Bill C-222: An Act to amend the Income Tax Act (Canada-Barbados Income Tax Agreement)

Cover Summary BILL C-222 First Session, Forty-second Parliament, 64-65 Elizabeth II, 2015-2016 HOUSE OF COMMONS OF CANADA BILL C-222 An Act to amend the Income Tax Act (Canada-Barbados Income Tax Agreement) FIRST READING, FEBRUARY 17, 2016 Mr. Ste-Marie 421106 SUMMARY This enactment amends the Income Tax Act in order to include, in the definition “taxable Canadian business”, any business that is entitled to a special tax benefit conferred by Barbados under the Canada-Barbados Income Tax Agreement Act, 1980. Available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 1st Session, 42nd Parliament 64-65 Elizabeth II, 2015-2016 HOUSE OF COMMONS OF CANADA BILL C-222 An Act to amend the Income Tax Act (Canada-Barbados Income Tax Agreement) R.‍S.‍, c. 1 (5th Supp.‍) Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1 The definition taxable Canadian business in subsection 95(1) of the Income Tax Act is replaced by the following: taxable Canadian business, at any time, of a foreign affiliate of a taxpayer resident in Canada or of a partnership of which a foreign affiliate of a taxpayer resident in Canada is a member (which foreign affiliate or partnership is referred to in this definition as the “operator”), means a business (a) the income from which (i) is, or would be if there were income from the business for the operator’s taxation year or fiscal period that includes that time, included in computing the foreign affiliate’s taxable income earned in Canada for a taxation year under subparagraph 115(1)‍(a)‍(ii), and (ii) is not, or would not be if there were income from the business for the operator’s taxation year or fiscal period that includes that time, exempt, because of a tax treaty with a country, from tax under this Part, or (b) that is entitled to a special tax benefit conferred by Barbados under the Canada-Barbados Income Tax Agreement Act, 1980; (entreprise canadienne impo­sable) Published under authority of the Speaker of the House of Commons