VIII, s. 87, c. 21, s. 731997, c. 25, s. 462000, c. 12, s. 1422008, c. 28, s. 262012, c. 31, s. 372013, c. 34, s. 305, c. 40, s. 652014, c. 39, s. 522016, c. 12, s. 532017, c. 33, s. 612022, c. 19, s. 32
148.1(1)In this section,cemetery care trustcemetery care trustmeans a trust established pursuant to an Act of a province for the care and maintenance of a cemetery; (fiducie pour l’entretien d’un cimetière)cemetery servicescemetery serviceswith respect to an individual means property (including interment vaults, markers, flowers, liners, urns, shrubs and wreaths) and services that relate directly to cemetery arrangements in Canada in consequence of the death of the individual including, for greater certainty, property and services to be funded out of a cemetery care trust; (services de cimetière)custodiancustodianof an arrangement means(a)where a trust is governed by the arrangement, a trustee of the trust, and(b)in any other case, a qualifying person who receives a contribution under the arrangement as a deposit for the provision by the person of funeral or cemetery services; (dépositaire)eligible funeral arrangementeligible funeral arrangementat a particular time means an arrangement established and maintained by a qualifying person solely for the purpose of funding funeral or cemetery services with respect to one or more individuals and of which there is one or more custodians each of whom was resident in Canada at the time the arrangement was established, where(a)each contribution made before the particular time under the arrangement was made for the purpose of funding funeral or cemetery services to be provided by the qualifying person with respect to an individual, and(b)for each such individual, the total of all relevant contributions made before the particular time in respect of the individual does not exceed(i)$15,000, where the arrangement solely covers funeral services with respect to the individual,(ii)$20,000, where the arrangement solely covers cemetery services with respect to the individual, and(iii)$35,000, in any other case,and for the purpose of this definition, any payment (other than the portion of the payment to be applied as a contribution to a cemetery care trust) that is made in consideration for the immediate acquisition of a right to burial in or on property that is set apart or used as a place for the burial of human remains or of any interest in a building or structure for the permanent placement of human remains, shall be considered to have been made pursuant to a separate arrangement that is not an eligible funeral arrangement; (arrangement de services funéraires)funeral or cemetery servicesfuneral or cemetery serviceswith respect to an individual means funeral services with respect to the individual, cemetery services with respect to the individual or any combination of such services; (services de funérailles ou de cimetière)funeral servicesfuneral serviceswith respect to an individual means property and services (other than cemetery services with respect to the individual) that relate directly to funeral arrangements in Canada in consequence of the death of the individual; (services funéraires)qualifying personqualifying personmeans a person licensed or otherwise authorized under the laws of a province to provide funeral or cemetery services with respect to individuals; (personne admissible)relevant contributionrelevant contributionin respect of an individual under a particular arrangement means(a)a contribution under the particular arrangement (other than a contribution made by way of a transfer from an eligible funeral arrangement) for the purpose of funding funeral or cemetery services with respect to the individual, or(b)such portion of a contribution to another arrangement that was an eligible funeral arrangement (other than any such contribution made by way of a transfer from any eligible funeral arrangement) as can reasonably be considered to have subsequently been used to make a contribution under the particular arrangement by way of a transfer from an eligible funeral arrangement for the purpose of funding funeral or cemetery services with respect to the individual. (versement admissible)Marginal note:Exemption for eligible funeral arrangements(2)Notwithstanding any other provision of this Act,(a)no amount that has accrued, is credited or is added to an eligible funeral arrangement shall be included in computing the income of any person solely because of such accrual, crediting or adding;(b)subject to paragraph 148.1(2)(c) and subsection 148.1(3), no amount shall be(i)included in computing a person’s income solely because of the provision by another person of funeral or cemetery services under an eligible funeral arrangement, or(ii)included in computing a person’s income because of the disposition of an interest under an eligible funeral arrangement or an interest in a trust governed by an eligible funeral arrangement; and(c)subparagraph 148.1(2)(b)(ii) shall not affect the consequences under this Act of the disposition of any right under an eligible funeral arrangement to payment for the provision of funeral or cemetery services.Marginal note:Income inclusion on return of funds(3)Where at any particular time in a taxation year a particular amount is distributed (otherwise than as payment for the provision of funeral or cemetery services with respect to an individual) to a taxpayer from an arrangement that was, at the time it was established, an eligible funeral arrangement and the particular amount is paid from the balance in respect of the individual under the arrangement, there shall be added in computing the taxpayer’s income for the year from property the lesser of the particular amount and the amount determined by the formulaA + B - CwhereAis the balance in respect of the individual under the arrangement immediately before the particular time (determined without regard to the value of property in a cemetery care trust);Bis the total of all payments made from the arrangement before the particular time for the provision of funeral or cemetery services with respect to the individual (other than cemetery services funded by property in a cemetery care trust); andCis the amount determined by the formulaD – EwhereDis the total of all relevant contributions made before the particular time in respect of the individual under the arrangement (other than contributions in respect of the individual that were in a cemetery care trust), andEis the total of all amounts each of which is the amount, if any, by which(a)an amount relating to the balance in respect of the individual under the arrangement that is deemed by subsection (4) to have been distributed before the particular time from the arrangementexceeds(b)the portion of the amount referred to in paragraph (a) that is added, because of this subsection, in computing a taxpayer’s income.Marginal note:Deemed distribution on transfer(4)If at a particular time an amount relating to the balance in respect of an individual (referred to in this subsection and in subsection (5) as the “transferor”) under an eligible funeral arrangement (referred to in this subsection and in subsection (5) as the “transferor arrangement”) is transferred, credited or added to the balance in respect of the same or another individual (referred to in this subsection and in subsection (5) as the “recipient”) under the same or another eligible funeral arrangement (referred to in this subsection and in subsection (5) as the “recipient arrangement”),(a)the amount is deemed to be distributed to the transferor (or, if the transferor is deceased at the particular time, to the recipient) at the particular time from the transferor arrangement and to be paid from the balance in respect of the transferor under the transferor arrangement; and(b)the amount is deemed to be a contribution made (other than by way of a transfer from an eligible funeral arrangement) at the particular time under the recipient arrangement for the purpose of funding funeral or cemetery services with respect to the recipient.Marginal note:Non-application of subsection (4)(5)Subsection (4) does not apply if(a)the transferor and the recipient are the same individual;(b)the amount that is transferred, credited or added to the balance in respect of the individual under the recipient arrangement is equal to the balance in respect of the individual under the transferor arrangement immediately before the particular time; and(c)the transferor arrangement is terminated immediately after the transfer.
(a)where a trust is governed by the arrangement, a trustee of the trust, and(b)in any other case, a qualifying person who receives a contribution under the arrangement as a deposit for the provision by the person of funeral or cemetery services; (dépositaire)
(a)each contribution made before the particular time under the arrangement was made for the purpose of funding funeral or cemetery services to be provided by the qualifying person with respect to an individual, and(b)for each such individual, the total of all relevant contributions made before the particular time in respect of the individual does not exceed(i)$15,000, where the arrangement solely covers funeral services with respect to the individual,(ii)$20,000, where the arrangement solely covers cemetery services with respect to the individual, and(iii)$35,000, in any other case,and for the purpose of this definition, any payment (other than the portion of the payment to be applied as a contribution to a cemetery care trust) that is made in consideration for the immediate acquisition of a right to burial in or on property that is set apart or used as a place for the burial of human remains or of any interest in a building or structure for the permanent placement of human remains, shall be considered to have been made pursuant to a separate arrangement that is not an eligible funeral arrangement; (arrangement de services funéraires)
(i)$15,000, where the arrangement solely covers funeral services with respect to the individual,(ii)$20,000, where the arrangement solely covers cemetery services with respect to the individual, and(iii)$35,000, in any other case,
(a)a contribution under the particular arrangement (other than a contribution made by way of a transfer from an eligible funeral arrangement) for the purpose of funding funeral or cemetery services with respect to the individual, or(b)such portion of a contribution to another arrangement that was an eligible funeral arrangement (other than any such contribution made by way of a transfer from any eligible funeral arrangement) as can reasonably be considered to have subsequently been used to make a contribution under the particular arrangement by way of a transfer from an eligible funeral arrangement for the purpose of funding funeral or cemetery services with respect to the individual. (versement admissible)
(a)no amount that has accrued, is credited or is added to an eligible funeral arrangement shall be included in computing the income of any person solely because of such accrual, crediting or adding;(b)subject to paragraph 148.1(2)(c) and subsection 148.1(3), no amount shall be(i)included in computing a person’s income solely because of the provision by another person of funeral or cemetery services under an eligible funeral arrangement, or(ii)included in computing a person’s income because of the disposition of an interest under an eligible funeral arrangement or an interest in a trust governed by an eligible funeral arrangement; and(c)subparagraph 148.1(2)(b)(ii) shall not affect the consequences under this Act of the disposition of any right under an eligible funeral arrangement to payment for the provision of funeral or cemetery services.
(i)included in computing a person’s income solely because of the provision by another person of funeral or cemetery services under an eligible funeral arrangement, or(ii)included in computing a person’s income because of the disposition of an interest under an eligible funeral arrangement or an interest in a trust governed by an eligible funeral arrangement; and
(a)an amount relating to the balance in respect of the individual under the arrangement that is deemed by subsection (4) to have been distributed before the particular time from the arrangement
(b)the portion of the amount referred to in paragraph (a) that is added, because of this subsection, in computing a taxpayer’s income.
(a)the amount is deemed to be distributed to the transferor (or, if the transferor is deceased at the particular time, to the recipient) at the particular time from the transferor arrangement and to be paid from the balance in respect of the transferor under the transferor arrangement; and(b)the amount is deemed to be a contribution made (other than by way of a transfer from an eligible funeral arrangement) at the particular time under the recipient arrangement for the purpose of funding funeral or cemetery services with respect to the recipient.
(a)the transferor and the recipient are the same individual;(b)the amount that is transferred, credited or added to the balance in respect of the individual under the recipient arrangement is equal to the balance in respect of the individual under the transferor arrangement immediately before the particular time; and(c)the transferor arrangement is terminated immediately after the transfer.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1995, c. 21, s. 621998, c. 19, s. 1772013, c. 34, s. 306
149(1)No tax is payable under this Part on the taxable income of a person for a period when that person wasMarginal note:Employees of a country other than Canada(a)an officer or servant of the government of a country other than Canada whose duties require that person to reside in Canada(i)if, immediately before assuming those duties, the person resided outside Canada,(ii)if that country grants a similar privilege to an officer or servant of Canada of the same class,(iii)if the person was not, at any time in the period, engaged in a business or performing the duties of an office or employment in Canada other than the person’s position with that government, and(iv)if the person was not during the period a Canadian citizen;Marginal note:Members of the family and servants of employees of a country other than Canada(b)a member of the family of a person described in paragraph 149(1)(a) who resides with that person, or a servant employed by a person described in that paragraph,(i)if the country of which the person described in paragraph 149(1)(a) is an officer or servant grants a similar privilege to members of the family residing with and servants employed by an officer or servant of Canada of the same class,(ii)in the case of a member of the family, if that member was not at any time lawfully admitted to Canada for permanent residence, or at any time in the period engaged in a business or performing the duties of an office or employment in Canada,(iii)in the case of a servant, if, immediately before assuming his or her duties as a servant of a person described in paragraph 149(1)(a), the servant resided outside Canada and, since first assuming those duties in Canada, has not at any time engaged in a business in Canada or been employed in Canada other than by a person described in that paragraph, and(iv)if the member of the family or servant was not during the period a Canadian citizen;Marginal note:Municipal authorities(c)a municipality in Canada, or a municipal or public body performing a function of government in Canada;Marginal note:Corporations owned by the Crown(d)a corporation, commission or association all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is Her Majesty in right of Canada or Her Majesty in right of a province;Marginal note:Corporations 90% owned by the Crown(d.1)a corporation, commission or association not less than 90% of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is Her Majesty in right of Canada or Her Majesty in right of a province;Marginal note:Wholly-owned corporations(d.2)a corporation all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is a corporation, commission or association to which this paragraph or paragraph (d) applies for the period;Marginal note:90% owned corporations(d.3)a corporation, commission or association not less than 90% of the shares (except directors’ qualifying shares) or of the capital of which was owned by(i)one or more persons each of which is Her Majesty in right of Canada or a province or a person to which paragraph (d) or (d.2) applies for the period, or(ii)one or more municipalities in Canada in combination with one or more persons each of which is Her Majesty in right of Canada or a province or a person to which paragraph 149(1)(d) or 149(1)(d.2) applies for the period;Marginal note:Combined ownership(d.4)a corporation all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more persons each of which is a corporation, commission or association to which this paragraph or any of paragraphs (d) to (d.3) applies for the period;Marginal note:Income within boundaries of entities(d.5)subject to subsections (1.2) and (1.3), a corporation, commission or association not less than 90% of the capital of which was owned by one or more entities each of which is a municipality in Canada, or a municipal or public body performing a function of government in Canada, if the income for the period of the corporation, commission or association from activities carried on outside the geographical boundaries of the entities does not exceed 10% of its income for the period;Marginal note:Subsidiaries of municipal corporations(d.6)subject to subsections (1.2) and (1.3), a particular corporation all of the shares (except directors’ qualifying shares) or of the capital of which was owned by one or more entities (referred to in this paragraph as “qualifying owners”) each of which is, for the period, a corporation, commission or association to which paragraph (d.5) applies, a corporation to which this paragraph applies, a municipality in Canada, or a municipal or public body performing a function of government in Canada, if no more than 10% of the particular corporation’s income for the period is from activities carried on outside(i)if a qualifying owner is a municipality in Canada, or a municipal or public body performing a function of government in Canada, the geographical boundaries of each such qualifying owner,(ii)if paragraph (d.5) applies to a qualifying owner, the geographical boundaries of the municipality, or municipal or public body, referred to in that paragraph in its application to each such qualifying owner, and(iii)if this paragraph applies to a qualifying owner, the geographical boundaries of the municipality, or municipal or public body, referred to in subparagraph (i) or paragraph (d.5), as the case may be, in their respective applications to each such qualifying owner;Marginal note:Certain organizations(e)an agricultural organization, a board of trade or a chamber of commerce, no part of the income of which was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder thereof;Marginal note:Registered charities(f)a registered charity;Marginal note:Registered Canadian amateur athletic association(g)a registered Canadian amateur athletic association;Marginal note:Registered journalism organizations(h)a registered journalism organization;Marginal note:Association of Universities and Colleges of Canada(h.1)the Association of Universities and Colleges of Canada, incorporated by the Act to incorporate Association of Universities and Colleges of Canada, chapter 75 of the Statutes of Canada, 1964-65;Marginal note:Certain housing corporations(i)a corporation that was constituted exclusively for the purpose of providing low-cost housing accommodation for the aged, no part of the income of which was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder thereof;Marginal note:Non-profit corporations for scientific research and experimental development(j)a corporation that was constituted exclusively for the purpose of carrying on or promoting scientific research and experimental development, no part of whose income was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder thereof, that has not acquired control of any other corporation and that, during the period,(i)did not carry on any business, and(ii)expended amounts in Canada each of which is(A)an expenditure on scientific research and experimental development (within the meaning that would be assigned by paragraph 37(8)(a) if subsection 37(8) were read without reference to paragraph 37(8)(d)) directly undertaken by or on behalf of the corporation, or(B)a payment to an association, university, college or research institute or other similar institution, described in clause 37(1)(a)(ii)(A) or 37(1)(a)(ii)(B) to be used for scientific research and experimental development, andthe total of which is not less than 90% of the amount, if any, by which the corporation’s gross revenue for the period exceeds the total of all amounts paid in the period by the corporation because of subsection 149(7.1);Marginal note:Labour organizations(k)a labour organization or society or a benevolent or fraternal benefit society or order;Marginal note:Non-profit organizations(l)a club, society or association that, in the opinion of the Minister, was not a charity within the meaning assigned by subsection 149.1(1) and that was organized and operated exclusively for social welfare, civic improvement, pleasure or recreation or for any other purpose except profit, no part of the income of which was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder thereof unless the proprietor, member or shareholder was a club, society or association the primary purpose and function of which was the promotion of amateur athletics in Canada;Marginal note:Mutual insurance corporations(m)a mutual insurance corporation that received its premiums wholly from the insurance of churches, schools or other charitable organizations;Marginal note:Housing companies(n)a limited-dividend housing company (within the meaning of that expression as defined in section 2 of theNational Housing Act), all or substantially all of the business of which is the construction, holding or management of low-rental housing projects;Marginal note:Pension trusts(o)a trust governed by a registered pension plan;Marginal note:Pension corporations(o.1)a corporation(i)incorporated and operated throughout the period either(A)solely for the administration of a registered pension plan, or(B)for the administration of a registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan, and(ii)accepted by the Minister as a funding medium for the purpose of the registration of the pension plan;Marginal note:Idem(o.2)a corporation(i)incorporated before November 17, 1978 solely in connection with, or for the administration of, a registered pension plan,(ii)that has at all times since the later of November 16, 1978 and the date on which it was incorporated(A)limited its activities to(I)acquiring, holding, maintaining, improving, leasing or managing capital property that is real property or an interest in real property — or immovables or a real right in immovables — owned by the corporation, another corporation described by this subparagraph and subparagraph (iv) or a registered pension plan, and(II)investing its funds in a partnership that limits its activities to acquiring, holding, maintaining, improving, leasing or managing capital property that is real property or an interest in real property — or immovables or a real right in immovables — owned by the partnership,(B)made no investments other than in real property or an interest in real property — or immovables or a real right in immovables — or investments that a pension plan is permitted to make under thePension Benefits Standards Act, 1985or a similar law of a province, and(C)borrowed money solely for the purpose of earning income from real property or an interest in real property or from immovables or a real right in immovables,(ii.1)that throughout the period(A)limited its activities to(I)acquiring Canadian resource properties by purchase or by incurring Canadian exploration expense or Canadian development expense, or(II)holding, exploring, developing, maintaining, improving, managing, operating or disposing of its Canadian resource properties,(B)made no investments other than in(I)Canadian resource properties,(II)property to be used in connection with Canadian resource properties described in clause 149(1)(o.2)(ii.1)(A),(III)loans secured by Canadian resource properties for the purpose of carrying out any activity described in clause 149(1)(o.2)(ii.1)(A) with respect to Canadian resource properties, or(IV)investments that a pension fund or plan is permitted to make under thePension Benefits Standards Act, 1985or a similar law of a province, and(C)borrowed money solely for the purpose of earning income from Canadian resource properties, or(iii)that made no investments other than investments that a pension fund or plan was permitted to make under thePension Benefits Standards Act, 1985or a similar law of a province, and(A)the assets of which were at least 98% cash and investments,(B)that had not accepted deposits or issued bonds, notes, debentures or similar obligations, and(C)that had derived at least 98% of its income for the period that is a taxation year of the corporation from, or from the disposition of, investmentsif, at all times since the later of November 16, 1978 and the date on which it was incorporated,(iv)all of the shares, and rights to acquire shares, of the capital stock of the corporation are owned by(A)one or more registered pension plans,(B)one or more trusts all the beneficiaries of which are registered pension plans,(C)one or more related segregated fund trusts (within the meaning assigned by paragraph 138.1(1)(a)) all the beneficiaries of which are registered pension plans, or(D)one or more prescribed persons, or(v)in the case of a corporation without share capital, all the property of the corporation has been held exclusively for the benefit of one or more registered pension plans,and for the purposes of subparagraph 149(1)(o.2)(iv), where a corporation has been formed as a result of the merger of two or more other corporations, it shall be deemed to be the same corporation as, and a continuation of, each such other corporation and the shares of the merged corporations shall be deemed to have been altered, in form only, by virtue of the merger and to have continued in existence in the form of shares of the corporation formed as a result of the merger;Marginal note:Prescribed small business investment corporations(o.3)a corporation that is prescribed to be a small business investment corporation;Marginal note:Master trusts(o.4)a trust that is prescribed to be a master trust and that elects to be such a trust under this paragraph in its return of income for its first taxation year ending in the period;Marginal note:Trusts under profit sharing plan(p)a trust under an employees profit sharing plan to the extent provided by section 144;Marginal note:Trusts under a registered supplementary unemployment benefit plan(q)a trust under a registered supplementary unemployment benefit plan to the extent provided by section 145;Marginal note:RCA trusts(q.1)an RCA trust (within the meaning assigned by subsection 207.5(1));Marginal note:Trusts under registered retirement savings plan(r)a trust under a registered retirement savings plan to the extent provided by section 146;Marginal note:Trusts under deferred profit sharing plan(s)a trust under a deferred profit sharing plan to the extent provided by section 147;Marginal note:Trust governed by eligible funeral arrangement(s.1)a trust governed by an eligible funeral arrangement;Marginal note:Cemetery care trust(s.2)a cemetery care trust;(t)[Repealed, 2017, c. 20, s. 24]Marginal note:Registered education savings plans(u)a trust governed by a registered education savings plan to the extent provided by section 146.1;Marginal note:Trusts under registered disability savings plans(u.1)a trust governed by a registered disability savings plan to the extent provided by section 146.4;Marginal note:TFSA trust(u.2)a trust governed by a TFSA to the extent provided by section 146.2;Marginal note:Pooled registered pension plan(u.3)a trust governed by a pooled registered pension plan to the extent provided under section 147.5;Marginal note:FHSA trust(u.4)a trust governed by a FHSA to the extent provided by section 146.6;Marginal note:Amateur athlete trust(v)an amateur athlete trust;Marginal note:Trusts to provide compensation(w)a trust established as required under a law of Canada or of a province in order to provide funds out of which to compensate persons for claims against an owner of a business identified in the relevant law where that owner is unwilling or unable to compensate a customer or client, if no part of the property of the trust, after payment of its proper trust expenses, is available to any person other than as a consequence of that person being a customer or client of a business so identified;Marginal note:Registered retirement income funds(x)a trust governed by a registered retirement income fund to the extent provided by section 146.3;Marginal note:Trusts to provide vacation pay(y)a trust established pursuant to the terms of a collective agreement between an employer or an association of employers and employees or their labour organization for the sole purpose of providing for the payment of vacation or holiday pay, if no part of the property of the trust, after payment of its reasonable expenses, is(i)available at any time after 1980, or(ii)paid after December 11, 1979to any person (other than a person described in paragraph 149(1)(k)) otherwise than as a consequence of that person being an employee or an heir or legal representative thereof;Marginal note:Qualifying environmental trust(z)a qualifying environmental trust;Marginal note:Environmental Quality Acttrust(z.1)a trust(i)that was created because of a requirement imposed by section 56 of theEnvironment Quality Act, R.S.Q., c