Canada Gazette

• technical amendments to correct errors in the Regulations, and to update the Regulations to reflect Government announcements and previous amendments to the Income Tax Act;

• an amendment to require issuers of registered retirement savings plans (RRSPs) to file information returns setting out certain details concerning the premiums they receive;

• an amendment extending the time for filing an information return regarding past service pension adjustments; and

• amendments to the list of foreign universities to which a Canadian can donate and receive tax relief in respect of that donation.

• This is a technical amendment to add a new subsection (1.1) to section 202. An amendment in 2001 to section 153 of the Act inadvertently removed the requirement to make information returns reporting payments to foreign actors working in Canada. This amendment corrects the error. As the persons affected by this provision have been filing information returns all along, there will be no added obligations placed on them by this amendment.

• This amendment will require issuers of RRSPs to file an annual return with the Minister. The return will show all the premiums received by the issuer during the contribution year.

The first filing of this return will be in 2005, to give issuers sufficient time to prepare.

• Section 600 sets out those elections in the Income Tax Act and the Income Tax Regulations for which the Minister may grant an extension to file, amend or revoke. This technical amendment removes references to provisions that no longer provide for an election, and add references to additional provisions under which the Minister may grant an extension to file, amend or revoke an election.

The addition of paragraphs 128.1(6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act are being made retroactive to October 1, 1996—the date set out in these provisions of the Act.

• Subsection 164(6.1) of the Act, to which this new section of the Regulations refers, was added in 1992. The provision in the Act provides for an election to be made, as set out in the Regulations. However, the Regulations were not amended to set out the particulars of the election.

This new provision of the Regulations sets out how this election is to be made, including the information required. The amendments to section 600 of the Regulations, described in section 3, include the addition of subsection 164(6.1) of the Act, so that the Minister may authorize an extension of the time otherwise provided for making the election.

This technical amendment will affect situations in which the death of the taxpayer occurred after July 13, 1990—the date the election was provided for in the Act.

• This amendment extends the time for filing an information return with regard to a past service pension adjustment from 60 to 120 days. The administrators of these plans need the additional time to obtain all the information required for the return.

• These technical amendments set out the tax withholding amounts from periodic payments.

Historically, these amendments are made annually to reflect the changes to tax rates and personal deductions. However, these amendments were not put forward in 2002 and 2003. Accordingly, these amendments relate to tax years 2002, 2003 and 2004.

This information has previously been communicated to those affected, through the Canada Customs and Revenue Agency (CCRA) tax guides, and its Web site.

• Schedule VIII to the Income Tax Regulations lists universities outside Canada, the student body of which ordinarily includes students from Canada. Donations to these universities qualify as charitable donations for income tax purposes. These amendments add to that list the names of additional universities that have been found to qualify.

No alternative was considered to the technical amendments. They are all required as a result of Government announcements, amendments to the Act or to correct errors in the Regulations.

No alternative was considered to the provision requiring issuers of RRSPs to file information returns. This amendment has been discussed between CCRA officials and representatives of the issuing bodies, and it is agreed that mutual benefits will be realized from this amendment.

The extension of the time to file an information return in the case of past service pension adjustments has been discussed with, and agreed to by those filing these returns. No alternative was considered.

No alternative was considered to the amendments to Schedule VIII. Subparagraph 110.1(1)(a)(vi) and paragraph (f) of the definition of total charitable gifts in subsection 118.1(1) of the Act require that the universities be identified by regulation.

There are no costs to these amendments—to taxpayers, tax practitioners or the CCRA.

The technical amendments simply bring the Regulations into accord with the Act, or support Government announcements related to which there is no cost of compliance.

The amendment set out in section 2 addresses comments by the Auditor General, who stated that the CCRA should strengthen its ability to corroborate claims for exemptions made by contributors to RRSPs. The amendment will benefit the CCRA by providing that corroboration, and impose minimal costs of the issuers of RRSPs, since they already provide this information to the contributors.

The amendment set out in section 5 will benefit the filers of these returns by giving them more time to collect all the information required in the return.

The amendments set out in section 7 will permit corporate taxpayers who make donations to the universities added to the list by the amendments to deduct the donations in calculating their taxable income. Donations by an individual will be eligible for a tax credit, which will reduce the individual's tax liability.

Officials of the Department of Finance were consulted on some of these amendments. Associations representing tax practitioners and employers were consulted on others.

The list of qualifying universities, amended by sections 7 and 8, is amended each year based on requests received from universities that they be considered for inclusion in the list.

The CCRA administers the provisions of the Income Tax Act and the regulations. The Act contains penalty provisions if these provisions are not complied with. Compliance with these amendments will be ensured through the mechanisms currently in place.

Mr. Grant Wilkinson, Legislative Policy Directorate, Place de Ville, Tower A, 22nd Floor, 320 Queen Street, Ottawa, Ontario K1A 0L5, (613) 957-2079 (telephone), grant.wilkinson@ccra-adrc.gc.ca (electronic mail).

Notice is hereby given that the Governor in Council, pursuant to section 221 (see footnote a) of the Income Tax Act (see footnote b), proposes to make the annexed Regulations Amending the Income Tax Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Grant Wilkinson, Policy and Planning Branch, Canada Customs and Revenue Agency, 22nd Floor, Tower A, Place de Ville, 320 Queen Street, Ottawa, Ontario K1A 0L5.

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

1. Section 202 of the Income Tax Regulations (see footnote 1) is amended by adding the following after subsection (1):

(1.1) Every person who pays or credits an amount, or provides a benefit to or on behalf of a person who is either a non-resident individual who is an actor or that is a corporation related to such an individual, for the provision in Canada of acting services of the actor in a film or video production, shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of such payment, credit or benefit.

214.1 (1) The issuer of a registered retirement savings plan shall make an information return in prescribed form in respect of the amounts that have been paid or transferred as premiums under the plan in a contribution year.

(2) The return shall be filed with the Minister on or before the 1st day of May of the year in which the contribution year ends and shall be in respect of the contribution year.

"contribution year" means the period beginning on 61st day of one year and ending on the 60th day of the following year.

"issuer" has the same meaning as in subsection 146(1) of the Act, with any modifications that the circumstances require.

600. For the purposes of paragraphs 220(3.2)(a) and (b) of the Act, the following are prescribed provisions:

(b) subsections 12.2(4), 13(4), (7.4) and (29), 14(6), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 70(6.2), (9), (9.1), (9.2) and (9.3), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(5.3) and (14), 143(2), 146.01(7), 164(6) and (6.1), 184(3) and 256(9) of the Act;

(c) paragraphs 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 86.1(2)(f) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act; and

1000.1 (1) An election under subsection 164(6.1) of the Act shall be made by the legal representative of a deceased taxpayer by filing with the Minister a letter from the legal representative setting out the following:

(a) the amount of the benefit referred to in subparagraph 164(6.1)(a)(i) of the Act;

(b) the value of the right, and the amount paid for the right, referred to in subparagraph 164(6.1)(a)(ii) of the Act;

(a) the last day provided by the Act for the filing of a return that the legal representative of a deceased taxpayer is required or has elected to file under the Act in respect of the income of that deceased taxpayer for the taxation year in which he or she died, and

(b) the day the return of the income for the first taxation year of the deceased taxpayer's estate is required to be filed under paragraph 150(1)(c) of the Act.

8402. (1) Where a provisional PSPA (computed under section 8303, 8304 or 8308) of an individual with respect to an employer that is associated with a past service event (other than a certifiable past service event) is greater than nil, the administrator of each registered pension plan to which the past service event relates shall, within 120 days after the day on which the past service event occurs, file with the Minister an information return in prescribed form reporting such portion of the aggregate of all amounts each of which is the individual's PSPA with respect to an employer that is associated with the past service event as may reasonably be considered to be attributable to benefits provided under the plan, except that a return is not required to be filed by an administrator if the amount that would otherwise be reported by the administrator is nil.

6. (1) Sections 1 and 2 of Schedule I to the Regulations are replaced by the following:

1. For the purposes of paragraph 102(1)(c), the ranges of remuneration for each pay period in a taxation year shall be determined as follows:

(a) in respect of a daily pay period, the ranges of remuneration shall commence at $34 and increase in increments of $2 for each range up to and including $141.99;

(b) in respect of a weekly pay period, the ranges of remuneration shall commence at $155 and increase in increments of

(i) $2 for each range up to and including $262.99,

(ii) $4 for each range from $263 to $482.99,

(iii) $8 for each range from $483 to $922.99,

(iv) $12 for each range from $923 to $1,582.99,

(v) $16 for each range from $1,583 to $2,462.99, and

(vi) $20 for each range from $2,463 to $3,562.99;

(c) in respect of a bi-weekly pay period, the ranges of remuneration shall commence at $310 and increase in increments of

(i) $4 for each range up to and including $525.99,

(ii) $8 for each range from $526 to $965.99,

(iii) $16 for each range from $966 to $1,845.99,

(iv) $24 for each range from $1,846 to $3,165.99,

(v) $32 for each range from $3,166 to $4,925.99, and

(vi) $40 for each range from $4,926 to $7,125.99;

(d) in respect of a semi-monthly pay period, the ranges of remuneration shall commence at $335 and increase in increments of

(i) $4 for each range up to and including $550.99,

(ii) $8 for each range from $551 to $990.99,

(iii) $18 for each range from $991 to $1,980.99,

(iv) $26 for each range from $1,981 to $3,410.99,

(v) $34 for each range from $3,411 to $5,280.99, and

(vi) $44 for each range from $5,281 to $7,700.99;

(e) in respect of 12 monthly pay periods, the ranges of remuneration shall commence at $670 and increase in increments of

(i) $8 for each range up to and including $1,101.99,

(ii) $18 for each range from $1,102 to $2,091.99,

(iii) $34 for each range from $2,092 to $3,961.99,

(iv) $52 for each range from $3,962 to $6,821.99,

(v) $70 for each range from $6,822 to $10,671.99, and

(vi) $86 for each range from $10,672 to $15,401.99;

(f) in respect of 10 monthly pay periods, the ranges of remuneration shall commence at $804 and increase in increments of

(i) $10 for each range up to and including $1,343.99,

(ii) $20 for each range from $1,344 to $2,443.99,

(iii) $42 for each range from $2,444 to $4,753.99,

(iv) $62 for each range from $4,754 to $8,163.99,

(v) $84 for each range from $8,164 to $12,783.99, and

(vi) $104 for each range from $12,784 to $18,503.99;

(g) in respect of four-week pay periods, the ranges of remuneration shall commence at $618 and increase in increments of

(i) $8 for each range up to and including $1,049.99,

(ii) $16 for each range from $1,050 to $1,929.99,

(iii) $32 for each range from $1,930 to $3,689.99,

(iv) $48 for each range from $3,690 to $6,329.99,

(v) $64 for each range from $6,330 to $9,849.99, and

(vi) $80 for each range from $9,850 to $14,249.99; and

(h) in respect of 22 pay periods per annum, the ranges of remuneration shall commence at $366 and increase in increments of

(i) $6 for each range up to and including $689.99,

(ii) $10 for each range from $690 to $1,239.99,

(iii) $18 for each range from $1,240 to $2,229.99,

(iv) $28 for each range from $2,230 to $3,769.99,

(v) $38 for each range from $3,770 to $5,859.99, and

(vi) $48 for each range from $5,860 to $8,499.99.

2. For the purposes of paragraph 102(1)(d), the mid-point of the range of amount of personal credits for a taxation year shall be as follows:

(2) Sections 1 and 2 of Schedule I to the Regulations are replaced by the following:

1. For the purposes of paragraph 102(1)(c), the ranges of remuneration for each pay period in a taxation year shall be determined as follows:

(a) in respect of a daily pay period, the ranges of remuneration shall commence at $35 and increase in increments of $2 for each range up to and including $142.99;

(b) in respect of a weekly pay period, the ranges of remuneration shall commence at $158 and increase in increments of

(i) $2 for each range up to and including $265.99,

(ii) $4 for each range from $266 to $485.99,

(iii) $8 for each range from $486 to $925.99,

(iv) $12 for each range from $926 to $1,585.99,

(v) $16 for each range from $1,586 to $2,465.99, and

(vi) $20 for each range from $2,466 to $3,565.99;

(c) in respect of a bi-weekly pay period, the ranges of remuneration shall commence at $315 and increase in increments of

(i) $4 for each range up to and including $530.99,

(ii) $8 for each range from $531 to $970.99,

(iii) $16 for each range from $971 to $1,850.99,

(iv) $24 for each range from $1,851 to $3,170.99,

(v) $32 for each range from $3,171 to $4,930.99, and

(vi) $40 for each range from $4,931 to $7,130.99;

(d) in respect of a semi-monthly pay period, the ranges of remuneration shall commence at $341 and increase in increments of

(i) $4 for each range up to and including $556.99,

(ii) $8 for each range from $557 to $996.99,

(iii) $18 for each range from $997 to $1,986.99,

(iv) $26 for each range from $1,987 to $3,416.99,

(v) $34 for each range from $3,417 to $5,286.99, and

(vi) $44 for each range from $5,287 to $7,706.99;

(e) in respect of 12 monthly pay periods, the ranges of remuneration shall commence at $681 and increase in increments of

(i) $8 for each range up to and including $1,112.99,

(ii) $18 for each range from $1,113 to $2,102.99,

(iii) $34 for each range from $2,103 to $3,972.99,

(iv) $52 for each range from $3,973 to $6,832.99,

(v) $70 for each range from $6,833 to $10,682.99, and

(vi) $86 for each range from $10,683 to $15,412.99;

(f) in respect of 10 monthly pay periods, the ranges of remuneration shall commence at $817 and increase in increments of

(i) $10 for each range up to and including $1,356.99,

(ii) $20 for each range from $1,357 to $2,456.99,

(iii) $42 for each range from $2,457 to $4,766.99,

(iv) $62 for each range from $4,767 to $8,176.99,

(v) $84 for each range from $8,177 to $12,796.99, and

(vi) $104 for each range from $12,797 to $18,516.99;

(g) in respect of four-week pay periods, the ranges of remuneration shall commence at $628 and increase in increments of

(i) $8 for each range up to and including $1,059.99,

(ii) $16 for each range from $1,060 to $1,939.99,

(iii) $32 for each range from $1,940 to $3,699.99,

(iv) $48 for each range from $3,700 to $6,339.99,

(v) $64 for each range from $6,340 to $9,859.99, and

(vi) $80 for each range from $9,860 to $14,259.99; and

(h) in respect of 22 pay periods per annum, the ranges of remuneration shall commence at $372 and increase in increments of

(i) $6 for each range up to and including $695.99,

(ii) $10 for each range from $696 to $1,245.99,

(iii) $18 for each range from $1,246 to $2,235.99,

(iv) $28 for each range from $2,236 to $3,775.99,

(v) $38 for each range from $3,776 to $5,865.99, and

(vi) $48 for each range from $5,866 to $8,505.99.

2. For the purposes of paragraph 102(1)(d), the mid-point of the range of amount of personal credits for a taxation year shall be as follows:

(3) Sections 1 and 2 of Schedule I to the Regulations are replaced by the following:

1. For the purposes of paragraph 102(1)(c), the ranges of remuneration for each pay period in a taxation year shall be determined as follows:

(a) in respect of a daily pay period, the ranges of remuneration shall commence at $36 and increase in increments of $2 for each range up to and including $143.99;

(b) in respect of a weekly pay period, the ranges of remuneration shall commence at $163 and increase in increments of

(i) $2 for each range up to and including $270.99,

(ii) $4 for each range from $271 to $490.99,

(iii) $8 for each range from $491 to $930.99,

(iv) $12 for each range from $931 to $1,590.99,

(v) $16 for each range from $1,591 to $2,470.99, and

(vi) $20 for each range from $2,471 to $3,570.99;

(c) in respect of a bi-weekly pay period, the ranges of remuneration shall commence at $325 and increase in increments of

(i) $4 for each range up to and including $540.99,

(ii) $8 for each range from $541 to $980.99,

(iii) $16 for each range from $981 to $1,860.99,

(iv) $24 for each range from $1,861 to $3,180.99,

(v) $32 for each range from $3,181 to $4,940.99, and

(vi) $40 for each range from $4,941 to $7,140.99;

(d) in respect of a semi-monthly pay period, the ranges of remuneration shall commence at $352 and increase in increments of

(i) $4 for each range up to and including $567.99,

(ii) $8 for each range from $568 to $1,007.99,

(iii) $18 for each range from $1,008 to $1,997.99,

(iv) $26 for each range from $1,998 to $3,427.99,

(v) $34 for each range from $3,428 to $5,297.99, and

(vi) $44 for each range from $5,298 to $7,717.99;

(e) in respect of 12 monthly pay periods, the ranges of remuneration shall commence at $703 and increase in increments of

(i) $8 for each range up to and including $1,134.99,

(ii) $18 for each range from $1,135 to $2,124.99,

(iii) $34 for each range from $2,125 to $3,994.99,

(iv) $52 for each range from $3,995 to $6,854.99,

(v) $70 for each range from $6,855 to $10,704.99, and

(vi) $86 for each range from $10,705 to $15,434.99;

(f) in respect of 10 monthly pay periods, the ranges of remuneration shall commence at $843 and increase in increments of

(i) $10 for each range up to and including $1,382.99,

(ii) $20 for each range from $1,383 to $2,482.99,

(iii) $42 for each range from $2,483 to $4,792.99,

(iv) $62 for each range from $4,793 to $8,202.99,

(v) $84 for each range from $8,203 to $12,822.99, and

(vi) $104 for each range from $12,823 to $18,542.99;

(g) in respect of four-week pay periods, the ranges of remuneration shall commence at $649 and increase in increments of

(i) $8 for each range up to and including $1,080.99,

(ii) $16 for each range from $1,081 to $1,960.99,

(iii) $32 for each range from $1,961 to $3,720.99,

(iv) $48 for each range from $3,721 to $6,360.99,

(v) $64 for each range from $6,361 to $9,880.99, and

(vi) $80 for each range from $9,881 to $14,280.99; and

(h) in respect of 22 pay periods per annum, the ranges of remuneration shall commence at $384 and increase in increments of

(i) $6 for each range up to and including $707.99,

(ii) $10 for each range from $708 to $1,257.99,

(iii) $18 for each range from $1,258 to $2,247.99,

(iv) $28 for each range from $2,248 to $3,787.99,

(v) $38 for each range from $3,788 to $5,877.99, and

(vi) $48 for each range from $5,878 to $8,517.99.

2. For the purposes of paragraph 102(1)(d), the mid-point of the range of amount of personal credits for a taxation year shall be as follows:

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

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

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

8. Section 22 of Schedule VIII to the Regulations is replaced by the following:

22. The universities situated in New Zealand that are prescribed by section 3503 are the following:

9. Section 214.1 of the Regulations, as enacted by section 2, applies to payments or transfers received after March 1, 2004, by the issuers of registered retirement saving plans.

10. Paragraph 600(c) of the Regulations, as enacted by subsection 3(2), applies to changes of residence occurring after October 1, 1996.

11. Section 1000.1 of the Regulations, as enacted by section 4, applies to deaths occurring after July 13, 1990, except that the letter referred to in subsection 1000.1(2) of the Regulations may be filed on or before the day that is 180 days after the day on which these Regulations are published in the Canada Gazette.

12. (1) Subsections 6(1) and 7(2) are deemed to have taken effect on January 1, 2002.

(2) Subsections 6(2) and 7(3) and section 8 are deemed to have taken effect on January 1, 2003.