by section 252) of another individual solely because of the receipt of a social assistance amount that is payable under a program of the Government of Canada or the government of a province for the benefit of the other individual; (particulier admissible)

working income

working income, of an individual for a taxation year, means the total of

• (a) the total of all amounts each of which would, if this Act were read without reference to section 8, be the individual’s income for the taxation year from an office or employment,

• (b) all amounts that are 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

• (c) the total of all amounts each of which is the individual’s income for the taxation year from a business carried on by the individual otherwise than as a specified member of a partnership. (revenu de travail)

• Marginal note:Optional amounts

  (1.1) An individual may determine the total amount for the definition working income for both the individual and the individual’s eligible spouse, if applicable, for a taxation year as if the Act were read without reference to paragraph 81(1)(a) and subsection 81(4) and if so, the individual shall determine the total amount for the definition adjusted net income for both the individual and the individual’s eligible spouse, if applicable, for the taxation year as if the Act were read without reference to paragraph 81(1)(a) and subsection 81(4).

• Marginal note:Deemed payment on account of tax

  (2) Subject to subsections (4) and (5), an eligible individual for a taxation year who files a return of income for the taxation year is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula

• Marginal note:Only one eligible individual

  (5) If an eligible individual has an eligible spouse for a taxation year and both those individuals would be, but for this subsection, eligible individuals for the purposes of subsection (2) in respect of the taxation year,

  • (a) if the individuals agree on which individual is the eligible individual for the taxation year, only that individual shall be an eligible individual for the purposes of subsection (2) in respect of the taxation year; and

  • (b) in any other case, only the individual that the Minister designates is the eligible individual for the purposes of subsection (2) in respect of the taxation year.

• Marginal note:Special rules for eligible dependant

  (10) For the purpose of applying subsections (2) and (3), if an individual (referred to in this subsection as the “child”) would be, but for this subsection, an eligible dependant of more than one eligible individual for a taxation year, the child is deemed only to be an eligible dependant of

  • (a) if the individuals agree, the agreed upon individual; and

  • (b) in any other case, the individual designated by the Minister.

SUBDIVISION A.3Climate Action Incentive

Marginal note:Definitions

• 122.8 (1) The following definitions apply in this section.

  cohabiting spouse or common-law partner

  cohabiting spouse or common-law partner, of an individual at any time, has the same meaning as in section 122.6. (époux ou conjoint de fait visé)

  eligible individual

  eligible individual, for a taxation year, means an individual (other than a trust) who is, at the end of the taxation year,

  • (a) 18 years of age or older;

  • (b) a parent who resides with their child; or

  • (c) married or in a common-law partnership. (particulier admissible)

  qualified dependant

  qualified dependant, of an individual for a taxation year, means a person who, at the end of the taxation year,

  • (a) is the individual’s child or is dependent for support on the individual or on the individual’s cohabiting spouse or common-law partner;

  • (b) resides with the individual;

  • (c) is under the age of 18 years;

  • (d) is not an eligible individual for the taxation year; and

  • (e) is not a qualified relation of any individual for the taxation year. (personne à charge admissible)

  qualified relation

  qualified relation, of an individual for a taxation year, means the person, if any, who, at the end of the taxation year, is the individual’s cohabiting spouse or common-law partner. (proche admissible)

  return of income

  return of income, in respect of a person for a taxation year, means the person’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under this Part for the taxation year. (déclaration de revenu)

• Marginal note:Persons not eligible individuals, qualified relations or qualified dependants

  (2) Notwithstanding subsection (1), a person is not an eligible individual, is not a qualified relation and is not a qualified dependant, for a taxation year, if the person

  • (a) died before April of the year following the taxation year;

  • (b) is confined to a prison or similar institution for a period of at least 90 days during the taxation year;

  • (c) is a non-resident person at any time in the taxation year;

  • (d) is a person described in paragraph 149(1)(a) or (b) at any time in the taxation year; or

  • (e) is a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable at any time in the taxation year.

• Marginal note:Residence

  (3) For the purposes of this section, an individual is considered to reside at any time only at their principal place of residence.

• Marginal note:Deemed overpayment

  (4) An eligible individual who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount determined by the formula

  (A + B + C × D) × E

  where

  A

  is the amount specified by the Minister of Finance for an eligible individual for the taxation year for the province (in this subsection and subsection (6) referred to as the “relevant province”) in which the eligible individual resides at the end of the taxation year;

  B

  is

  • (a) the amount specified by the Minister of Finance for a qualified relation for the taxation year for the relevant province, if

    • (i) the eligible individual has a qualified relation at the end of the taxation year, or

    • (ii) subparagraph (i) does not apply and the eligible individual has a qualified dependant at the end of the taxation year, and

  • (b) in any other case, nil;

  C

  is the amount specified by the Minister of Finance for a qualified dependant for the taxation year for the relevant province;

  D

  is the number of qualified dependants of the eligible individual at the end of the taxation year, other than a qualified dependant in respect of whom an amount is included because of subparagraph (a)(ii) of the description of B for the taxation year; and

  E

  is

  • (a) 1.1, if there is a census metropolitan area, as determined in the last census published by Statistics Canada before the taxation year, in the relevant province and the individual does not reside in a census metropolitan area at the end of the taxation year, and

  • (b) 1, in any other case.

• Marginal note:Authority to specify amounts

  (5) The Minister of Finance may specify amounts for a province for a taxation year for the purposes of this section. If the Minister of Finance does not specify a particular amount that is relevant for the purposes of this section, that particular amount is deemed to be nil for the purpose of applying this section.

• Marginal note:Deemed rebate in respect of fuel charges

  (6) The amount deemed by this section to have been paid on account of tax payable for a taxation year is deemed to have been paid in the year following the taxation year as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the relevant province.

• Marginal note:Only one eligible individual

  (7) If an individual is a qualified relation of another individual for a taxation year and both those individuals would be, but for this subsection, eligible individuals for the taxation year, only the individual that the Minister designates is the eligible individual for the taxation year.

• Marginal note:Exception — qualified dependant

  (8) If a person would, if this Act were read without reference to this subsection, be the qualified dependant of two or more individuals, for a taxation year,

  • (a) the person is deemed to be a qualified dependant, for the taxation year, of the one of those individuals on whom those individuals agree; and

  • (b) in any other case, the person is deemed to be, for the taxation year, a qualified dependant only of the individual that the Minister designates.

• Marginal note:Effect of bankruptcy

  (9) For the purposes of this section, if an individual becomes bankrupt in a particular calendar year, notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year.