Budget 2011 Redux

Finance Minister Jim Flaherty tabled the Federal Budget on June 6, 2011 with very few changes from the one tabled on March 22.  The major difference between the two budgets is the dates when each provision will take place.  For the most part, items that were to become effective on "budget day" became effective on March 22.  The following is a list of the tax provisions that will now be effective retroactive to the original budget date.  For details of each provision, see the following article.

• RRSP Non-Qualifying Investments - the new penalties for non-qualifying investments will be effective for investments acquired after March 22, 2011 and also apply to income earned on non-qualifying investments after March 22, 2100.
• Past Service IPP Contributions - the new requirements for IPP Past Service contributions will apply to contributions made after March 22, 2011.
• Tax on Split Income - the treatment on capital gains as split income will apply to capital gains realized on or after March 22, 2011.
• Returned Gifts - the requirement that a qualified donee issue a revised receipt to the donor (and send a copy to the CRA) applies to gifts or property returned on or after March 22, 2011.
• Gift of Non-Qualifying Securities - the delay in the recognition of gifts of non-qualifying securities applies to securities disposed of by donees on or after March 22, 2011.
• Granting of Options to Qualified Donees - the delay in the recognition of the donation of an option to a qualified donnee until the option is exercised applies to options granted on or after March 22, 2011.
• Donations of Flow-Through Shares - the change to the zero-inclusion rate on the donation of flow-though shares applies to flow-through shares acquired on or after March 22, 2011.
• Accelerated CCA on Clean Energy Generation Equipment - the accelerated rate applies to assets acquired on or after March 22, 2011.
• Oil Sand Properties - the treatment of oil sand leases and other oil sand resource property as Canadian Oil and Gas Property Expense (CODPE) applies to acquisitions made on or after March 22, 2011.
• Redemption of Shares - new stop-loss rules apply to share redemptions on or after March 22, 2011.
• Limit of Deferral of Corporate Income Earned Through a Partnership - the new limits apply to taxation years of a corporation that end on or after March 22, 2011.