If, however, the specified amount is paid in a taxation year of the taxpayer that begins after 2007, the specified amount is deemed, for the purpose of applying this section to the taxpayer, to be nil.
Marginal note:Applying paragraph 18(1)(m)
(3)For the purpose of applying paragraph 18(1)(m) for the taxpayer’s taxation year in which the specified amount was paid, the amount to which that paragraph applies is to be determined for that taxation year
(a)if the taxpayer was in existence at the time the original amount became receivable by a person referred to in subparagraph 12(1)(o)(i) or became payable to a person referred to in subparagraph 18(1)(m)(i), as if the specified amount were paid by the taxpayer at that time; and
(b)in any other case, as if
(i)the taxpayer were in existence and had a calendar taxation year at the time the original amount became receivable by a person referred to in subparagraph 12(1)(o)(i) or became payable to a person referred to in subparagraph 18(1)(m)(i), and
(ii)the specified amount were paid by the taxpayer at that time.
Marginal note:Exception for certain partnership reimbursements
(4)Subsection (3) does not apply to a specified amount paid by a taxpayer if
(a)the recipient is a partnership;
(b)the original amount became receivable by a person referred to in subparagraph 12(1)(o)(i) or became payable to a person referred to in subparagraph 18(1)(m)(i), in a particular fiscal period of the partnership;
(c)the taxpayer is a member of the partnership at the end of the particular fiscal period; and
(d)the taxpayer paid the specified amount before the end of the taxation year of the taxpayer in which that particular fiscal period ends.
Marginal note:Specified amount deemed to be paid at end of taxation year
(5)A specified amount paid by the taxpayer to a partnership is deemed to have been paid on the last day of a particular taxation year of the taxpayer, and not at the time it was paid, if
(a)the taxpayer paid an amount to the partnership in the particular taxation year (referred to in this subsection as the “initial payment”);
(b)the initial payment was paid before September 17, 2004;
(c)the initial payment is an amount to which subsection (3) did not apply because of subsection (4);
(d)the taxpayer’s share of the original amount in respect of the initial payment is greater than the initial payment;
(e)the specified amount is equal to or less than the difference between the taxpayer’s share of the original amount in respect of the initial payment and the initial payment;
(f)the taxpayer elects in the taxpayer’s return of income for the taxpayer’s taxation year that includes the time at which the specified amount would, if this Act were read without reference to this subsection, have been paid, to have this subsection apply to the specified amount; and
(g)the specified amount is paid before 2006.
Marginal note:Inclusion in recipient’s income
(6)The recipient shall include in computing the recipient’s income for the taxation year or fiscal period in which the original amount was paid or became payable or receivable, the amount, if any, by which the eligible portion of the specified amount exceeds the portion of the original amount that was included in computing the income of the recipient for the taxation year or fiscal period because of paragraph 12(1)(o) or that was not deductible in computing the income of the recipient for the taxation year or fiscal period because of paragraph 18(1)(m).
Marginal note:Interpretation — portion of the original amount
(7)For the purpose of subsection (6), the portion of the original amount that was included in computing the income of the recipient or that was not deductible in computing the income of the recipient is the amount that would be included in computing the income of the recipient under paragraph 12(1)(o) or that would not be deductible in computing the income of the recipient under paragraph 18(1)(m), if the original amount were equal to the eligible portion of the specified amount.
Marginal note:Inclusion in recipient’s income
(8)The recipient shall include, in computing the recipient’s income for its taxation year or fiscal period in which the original amount was paid or became payable or receivable, the amount, if any, by which the specified amount exceeds the eligible portion of the specified amount.
Marginal note:Deduction by taxpayer
(9)Subject to paragraphs 18(1)(a) and (b), the taxpayer may deduct in computing the taxpayer’s income for the taxpayer’s taxation year in which the specified amount was paid, the amount, if any, by which the specified amount exceeds the eligible portion of the specified amount.
Marginal note:Specified amount deemed not to be payable or receivable
(10)Except for the purposes of this section and subparagraph 53(1)(e)(iv.1),
(a)the taxpayer is deemed not to have paid, and not to have been obligated to pay, the specified amount; and
(b)the recipient is deemed not to have received, and not to have been entitled to receive, the specified amount.
Marginal note:Eligible portion of a specified amount
(11)The eligible portion of a specified amount is
(a)an amount equal to the specified amount if
(i)the specified amount was paid before September 17, 2004,
(ii)the original amount is a tax imposed under a provincial law on the production of
(A)petroleum, natural gas or related hydrocarbons from a natural accumulation of petroleum or natural gas (other than a mineral resource) located in Canada, or from an oil or gas well located in Canada if the petroleum, natural gas or related hydrocarbons are not, before extraction, owned by the Crown in right of Canada or a province, or
(B)metals, minerals or coal from a mineral resource located in Canada if the metals, minerals or coal are not, before extraction, owned by the Crown in right of Canada or a province,
(iii)the specified amount does not exceed the taxpayer’s share of the original amount, or
(iv)the original amount is a prescribed amount; and
(b)the taxpayer’s share of the original amount, in any other case.
Marginal note:Taxpayer’s share of original amount
(12)A taxpayer’s share of an original amount in respect of a specified amount paid by the taxpayer to a recipient in respect of a property is the amount that may reasonably be considered to be the taxpayer’s share of the total of all amounts described in paragraph 12(1)(o) or 18(1)(m) in respect of the property, which share may not exceed the total of
(a)that proportion of the total of all amounts described in paragraph 12(1)(o) or 18(1)(m) in respect of the property that the taxpayer’s share of production from the property payable to the taxpayer as a royalty, which royalty is computed without reference to the costs of exploration or production, is of the total production from the property, and
(b)that proportion of the total of all amounts described in paragraph 12(1)(o) or 18(1)(m) in respect of the property (other than those amounts which the recipient has received or is entitled to receive as a reimbursement, contribution or allowance in respect of a royalty described in paragraph (a)) that the taxpayer’s share of the income from the property is of the total income from the property.
Marginal note:Reduction in original amount for Part XII of the regulations
(13)For the purpose of applying Part XII of theIncome Tax Regulations, an original amount in respect of which a specified amount is received is deemed, for the taxation year in which the original amount was paid or became payable or receivable, not to include an amount equal to the eligible portion of the specified amount.
Marginal note:Definitions
80.3(1)In this section,
breeding animalsmeans deer, elk and other similar grazing ungulates, bovine cattle, bison, goats, sheep and horses that are over 12 months of age and are kept for breeding; (animaux reproducteurs)
breeding beesmeans bees that are not used principally to pollinate plants in greenhouses and larvae of those bees; (abeilles reproductrices)
breeding bee stock, of a taxpayer at any time, means a reasonable estimate of the quantity of a taxpayer’s breeding bees held at that time in the course of carrying on a farming business using a unit of measurement that is accepted as an industry standard; (stock d’abeilles reproductrices)
breeding herdof a taxpayer at any time means the number determined by the formula
A - (B - C)
where
Marginal note:Income deferral from the destruction of livestock
(2)Where a particular amount in respect of the forced destruction of livestock under statutory authority in a taxation year of a taxpayer is included in computing the income of the taxpayer for the year from a farming business, there may be deducted in computing that income such amount as the taxpayer claims not exceeding the particular amount.
Marginal note:Inclusion of deferred amount
(3)The amount deducted under subsection (2) in computing the income of a taxpayer from a farming business for a taxation year shall be deemed to be income of the taxpayer from the business for the taxpayer’s immediately following taxation year.
Marginal note:Income deferral for regions of drought, flood or excessive moisture
(4)If in a taxation year a taxpayer carries on a farming business in a region that is at any time in the year a prescribed drought region or a prescribed region of flood or excessive moisture and the taxpayer’s breeding herd at the end of the year in respect of the business does not exceed 85% of the taxpayer’s breeding herd at the beginning of the year in respect of the business, there may be deducted in computing the taxpayer’s income from the business for the year the amount that the taxpayer claims, not exceeding the amount, if any, determined by the formula
(A - B) × C
where
(a)the total of all amounts included in computing the taxpayer’s income for the year from the business in respect of the sale of breeding animals in the year
exceeds
(b)the total of all amounts deducted under paragraph 20(1)(n) in computing the taxpayer’s income from the business for the year in respect of an amount referred to in paragraph (a) of this description;
(a)30% where the taxpayer’s breeding herd at the end of the year in respect of the business exceeds 70% of the taxpayer’s breeding herd at the beginning of the year in respect of the business, and
(b)90% where the taxpayer’s breeding herd at the end of the year in respect of the business does not exceed 70% of the taxpayer’s breeding herd at the beginning of the year in respect of the business.
Marginal note:Income deferral
(4.1)If in a taxation year a taxpayer carries on a farming business in a region that is at any time in the year a prescribed drought region or a prescribed region of flood or excessive moisture and the taxpayer’s breeding bee stock at the end of the year in respect of the business does not exceed 85% of the taxpayer’s breeding bee stock at the beginning of the year in respect of the business, there may be deducted in computing the taxpayer’s income from the business for the year the amount that the taxpayer claims, not exceeding the amount, if any, determined by the formula
(A – B) × C
where
(a)the total of all amounts included in computing the taxpayer’s income from the business for the year in respect of the sale of breeding bees in the year
exceeds
(b)the total of all amounts deducted under paragraph 20(1)(n) in computing the taxpayer’s income from the business for the year in respect of an amount referred to in paragraph (a);
(a)30% if the taxpayer’s breeding bee stock in respect of the business at the end of the year exceeds 70% of the taxpayer’s breeding bee stock in respect of the business at the beginning of the year, and
(b)90% if the taxpayer’s breeding bee stock in respect of the business at the end of the year does not exceed 70% of the taxpayer’s breeding bee stock in respect of the business at the beginning of the year.
Marginal note:Inclusion of deferred amount
(5)An amount deducted under subsection (4) or (4.1) in computing the income of a taxpayer for a particular taxation year from a farming business carried on in a region prescribed under those subsections may, to the extent that the taxpayer so elects, be included in computing the taxpayer’s income from the business for a taxation year ending after the particular taxation year, and is, except to the extent that the amount has been included under this subsection in computing the taxpayer’s income from the business for a preceding taxation year after the particular year, deemed to be income of the taxpayer from the business for the taxation year of the taxpayer that is the earliest of
(a)the first taxation year beginning after the end of the period or series of continuous periods, as the case may be, for which the region is prescribed under those subsections,
(b)the first taxation year, following the particular taxation year, at the end of which the taxpayer is
(i)non-resident, and
(ii)not carrying on business through a fixed place of business in Canada, and
(c)the taxation year in which the taxpayer dies.
Marginal note:Subsections (2), (4) and (4.1) not applicable
(6)Subsections (2), (4) and (4.1) do not apply to a taxpayer in respect of a farming business for a taxation year
(a)in which the taxpayer died; or
(b)where at the end of the year the taxpayer is non-resident and not carrying on the business through a fixed place of business in Canada.
Marginal note:Measuring breeding bee stock
(7)In applying subsection (4.1) in respect of a taxation year, the unit of measurement used for estimating the quantity of a taxpayer’s breeding bee stock held in the course of carrying on a farming business at the end of the year is to be the same as that used for the beginning of the year.
Marginal note:Loans
80.4(1)Where a person or partnership receives a loan or otherwise incurs a debt because of or as a consequence of a previous, the current or an intended office or employment of an individual, or because of the services performed or to be performed by a corporation carrying on a personal services business, the individual or corporation, as the case may be, shall be deemed to have received a benefit in a taxation year equal to the amount, if any, by which the total of
(a)all interest on all such loans and debts computed at the prescribed rate on each such loan and debt for the period in the year during which it was outstanding, and
(b)the total of all amounts each of which is an amount of interest that was paid or payable in respect of the year on such a loan or debt by
(i)a person or partnership (in this paragraph referred to as the “employer”) that employed or intended to employ the individual,
(ii)a person (other than the debtor) related to the employer, or
(iii)a person or partnership to or for whom or which the services were or were to be provided or performed by the corporation or a person (other than the debtor) who does not deal at arm’s length with that person or any member of that partnership,
exceeds the total of
(c)the amount of interest for the year paid on all such loans and debts not later than 30 days after the end of the year, and
(d)any portion of the total determined in respect of the year under paragraph 80.4(1)(b) that is reimbursed in the year or within 30 days after the end of the year by the debtor to the person or entity who made the payment referred to in that paragraph.
Marginal note:Interpretation
(1.1)A loan or debt is deemed to have been received or incurred because of an individual’s office or employment, or because of services performed by a corporation that carries on a personal services business, as the case may be, if it is reasonable to conclude that, but for an individual’s previous, current or intended office or employment, or the services performed or to be performed by the corporation,
(a)the terms of the loan or debt would have been different; or
(b)the loan would not have been received or the debt would not have been incurred.
Marginal note:Idem
(2)Where a person (other than a corporation resident in Canada) or a partnership (other than a partnership each member of which is a corporation resident in Canada) was
(a)a shareholder of a corporation,
(b)connected with a shareholder of a corporation, or
(c)a member of a partnership, or a beneficiary of a trust, that was a shareholder of a corporation,
and by virtue of that shareholding that person or partnership received a loan from, or otherwise incurred a debt to, that corporation, any other corporation related thereto or a partnership of which that corporation or any corporation related thereto was a member, the person or partnership shall be deemed to have received a benefit in a taxation year equal to the amount, if any, by which
(d)all interest on all such loans and debts computed at the prescribed rate on each such loan and debt for the period in the year during which it was outstanding
exceeds
(e)the total of
(i)the amount of interest for the year paid on all such loans and debts (other than loans deemed to have been made under subsection 15(2.17)) not later than 30 days after the end of the year, and
(ii)the specified interest amounts, for the year, in respect of all such loans that are deemed to have been made under subsection 15(2.17).
Marginal note:Where ss. (1) and (2) do not apply
(3)Subsections 80.4(1) and (2) do not apply in respect of any loan or debt, or any part thereof,
(a)on which the rate of interest was equal to or greater than the rate that would, having regard to all the circumstances (including the terms and conditions of the loan or debt), have been agreed on, at the time the loan was received or the debt was incurred, between parties dealing with each other at arm’s length if
(i)none of the parties received the loan or incurred the debt by virtue of an office or employment or by virtue of the shareholding of a person or partnership, and
(ii)the ordinary business of the creditor included the lending of money,
except where an amount is paid or payable in any taxation year to the creditor in respect of interest on the loan or debt by a party other than the debtor; or
(b)that was included in computing the income of a person or partnership under this Part.
Marginal note:Interest on loans for home purchase or relocation
(4)For the purpose of computing the benefit under subsection (1) in a taxation year in respect of a home purchase loan or a home relocation loan, the amount of interest determined under paragraph (1)(a) shall not exceed the amount of interest that would have been determined thereunder if it had been computed at the prescribed rate in effect at the time the loan was received or the debt was incurred, as the case may be.
Marginal note:Idem
(5)Where an individual has, before November 13, 1981,
(a)received a housing loan, or
(b)made arrangements in writing in respect of a home purchase loan that would, if the loan were made before 1982, have been a housing loan,
for the purpose of computing the amount of interest referred to in paragraph 80.4(1)(a) on the loan, the amount of the loan may be reduced
(c)for the 1982 taxation year, by the amount, if any, by which $40,000 exceeds the total of
(i)all amounts claimed as a reduction under this subsection for the year by the individual’s spouse or common-law partner with whom the individual resided in the year, and
(ii)all amounts claimed as a reduction under this subsection for the year by the individual on all other loans, and
(d)for the 1983 taxation year, by the amount, if any, by which $20,000 exceeds the total of
(i)all amounts claimed as a reduction under this subsection for the year by the individual’s spouse or common-law partner with whom the individual resided in the year, and
(ii)all amounts claimed as a reduction under this subsection for the year by the individual on all other loans.
Marginal note:Deemed new home purchase loans
(6)For the purposes of this section, other than paragraph 80.4(3)(a) and subsection 80.4(5), where a home purchase loan or a home relocation loan of an individual has a term for repayment exceeding five years, the balance outstanding on the loan on the date that is five years from the day the loan was received or was last deemed by this subsection to have been received shall be deemed to be a new home purchase loan received by the individual on that date.
Marginal note:Definitions
(7)In this section,
home purchase loanmeans that portion of any loan received or debt otherwise incurred by an individual in the circumstances described in subsection 80.4(1) that is used to acquire, or to repay a loan or debt that was received or incurred to acquire, a dwelling, or a share of the capital stock of a cooperative housing corporation acquired for the sole purpose of acquiring the right to inhabit a dwelling owned by the corporation, where the dwelling is for the habitation of
(a)the individual by virtue of whose office or employment the loan is received or the debt is incurred,
(b)a specified shareholder of the corporation by virtue of whose services the loan is received or the debt is incurred, or
(c)a person related to a person described in paragraph (a) or (b),
or that is used to repay a home purchase loan; (prêt consenti pour l’achat d’une maison)
prescribed rateof interest means
(a)6% per annum before 1978,
(b)8% per annum for 1978, and
(c)for any year, or part thereof, after 1978, such rate of interest as is prescribed therefor except that, for the purpose of computing the benefit under subsection 80.4(1) in a taxation year on a home purchase loan received after November 12, 1981 and before 1982, the prescribed rate of interest at the time the loan was received shall be deemed to be 16% per annum; (taux prescrit)
specified interest amount, for a year, in respect of a loan (referred to in this definition as thedeemed loan) deemed to have been made under subsection 15(2.17) by anultimate funder(as defined in subsection 15(2.192)), means the amount determined by the formula
A × (B/C)
where
Marginal note:Meaning of connected
(8)For the purposes of subsection (2), a person or partnership is connected with a shareholder of a corporation if that person or partnership does not deal at arm’s length with, or is affiliated with, the shareholder, unless, in the case of a person, that person is
(a)a foreign affiliate of the corporation; or
(b)a foreign affiliate of a person resident in Canada with which the corporation does not deal at arm’s length.
Marginal note:Deemed interest
80.5Where a benefit is deemed by section 80.4 to have been received in a taxation year by
(a)an individual or corporation under subsection 80.4(1), or
(b)a person or partnership under subsection 80.4(2),
the amount of the benefit shall, for the purposes of subparagraph 8(1)(j)(i) and paragraph 20(1)(c), be deemed to be interest paid in, and payable in respect of, the year by the debtor pursuant to a legal obligation to pay interest on borrowed money.
Marginal note:Synthetic disposition
80.6(1)If a synthetic disposition arrangement is entered into in respect of a property owned by a taxpayer and the synthetic disposition period of the arrangement is one year or more, the taxpayer is deemed
(a)to have disposed of the property immediately before the beginning of the synthetic disposition period for proceeds equal to its fair market value at the beginning of the synthetic disposition period; and
(b)to have reacquired the property at the beginning of the synthetic disposition period at a cost equal to that fair market value.
Marginal note:Exception
(2)Subsection (1) does not apply in respect of a property owned by a taxpayer if
(a)the disposition referred to in subsection (1) would not result in the realization of a capital gain or income;
(b)the property is a mark-to-market property (as defined in subsection 142.2(1)) of the taxpayer;
(c)the synthetic disposition arrangement referred to in subsection (1) is a lease of tangible property or, for civil law, corporeal property;
(d)the arrangement is an exchange of property to which subsection 51(1) applies; or
(e)the property is disposed of as part of the arrangement, within one year after the day on which the synthetic disposition period of the arrangement begins.
Marginal note:Amounts not included in income
81(1)There shall not be included in computing the income of a taxpayer for a taxation year,
Marginal note:Statutory exemptions
(a)an amount that is declared to be exempt from income tax by any other enactment of Parliament, other than an amount received or receivable by an individual that is exempt by virtue of a provision contained in a tax convention or agreement with another country that has the force of law in Canada;
Marginal note:War Savings Certificate
(b)an amount received under a War Savings Certificate issued by His Majesty in right of Canada or under a similar savings certificate issued by His Majesty in right of Newfoundland before April 1, 1949;
Marginal note:Ship or aircraft of non-residents
(c)the income for the year of a non-resident person earned in Canada from international shipping or from the operation of aircraft in international traffic, if the country in which the person is resident grants substantially similar relief for the year to persons resident in Canada;
Marginal note:Service pension, allowance or compensation
(d)a pension payment, an allowance or compensation that is received under or is subject to thePension Act,theCivilian War-related Benefits Actor theWar Veterans Allowance Act, an amount received under the Gallantry Awards Order or compensation received under the regulations made under section 9 of theAeronautics Act;
Marginal note:Canadian Forces members and veterans amounts
(d.1)the total of all amounts received by the taxpayer in the year on account of
(i)a Canadian Forces income support benefit payable to the taxpayer under Part 2 of theVeterans Well-being Act,
(ii)pain and suffering compensation, additional pain and suffering compensation or a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under Part 3 of theVeterans Well-being Act,
(iii)a caregiver recognition benefit payable to the taxpayer under Part 3.1 of theVeterans Well-being Act, or
(iv)an amount payable to the taxpayer under subsection 132(1) of theVeterans Well-being Act;
Marginal note:War pensions
(e)a pension payment received on account of disability or death arising out of a war from a country that was an ally of Canada at the time of the war, if that country grants substantially similar relief for the year to a person receiving a pension referred to in paragraph 81(1)(d);
Marginal note:Halifax disaster pensions, grants or allowances
(f)a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed byAn Act respecting the Halifax Relief Commission, chapter 24 of the Statutes of Canada, 1918, or received pursuant to theHalifax Relief Commission Pension Continuation Act, chapter 88 of the Statutes of Canada, 1974-75-76;
Marginal note:Compensation by Federal Republic of Germany
(g)a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where no tax is payable in respect of that payment under a law of the Federal Republic of Germany that imposes an income tax;
Marginal note:Income from personal injury award property
(g.1)the income for the year from any property acquired by or on behalf of a person as an award of, or pursuant to an action for, damages in respect of physical or mental injury to that person, or from any property substituted therefor and any taxable capital gain for the year from the disposition of any such property,
(i)where the income was income from the property, if the income was earned in respect of a period before the end of the taxation year in which the person attained the age of 21 years, and
(ii)in any other case, if the person was less than 21 years of age during any part of the year;
Marginal note:Income from income exempt under para. (g.1)
(g.2)any income for the year from any income that is by virtue of this paragraph or paragraph 81(1)(g.1) not required to be included in computing the taxpayer’s income (other than any income attributable to any period after the end of the taxation year in which the person on whose behalf the income was earned attained the age of 21 years);
Marginal note:Certain government funded trusts
(g.3)the amount that, but for this paragraph, would be the income of the taxpayer for the year if
(i)the taxpayer is the trust established under
(A)the 1986-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada and Her Majesty in right of each of the provinces,
(B)the Pre-1986/Post-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada,
(C)the Indian Residential Schools Settlement Agreement entered into by Her Majesty in right of Canada on May 8, 2006, or
(D)the Settlement Agreement entered into by Her Majesty in Right of Canada on September 15, 2021 in respect of the class action relating to long-term drinking water quality for impacted First Nations, and
(ii)the only contributions made to the taxpayer before the end of the year are those provided for under the relevant Agreement described in subparagraph (i);
Marginal note:Relief for increased heating expenses
(g.4)an amount received pursuant to the Order Authorizing Ex Gratia Payments for Increased Heating Expenses;
Marginal note:Energy cost relief
(g.5)an amount received pursuant to Part 1 of theEnergy Costs Assistance Measures Act;
Marginal note:Ontario Electricity Support Program
(g.6)an amount of rate assistance received under section 79.2 of theOntario Energy Board Act, 1998, S.O. 1998, c. 15, Sch B, as amended from time to time;
Marginal note:Social assistance
(h)where the taxpayer is an individual (other than a trust), a social assistance payment (other than a prescribed payment) ordinarily made on the basis of a means, needs or income test under a program provided for by an Act of Parliament, a law of a province or a law of anIndigenous governing body(as defined in section 2 of theChildren’s Special Allowances Act), to the extent that it is received directly or indirectly by the taxpayer for the benefit of another individual (other than the taxpayer’s spouse or common-law partner or a person who is related to the taxpayer or to the taxpayer’s spouse or common-law partner), if
(i)no family allowance under theFamily Allowances Actor any similar allowance under a law of a province that provides for payment of an allowance similar to the family allowance provided under that Act is payable in respect of the other individual for the period in respect of which the social assistance payment is made, and
(ii)the other individual resides in the taxpayer’s principal place of residence, or the taxpayer’s principal place of residence is maintained for use as the residence of that other individual, throughout the period referred to in subparagraph 81(1)(h)(i);
Marginal note:Social assistance for informal care programs
(h.1)if the taxpayer is an individual (other than a trust), a social assistance payment ordinarily made on the basis of a means, needs or income test provided for under a program of the Government of Canada, the government of a province or of anIndigenous governing body(as defined in section 2 of theChildren’s Special Allowances Act), to the extent that it is received directly or indirectly by the taxpayer for the benefit of a particular individual, if
(i)payments to recipients under the program are made for the care and upbringing, on a temporary basis, of another individual in need of protection,
(ii)the particular individual is a child of the taxpayer because of paragraph 252(1)(b) (or would be a child of the taxpayer because of that paragraph if the taxpayer did not receive payments under the program), and
(iii)no special allowance under theChildren’s Special Allowances Actis payable in respect of the particular individual for the period in respect of which the social assistance payment is made;
Marginal note:R.C.M.P. pension or compensation
(i)a pension payment or compensation received under section 5, 31 or 45 of theRoyal Canadian Mounted Police Pension Continuation Act, chapter R-10 of the Revised Statutes of Canada, 1970, or section 32 or 33 of theRoyal Canadian Mounted Police Superannuation Act, in respect of an injury, disability or death;
Marginal note:Memorial grant
(j)an amount received under the Memorial Grant Program for First Responders established under the authority of theDepartment of Public Safety and Emergency Preparedness Actin respect of individuals who die in the course of, or as a result of, their duties or as a result of an occupational illness or psychological impairment;
Marginal note:Employees profit sharing plan
(k)a payment or part of a payment from an employees profit sharing plan that section 144 provides is not to be included;
Marginal note:Prospecting
(l)an amount in respect of the receipt of a share that section 35 provides is not to be included;
Marginal note:Interest on certain obligations
(m)interest that accrued to, became receivable or was received by, a corporation resident in Canada (in this paragraph referred to as the “parent corporation”) on a bond, debenture, bill, note, mortgage or similar obligation received by it as consideration for the disposition by it, before June 18, 1971, of
(i)a business carried on by it in a country other than Canada, or
(ii)all of the shares of a corporation that carried on a business in a country other than Canada, and such of the debts and other obligations of that corporation as were, immediately before the disposition, owing to the parent corporation,
if
(iii)the business was of a public utility or public service nature,
(iv)the business or the property described in subparagraph 81(1)(m)(ii), as the case may be, was disposed of to a person or persons resident in that country, and
(v)the obligation received by the parent corporation was issued by or guaranteed by the government of that country or any agent thereof;
Marginal note:Governor General
(n)income from the office of Governor General of Canada, other than salary under theGovernor General’s Act;
(o) and (p)[Repealed, 1998, c. 19, s. 14(1)]
Marginal note:Provincial indemnities
(q)an amount paid to an individual as an indemnity under a prescribed provision of the law of a province;
Marginal note:Foreign retirement arrangements
(r)an amount that is credited or added to a deposit or account governed by a foreign retirement arrangement as interest or other income in respect of the deposit or account, where the amount would, but for this paragraph, be included in the taxpayer’s income solely because of that crediting or adding;
Marginal note:Salary deferral leave plans
(s)an amount paid to the taxpayer in the year under an arrangement described in paragraph 6801(a) of theIncome Tax Regulationsto the extent that the amount may reasonably be considered to be attributable to amounts that
(i)were included in the taxpayer’s income for a preceding taxation year and were income, interest or other additional amounts, described in subparagraph 6801(a)(iv) of theIncome Tax Regulations, and
(ii)were re-contributed by the taxpayer under the arrangement in a preceding taxation year; or
Marginal note:Dental benefits
(t)an amount received under theDental Benefit Act.
(2) and (3)[Repealed, 2017, c. 20, s. 6]
Marginal note:Travel expenses
(3.1)There shall not be included in computing an individual’s income for a taxation year an amount (not in excess of a reasonable amount) received by the individual from an employer with whom the individual was dealing at arm’s length as an allowance for, or reimbursement of, travel expenses incurred by the individual in the year in respect of the individual’s part-time employment in the year with the employer (other than expenses incurred in the performance of the duties of the individual’s part-time employment) if
(a)throughout the period in which the expenses were incurred,
(i)the individual had other employment or was carrying on a business, or
(ii)where the employer is a designated educational institution (within the meaning assigned by subsection 118.6(1)), the duties of the individual’s part-time employment were the provision in Canada of a service to the employer in the individual’s capacity as a professor or teacher; and
(b)the duties of the individual’s part-time employment were performed at a location not less than 80 kilometres from,
(i)where subparagraph (a)(i) applies, both the individual’s ordinary place of residence and the place of the other employment or business referred to in that subparagraph, and
(ii)where subparagraph (a)(ii) applies, the individual’s ordinary place of residence.
Marginal note:Payments for volunteer services
(4)Where
(a)an individual was employed or otherwise engaged in a taxation year by a government, municipality or public authority (in this subsection referred to as “the employer”) and received in the year from the employer one or more amounts for the performance, as a volunteer, of the individual’s duties as
(i)an ambulance technician,
(ii)a firefighter, or
(iii)a person who assists in the search or rescue of individuals or in other emergency situations, and
(b)if the Minister so demands, the employer has certified in writing that
(i)the individual was in the year a person described in paragraph (a), and
(ii)the individual was at no time in the year employed or otherwise engaged by the employer, otherwise than as a volunteer, in connection with the performance of any of the duties referred to in paragraph (a) or of similar duties,
there shall not be included in computing the individual’s income derived from the performance of those duties the lesser of $1,000 and the total of those amounts, unless the individual makes a claim under section 118.06 or 118.07 for the year.
Marginal note:Election
(5)Where a taxpayer or a person described in paragraph 81(1)(g.1) has acquired capital property under the circumstances described in that paragraph, the taxpayer or the person may, in the return of income of the taxpayer for the taxation year in which the taxpayer attains the age of 21 years, elect to treat any such capital property held by the taxpayer or person as having been disposed of on the day immediately preceding the day on which the taxpayer attained the age of 21 years for proceeds of disposition equal to the fair market value of the property on that day and the person or taxpayer making the election shall be deemed to have reacquired that property immediately thereafter at a cost equal to those proceeds.
Marginal note:Taxable dividends received
82(1)In computing the income of a taxpayer for a taxation year, there shall be included the total of the following amounts:
(a)the amount, if any, by which
(i)the total of all amounts, other than eligible dividends and amounts described in paragraph (c), (d) or (e), received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends,
exceeds
(ii)if the taxpayer is an individual, the total of all amounts each of which is, or is deemed by paragraph 260(12)(b) to have been, paid by the taxpayer in the taxation year and deemed by subsection 260(5.1) to have been received by another person as a taxable dividend (other than an eligible dividend);
(a.1)the amount, if any, by which
(i)the total of all amounts, other than amounts included in computing the income of the taxpayer because of paragraph (c), (d) or (e), received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends,
exceeds
(ii)if the taxpayer is an individual, the total of all amounts each of which is, or is deemed by paragraph 260(12)(b) to have been, paid by the taxpayer in the taxation year and deemed by subsection 260(5.1) to have been received by another person as an eligible dividend;
(b)if the taxpayer is an individual, other than a trust that is a registered charity, the total of
(i)the product of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year multiplied by
(A)for the 2018 taxation year, 16%, and
(B)for taxation years after 2018, 15%, and
(ii)the product of the amount determined under paragraph (a.1) in respect of the taxpayer for the taxation year multiplied by
(A)for taxation years that end after 2005 and before 2010, 45%,
(B)for the 2010 taxation year, 44%,
(C)for the 2011 taxation year, 41%, and
(D)for taxation years that end after 2011, 38%;
(c)all taxable dividends received by the taxpayer in the taxation year, from corporations resident in Canada, under dividend rental arrangements of the taxpayer;
(d)all taxable dividends (other than taxable dividends described in paragraph (c)) received by the taxpayer in the taxation year from corporations resident in Canada that are not taxable Canadian corporations; and
(e)if the taxpayer is a trust, all amounts each of which is all or part of a taxable dividend (other than a taxable dividend described in paragraph (c) or (d)) that was received by the trust in the taxation year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was non-resident at the end of the taxation year.
Marginal note:Limitation as to paragraph (1)(c)
(1.1)An amount shall be included in the amounts described in paragraph (1)(c) in respect of a taxable dividend received at any time as part of a dividend rental arrangement only if that dividend was received on a share acquired before that time and after April, 1989.
Marginal note:Certain dividends received by taxpayer
(2)Where by reason of subsection 56(4) or 56(4.1) or sections 74.1 to 75 of this Act or section 74 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, there is included in computing a taxpayer’s income for a taxation year a dividend received by another person, for the purposes of this Act, the dividend shall be deemed to have been received by the taxpayer.
Marginal note:Dividends received by spouse or common-law partner
(3)Where the amount that would, but for this subsection, be deductible under subsection 118(1) by reason of paragraph 118(1)(a) in computing a taxpayer’s tax payable under this Part for a taxation year that is less than the amount that would be so deductible if no amount were required by subsection (1) to be included in computing the income for the year of the taxpayer’s spouse or common-law partner and the taxpayer so elects in the taxpayer’s return of income for the year under this Part, all amounts described in paragraph (1)(a) or (a.1) received in the year from taxable Canadian corporations by the taxpayer’s spouse or common-law partner are deemed to have been so received by that taxpayer and not by the spouse or common-law partner.
Marginal note:Qualifying dividends
83(1)Where a qualifying dividend has been paid by a public corporation to shareholders of a series of tax-deferred preferred shares of a class of the capital stock of the corporation that were outstanding on March 31, 1977, the following rules apply:
(a)no part of the qualifying dividend shall be included in computing the income of any shareholder of the corporation by virtue of this Subdivision; and
(b)in computing the adjusted cost base to any shareholder of the corporation of any tax-deferred preferred share of the corporation owned by the shareholder, there shall be deducted in respect of the qualifying dividend an amount as provided by subparagraph 53(2)(a)(i).
Marginal note:Capital dividend
(2)Where at any particular time after 1971 a dividend becomes payable by a private corporation to shareholders of any class of shares of its capital stock and the corporation so elects in respect of the full amount of the dividend, in prescribed manner and prescribed form and at or before the particular time or the first day on which any part of the dividend was paid if that day is earlier than the particular time, the following rules apply:
(a)the dividend shall be deemed to be a capital dividend to the extent of the corporation’s capital dividend account immediately before the particular time; and
(b)no part of the dividend shall be included in computing the income of any shareholder of the corporation.
Marginal note:Idem
(2.1)Notwithstanding subsection 83(2), where a dividend that, but for this subsection, would be a capital dividend is paid on a share of the capital stock of a corporation and the share (or another share for which the share was substituted) was acquired by its holder in a transaction or as part of a series of transactions one of the main purposes of which was to receive the dividend,
(a)the dividend shall, for the purposes of this Act (other than for the purposes of Part III and computing the capital dividend account of the corporation), be deemed to be received by the shareholder and paid by the corporation as a taxable dividend and not as a capital dividend; and
(b)paragraph 83(2)(b) does not apply in respect of the dividend.
Marginal note:Where s. (2.1) does not apply
(2.2)Subsection 83(2.1) does not apply in respect of a particular dividend, in respect of which an election is made under subsection 83(2), paid on a share of the capital stock of a particular corporation to an individual where it is reasonable to consider that all or substantially all of the capital dividend account of the particular corporation immediately before the particular dividend became payable consisted of amounts other than any amount
(a)added to that capital dividend account under paragraph (b) of the definitioncapital dividend accountin subsection 89(1) in respect of a dividend received on a share of the capital stock of another corporation, which share (or another share for which the share was substituted) was acquired by the particular corporation in a transaction or as part of a series of transactions one of the main purposes of which was that the particular corporation receive the dividend, but not in respect of a dividend where it is reasonable to consider that the purpose of paying the dividend was to distribute an amount that was received by the other corporation and included in computing the other corporation’s capital dividend account by reason of paragraph (d) of that definition;
(b)added to that capital dividend account under paragraph 87(2)(z.1) as a result of an amalgamation or winding-up or a series of transactions including the amalgamation or winding-up that would not have been so added had the amalgamation or winding-up occurred or the series of transactions been commenced after 4:00 p.m