OFFENCE

False statements

54. (1) Every director, officer, employee, agent or auditor of the Board or of any of its subsidiaries who, in carrying out a duty under this Act or the by-laws, prepares, signs, approves or concurs in any statement, report or other document respecting the affairs of the Board or the subsidiary that contains any false or deceptive information is guilty of an offence.

Punishment

(2) Every person who commits an offence under subsection (1) is liable on summary conviction

    (a) in the case of a natural person, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 12 months, or to both; or

    (b) in any other case, to a fine not exceeding $500,000.

WINDING-UP

Insolvency and winding-up

55. No Act relating to the insolvency or winding-up of any corporation applies to the Board and in no case shall the affairs of the Board be wound up unless Parliament so provides.

CANADA PENSION PLAN ACCOUNT

Minister may require transfers

56. The Minister may, on giving the Board 30 days notice in writing, require a transfer of an amount from the Board to the Canada Pension Plan Account established under sub section 108(1) of the Canada Pension Plan if the Minister considers that the transfer is necessary to meet any payment that is required to be made under subsection 108(3) of that Act.

Costs

57. Where the Minister is of the opinion that the Board cannot pay its administration costs, the Minister shall pay those costs out of the Consolidated Revenue Fund and any such payment shall be charged to the Canada Pension Plan Account established under sub section 108(1) of the Canada Pension Plan.

R.S., c. C-8; R.S., cc. 6, 41 (1st Supp.), cc. 5, 13, 27, 30 (2nd Supp.), cc. 18, 38 (3rd Supp.), cc. 1, 46, 51 (4th Supp.); 1990, c. 8; 1991, cc. 14, 44, 49; 1992, cc. 1, 2, 27, 48; 1993, cc. 24, 27, 28; 1994, cc. 13, 21; 1995, c. 33; 1996, cc. 11, 16, 23

AMENDMENTS TO THE CANADA PENSION PLAN

58. Section 8 of the Canada Pension Plan is amended by adding the following after subsection (1):

Contributions for 1997

(1.1) Notwithstanding subsection (1), for 1997 the contribution required by that subsec tion, in this subsection referred to as the ``basic contribution'', shall be calculated as though the contribution rate for employees were 2.925% and every employee who is required to make a contribution under that subsection shall make an additional contribu tion of an amount equal to 1/39 of the basic contribution.

Interest on unpaid additional contributions

(1.2) Where the amount paid by an em ployee on or before the employee's balance- due day for a year on account of the additional contribution required to be made under sub section (1.1) is less than the amount of the additional contribution required to be made, interest at a prescribed rate per annum is payable by the employee on the difference between those amounts from the balance-due day for the year to the day of payment.

Application of certain provisions

(1.3) Subsection 30(1) and sections 32, 36 and 37 apply in respect of the additional contribution required to be made under sub section (1.1) as though it were a contribution required to be made under this Act in respect of self-employed earnings.

R.S., c. 30 (2nd Supp.), s. 4

59. Subsection 11.1(2) of the Act is replaced by the following:

Contribution rates after 1986

(2) The contribution rate for employees, employers and self-employed persons for 1987 and subsequent years is as set out in the schedule, as amended from time to time pursuant to section 113.1.

60. The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following:

Election to include certain earnings

(3) Notwithstanding subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of section 10 shall, if the person or their representative so elects in the prescribed manner within one year from June 15 in the following year, include any amount by which

61. Section 20 of the Act is replaced by the following:

Amount of Year's Basic Exemption

20. (1) Subject to subsection (2) , the amount of a Year's Basic Exemption is the highest multiple of $100 that is less than or equal to 10% of the Year's Maximum Pen sionable Earnings for the year.

Limitation

(2) For each year after 1997 the amount of a Year's Basic Exemption is $3,500.

62. Subsection 21(3) of the Act is replaced by the following:

Subsequent decision - limit on liability

(3) An employer is not liable for any amount that the employer fails to deduct as required by this Act from the remuneration of an employee, or for any interest or penalties for that failure, if

    (a) the employer is informed in writing in a ruling under section 26.1 that the employer is not required to make the deduction;

    (b) the ruling is not based on information provided by the employer to the Minister that was incorrect in a material particular; and

    (c) it is subsequently decided under subsec tion 27.2(3) or section 28 that the deduction should have been made.

Subsequent decision - other consequences

(3.1) Once the decision under subsection 27.2(3) or section 28 is communicated to the employer, the employer is liable without interest or penalties under this Act to pay the contribution required to be paid by the employer with respect to the employee. On payment by the employer of any amount as or on account of that contribution, the employee is deemed to have notified the Minister as required by paragraph 15(1)(b) of the employ er's failure to deduct the amount of that contribution from the remuneration of the employee.

63. Subsection 23(1) of the Act is replaced by the following:

Recovery of contributions, etc., as debt due to Her Majesty

23. (1) All contributions, interest, penalties and other amounts payable by a person under this Act are debts due to Her Majesty and recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided for by this Act.

1991, c. 49, s. 207

64. Subsection 24(3) of the Act is replaced by the following:

Retention for ruling or appeal

(3) If the employer or an employee of the employer is subject to a ruling under section 26.1 or has made an appeal to the Minister under section 27 or 27.1, the employer shall retain every record, book of account, account and voucher necessary for dealing with the ruling or the appeal until the ruling is made or the appeal is disposed of and any further appeal is disposed of or the time for filing a further appeal has expired.

R.S., c. 51 (4th Supp.), s. 9; 1990, c. 8, s. 78(2); 1993, c. 24, s. 144(1); c. 27, s. 212; 1994, c. 13, par. 8(1)(a)

65. Sections 27 to 29 of the Act are replaced by the following:

Rulings and Appeals

Request for ruling

26.1 (1) The Minister of Human Resources Development, an employer, an employee or a person claiming to be an employer or an employee may request an officer of the Department of National Revenue authorized by the Minister of National Revenue to make a ruling on any of the following questions:

    (a) whether an employment is pensionable;

    (b) how long an employment lasts, includ ing the dates on which it begins and ends;

    (c) what is the amount of any earnings from pensionable employment;

    (d) whether a contribution is payable;

    (e) what is the amount of a contribution that is payable; and

    (f) who is the employer of a person in pensionable employment.

Time limit

(2) The Minister of Human Resources Development may request a ruling at any time, but a request by any other person must be made before June 30 of the year after the year in respect of which the question relates.

Ruling

(3) The authorized officer shall make the ruling within a reasonable time after receiving the request.

Presumption

(4) Unless a ruling has been requested with respect to a person in pensionable employ ment,

    (a) an amount deducted from the remunera tion of the person or paid by an employer as a contribution for the person is deemed to have been deducted or paid in accordance with this Act; or

    (b) an amount that has not been so deducted or paid is deemed not to have been required to be deducted or paid in accordance with this Act.

Appeal of rulings

27. An appeal to the Minister from a ruling may be made by the Minister of Human Resources Development at any time, and by any other person concerned within 90 days after the person is notified of the ruling.

Appeal of assessments

27.1 An employer who has been assessed under section 22 may appeal to the Minister for a reconsideration of the assessment, either as to whether an amount should be assessed as payable or as to the amount assessed, within 90 days after being notified of the assessment.

Notification of appeal

27.2 (1) Where an appeal is made to the Minister under section 27 or 27.1, the Minister shall

    (a) notify any person who may be affected by the appeal that the Minister intends to decide the appeal, including the Minister of Human Resources Development in the case of an appeal of a ruling; and

    (b) give the person an opportunity to provide information and to make represen tations to protect the person's interests, as the circumstances require.

Where appeal to be sent

(2) An appeal shall be addressed to the Assistant Director of Appeals in a Tax Ser vices Office of the Department of National Revenue and delivered or mailed to that office.

Decision

(3) The Minister shall decide the appeal within a reasonable time after receiving it and shall notify the affected persons of the deci sion in any manner that the Minister considers adequate.

Minister's authority not restricted

27.3 Nothing in sections 26.1 to 27.2 restricts the authority of the Minister to make a decision under this Part on the Minister's own initiative or to make an assessment after the date mentioned in subsection 26.1(2).

Appeal to Tax Court of Canada

28. (1) A person affected by a decision on an appeal to the Minister under section 27 or 27.1 , or the person's representative, may, within 90 days after the decision is communi cated to the person , or within any longer time that the Tax Court of Canada may allow on application made to it within those 90 days, appeal from the decision to that Court by sending a notice of appeal in the prescribed form by registered mail to the Registry of that Court.

Communica-
tion of decision

(1.1) The determination of the time at which a decision on an appeal to the Minister under section 27 or 27.1 is communicated to a person shall be made in accordance with the rule, if any, made under paragraph 20(1.1)(h.1) of the Tax Court of Canada Act.

Decision of Court

(2) On an appeal under this section, the Tax Court of Canada may vacate, confirm or vary a decision on an appeal under section 27 or an assessment that is the subject of an appeal under section 27.1 or, in the case of an appeal under section 27.1 , may refer the matter back to the Minister for reconsideration and reas sessment, and shall without delay

    (a) notify the parties to the appeal in writing of its decision; and

    (b) give reasons for its decision, but, except where the Court deems it advisable in a particular case to give reasons in writing, the reasons given by it need not be in writing.

Authority to decide questions

29. (1) The authority of the Minister or the Tax Court of Canada to decide an appeal under section 27, 27.1 or 28 includes the authority to decide any question of fact or law necessary to be decided in the course of the appeal and to decide whether a person is or may be affected by the decision of the appeal.

Decisions and rulings final

(2) Except as otherwise provided in this Act, the decision of the Minister or the Tax Court of Canada of an appeal under section 27, 27.1 or 28 and a ruling of an authorized officer under section 26.1 is final and binding for all purposes of this Act.

Allowance for attending appeal

(3) If, on an appeal to the Tax Court of Canada from a decision of the Minister, a person affected by the decision is requested by the Court to attend before it on the consider ation of the appeal and so attends, the person shall be paid such travel and other allowances, including compensation for loss of remunera tive time, as are approved by the Treasury Board.

1991, c. 49, s. 209(1)

66. (1) Subsection 30(1) of the Act is replaced by the following:

Return to be filed

30. (1) Where a person is required to make a contribution for a year in respect of self- employed earnings, a return of the person's self-employed earnings for the year shall, without notice or demand for it , be filed with the Minister in the prescribed form and manner and containing the prescribed infor mation, by that person (or, if the person is unable for any reason to file the return, by their representative) on or before the day on or before which the person's return of income under Part I of the Income Tax Act is required by that Part to be filed or would be required by that Part to be filed if tax under that Part were payable for the year.

(2) Subsection 30(5) of the Act is replaced by the following:

Where no return filed within four years

(5) The amount of any contribution re quired by this Act to be made by a person for a year in respect of their self-employed earnings for the year is deemed to be zero where

    (a) the return of those earnings required by this section to be filed with the Minister is not filed with the Minister before the day that is four years after the day on or before which the return is required by subsection (1) to be filed; and

    (b) the Minister does not assess the con tribution before the end of those four years.

(3) Subsections (1) and (2) apply to 1996 and subsequent years.

67. (1) Subsection 38(2) of the Act is replaced by the following:

Refund after decision on appeal

(2) Where an amount on account of a contribution is deducted from the remunera tion of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under section 27, 27.1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.

(2) Section 38 of the Act is amended by adding the following after subsection (4):

Refund after correction of record of earnings

(4.1) Where an amount on account of a contribution is paid by a person in respect of self-employed earnings or is deducted from the remuneration of an employee and the Minister determines, taking into consider ation an amendment made under section 97 to the Record of Earnings, that the amount paid or deducted is in excess of the amount required by this Act to be paid or deducted, the Minister may refund the excess.

(3) Subsection 38(7) of the Act is replaced by the following:

Interest on overpayments

(7) If an amount in respect of an overpay ment is refunded or applied under this Act to any other liability, interest shall be paid or applied on the amount at a prescribed rate per annum under the circumstances and for the period or periods determined as prescribed, except that

    (a) no interest shall be paid or applied if the amount of the interest is less than one dollar; and

    (b) no interest shall be paid or applied on an amount that is refundable under subsection (4.1).

68. Subsection 42(1) of the Act is amended by adding the following in alpha betical order:

``Maximum Pensionable Earnings Average''
« maximum moyen des gains ouvrant droit à pension »

``Maximum Pensionable Earnings Average'', in respect of a contributor for a year, means the average of the Year's Maximum Pen sionable Earnings for that year and

      (a) where the year is before 1998 or the date of birth of the contributor is before January 1, 1933, the two previous years, or

      (b) in any other case,

        (i) where the year is 1998, the three previous years, and