For this purpose, an entity that has no residence for tax purposes is deemed to be resident in the jurisdiction in which its place of effective management is situated. (personne d’une juridiction soumise à déclaration)
reportable personmeans a reportable jurisdiction person other than
(a)a corporation the stock of which is regularly traded on one or more established securities markets;
(b)any corporation that is a related entity of a corporation described in paragraph (a);
(c)a governmental entity;
(d)an international organization;
(e)a central bank; or
(f)a financial institution. (personne devant faire l’objet d’une déclaration)
reporting financial institutionmeans a Canadian financial institution that is not a non-reporting financial institution. (institution financière déclarante)
specified insurance companymeans any entity that is an insurance company (or the holding company of an insurance company) that issues, or is obligated to make payments with respect to, cash value insurance contracts or annuity contracts. (compagnie d’assurance particulière)
TINmeans
(a)the number used by the Minister to identify an individual or entity, including
(i)a social insurance number,
(ii)a business number, and
(iii)an account number issued to a trust; and
(b)in respect of a jurisdiction other than Canada, a taxpayer identification number used in that jurisdiction to identify an individual or entity (or a functional equivalent in the absence of a taxpayer identification number). (NIF)
USDmeans dollars of the United States of America. (USD)
Marginal note:Interpretation
(2)This Part relates to the implementation of theCommon Reporting Standardset out in theStandard for Automatic Exchange of Financial Account Information in Tax Mattersapproved by the Council of the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, the provisions in this Part are to be interpreted consistently with theCommon Reporting Standard, as amended from time to time.
Marginal note:Interpretation — investment entity
(3)For the purposes of the definitioninvestment entityin subsection (1), an entity is considered to be primarily carrying on as a business one or more of the activities described in paragraph (a) of that definition, or an entity’s gross income is primarily attributable to investing, reinvesting or trading in financial assets for the purposes of paragraph (b) of that definition, if the entity’s gross income attributable to the relevant activities equals or exceeds 50% of the entity’s gross income during the shorter of
(a)the three-year period that ends at the end of the entity’s last fiscal period, and
(b)the period during which the entity has been in existence.
Marginal note:Equity or debt interest – deeming rule
(4)In the case of a trust that is a financial institution,
(a)an equity interest is deemed to be held by any person treated as a settlor or beneficiary of all or a portion of the trust or any other natural person exercising ultimate effective control over the trust, and
(b)a reportable person is treated as a beneficiary of a trust if the reportable person has the right to receive directly or indirectly (such as through a nominee) a mandatory distribution from the trust or may receive, directly or indirectly, a discretionary distribution from the trust.
Marginal note:General reporting requirements
271(1)Subject to subsections (3) and (4), each reporting financial institution must report the following information to the Minister with respect to each of its reportable accounts:
(a)the name, address, jurisdiction of residence, TIN and date of birth (in the case of a natural person) of each reportable person that is an account holder of the account;
(b)in the case of any entity that is an account holder of the account and that, after applying the due diligence procedures in sections 275 to 277, is identified as having one or more controlling persons that is a reportable person,
(i)the name, address, jurisdiction of residence and TIN of the entity, and
(ii)the name, address, jurisdiction of residence, TIN and date of birth of each of those controlling persons;
(c)the account number (or functional equivalent in the absence of an account number) of the account;
(d)the name and identifying number (if any) of the reporting financial institution;
(e)the account balance or value (including, in the case of a cash value insurance contract or annuity contract, the cash value or surrender value)
(i)at the end of the relevant calendar year or other appropriate reporting period, or
(ii)if the account was closed during the relevant calendar year or period, on closure of the account;
(f)in the case of any custodial account,
(i)the total gross amount of interest, the total gross amount of dividends and the total gross amount of other income generated with respect to the assets held in the account, in each case paid or credited to the account (or with respect to the account) during the calendar year or other appropriate reporting period, and
(ii)the total gross proceeds from the sale or redemption of financial assets paid or credited to the account during the calendar year or other appropriate reporting period with respect to which the reporting financial institution acted as a custodian, broker, nominee or otherwise as an agent for the account holder;
(g)in the case of any depository account, the total gross amount of interest paid or credited to the account during the calendar year or other appropriate reporting period; and
(h)in the case of any account not described in paragraph (f) or (g), the total gross amount paid or credited to the account holder with respect to the account during the calendar year or other appropriate reporting period with respect to which the reporting financial institution is the obligor or debtor, including the aggregate amount of any redemption payments made to the account holder during the calendar year or other appropriate reporting period.
Marginal note:Currrency
(2)The information reported must identify the currency in which each amount is denominated.
Marginal note:TIN and date of birth
(3)With respect to each reportable account that is a preexisting account,
(a)notwithstanding paragraphs (1)(a) and (b), the TIN or date of birth are not required to be reported if the TIN or the date of birth (as appropriate)
(i)are not in the records of the reporting financial institution, and
(ii)are not otherwise required to be collected by the reporting financial institution under the Act; and
(b)a reporting financial institution is required to use reasonable efforts to obtain the TIN and the date of birth with respect to a preexisting account by the end of the second calendar year following the year in which the preexisting account is identified as a reportable account.
Marginal note:Exceptions
(4)Notwithstanding paragraphs (1)(a) and (b), a TIN of a reportable person is not required to be reported if
(a)the relevant reportable jurisdiction does not issue TINs; or
(b)the domestic law of the relevant reportable jurisdiction does not require the collection of the TIN issued by such reportable jurisdiction.
Marginal note:General due diligence rules
272(1)An account is treated as a reportable account as of the date it is identified as a reportable account under the due diligence procedures set out in this section and in sections 273 to 277.
Marginal note:Timing — determination of balance or value
(2)The balance or value of an account is determined on the last day of the calendar year or other appropriate reporting period.
Marginal note:Determination — balance or value
(3)For the purpose of determining whether the balance or value of an account exceeds a particular threshold on the last day of a calendar year, the balance or value must be determined on the last day of the last reporting period that ends on or before the end of the calendar year.
Marginal note:Service provider
(4)A reporting financial institution may use service providers to fulfil its reporting and due diligence obligations imposed, but these obligations shall remain the responsibility of the reporting financial institution.
Marginal note:Optional due diligence procedures
(5)A reporting financial institution may, either with respect to all preexisting accounts or, separately, with respect to any clearly identified group of those accounts, apply the due diligence procedures
(a)for new accounts to preexisting accounts (with the other rules for preexisting accounts continuing to apply); and
(b)for high value accounts to lower value accounts.
Marginal note:Documentation of due diligence procedures
(6)Every reporting financial institution shall establish, maintain and document the due diligence procedures set out in this section and sections 273 to 277.
Marginal note:Due diligence for preexisting individual accounts
273(1)A preexisting individual account that is a cash value insurance contract or an annuity contract is not required to be reviewed, identified or reported, if the reporting financial institution is effectively prevented by law from selling those contracts to residents of a reportable jurisdiction.
Marginal note:Lower value accounts
(2)The following review procedures apply with respect to lower value accounts that are preexisting individual accounts:
(a)if the reporting financial institution has in its records the address of the individual account holder’s current residence (in this section, theircurrent residence address) based on documentary evidence, the reporting financial institution may treat the individual account holder as being a resident for tax purposes of the jurisdiction in which the address is located for purposes of determining whether the individual account holder is a reportable person;
(b)if the reporting financial institution does not rely on a current residence address for the individual account holder based on documentary evidence as described in paragraph (a), the reporting financial institution must review electronically searchable data maintained by the reporting financial institution for any of the following indicia and apply paragraphs (c) to (f):
(i)identification of the account holder as a resident of a reportable jurisdiction,
(ii)current mailing or residence address (including post office box) in a reportable jurisdiction,
(iii)one or more telephone numbers in a reportable jurisdiction and no telephone number in the jurisdiction of the reporting financial institution,
(iv)standing instructions (other than with respect to a depository account) to transfer funds to an account maintained in a reportable jurisdiction,
(v)currently effective power of attorney or signatory authority granted to a person with an address in a reportable jurisdiction, and
(vi)a hold mail instruction or in-care-of address in a reportable jurisdiction if the reporting financial institution does not have any other address on file for the account holder;
(c)if none of the indicia listed in paragraph (b) are discovered in the electronic search, then no further review is required until the earlier of
(i)a change in circumstances that results in one or more of the indicia referred to in paragraph (b) being associated with the account, and
(ii)the account becoming a high value account;
(d)if any of the indicia listed in subparagraphs (b)(i) to (v) are discovered in the electronic search or if there is a change in circumstances that results in one or more of the indicia in paragraph (b) being associated with the account, then the reporting financial institution must treat the account holder as a resident for tax purposes of each reportable jurisdiction for which an indicium is identified, unless one of the exceptions in paragraph (f) applies with respect to that account;
(e)if a hold mail instruction or in-care-of address in a reportable jurisdiction is discovered in the electronic search and no other address and none of the other indicia listed in subparagraphs (b)(i) to (v) are identified for the account holder, then
(i)the reporting financial institution must do one (if the relevant information is obtained) or both (in the order most appropriate to the circumstances) of the following:
(A)apply the paper record search described in paragraph (3)(b), and
(B)seek to obtain from the account holder a self-certification or documentary evidence to establish the residence for tax purposes of the account holder, and
(ii)if the paper record search referred to in clause (i)(A) fails to establish an indicium and the attempt to obtain the self-certification or documentary evidence referred to in clause (i)(B) is not successful, then the reporting financial institution must report the account as an undocumented account; and
(f)notwithstanding the discovery of indicia under paragraph (b), a reporting financial institution is not required to treat an account holder as a resident of a reportable jurisdiction if
(i)both
(A)the account holder information contains
(I)a current mailing or residence address in the reportable jurisdiction,
(II)one or more telephone numbers in the reportable jurisdiction (and no telephone number in the jurisdiction of the reporting financial institution), or
(III)standing instructions (with respect to financial accounts other than depository accounts) to transfer funds to an account maintained in a reportable jurisdiction, and
(B)the reporting financial institution obtains, or has previously reviewed and currently maintains a record of,
(I)a self-certification from the account holder of the jurisdictions of residence of the account holder that does not include the reportable jurisdiction, and
(II)documentary evidence establishing the account holder’s non-reportable status in relation to that jurisdiction, or
(ii)both
(A)the account holder information contains a currently effective power of attorney or signatory authority granted to a person with an address in the reportable jurisdiction, and
(B)the reporting financial institution obtains, or has previously reviewed and currently maintains a record of,
(I)a self-certification from the account holder of the jurisdictions of residence of the account holder that does not include the reportable jurisdiction, or
(II)documentary evidence establishing the account holder’s non-reportable status in relation to that jurisdiction.
Marginal note:Enhanced review procedure – high value accounts
(3)The following enhanced review procedures apply with respect to high value accounts that are preexisting individual accounts:
(a)the reporting financial institution must review electronically searchable data maintained by the reporting financial institution for any of the indicia described in paragraph (2)(b);
(b)subject to paragraph (c), the reporting financial institution must review for any of the indicia described in paragraph (2)(b)
(i)the current customer master file, and
(ii)the following documents associated with the account, and obtained by the reporting financial institution within the last five years, to the extent that they are not contained in the current customer master file:
(A)the most recent documentary evidence collected with respect to the account,
(B)the most recent account opening contract or documentation,
(C)the most recent documentation obtained by the reporting financial institution in accordance with AML/KYC procedures or for other regulatory purposes,
(D)any power of attorney or signature authority forms currently in effect, and
(E)any standing instructions (other than with respect to a depository account) to transfer funds currently in effect;
(c)a reporting financial institution is not required to perform the paper record search described in paragraph (b) to the extent that the reporting financial institution’s electronically searchable information includes the following:
(i)the account holder’s residence status,
(ii)the account holder’s residence address and mailing address currently on file with the reporting financial institution,
(iii)the account holder’s telephone number currently on file, if any, with the reporting financial institution,
(iv)in the case of financial accounts other than depository accounts, whether there are standing instructions to transfer funds in the account to another account (including an account at another branch of the reporting financial institution or at another financial institution),
(v)whether there is a hold mail instruction or current in-care-of address for the account holder, and
(vi)whether there is any power of attorney or signatory authority for the account;
(d)in addition to the electronic and paper record searches described in paragraphs (a) to (c), the reporting financial institution must treat as a reportable account any high value account assigned to a relationship manager (including any financial accounts aggregated with that high value account under section 277) if the relationship manager has actual knowledge that the account holder is a reportable person;
(e)with respect to the enhanced review of high value accounts described in paragraphs (a) to (d),
(i)if none of the indicia listed in paragraph (2)(b) are discovered in the enhanced review and the account is not identified as being held by a reportable person in paragraph (d), then further action is not required until there is a change in circumstances that results in one or more indicia being associated with the account,
(ii)if any of the indicia listed in subparagraphs (2)(b)(i) through (v) are discovered in the enhanced review, or if there is a subsequent change in circumstances that results in one or more indicia being associated with the account, then the reporting financial institution must treat the account as a reportable account with respect to each reportable jurisdiction for which an indicium is identified unless one of the exceptions in paragraph (2)(f) applies with respect to that account, and
(iii)if a hold mail instruction or in-care-of address is discovered in the enhanced review and no other address or other indicia listed in subparagraphs (2)(b)(i) to (v) are identified for the account holder, then the reporting financial institution must
(A)obtain from the account holder a self-certification or documentary evidence to establish the residence for tax purposes of the account holder, and
(B)if the reporting financial institution cannot obtain a self-certification or documentary evidence, report the account as an undocumented account;
(f)if a preexisting individual account is not a high value account on June 30, 2017, but becomes a high value account as of the last day of a subsequent calendar year,
(i)the reporting financial institution must complete the enhanced review procedures described in this subsection with respect to the account within the calendar year following the year in which the account becomes a high value account, and
(ii)if the account is identified as a reportable account based on the review in subparagraph (i), the reporting financial institution must report the required information about the account with respect to the year in which it is identified as a reportable account (and subsequent years on an annual basis, unless the account holder ceases to be a reportable person);
(g)if a reporting financial institution applies the enhanced review procedures described in this subsection to a high value account in a year, then the reporting financial institution is not required to reapply those procedures – other than the relationship manager inquiry described in paragraph (d) – to the same high value account in any subsequent year unless the account is undocumented, in which case the reporting financial institution must re-apply them annually until the account ceases to be undocumented;
(h)if there is a change of circumstances with respect to a high value account that results in one or more indicia described in paragraph (2)(b) being associated with the account, then the reporting financial institution must treat the account as a reportable account with respect to each reportable jurisdiction for which an indicium is identified unless one of the exceptions in paragraph (2)(f) applies with respect to that account; and
(i)a reporting financial institution must implement procedures to ensure that a relationship manager identifies any change in circumstances of an account.
Marginal note:Timing of review
(4)Each preexisting individual account must be reviewed in accordance with subsection (2) or (3) before
(a)2019, if the account is a high value account; or
(b)2020, if the account is a lower value account.
Marginal note:Reportable preexisting individual accounts
(5)Any preexisting individual account that has been identified as a reportable account under this section must be treated as a reportable account in all subsequent years, unless the account holder ceases to be a reportable person.
Marginal note:Due diligence – new individual accounts
274(1)Upon opening a new individual account, the reporting financial institution must obtain a self-certification (which may be a part of the account opening documentation) that allows the reporting financial institution to
(a)determine the account holder’s residence for tax purposes; and
(b)confirm the reasonableness of the self-certification taking into account information obtained by the reporting financial institution in connection with the opening of the account, including any documentation collected in accordance with the AML/KYC procedures.
Marginal note:Determination of reportable account
(2)If the self-certification for a new individual account establishes that the account holder is resident for tax purposes in a reportable jurisdiction, then
(a)the reporting financial institution must treat the account as a reportable account; and
(b)the self-certification must also include the account holder’s TIN with respect to the reportable jurisdiction (subject to subsection 271(4)) and the account holder’s date of birth.
Marginal note:Requirement to obtain new self-certification
(3)If there is a change in circumstances with respect to a new individual account that causes the reporting financial institution to know, or have reason to know, that the original self-certification is incorrect or unreliable, then the reporting financial institution
(a)cannot rely on the original self-certification; and
(b)must obtain a valid self-certification that establishes the residence for tax purposes of the account holder.
Marginal note:Due diligence – preexisting entity accounts
275(1)Unless the reporting financial institution elects otherwise — either with respect to all preexisting entity accounts or, separately, with respect to any clearly identified group of those accounts — a preexisting entity account with an aggregate account balance or value that does not exceed 250,000 USD on June 30, 2017 is not required to be reviewed, identified or reported as a reportable account until the aggregate account balance or value exceeds 250,000 USD on the last day of any subsequent calendar year.
Marginal note:Application of subsection (4)
(2)The review procedures set forth in subsection (4) apply to a preexisting entity account if it has an aggregate account balance or value that exceeds 250,000 USD on
(a)June 30, 2017; or
(b)the last day of any subsequent calendar year.
Marginal note:Determination of reportable accounts
(3)With respect to preexisting entity accounts described in subsection (2), the only accounts that shall be treated as reportable accounts are accounts that are held by
(a)one or more entities that are reportable persons; or
(b)passive NFEs with one or more controlling persons who are reportable persons.
Marginal note:Review procedures — preexisting entity account
(4)If this subsection applies to a preexisting entity account, a reporting financial institution must apply the following review procedures to determine whether the account is held by one or more reportable persons or by passive NFEs with one or more controlling persons who are reportable persons:
(a)review information maintained for regulatory or customer relationship purposes (including information collected in accordance with AML/KYC procedures) to determine whether the information indicates that the account holder is resident in a reportable jurisdiction and, if so, the reporting financial institution must treat the account as a reportable account unless it
(i)obtains a self-certification from the account holder to establish that the account holder is not a reportable person, or
(ii)reasonably determines, based on information in its possession or that is publicly available, that the account holder is not a reportable person; and
(b)with respect to an account holder of a preexisting account (including an entity that is a reportable person), the reporting financial institution must determine whether the account holder is a passive NFE with one or more controlling persons who are reportable persons and for the purposes of
(i)determining whether the account holder is a passive NFE, the reporting financial institution must obtain a self-certification from the account holder to establish its status, unless it has information in its possession or information is publicly available, based on which it can reasonably determine that the account holder is
(A)an active NFE, or
(B)a financial institution other than an entity described in paragraph (b) of the definitioninvestment entitythat is not a participating jurisdiction financial institution,
(ii)determining the controlling persons of an account holder, a reporting financial institution may rely on information collected and maintained in accordance with AML/KYC procedures, and
(iii)determining whether a controlling person of a passive NFE is a reportable person, a reporting financial institution may rely on
(A)information collected and maintained in accordance with AML/KYC procedures in the case of a preexisting entity account held by one or more NFEs with an aggregate account balance or value that does not exceed 1 million USD, or
(B)a self-certification from the account holder or the controlling person indicating the jurisdiction in which the controlling person is resident for tax purposes.
Marginal note:Timing of review
(5)Each preexisting entity account must be reviewed in accordance with subsection (4) before
(a)2020, if the account has an aggregate account balance or value that exceeds 250,000 USD on June 30, 2017; or
(b)the end of the calendar year following the year in which the aggregate account balance or value exceeds 250,000 USD on December 31, if paragraph (a) does not apply.
Marginal note:Change of circumstances
(6)If there is a change of circumstances with respect to a preexisting entity account that causes the reporting financial institution to know, or have reason to know, that the self-certification or other documentation associated with the account is incorrect or unreliable, the reporting financial institution must redetermine the status of the account in accordance with subsection (4).
Marginal note:Due diligence for new entity accounts
276For new entity accounts, a reporting financial institution must apply the following review procedures to determine whether the account is held by one or more reportable persons or by passive NFEs with one or more controlling persons who are reportable persons:
(a)the reporting financial institution must
(i)obtain a self-certification (which may be part of the account opening documentation) that allows the reporting financial institution to determine the account holder’s residence for tax purposes and confirm the reasonableness of the self-certification based on the information obtained by the reporting financial institution in connection with the opening of the account, including any documentation collected in accordance with AML/KYC procedures, and
(ii)if the self-certification referred to in subparagraph (i) indicates that the account holder is resident in a reportable jurisdiction, treat the account as a reportable account unless it reasonably determines, based on information in its possession or information that is publicly available, that the account holder is not a reportable person with respect to the reportable jurisdiction; and
(b)with respect to an account holder of a new entity account (including an entity that is a reportable person), the reporting financial institution must determine whether the account holder is a passive NFE with one or more controlling persons who are reportable persons and, if so, treat the account as a reportable account and, for the purposes of
(i)determining whether the account holder is a passive NFE, the reporting financial institution must obtain a self-certification from the account holder to establish its status, unless it has information in its possession or information is publicly available, based on which it can reasonably determine that the account holder is
(A)an active NFE, or
(B)a financial institution other than an entity that
(I)is aninvestment entitybecause of paragraph (b) of that definition, and
(II)is not a participating jurisdiction financial institution,
(ii)determining the controlling persons of an account holder, a reporting financial institution may rely on information collected and maintained in accordance with AML/KYC procedures, and
(iii)determining whether a controlling person of a passive NFE is a reportable person, a reporting financial institution may rely on a self-certification from the account holder or the controlling person.
Marginal note:Special due diligence rules
277(1)A reporting financial institution may not rely on a self-certification or documentary evidence if the reporting financial institution knows or has reason to know that the self-certification or documentary evidence is incorrect or unreliable.
Marginal note:Exception — individual beneficiary receiving death benefit
(2)A reporting financial institution may presume that an individual beneficiary (other than the owner) of a cash value insurance contract or an annuity contract receiving a death benefit is not a reportable person and may treat the financial account as other than a reportable account unless it has actual knowledge, or reason to know, that the beneficiary is a reportable person.
Marginal note:Aggregation rules
(3)For the purposes of
(a)determining the aggregate balance or value of financial accounts held by an individual or entity,
(i)a reporting financial institution is required to aggregate all financial accounts maintained by the reporting financial institution, or by a related entity, but only to the extent that the reporting financial institution’s computerized systems
(A)link the financial accounts by reference to a data element such as a client number or TIN, and
(B)allow account balances or values to be aggregated, and
(ii)each holder of a jointly held financial account shall be attributed the entire balance or value of the jointly held financial account; and
(b)determining the aggregate balance or value of financial accounts held by an individual in order to determine whether a financial account is a high value account, a reporting financial institution is also required — in the case of any financial accounts that a relationship manager knows, or has reason to know, are directly or indirectly owned, controlled or established (other than in a fiduciary capacity) by the same individual — to aggregate all such accounts.
Marginal note:Dealer accounts
(4)Subsection (5)
(a)applies to a reporting financial institution in respect of a client name account maintained by the institution if
(i)property recorded in the account is also recorded in a financial account (in this subsection and subsection (5) referred to as therelated account) maintained by a financial institution (in this subsection and subsection (5) referred to as thedealer) that is authorized under provincial legislation
(A)to engage in the business of dealing in securities or any other financial instrument, or
(B)to provide portfolio management or investment advising services, and
(ii)the dealer has advised the institution whether the related account is a reportable account; and
(b)does not apply, despite paragraph (a), if it can reasonably be concluded by the institution that the dealer has failed to comply with its obligations under this Part.
Marginal note:Dealer accounts
(5)If this subsection applies to a reporting financial institution in respect of a client name account,
(a)sections 272 to 276 do not apply to the institution in respect of the account; and
(b)the institution shall rely on the determination of the dealer in respect of the related account in determining whether the account is a reportable account.
Marginal note:Group insurance and annuities
(6)A reporting financial institution may treat a financial account that is a member’s interest in a group cash value insurance contract or group annuity contract as a financial account that is not a reportable account until the day on which an amount becomes payable to the employee, certificate holder or beneficiary, if the financial account meets the following requirements:
(a)the group cash value insurance contract or group annuity contract is issued to an employer and covers 25 or more employees or certificate holders;
(b)the employees or certificate holders are entitled to
(i)receive any contract value related to their interest, and
(ii)name beneficiaries for the benefit payable upon the employee’s or certificate holder’s death; and
(c)the aggregate amount payable to any employee or certificate holder or beneficiary does not exceed 1 million USD.
Marginal note:Reporting
278(1)Every reporting financial institution shall file with the Minister, before May 2 of each calendar year, an information return in prescribed form relating to each reportable account maintained by the institution at any time during the immediately preceding calendar year and after June 30, 2017.
Marginal note:Electronic filing
(2)The information return required under subsection (1) shall be filed by way of electronic filing.
Marginal note:Record keeping
279(1)Every reporting financial institution shall keep, at the institution’s place of business or at such other place as may be designated by the Minister, records that the institution obtains or creates for the purpose of complying with this Part, including self-certifications and records of documentary evidence.
Marginal note:Form of records
(2)Every reporting financial institution required by this Part to keep records that does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (3).
Marginal note:Retention of records
(3)Every reporting financial institution that is required to keep, obtain or create records under this Part shall retain those records for a period of at least six years following
(a)in the case of a self-certification, the last day on which a related financial account is open; and
(b)in any other case, the end of the last calendar year in respect of which the record is relevant.
Marginal note:Anti-avoidance
280If a person enters into an arrangement or engages in a practice, the primary purpose of which can reasonably be considered to be to avoid an obligation under this Part, the person is subject to the obligation as if the person had not entered into the arrangement or engaged in the practice.
Marginal note:Production of TIN
281(1)Every reportable person shall provide their TIN at the request of a reporting financial institution that is required under this Part to make an information return requiring the TIN.
Marginal note:Confidentiality of TIN
(2)A person required to make an information return referred to in subsection (1) shall not knowingly use, communicate or allow to be communicated, otherwise than as required or authorized under this Act or a regulation, the TIN without the written consent of the reportable person.
Marginal note:Penalty for failure to provide TIN
(3)Every reportable person who fails to provide on request their TIN to a reporting financial institution that is required under this Part to make an information return requiring the TIN is liable to a penalty of $500 for each such failure, unless
(a)an application for the assignment of the TIN is made to the relevant reportable jurisdiction not later than 90 days after the request was made and the TIN is provided to the reporting financial institution that requested it within 15 days after the reportable person received it; or
(b)the reportable person is not eligible to obtain a TIN from the relevant reportable jurisdiction (including because the relevant reportable jurisdiction does not issue TINs).
Marginal note:Assessment
(4)The Minister may at any time assess any amount payable under subsection (3) by any person and, if the Minister sends a notice of assessment to the person, sections 150 to 163, subsections 164(1) and (1.4) to (7), sections 165 to 167 and Division J of Part I apply with such modifications as the circumstances require.
— 2004, c. 24, s. 26, as amended by 2006, c. 1, s. 1
26Within two years after the coming into force of this section, the committee of the Senate that normally considers electoral matters, and the committee of the House of Commons that normally considers electoral matters, shall each undertake a comprehensive review of the amendments made by this Act and submit a report to its House containing its recommendations concerning those amendments.
— 2005, c. 30, s. 6
6For the purpose of applying section 118.1 of the Act, a gift made by an individual after 2004 and before January 12, 2005 is deemed to have been made by the individual in the individual’s 2004 taxation year and not in the individual’s 2005 taxation year if
(a)the individual claims an amount under subsection 118.1(3) of the Act in respect of the gift for the individual’s 2004 taxation year;
(b)the gift was made to a registered charity listed under the International Humanitarian Assistance program of the Canadian International Development Agency;
(c)the individual directed the charity to apply the gift to the tsunami relief effort; and
(d)the gift was in the form of cash or was transferred by way of cheque, credit card or money order.
— 2006, c. 4, s. 177(2)
177(2)Subsection (1) applies in respect of overpayments that are deemed to arise during months that are after June 2007, and, for overpayments that are deemed to arise during months that are after June 2006 and before July 2007, the description of D in subsection 122.61(1) of the Act is to be read as follows:
— 2006, c. 9, s. 108(4.1)
108(4.1)Sections 63 and 64 come into force or are deemed to have come into force on January 1, 2007, but do not apply in respect of monetary contributions made before that day.
— 2007, c. 16, s. 3
3Sections 1 and 2 apply to taxation years that end after the day on which this Act is assented to.
— 2009, c. 2, s. 81
81(1)For the purposes of theIncome Tax Actand theCanada Disability Savings Act, specified RDSP events are deemed to have occurred, in the order that they actually occurred, on December 31, 2008 and not on the day or days that they actually occurred.
(2)For the purposes of subsection (1),specified RDSP eventmeans an event occurring after 2008 and before March 3, 2009 that
(a)establishes adisability savings planas defined in subsection 146.4(1) of theIncome Tax Act;
(b)satisfies conditions in subsection 146.4(2) of theIncome Tax Act;
(c)establishes aregistered disability savings planas defined in subsection 146.4(1) of theIncome Tax Actfor a beneficiary who is, in respect of the 2008 taxation year, aDTC-eligible individualas defined in subsection 146.4(1) of theIncome Tax Actand who was resident in Canada at the end of that year;
(d)is the making of any contribution to the registered disability savings plan;
(e)satisfies the requirement in paragraph 3(b) of theCanada Disability Savings Regulations; or
(f)is the taking of any other action to ensure that the registered disability savings plan is validly established and contributions to the plan are validly made.
— 2020, c. 6, s. 7
7For the purpose of subsection 164(1.6) of theIncome Tax Act, the Minister of National Revenue may make payments to a person or partnership out of the Consolidated Revenue Fund, at the times and in the manner that the Minister considers appropriate.
— 2020, c. 11, s. 10
10Any amount payable by the Minister of Employment and Social Development in relation to the administration of a program to provide a one-time payment to persons with disabilities for reasons related to the coronavirus disease 2019 (COVID-19), including any administrative cost, is to be paid out of the Consolidated Revenue Fund.
— 2021, c. 23, ss. 24(32.1) and (32.2)
(32.1)The Minister of Finance must prepare a report on proposed measures to
(a)prevent publicly traded companies and their subsidiaries from paying dividends or repurchasing their own shares while receiving the Canada Emergency Wage Subsidy, for the period that is after the tabling of the report under subsection (32.2); and
(b)recover wage subsidy amounts from publicly traded companies and their subsidiaries that paid dividends or repurchased their own shares while receiving the Canada Emergency Wage Subsidy, for the period that is before the tabling of the report under subsection (32.2).
(32.2)The Minister of Finance must cause the report to be tabled in each House of Parliament no later than 30 days after the day on which this Act receives royal assent or, if either House is not then sitting, on any of the first 15 days on which that House is sitting.
— 2022, c. 10, s. 15(3)
(3)Before 2026, the taxpayer may file an election with the Minister of National Revenue to include income that is described in paragraph (b.01) of the definitionearned incomein subsection 146(1) of the Act, and received by the taxpayer after 2010 and before 2021, for the purposes of computing the taxpayer’sRRSP deduction limit(as defined in that subsection) on or after the date the election is filed.
— 2017, c. 33, ss. 2(1), (3), (4)
2(1)Subsection 10(14) of theIncome Tax Actis repealed.
(3)Subsection 10(14.1) of the Act, as enacted by subsection (2), is repealed.
(4)Subsections (1) and (3) come into force on January 1, 2024.
— 2017, c. 33, ss. 7(2), (4)
7(2)Section 34 of the Act, as amended by subsection (1), is repealed.
(4)Subsection (2) comes into force on January 1, 2024.
— 2022, c. 19, s. 13
13(1)Subsection 104(1) of the Act is replaced by the following:
104(1)In this Act, a reference to a trust or estate (in this Subdivision referred to as a “trust”) shall, unless the context otherwise requires, be read to include a reference to the trustee, executor, administrator, liquidator of a succession, heir or other legal representative having ownership or control of the trust property, but, except for the purposes of this subsection, subsection (1.1), section 150, subparagraph (b)(v) of the definitiondispositionin subsection 248(1) and paragraph (k) of that definition, a trust is deemed not to include an arrangement under which the trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property unless the trust is described in any of paragraphs (a) to (e.1) of the definitiontrustin subsection 108(1).
(2)Subsection (1) applies to taxation years that end after December 30, 2023.
— 2022, c. 19, s. 35
35(1)The portion of subsection 150(1.1) of the Act before paragraph (a) is replaced by the following:
(1.1)Subject to subsection (1.2), subsection (1) does not apply to a taxation year of a taxpayer if
(2)Section 150 of the Act is amended by adding the following after subsection (1.1):
(1.2)Subsection (1.1) does not apply to a taxation year of a trust if the trust is resident in Canada and is an express trust, or for civil law purposes a trust other than a trust that is established by law or by judgement, unless the trust
(a)had been in existence for less than three months at the end of the year;
(b)holds assets with a total fair market value that does not exceed $50,000 throughout the year, if the only assets held by the trust throughout the year are one or more of
(i)money,
(ii)a debt obligation described in paragraph (a) of the definitionfully exempt interestin subsection 212(3),
(iii)a share, debt obligation or right listed on a designated stock exchange,
(iv)a share of the capital stock of a mutual fund corporation,
(v)a unit of a mutual fund trust,
(vi)an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), and
(vii)an interest as a beneficiary under a trust, all the units of which are listed on a designated stock exchange;
(c)is required under the relevant rules of professional conduct or the laws of Canada or a province to hold funds for the purposes of the activity that is regulated under those rules or laws, provided the trust is not maintained as a separate trust for a particular client or clients;
(d)is a registered charity;
(e)is a club, society or association described in paragraph 149(1)(l);
(f)is a mutual fund trust;
(g)is, for greater certainty, a related segregated fund trust, within the meaning assigned by paragraph 138.1(1)(a);
(h)is a trust, all the units of which are listed on a designated stock exchange;
(i)is prescribed to be a master trust;
(j)is, for greater certainty, a graduated rate estate;
(k)is aqualified disability trust, as defined in subsection 122(3);
(l)is an employee life and health trust;
(m)is a trust described under paragraph 81(1)(g.3);
(n)is a trust under or governed by
(i)a deferred profit sharing plan,
(ii)a pooled registered pension plan,
(iii)a registered disability savings plan,
(iv)a registered education savings plan,
(v)a registered pension plan,
(vi)a registered retirement income fund,
(vii)a registered retirement savings plan,
(viii)a tax-free savings account,
(ix)an employee profit sharing plan,
(x)a registered supplementary unemployment benefit plan, or
(xi)a first home savings account; or
(o)is a cemetery care trust or a trust governed by an eligible funeral arrangement.
(1.3)For the purposes of this section, a trust includes an arrangement under which a trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property.
(1.4)For greater certainty, subsections (1.1) to (1.3) do not require the disclosure of information that is subject to solicitor-client privilege.
(3)Subsections (1) and (2) apply to taxation years that end after December 30, 2023.
— 2022, c. 19, s. 42
42(1)Section 163 of the Act is amended by adding the following after subsection (4):
(5)A person or partnership is liable to a penalty if the person or partnership
(a)knowingly or under circumstances amounting to gross negligence
(i)makes — or participates in, assents to or acquiesces in, the making of — a false statement or omission in a return of income of a trust that is not subject to one of the exceptions listed in paragraphs 150(1.2)(a) to (o) for a taxation year, or
(ii)fails to file a return described in subparagraph (i); or
(b)fails to comply with a demand under subsection 150(2) or 231.2(1) to file a return described in subparagraph (a)(i).
(6)The amount of the penalty to which the person or partnership is liable under subsection (5) is equal to the greater of
(a)$2,500, and
(b)5% of the highest amount at any time in the year that is equal to the total fair market value of all the property held by the trust referred to in subsection (5) at that time.
(2)Subsection (1) applies to taxation years that end after December 30, 2023.
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[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S.C. 1952, c. 148, s. 1
2(1)An income tax shall be paid, as required by this Act, on the taxable income for each taxation year of every person resident in Canada at any time in the year.Marginal note:Taxable income(2)The taxable income of a taxpayer for a taxation year is the taxpayer’s income for the year plus the additions and minus the deductions permitted by Division C.Marginal note:Tax payable by non-resident persons(3)Where a person who is not taxable under subsection 2(1) for a taxation year(a)was employed in Canada,(b)carried on a business in Canada, or(c)disposed of a taxable Canadian property,at any time in the year or a previous year, an income tax shall be paid, as required by this Act, on the person’s taxable income earned in Canada for the year determined in accordance with Division D.
(a)was employed in Canada,(b)carried on a business in Canada, or(c)disposed of a taxable Canadian property,
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]1970-71-72, c. 63, s. 1 “2”1984, c. 1, s.11985, c. 45, s. 1
(a)determine the total of all amounts each of which is the taxpayer’s income for the year (other than a taxable capital gain from the disposition of a property) from a source inside or outside Canada, including, without restricting the generality of the foregoing, the taxpayer’s income for the year from each office, employment, business and property,(b)determine the amount, if any, by which(i)the total of(A)all of the taxpayer’s taxable capital gains for the year from dispositions of property other than listed personal property, and(B)the taxpayer’s taxable net gain for the year from dispositions of listed personal property,exceeds(ii)the amount, if any, by which the taxpayer’s allowable capital losses for the year from dispositions of property other than listed personal property exceed the taxpayer’s allowable business investment losses for the year,(c)determine the amount, if any, by which the total determined under paragraph (a) plus the amount determined under paragraph (b) exceeds the total of the deductions permitted by Subdivision E in computing the taxpayer’s income for the year (except to the extent that those deductions, if any, have been taken into account in determining the total referred to in paragraph (a), and(d)determine the amount, if any, by which the amount determined under paragraph (c) exceeds the total of all amounts each of which is the taxpayer’s loss for the year from an office, employment, business or property or the taxpayer’s allowable business investment loss for the year,
(i)the total of(A)all of the taxpayer’s taxable capital gains for the year from dispositions of property other than listed personal property, and(B)the taxpayer’s taxable net gain for the year from dispositions of listed personal property,
(A)all of the taxpayer’s taxable capital gains for the year from dispositions of property other than listed personal property, and(B)the taxpayer’s taxable net gain for the year from dispositions of listed personal property,
(ii)the amount, if any, by which the taxpayer’s allowable capital losses for the year from dispositions of property other than listed personal property exceed the taxpayer’s allowable business investment losses for the year,
(e)where an amount is determined under paragraph (d) for the year in respect of the taxpayer, the taxpayer’s income for the year is the amount so determined, and(f)in any other case, the taxpayer shall be deemed to have income for the year in an amount equal to zero.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 31994, c. 7, Sch