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His Excellency the Governor General recommends to the House of
Commons the appropriation of public revenue under the circumstances,
in the manner and for the purposes set out in a measure entitled ``An Act
to implement certain provisions of the budget tabled in Parliament on
February 18, 1997''.
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Part I establishes the Canada Foundation for Innovation with the
objects and purposes of paying grants to modernize and enhance the
infrastructure for research in Canada.
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Part II enables the Cowichan Tribes of Indians to impose a tax similar
to that imposed under the Tobacco Tax Act, R.S.B.C. 1979, c. 404 of
British Columbia, on sales of tobacco to Indians on the reserves of the
Cowichan Tribes.
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Part III enables the Cowichan Tribes of Indians to impose a 7%
value-added tax on all sales of tobacco products on the reserves of the
Cowichan Tribes.
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Part IV enables the Westbank First Nation to impose a 7%
value-added tax on all sales of tobacco products on the reserves of the
Westbank First Nation.
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Part V amends the Excise Tax Act to implement increases in the
excise tax rates on tobacco products intended for retail sale in Ontario,
Quebec, New Brunswick, Nova Scotia and Prince Edward Island and to
modify the excise tax treatment of tobacco exports to foreign duty free
shops. In addition, the Income Tax Act is amended to extend the current
tobacco manufacturers' surtax and the Customs Tariff is amended to
reduce the amount of certain tobacco products that can be brought into
Canada by individuals on a tax and duty free basis.
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Part VI amends the Income Tax Act to restructure the working
income supplement component of the child tax benefit by moving it
from a family basis to a per child basis. The assistance provided by the
working income supplement is also increased.
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Part VII amends the Excise Tax Act and the Income Tax Act to allow
air carriers to exchange income tax loss carryforwards for rebates of
excise tax paid on aviation fuel. The rebate, which is available to air
carriers in respect of fuel purchased or imported in the years 1996 to
1999, may not exceed $20,000,000 a year for any one carrier or group
of carriers. An air carrier that claims a rebate must reduce its income tax
loss carryforwards by 10 times the amount of the rebate (or include 10
times the amount of the rebate in its income). If the air carrier later
repays the rebate, with interest, it may reinstate its losses.
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Part VIII amends the Excise Tax Act to clarify that taxpayers must use
the same method to measure the volume of fuel for the purpose of
accounting for excise tax as that used to establish the quantity of fuel
sold or imported.
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Part IX amends the Employment Insurance Act to
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(a) increase the threshold for refunds of employers' premiums to
employers whose premiums increase during 1997 and 1998;
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(b) provide for the payment of benefits to claimants while they are
receiving training under a program of a province or other
organization that is the subject of an agreement under section 63 of
that Act; and
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(c) exclude benefits paid to a claimant while employed under an
employment program of a province or other organization that is the
subject of an agreement under section 63 of that Act from being
considered as earnings from employment for the purposes of that
Act, the Income Tax Act and the Canada Pension Plan.
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Part X amends the Bretton Woods and Related Agreements Act to
permit the Minister of Finance to enter agreements with the Bank for
International Settlements to guarantee repayment of amounts loaned to
a country in accordance with a credit facility.
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The Farm Credit Corporation Act is amended to increase the ceiling
on amounts that the Minister of Finance may pay to the Farm Credit
Corporation.
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Part XI provides for the payment of $800 million plus interest to the
Canada Foundation for Innovation.
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Clause 59: (1) The amendment adds a reference to
section 23.22.
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Clause 60: (1) New.
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Clause 61: (1) The amendment deletes a reference to
the Province of New Brunswick.
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(2) Subsection 23.31(2) reads as follows:
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(2) Tax shall not be imposed under subsection (1) where the
purchaser referred to in that subsection is a consumer located in the
province referred to in that subsection and the purchase is for
consumption by the purchaser or by others at the expense of the
purchaser.
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Clause 62: (1) The amendment adds a reference to the
Province of New Brunswick.
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(2) Subsection 23.32(2) reads as follows:
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(2) Tax shall not be imposed under subsection (1) where the
purchaser referred to in that subsection is a consumer in the Province of
Quebec and the purchase is for consumption by the purchaser or by
others at the expense of the purchaser.
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Clause 63: (1) Subsection 23.33(1) reads as follows:
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23.33 (1) An excise tax shall be imposed, levied and collected on
manufactured tobacco, other than tobacco sticks, that is
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(a) marked or stamped in accordance with a statute of the Province
of Nova Scotia to indicate that it is intended for retail sale in the
province; and
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(b) sold by the manufacturer of the manufactured tobacco, or by a
person who is authorized under a statute of the province to sell
manufactured tobacco in the province, to a purchaser who is not
authorized under a statute of the province to sell manufactured
tobacco in the province.
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(2) Subsections 23.33(3) and (4) read as follows:
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(3) The tax imposed under subsection (1) is payable by the person
selling the manufactured tobacco to the purchaser referred to in that
subsection and is payable at the time of the sale.
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(4) The tax imposed on manufactured tobacco under subsection (1)
shall be equal to the amount by which
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(a) the excise tax that would have been imposed under section 23 in
respect of the manufactured tobacco if the applicable rates of excise
tax were the rates set out in paragraphs 1(f) and 3(e) of Schedule II
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exceeds
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(b) the excise tax that was imposed under section 23 in respect of the
manufactured tobacco.
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Clause 64: (1) The definition ``Nova Scotia
manufactured tobacco'' in subsection 23.34(1) reads as
follows:
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``Nova Scotia manufactured tobacco'' means manufactured tobacco
that is marked or stamped in accordance with the Tobacco Tax Act,
R.S.N.S. 1989, c. 470, to indicate that the manufactured tobacco is
intended for retail sale in the Province of Nova Scotia.
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(2) New. The definitions ``Nova Scotia cigarettes''
and ``Nova Scotia tobacco sticks'' are the same as those
in subsection 68.169(1).
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(3) The relevant portion of subsection 23.34(2) reads
as follows:
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(2) An excise tax shall be imposed, levied and collected on
manufactured tobacco, other than tobacco sticks, that is Atlantic
manufactured tobacco, black stock or Nova Scotia manufactured
tobacco, to which paragraph 1(e) or 3(d) of Schedule II applies and that
a licensed wholesale vendor sells to a person other than
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(4) Subsection 23.34(4) reads as follows:
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(4) The tax imposed on manufactured tobacco under subsection (2)
shall be equal to the amount by which
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(a) the excise tax that would have been imposed under section 23 in
respect of the manufactured tobacco if the applicable rates of excise
tax were the rates set out in paragraphs 1(f) and 3(e) of Schedule II
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exceeds
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(b) the excise tax that was imposed under section 23 in respect of the
manufactured tobacco.
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Clause 65: (1) The relevant portion of subsection
23.341(1) reads as follows:
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23.341 (1) An excise tax shall be imposed, levied and collected on
Nova Scotia manufactured tobacco, to which section 68.169 and
paragraph 1(e) or 3(d) of Schedule II apply, that a licensed retail vendor
sells to a person other than
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(2) Subsection 23.341(3) reads as follows:
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(3) The tax imposed under subsection (1) shall be equal to the
amount by which
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(a) the excise tax that would have been imposed under section 23 in
respect of the manufactured tobacco if the applicable rates of excise
tax were the rates set out in paragraphs 1(f) and 3(e) of Schedule II,
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exceeds
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(b) the excise tax imposed at the rates of
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(i) $0.05263 per five cigarettes, in the case of cigarettes,
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(ii) $0.00325 per tobacco stick, in the case of tobacco sticks, and
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(iii) $7.948 per kilogram, in the case of manufactured tobacco
other than cigarettes and tobacco sticks.
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Clause 66: (1) Subsection 23.36(2) reads as follows:
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(2) Where a designated wholesale vendor sells to a designated retail
vendor a quantity of black stock, in respect of which subparagraph
1(c)(ii) or 3(b)(ii) of Schedule II applies, that is in excess of the quantity
of black stock that the designated wholesale vendor is authorized in
writing by the Nova Scotia Provincial Tax Commission to sell to the
designated retail vendor without the collection of tax under the Tobacco
Tax Act, R.S.N.S. 1989, c. 470, an excise tax shall be imposed, levied
and collected on that excess black stock.
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(2) Subsection 23.36(3) reads as follows:
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(3) Where a designated wholesale vendor sells black stock, in
respect of which subparagraph 1(c)(ii) or 3(b)(ii) of Schedule II applies,
to a person other than an Indian consumer on a reserve in Nova Scotia
or a designated retail vendor, an excise tax shall be imposed, levied and
collected on that black stock.
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(3) Subsection 23.36(5) reads as follows:
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(5) The tax imposed on black stock under subsection (2) or (3) shall
be equal to the amount by which
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(a) the excise tax that would have been imposed under section 23 in
respect of the black stock if the applicable rates of excise tax were
the rates set out in paragraphs 1(f) and 3(e) of Schedule II
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exceeds
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(b) the excise tax that was imposed under section 23 in respect of the
black stock.
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Clause 67: (1) Section 68.161 reads as follows:
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68.161 The Minister may refund to the manufacturer or producer of
tobacco products (within the meaning assigned by section 23.1) the tax
paid under subsection 23.2(1) in respect of the tobacco products where
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(a) the manufacturer or producer provides to the Minister evidence
satisfactory to the Minister that all taxes imposed on the tobacco
products by the national government of the country to which the
tobacco products were exported have been paid; and
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(b) the manufacturer or producer applies to the Minister for the
repayment within two years after the tobacco products were
exported.
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Clause 68: (1) New. The definition ``Nova Scotia
manufactured tobacco'' is the same as that in subsection
23.34(1).
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(2) Subsections 68.169(3.21) and (3.22) are new.
Subsections 68.169(3.2), (4) and (5) read as follows:
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(3.2) Where, after the day on which the Act that enacts this
subsection is assented to, a licensed wholesale vendor sells Nova Scotia
cigarettes or Nova Scotia tobacco sticks to a licensed retail vendor, or
to a consumer in the Province of Prince Edward Island for consumption
by the consumer or by others at the expense of the consumer, the
Minister may pay to the licensed wholesale vendor a tax rebate equal to
the total of
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(a) $0.00625 multiplied by the number of those cigarettes, and
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(b) $0.0074 multiplied by the number of those tobacco sticks.
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(4) To qualify to receive a rebate under any of subsections (2) to (3.2)
in respect of cigarettes or tobacco sticks, the licensed wholesale vendor
must
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(a) apply to the Minister for the rebate, within two years after the sale
of the cigarettes or tobacco sticks by the licensed wholesale vendor,
in any form and manner that is authorized by the Minister; and
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(b) include in the application a certification by the Treasurer of the
Province of Prince Edward Island that all tax payable in respect of
the cigarettes or tobacco sticks under the Health Tax Act, R.S.P.E.I.
1988, c. H-3, has been paid.
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(5) A licensed wholesale vendor shall not apply for a rebate under
any of subsections (2) to (3.2) more often than once per month.
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Clause 69: (1) The amendment adds a reference to
section 68.161.
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Clause 70: (1) The amendment deletes a reference to
the Province of New Brunswick.
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Clause 71: (1) The amendment adds a reference to the
Province of New Brunswick.
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Clause 72: (1) Section 97.3 reads as follows:
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97.3 Where manufactured tobacco, other than tobacco sticks, has
been marked or stamped in accordance with a statute of the Province of
Nova Scotia to indicate that the manufactured tobacco is intended for
sale in that province, every person who sells or offers for sale the
manufactured tobacco to a consumer in any other province, other than
the Province of Prince Edward Island, is guilty of an offence and is liable
on summary conviction to a fine of not less than $1,000 and not more
than the greater of $1,000 and triple the amount by which
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(a) the excise tax that would be imposed under section 23 in respect
of the manufactured tobacco if the applicable rates of excise tax were
the rates set out in paragraphs 1(f) and 3(e) of Schedule II
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exceeds
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(b) the excise tax that was imposed under section 23 in respect of the
manufactured tobacco.
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Clause 73: (1) Subsection 97.5(2) reads as follows:
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(2) Every person who sells or offers for sale black stock in respect of
which excise tax was imposed under section 23 at a rate provided for
under paragraph 1(c) or 3(b) of Schedule II, because of the application
of subparagraph 1(c)(ii) or 3(b)(ii) of that Schedule, to a person other
than a designated wholesale vendor, a designated retail vendor or an
Indian consumer on a reserve in Nova Scotia is guilty of an offence and
liable on summary conviction to a fine of not less than $1,000 and not
more than the greater of $1,000 and triple the amount by which
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(a) the excise tax that would be imposed under section 23 in respect
of the black stock if the applicable rates of excise tax were the rates
set out in paragraphs 1(f) and 3(e) of Schedule II
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exceeds
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(b) the excise tax that was imposed under section 23 in respect of the
black stock.
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Clause 74: (1) to (4) The relevant portion of item 1 of
Schedule II reads as follows:
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1. Cigarettes:
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(a) $0.03388 for each five cigarettes or fraction of five cigarettes
contained in any package, where
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(i) the cigarettes are marked or stamped in accordance with the
Tobacco Tax Act, R.S.O. 1990, c. T.10, to clearly indicate that the
cigarettes are intended for retail sale in the Province of Ontario,
or
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(b) $0.02388 for each five cigarettes or fraction of five cigarettes
contained in any package, where the cigarettes are marked or
stamped in accordance with the Tobacco Tax Act, R.S.Q. 1977, c. I-2,
to indicate that the cigarettes are intended for retail sale in the
Province of Quebec;
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(c) $0.08388 for each five cigarettes or fraction of five cigarettes
contained in any package, where
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(i) the cigarettes are marked or stamped in accordance with the
Tobacco Tax Act, R.S.N.S. 1989, c. 470, to clearly indicate that the
cigarettes are intended for retail sale in the Province of Nova
Scotia, or
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(d) $0.08388 for each five cigarettes or fraction of five cigarettes
contained in any package, where the cigarettes are marked or
stamped in accordance with the Tobacco Tax Act, R.S.N.B. 1973, c.
T-7, to clearly indicate that the cigarettes are intended for retail sale
in the Province of New Brunswick;
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(e) $0.08388 for each five cigarettes or fraction of five cigarettes
contained in any package, where
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(A) are marked or stamped ``ATLANTIC'' or
``ATLANTIQUE'' in accordance with the Health Tax Act,
R.S.P.E.I. 1988, c. H-3, but not marked or stamped to indicate
that they are intended for retail sale in a particular province,
and are delivered after May 31, 1994 and before September
12, 1994 by the manufacturer or producer of the cigarettes to
a wholesale vendor licensed as such under that Act,
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(B) are black stock delivered after August 31, 1994 and before
the first day of the second month following the month in which
the Act that enacts this clause is assented to, by the
manufacturer or producer of the cigarettes to a wholesale
vendor licensed as such under the Health Tax Act, R.S.P.E.I.
1988, c. H-3, or
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(C) are marked or stamped in accordance with the Tobacco Tax
Act, R.S.N.S. 1989, c. 470, to indicate that the cigarettes are
intended for retail sale in the Province of Nova Scotia and are
delivered by the manufacturer or producer of the cigarettes to
a wholesale vendor licensed as such under the Health Tax Act,
R.S.P.E.I. 1988, c. H-3, and
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(ii) the wholesale vendor certifies to the manufacturer or
producer, in any form and manner authorized by the Minister, that
the cigarettes are intended for retail sale in the Province of Prince
Edward Island in accordance with that Act; and
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Clause 75: (1) The amendment replaces ``$0.00575''
with ``$0.00865''.
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Clause 76: (1) The relevant portion of item 3 of
Schedule II reads as follows:
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3. Manufactured tobacco other than cigarettes and tobacco sticks:
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(b) $7.948 per kilogram, where
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(i) the manufactured tobacco is marked or stamped in accordance
with the Tobacco Tax Act, R.S.N.S. 1989, c. 470, to clearly
indicate that the manufactured tobacco is intended for retail sale
in the Province of Nova Scotia, or
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(ii) the manufactured tobacco is black stock delivered after April
14, 1994 by the manufacturer or producer of the manufactured
tobacco to a designated wholesale vendor (as defined in
subsection 23.36(1)) and the designated wholesale vendor
certifies to the manufacturer or producer, in any form and manner
authorized by the Minister, that the manufactured tobacco is
intended for resale to designated retail vendors (as defined in
subsection 23.36(1));
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(c) $9.448 per kilogram, where the manufactured tobacco is marked
or stamped in accordance with the Tobacco Tax Act, R.S.N.B. 1973,
c. T-7, to clearly indicate that the manufactured tobacco is intended
for retail sale in the Province of New Brunswick;
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(d) $7.948 per kilogram, where
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(i) the manufactured tobacco
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(A) is black stock delivered after May 31, 1994 and before the
first day of the second month following the month in which the
Act that enacts this clause is assented to, by the manufacturer
or producer of the manufactured tobacco to a wholesale
vendor licensed as such under the Health Tax Act, R.S.P.E.I.
1988, c. H-3, or
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(B) is marked or stamped in accordance with the Tobacco Tax
Act, R.S.N.S. 1989, c. 470, to indicate that the manufactured
tobacco is intended for retail sale in the Province of Nova
Scotia and is delivered by the manufacturer or producer of the
manufactured tobacco to a wholesale vendor licensed as such
under the Health Tax Act, R.S.P.E.I. 1988, c. H-3, and
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(ii) the wholesale vendor certifies to the manufacturer or
producer, in any form and manner authorized by the Minister, that
the manufactured tobacco is intended for retail sale in the
Province of Prince Edward Island in accordance with that Act;
and
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Clause 77: (1) The relevant portion of subsection
182(1) reads as follows:
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182. (1) Every corporation shall pay a tax under this Part for each
taxation year equal to 40% of that proportion of the corporation's Part
I tax on tobacco manufacturing profits for the year that
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(a) the number of days in the year that are after February 8, 1994 and
before February 9, 1997
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Clause 78: (1) The relevant portion of Note 7(a) to
Chapter 98 of Schedule I reads as follows:
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7. For the purpose of heading 98.05:
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(a) the provisions shall apply to alcoholic beverages not exceeding 1.14
litres and tobacco not exceeding fifty cigars, two hundred cigarettes,
four hundred tobacco sticks and four hundred grams of manufactured
tobacco where they are included in the baggage accompanying the
importer, and no exemption is being claimed in respect of alcoholic
beverages or tobacco under another heading or subheading at the time
of importation;
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Clause 79: (1) Subheading Note 2 to Chapter 98 of
Schedule I reads as follows:
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2. For the purpose of subheading No. 9804.10, goods may include
alcoholic beverages not exceeding 1.14 litres, and tobacco not
exceeding fifty cigars, two hundred cigarettes, four hundred tobacco
sticks and four hundred grams of manufactured tobacco.
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Clause 80: (1) The relevant portion of subsection
122.61(1) reads as follows:
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122.61 (1) Where a person and, where the Minister so demands, the
person's cohabiting spouse at the end of a taxation year have filed a
return of income for the year, an overpayment on account of the
person's liability under this Part for the year shall be deemed to have
arisen during a month in relation to which the year is the base taxation
year, equal to the amount determined by the formula
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1/12(A - B)
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where
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A is the total of
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(a) the product obtained by multiplying $1,020 by the number of
qualified dependants in respect of whom the person was an
eligible individual at the beginning of the month,
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(b) the product obtained by multiplying $75 by the number of
qualified dependants, in excess of 2, in respect of whom the
person was an eligible individual at the beginning of the month,
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(c) where the person is, at the beginning of the month, an eligible
individual in respect of one or more qualified dependants, the
amount determined by the formula
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C - D
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C is the lesser of $500 and 8% of the amount, if any, by which the
person's adjusted earned income for the year exceeds $3,750,
and
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D is 10% of the amount, if any, by which the person's adjusted
income for the year exceeds $20,921, and
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(2) The relevant portion of subsection 122.61(5) reads
as follows:
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(5) Each amount (other than the amount of $20,921) expressed in
dollars in subsection (1) shall be adjusted so that, where the base
taxation year in relation to a particular month is after 1991, the amount
to be used under that subsection for the month is equal to the total of
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(3) New.
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Clause 81: (1) The amendment adds a reference to
subsection 68.4(3.1).
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(2) New.
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(3) New.
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(4) Subsection 68.4(3.1) is new. Subsection 68.4(4)
reads as follows:
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(4) No fuel tax rebate shall be paid under subsection (2) or (3)
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(a) in respect of fuel that is used or to be used other than for
commercial purposes;
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(b) in respect of fuel that is purchased or imported by the carrier or
trucker, as the case may be, before 1991 or after 1992; or
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(c) to a person who is or has been bankrupt or to the trustee in
bankruptcy of the person in respect of any fuel that was purchased
or imported by the person or the trustee before the person is
discharged from the bankruptcy.
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(5) Subsections 68.4(6) to (8) read as follows:
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(6) Where a fuel tax rebate is paid to a person under this section in
respect of fuel and the person sells any of the fuel to a purchaser or uses
any of the fuel for a purpose other than the provision of eligible
transportation services for commercial purposes, the amount of the
rebate paid in respect of the fuel so sold or used shall be deemed to be
a tax under this Act payable by the person
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(a) at the time that the fuel is delivered to the purchaser, if it is sold
to a purchaser; and
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(b) at the time of the use, if the fuel is used by the person for a purpose
other than the provision of eligible transportation services for
commercial purposes.
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(7) Subject to subsections (8) and (9), a person to whom a fuel tax
rebate was paid under subsection (2) in a taxation year of the person
may repay to the Receiver General all or a part of the rebate.
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(8) A repayment made under subsection (7) in respect of a fuel tax
rebate paid under subsection (2) to a person in a taxation year of the
person shall be made on or before the day that is 90 days after the day
on which the Minister sends to the person a notice of assessment of tax
payable by the person under Part I of the Income Tax Act for the year,
a notice of determination under subsection 152(1.1) of that Act in
respect of the person for the year or a notification that no tax is payable
by the person under that Part for the year.
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(6) The relevant portion of subsection 68.4(9) reads as
follows:
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(9) Where a person repays under subsection (7) all or a part of a fuel
tax rebate, subsections 79(1) to (1.2) apply, with such modifications as
the circumstances require, as if
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(c) subsection 78(4) had required the tax to be paid on or before the
last day of the month in which the person received the fuel tax rebate;
and
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Clause 82: (1) The relevant portion of subsection
12(1) reads as follows:
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12. (1) There shall be included in computing the income of a
taxpayer for a taxation year as income from a business or property such
of the following amounts as are applicable:
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(x.1) the total of all amounts each of which is
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(ii) the amount, if any, by which
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(A) 10 times the amount, if any, by which
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(I) the total of all fuel tax rebates under subsection 68.4(2)
of that Act received in the year by the taxpayer
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(II) the total of all amounts, in respect of fuel tax rebates
under subsection 68.4(2) of that Act received in the year by
the taxpayer, repaid by the taxpayer under subsection
68.4(7) of that Act
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(B) the total of all amounts, in respect of fuel tax rebates under
subsection 68.4(2) of that Act received in the year, deducted
under subsection 111(10) in computing the taxpayer's
non-capital loss for a year;
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Clause 83: (1) The relevant portion of subsection
87(2) reads as follows:
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(2) Where there has been an amalgamation of two or more
corporations after 1971 the following rules apply:
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(uu) for the purposes of paragraph 12(1)(x.1), the description of D.1
in the definition ``non-capital loss'' in subsection 111(8), clause
111(10)(a)(i)(B) and subsection 111(11), the new corporation shall
be deemed to be the same corporation as, and a continuation of, each
predecessor corporation.
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Clause 84: (1) The relevant portion of subsection
111(10) reads as follows:
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(10) Where, in a particular taxation year, a taxpayer received an
amount (in this subsection referred to as a ``rebate'') as a fuel tax rebate
under subsection 68.4(2) of the Excise Tax Act, in computing the
amount of the taxpayer's non-capital loss for a taxation year (in this
subsection referred to as the ``loss year'') that is one of the 7 taxation
years preceding the particular year, there shall be deducted the lesser of
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(a) the amount, if any, by which
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(i) 10 times the amount, if any, by which
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(A) the total of all rebates received by the taxpayer in the
particular year
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(B) the total of all amounts, in respect of rebates received by
the taxpayer in the particular year, repaid by the taxpayer
under subsection 68.4(7) of that Act
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(ii) the total of all amounts, in respect of rebates received in the
particular year, deducted under this subsection in computing the
taxpayer's non-capital losses for other taxation years, and
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(2) The relevant portion of subsection 111(11) reads as
follows:
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(11) Where a taxpayer was a member of a partnership at any time in
a fiscal period during which the partnership received a fuel tax rebate
under subsection 68.4(2) or (3) of the Excise Tax Act, the taxpayer is
deemed
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(a) to have received at that time as a rebate under subsection 68.4(2)
or (3), as the case may be, of that Act an amount equal to that
proportion of the amount of the rebate received by the partnership
that the member's share of the partnership's income or loss for that
fiscal period is of the whole of that income or loss, determined
without reference to any rebate under section 68.4 of that Act; and
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Clause 85: (1) The relevant portion of subsection
161(7) reads as follows:
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(7) For the purpose of computing interest under subsection (1) or (2)
on tax or a part of an instalment of tax for a taxation year, and for the
purpose of section 163.1,
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(a) the tax payable by the taxpayer under this Part and Parts I.3, VI
and VI.1 for the year shall be deemed to be the amount that it would
have been if none of the following amounts, namely,
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(viii) any amount excluded from the amount determined under
clause 12(1)(x.1)(ii)(A) because of subclause
12(1)(x.1)(ii)(A)(II) in respect of a fuel tax rebate repayment
made in a subsequent taxation year,
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were so excluded or deducted for the year, as the case may be; and
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Clause 86: (1) The relevant portion of subsection
164(5) reads as follows:
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(5) For the purpose of subsection (3), the portion of any overpayment
of the tax payable by a taxpayer for a taxation year that arose as a
consequence of
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(a) the deduction of an amount under subclause 12(1)(x.1)(ii)(A)(II)
in respect of a fuel tax rebate repayment made in a subsequent
taxation year,
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shall be deemed to have arisen on the day that is the latest of
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(2) The relevant portion of subsection 164(5.1) reads
as follows:
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(5.1) Where a repayment made under subsection (1.1) or (4.1) or an
amount applied under subsection (2) in respect of a repayment, or a part
thereof, may reasonably be regarded as being in respect of a claim made
by a taxpayer in an objection to or appeal from an assessment of tax for
a taxation year for
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(a) the deduction of an amount under subclause 12(1)(x.1)(ii)(A)(II)
in respect of a fuel tax rebate repayment made in a subsequent
taxation year,
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interest shall not be paid or applied thereon for any part of a period that
is before the latest of
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Clause 87: New.
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Clause 88: (1) The relevant portion of subsection
25(1) reads as follows:
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25. (1) For the purposes of this Part, a claimant is unemployed and
capable of and available for work during a period when the claimant is
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(a) attending a course or program of instruction or training at the
claimant's own expense, or under employment benefits, to which the
Commission, or an authority that the Commission designates, has
referred the claimant; or
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Clause 89: (1) Section 26 reads as follows:
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26. For the purposes of this Part, Part IV, the Income Tax Act and the
Canada Pension Plan, benefits paid to a claimant while employed
under employment benefits are not earnings from employment.
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Clause 90: (1) Subsections 96(7.1) and (8.1) are new.
Subsections 96(6) to (10) read as follows:
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(6) If an employer pays less than $30,000 in employer's premiums
during 1996, the Minister shall refund to the employer a portion of the
employer's premiums paid during 1997 determined by the following
formula if that amount is more than $1:
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P2 - (P1 + $500) 2
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where
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P1 is the amount of premiums paid in 1996; and
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P2 is the amount of premiums paid in 1997.
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(7) If an employer pays less than $30,000 in employer's premiums
during 1996, the Minister shall refund to the employer a portion of the
employer's premiums paid during 1998 determined by the following
formula if that amount is more than $1:
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P2 - (P1 + $500) 4
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where
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P1 is the amount of premiums paid in 1996; and
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P2 is the amount of premiums paid in 1998.
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(8) A refund under subsection (6) or (7) shall not exceed
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(a) $5,000, if the amount of premiums paid in 1996 is less than
$25,000; and
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(b) $30,000 minus the amount of premiums paid in 1996, if that
amount is $25,000 or more, but less than $30,000.
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(9) If two or more employers are associated, as defined by the
regulations, they shall be considered a single employer for the purposes
of subsections (6) to (8) and any refund shall be allocated to them in the
prescribed manner.
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(10) A refund under subsections (4) to (7) is payable only if an
application is made in writing to the Minister within three years after the
end of the year for which the premiums were deducted or paid.
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Clause 92: New.
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Clause 93: Subsection 11(1) reads as follows:
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11. (1) At the request of the Corporation, the Minister of Finance
may, with the approval of the Governor in Council, pay to the
Corporation, out of the Consolidated Revenue Fund, amounts not
exceeding in the aggregate one billion, one hundred and twenty-five
million dollars, or such greater aggregate amount as may be authorized
from time to time under an appropriation Act.
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