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(d) the individual's total ecological gifts
for the year.
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(4) Subsection 118.1(1) of the Act is
amended by adding the following in
alphabetical order:
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``total
ecological
gifts''
« total des
dons de biens
écosensi-
bles »
|
``total ecological gifts'' of an individual for a
taxation year means the total of all amounts
each of which is the fair market value of a
gift (other than a gift the fair market value
of which is included in the total cultural
gifts of the individual for the year) of land,
including a servitude for the use and benefit
of a dominant land, a covenant or an
easement, that is certified by the Minister of
the Environment, or a person designated by
that Minister, to be ecologically sensitive
land, the conservation and protection of
which is, in the opinion of that Minister, or
that person, important to the preservation of
Canada's environmental heritage, which
gift was made by the individual in the year
or in any of the 5 immediately preceding
taxation years to
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(a) a Canadian municipality, or
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(b) a registered charity one of the main
purposes of which is, in the opinion of the
Minister of the Environment, the
conservation and protection of Canada's
environmental heritage, and that is
approved by that Minister, or that person,
in respect of that gift,
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to the extent that those amounts were not
included in determining an amount that was
deducted under this section in computing
the individual's tax payable under this Part
for a preceding taxation year;
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(5) Subsection 118.1(2) of the Act is
replaced by the following:
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| Proof of gift
|
(2) A gift shall not be included in the total
charitable gifts, total Crown gifts, total
cultural gifts or total ecological gifts of an
individual unless the making of the gift is
proven by filing with the Minister a receipt
therefor that contains prescribed information.
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(6) Paragraph 118.1(6)(a) of the Act is
replaced by the following:
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(a) capital property to a donee described in
the definition ``total charitable gifts'',
``total Crown gifts'' or ``total ecological
gifts'' in subsection (1), or
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(7) Subsections (1) to (6) apply to gifts
made after February 27, 1995.
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24. (1) The portion of section 123.2 of the
Act before paragraph (b) is replaced by the
following:
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| Corporate
surtax
|
123.2 There shall be added to the tax
otherwise payable under this Part for each
taxation year by a corporation (other than a
corporation that was throughout the year a
non-resident-owned investment corporation)
an amount equal to 4% of the amount, if any,
by which
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(a) the tax payable under this Part by the
corporation for the year determined without
reference to this section, sections 123.3 and
125 to 126 and subsections 127(3) and (5)
and 137(3) and as if subsection 124(1) did
not contain the words ``in a province''
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exceeds
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(2) Subsection (1) applies to taxation
years that end after February 27, 1995
except that, in applying section 123.2 of the
Act, as amended by subsection (1), to a
taxation year that began before February
28, 1995, the amount otherwise determined
under that section shall be reduced by that
proportion of 1/4 of that amount that the
number of days in the year that are before
February 28, 1995 is of the number of days
in the year.
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25. (1) The Act is amended by adding the
following after section 123.2:
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| Refundable
tax on CCPC's
investment
income
|
123.3 There shall be added to the tax
otherwise payable under this Part for each
taxation year by a corporation that is
throughout the year a Canadian-controlled
private corporation an amount equal to 6 2/3%
of the lesser of
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(a) the corporation's aggregate investment
income for the year (within the meaning
assigned by subsection 129(4)), and
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(b) the amount, if any, by which its taxable
income for the year exceeds the least of the
amounts determined in respect of it for the
year under paragraphs 125(1)(a) to (c).
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(2) Subsection (1) applies to taxation
years that end after June 1995 except that,
in its application to such taxation years that
begin before July 1995, the reference in
section 123.3 of the Act, as enacted by
subsection (1), to ``6 2/3%'' shall be read as
``that proportion of 6 2/3% that the number
of days in the year that are after June 1995
is of the number of days in the year''.
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26. (1) Subparagraph 125(1)(b)(i) of the
Act is replaced by the following:
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(i) 10/3 of the total of the amounts that
would be deductible under subsection
126(1) from the tax for the year otherwise
payable under this Part by it if those
amounts were determined without
reference to section 123.3,
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(2) The formula in subsection 125(5.1) of
the Act is replaced by the following:
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A x B
$11,250
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(3) Paragraph (a) of the definition
``income of the corporation for the year
from an active business'' in subsection
125(7) of the Act is replaced by the
following:
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(a) the corporation's income for the year
from an active business carried on by it
including any income for the year
pertaining to or incident to that business,
other than income for the year from a
source in Canada that is a property
(within the meaning assigned by
subsection 129(4)), and
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(4) The description of G in the definition
``specified partnership income'' in
subsection 125(7) of the Act is replaced by
the following:
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G is the total of all amounts each of
which is the corporation's share of
the income (determined in
accordance with subdivision j of
Division B) of the partnership for a
fiscal period of the business that
ends in the year or an amount
included in the corporation's
income for the year from the
business because of subsection
34.2(5), and
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(5) Subsections (1) and (3) apply to
taxation years that end after June 1995.
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(6) Subsection (2) applies,
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(a) where a corporation is not associated
with any other corporation in a
particular taxation year and the
corporation's preceding taxation year
began after February 27, 1995, to the
corporation's particular year and
subsequent taxation years; and
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(b) where a particular corporation is
associated with one or more other
corporations in a particular taxation
year that ends in a calendar year and the
last taxation year of the particular
corporation and of each of the other
corporations that ended in the preceding
calendar year began after February 27,
1995, to the particular year and
subsequent taxation years of the
particular corporation.
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(7) Subsection (4) applies to the 1995 and
subsequent taxation years.
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|
27. (1) Subparagraph 125.1(1)(b)(iii) of
the Act is replaced by the following:
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(iii) where the corporation was a
Canadian-controlled private corporation
throughout the year, its aggregate
investment income for the year (within
the meaning assigned by subsection
129(4)).
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|
(2) Subsection (1) applies to taxation
years that end after June 1995.
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|
28. (1) The Act is amended by adding the
following after section 125.3:
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| Definitions
|
125.4 (1) The definitions in this subsection
apply in this section.
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``assistance''
« montant
d'aide »
|
``assistance'' means an amount, other than an
amount deemed under subsection (3) to
have been paid, that would be included
under paragraph 12(1)(x) in computing the
income of a taxpayer for any taxation year
if that paragraph were read without
reference to subparagraphs (v) to (vii).
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``Canadian
film or video
production''
« production
cinémato-
graphique ou
magnétos-
copique
canadienne »
|
``Canadian film or video production'' has the
meaning assigned by regulation.
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``Canadian
film or video
production
certificate''
« certificat de
production
cinémato-
graphique ou
magnétos-
copique
canadienne »
|
``Canadian film or video production
certificate'' means a certificate issued in
respect of a production by the Minister of
Canadian Heritage
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(a) certifying that the production is a
Canadian film or video production, and
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(b) estimating amounts relevant for the
purpose of determining the amount
deemed under subsection (3) to have
been paid in respect of the production.
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``investor''
« investis-
seur »
|
``investor'' means a person, other than a
prescribed person, who is not actively
engaged on a regular, continuous and
substantial basis in a business carried on
through a permanent establishment (as
defined by regulation) in Canada that is a
Canadian film or video production
business.
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``labour
expenditure''
« dépense de
main-
d'oeuvre »
|
``labour expenditure'' of a corporation for a
taxation year in respect of a property of the
corporation that is a Canadian film or video
production means, in the case of a
corporation that is not a qualified
corporation for the year, nil, and in the case
of a corporation that is a qualified
corporation for the year, subject to
subsection (2), the total of the following
amounts to the extent that they are
reasonable in the circumstances and
included in the cost or, in the case of
depreciable property, the capital cost to the
corporation of the property:
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(a) the salary or wages directly
attributable to the production that are
incurred after 1994 and in the year, or the
preceding taxation year, by the
corporation for the stages of production
of the property, from the final script stage
to the end of the post-production stage,
and paid by it in the year or within 60 days
after the end of the year (other than
amounts incurred in that preceding year
that were paid within 60 days after the
end of that preceding year),
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(b) that portion of the remuneration
(other than salary or wages and other than
remuneration that relates to services
rendered in the preceding taxation year
and that was paid within 60 days after the
end of that preceding year) that is directly
attributable to the production of property,
that relates to services rendered after
1994 and in the year, or that preceding
year, to the corporation for the stages of
production, from the final script stage to
the end of the post-production stage, and
that is paid by it in the year or within 60
days after the end of the year to
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(i) an individual who is not an
employee of the corporation, to the
extent that the amount paid
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(A) is attributable to services
personally rendered by the
individual for the production of the
property, or
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(B) is attributable to and does not
exceed the salary or wages of the
individual's employees for
personally rendering services for the
production of the property,
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(ii) another taxable Canadian
corporation, to the extent that the
amount paid is attributable to and does
not exceed the salary or wages of the
other corporation's employees for
personally rendering services for the
production of the property,
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(iii) another taxable Canadian
corporation all the issued and
outstanding shares of the capital stock
of which (except directors' qualifying
shares) belong to an individual and the
activities of which consist principally
of the provision of the individual's
services, to the extent that the amount
paid is attributable to services
rendered personally by the individual
for the production of the property, or
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(iv) a partnership that is carrying on
business in Canada, to the extent that
the amount paid
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(A) is attributable to services
personally rendered by an
individual who is a member of the
partnership for the production of the
property, or
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|
(B) is attributable to and does not
exceed the salary or wages of the
partnership's employees for
personally rendering services for the
production of the property, and
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(i) the corporation is a subsidiary
wholly-owned corporation of another
taxable Canadian corporation (in this
section referred to as the ``parent''),
and
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(ii) the corporation and the parent have
agreed that this paragraph apply in
respect of the production,
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the reimbursement made by the
corporation in the year, or within 60 days
after the end of the year, of an
expenditure that was incurred by the
parent in a particular taxation year of the
parent in respect of that production and
that would be included in the labour
expenditure of the corporation in respect
of the property for the particular taxation
year because of paragraph (a) or (b) if
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(iii) the corporation had had such a
particular taxation year, and
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(iv) the expenditure were incurred by
the corporation for the same purpose as
it was by the parent and were paid at
the same time and to the same person
or partnership as it was by the parent.
|
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``qualified
corporation''
« société
admissible »
|
``qualified corporation'' for a taxation year
means a corporation that is throughout the
year a prescribed taxable Canadian
corporation the activities of which in the
year are primarily the carrying on through
a permanent establishment (as defined by
regulation) in Canada of a business that is a
Canadian film or video production
business.
|
|
``qualified
labour
expenditure''
« dépense de
main-
d'oeuvre
admissible »
|
``qualified labour expenditure'' of a
corporation for a taxation year in respect of
a property of the corporation that is a
Canadian film or video production means
the lesser of
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(a) the amount, if any, by which
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(A) the labour expenditure of the
corporation for the year in respect of
the production, and
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|
(B) the amount by which the total of
all amounts each of which is the
labour expenditure of the
corporation for a preceding taxation
year in respect of the production
exceeds the total of all amounts each
of which is a qualified labour
expenditure of the corporation in
respect of the production for a
preceding taxation year before the
end of which the principal filming or
taping of the production began
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(ii) where the corporation is a parent,
the total of all amounts each of which
is an amount that is the subject of an
agreement in respect of the production
referred to in paragraph (c) of the
definition ``labour expenditure''
between the corporation and its
wholly-owned corporation, and
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|
(b) the amount determined by the
formula
|
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|
A - B
|
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A is 48% of the amount by which
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|
(i) the cost or, in the case of
depreciable property, the capital
cost to the corporation of the
production at the end of the year,
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(ii) the total of all amounts each of
which is an amount of assistance in
respect of that cost that, at the time
of the filing of its return of income
for the year, the corporation or any
other person or partnership has
received, is entitled to receive or can
reasonably be expected to receive,
that has not been repaid before that
time pursuant to a legal obligation to
do so (and that does not otherwise
reduce that cost), and
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B is the total of all amounts each of
which is the qualified labour
expenditure of the corporation in
respect of the production for a
preceding taxation year before the end
of which the principal filming or
taping of the production began.
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``salary or
wages''
« traitement
ou salaire »
|
``salary or wages'' does not include an amount
described in section 7 or any amount
determined by reference to profits or
revenues.
|
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| Rules
governing
labour
expenditure of
a corporation
|
(2) For the purpose of the definition ``labour
expenditure'' in subsection (1),
|
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|
|
(a) remuneration does not include
remuneration determined by reference to
profits or revenues; and
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|
(b) services referred to in paragraph (b) of
that definition that relate to the
post-production stage of the production
include only the services that are rendered
at that stage by a person who performs the
duties of animation cameraman, assistant
colourist, assistant mixer, assistant
sound-effects technician, boom operator,
colourist, computer graphics designer,
cutter, developing technician, director of
post production, dubbing technician,
encoding technician, inspection
technician - clean up, mixer, optical
effects technician, picture editor, printing
technician, projectionist, recording
technician, senior editor, sound editor,
sound-effects technician, special effects
editor, subtitle technician, timer, video-film
recorder operator, videotape operator or by
a person who performs a prescribed duty.
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