Vol. 144, No. 10 — May 12, 2010

Registration

SOR/2010-96 April 29, 2010

INCOME TAX ACT

Regulations Amending the Income Tax Regulations

P.C. 2010-551 April 29, 2010

Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to section 221 (see footnote a) of the Income Tax Act (see footnote b), hereby makes the annexed Regulations Amending the Income Tax Regulations.

REGULATIONS AMENDING THE INCOME TAX REGULATIONS

AMENDMENTS

1. (1) Paragraph 600(b) of the Income Tax Regulations (see footnote 1) is replaced by the following:

(b) subsections 7(10), 12.2(4), 13(4), (7.4) and (29), 14(6), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(5.3) and (14), 107(2.001), 143(2), 146.01(7), 164(6) and (6.1), 184(3) and 256(9) of the Act;

(2) Paragraph 600(b) of the Regulations is amended by adding the reference “146.02(7),” in numerical order.

(3) Paragraph 600(b) of the Regulations is amended by striking out the reference “12.2(4),”.

2. Paragraph (b) of the definition “application for a certificate of completion” in subsection 1106(1) of the Regulations is amended by replacing “Canada Customs and Revenue Agency” with “Canada Revenue Agency”.

3. (1) Section 1 of Schedule VIII to the Regulations is amended by striking out the following:

Huntington College, Huntington, Indiana

Naropa Institute, The, Boulder, Colorado

Union Institute, The, Cincinnati, Ohio

(2) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Hawaii Pacific University, Honolulu, Hawaii

Huntington University, Huntington, Indiana

Idaho State University, Pocatello, Idaho

John Brown University, Siloam Springs, Arkansas

Naropa University, Boulder, Colorado

Union Institute & University, Cincinnati, Ohio

(3) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Albany College of Pharmacy of Union University, Albany, New York

Jacksonville State University, Jacksonville, Alabama

Mesivta Torah Vodaath Rabbinical Seminary, Brooklyn, New York

Mount Sinai School of Medicine, New York, New York

Union University, Jackson, Tennessee

University of Mississippi, The, Oxford, Mississippi

(4) Section 1 of Schedule VIII to the Regulations is amended by striking out the following:

Albany College of Pharmacy of Union University, Albany, New York

(5) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Albany College of Pharmacy and Health Sciences, Albany, New York

(6) Section 1 of Schedule VIII to the Regulations is amended by striking out the following:

Walla Walla College, College Place, Washington

(7) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Walla Walla University, College Place, Washington

(8) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Cranbrook Academy of Art, Bloomfield Hills, Michigan

4. (1) Section 2 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

London School of Economics and Political Science, The, London, England

University of Kent, Canterbury, England

(2) Section 2 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

University of Keele, Keele, England

(3) Section 2 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Brunel University, Uxbridge, England

5. Section 4 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

WU Vienna University of Economics and Business, Vienna

6. Schedule VIII to the Regulations is amended by adding the following after section 15:

16. For the purposes of section 3503, the university situated in Italy is the following:

John Cabot University, Rome

7. Section 21 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Chinese University of Hong Kong, The, Shatin, New Territories

APPLICATION

8. (1) Subsection 1(1) applies in respect of dispositions of property on or after May 2, 2006.

(2) Subsection 4(1) is deemed to have taken effect on January 1, 2005.

(3) Subsections 3(1) and (2) are deemed to have taken effect on January 1, 2006.

(4) Subsections 3(3) and 4(2) and sections 5 and 7 are deemed to have taken effect on January 1, 2007.

(5) Subsections 3(4) and (5) are deemed to have taken effect on August 21, 2008.

(6) Subsections 3(6) and (7) and section 6 are deemed to have taken effect on January 1, 2008.

(7) Subsections 3(8) and 4(3) are deemed to have taken effect on January 1, 2009.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

The Income Tax Regulations (the Regulations) are made under the authority of the Income Tax Act (the Act). The objectives of this regulatory action are to

• amend the list of elections provided for in section 600 of the Regulations for which the Minister of Revenue (the Minister) may grant an extension to file or permission to amend or revoke;
• amend subsection 1106(1) of the Regulations to replace an outdated reference to the Canada Customs and Revenue Agency;
• amend Schedule VIII of the Regulations which lists foreign universities to which a Canadian can donate and receive tax relief in respect of that donation.

Description and rationale

SECTION 1 — AMENDMENTS TO SECTION 600 OF THE REGULATIONS

The Act and Regulations contain many elections that give taxpayers the opportunity to decide on an alternative tax treatment in conducting their financial affairs for income tax purposes. Section 600 of the Regulations sets out those elections for which the Minister has discretionary authority to grant an extension to file or permission to amend or revoke, where certain conditions have been met.

Subsection 1(1) of the amendment package replaces the references to subsections 70(9), (9.1), (9.2) and (9.3) in paragraph 600(b) of the Regulations with subsections 70(9.01), (9.11), (9.21) and (9.31) to reflect legislative amendments made to the ITA in the 2006 Budget. Subsection 1(1) applies in respect of dispositions of property on or after May 2, 2006.

Subsection 1(2) of the amendments adds a reference in paragraph 600(b) of the Regulations to subsection 146.02(7), an election which is available on the death of an individual who participated in a Lifelong Learning Plan.

Subsection 1(3) of the amendments deletes a reference in paragraph 600(b) of the Regulations to an outdated provision, subsection 12.2(4), which was repealed by the 1989 Budget.

SECTION 2 — AMENDMENT TO SUBSECTION 1106(1) OF THE REGULATIONS

This section makes a technical amendment to bring an outdated reference to the Canada Customs and Revenue Agency into conformity with the Canada Revenue Agency Act.

SECTIONS 3 TO 7 — AMENDMENTS TO SCHEDULE VIII OF THE REGULATIONS

Schedule VIII of the Regulations lists prescribed universities outside Canada, the student body of which ordinarily includes students from Canada. A non-refundable tax credit in respect of donations made to these universities may generally be claimed by individuals and trusts for Canadian income tax purposes. Corporations may be eligible for a deduction in respect of such a donation.

Sections 3 to 7 of the amendments add to Schedule VIII the names of foreign universities in the United States, the United Kingdom, Austria, Italy and Hong Kong that have made an application for “prescribed status” and that meet the criteria for inclusion on Schedule VIII. In addition, section 3 replaces outdated references to universities to reflect their current legal names.

SECTION 8 — APPLICATION

This section sets out the effective dates of the amendments previously described. Generally, the “prescribed status” of the universities being added to Schedule VIII is deemed to take effect January 1 of the year in which the particular foreign university requested inclusion on Schedule VIII.

There are no additional administrative costs associated with the above-referenced amendments for taxpayers, tax practitioners or the Canada Revenue Agency. The costs associated with the addition of the universities to Schedule VIII are negligible.

Consultation

No consultation was conducted with respect to the amendments in section 600 or 1106 of the Regulations. The changes to the list of qualifying universities, as amended by sections 3 to 7, are in response to requests and information received from the universities.

Implementation, enforcement and service standards

There are no compliance or enforcement issues with the amendments to section 600.

With respect to donations made by Canadian taxpayers to those universities listed in Schedule VIII, compliance will be ensured through the mechanisms currently in place.

Contact

Ms. Holly Carswell
Legislative Policy Directorate
Place de Ville, Tower A, 22nd Floor
320 Queen Street
Ottawa, Ontario
K1A 0L5
Telephone: 613-954-3312
Email: Holly.Carswell@cra-arc.gc.ca

Footnote a
S.C. 2007, c. 35, s. 62

Footnote b
R.S., c. 1 (5th Supp.)

Footnote 1
C.R.C., c. 945

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with extensible hypertext markup language (XHTML 1.0 Strict).