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Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

Assented to 2018-06-21

PART 1Amendments to the Income Tax Act and to Related Legislation (continued)

2016, c. 14An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

 Section 67 of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act is repealed.

 Section 69 of the Act is repealed.

2017, c. 20Budget Implementation Act, 2017, No. 1

C.R.C., c. 945Income Tax Regulations

  •  (1) Subparagraph 201(1)(b)(ii) of the Income Tax Regulations is replaced by the following:

    • (ii) in respect of

      • (A) money on loan to an association, corporation, institution, organization, partnership or trust,

      • (B) money on deposit with an association, corporation, institution, organization, partnership or trust, or

      • (C) property deposited or placed with an association, corporation, institution, organization, partnership or trust,

  • (2) Subsection (1) applies to the 2018 and subsequent taxation years.

  •  (1) Paragraph 229(1)(b) of the Regulations is replaced by the following:

    • (b) in respect of each member of the partnership who is entitled to a share referred to in paragraph (c) or (d) for the fiscal period, the member’s

      • (i) name,

      • (ii) address, and

      • (iii) business number, Social Insurance Number or trust account number, as the case may be;

  • (2) Subsection (1) applies to the 2018 and subsequent taxation years.

  •  (1) Section 3503 of the Regulations and the heading before it are repealed.

  • (2) Subsection (1) is deemed to have come into force on February 27, 2018.

 The portion of Class 43.2 in Schedule II to the Regulations before paragraph (a) is replaced by the following:

Property that is acquired after February 22, 2005 and before 2025 (other than property that was included, before it was acquired, in another class in this Schedule by any taxpayer) and that is property that would otherwise be included in Class 43.1

  •  (1) Schedule VIII to the Regulations is repealed.

  • (2) Subsection (1) is deemed to have come into force on February 27, 2018.

PART 2Amendments to the Excise Act, 2001 (Tobacco Taxation) and to Related Legislation

2002, c. 22Excise Act, 2001

  •  (1) Subsections 43.1(1) and (2) of the Excise Act, 2001 are replaced by the following:

    Marginal note:Definition of inflationary adjusted year

    • 43.1 (1) In this section, inflationary adjusted year means 2019 and every year after that year.

    • Marginal note:Annual adjustments

      (2) Each rate of duty set out in sections 1 to 4 of Schedule 1 and paragraph (a) of Schedule 2 in respect of a tobacco product is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

      • (a) the rate determined by the formula

        A × B

        where

        A
        is the rate of duty applicable to the tobacco product on March 31 of the inflationary adjusted year, and
        B
        is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

        C/D

        where

        C
        is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and
        D
        is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year; and
      • (b) the rate of duty referred to in the description of A in paragraph (a).

  • (2) Subsection (1) is deemed to have come into force on February 28, 2018.

  •  (1) The definition adjustment day in section 58.1 of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:

    • (a.1) February 28, 2018; or

    • (b) in the case of an inflationary adjusted year, April 1 of that year. (date d’ajustement)

  • (2) The portion of the definition taxed cigarettes in section 58.1 of the Act before paragraph (a) is replaced by the following:

    taxed cigarettes

    taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day, and that, at the beginning of the adjustment day,

  • (3) Subsections (1) and (2) are deemed to have come into force on February 28, 2018.

  •  (1) Subsection 58.2(2) of the Act is replaced by the following:

    • Marginal note:Imposition of tax — 2018 increase

      (1.1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of February 28, 2018 at the rate of $0.011468 per cigarette.

    • Marginal note:Imposition of tax — inflationary adjusted years

      (2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of April 1 of an inflationary adjusted year at a rate per cigarette equal to

      • (a) in the case of cigarettes in respect of which duty has been imposed under section 42, the amount determined by the formula

        (A – B)/5

        where

        A
        is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on April 1 of the inflationary adjusted year, and
        B
        is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on March 31 of the inflationary adjusted year; and
      • (b) in the case of cigarettes in respect of which duty has been imposed under section 53, the amount determined by the formula

        C – D

        where

        C
        is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on April 1 of the inflationary adjusted year, and
        D
        is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on March 31 of the inflationary adjusted year.
  • (2) Subsection (1) is deemed to have come into force on February 28, 2018.

  •  (1) Subsection 58.5(1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:

    • (a.1) in the case of the tax imposed under subsection 58.2(1.1), April 30, 2018; or

    • (b) in the case of the tax imposed under subsection 58.2(2) in respect of an inflationary adjusted year, May 31 of the inflationary adjusted year.

  • (2) Subsection (1) is deemed to have come into force on February 28, 2018.

 

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