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Her 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, 2003''.
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Part 1 authorizes the Minister of Finance to pay $1.5 billion into a
trust, to be provided to provinces for the purposes of acquiring
diagnostic and medical equipment and training specialized staff in
order to improve access to publicly funded diagnostic and treatment
services. The funds will be distributed to the provinces on a per capita
basis.
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Part 2 amends the Federal-Provincial Fiscal Arrangements Act to
implement a $16 billion Health Reform transfer and a $2.5 billion
Canada Health and Social Transfer (CHST) supplement, and to create
two new transfer mechanisms. The Health Reform transfer will be
distributed to the provinces on a per capita basis over a five-year period
beginning on April 1, 2003. The Minister is authorized to pay a $2.5
billion CHST supplement into a trust from which these funds will be
distributed to the provinces on an equal per capita basis. The new
Canada Health Transfer and Canada Social Transfer will replace the
CHST on April 1, 2004, and funding levels are set out through to
2007-08. In addition, Part 2 removes the maximum amount payable to
provinces under the Equalization program, effective in fiscal year
2002-03.
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Part 3 amends the Canada Student Financial Assistance Act to add
protected persons within the meaning of the Immigration and Refugee
Protection Act to the list of students eligible for a student loan, and to
ensure that appropriate compensation continues to be paid to provinces
and territories not participating in the Canada Student Loans Program.
It also amends the Canada Student Financial Assistance Act and the
Canada Student Loans Act to provide for a limitation period of six years
for the collection of student loans.
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Part 4 amends the Employment Insurance Act and the Employment
Insurance (Fishing) Regulations to introduce a new type of special
benefits. It amends the Act in order to: provide six weeks of new
compassionate benefits for families to share; establish the medical
proof required to receive such benefits; establish the period during
which such benefits may be paid; provide for one waiting period per
family when such benefits are shared; provide for the authority to make
new regulations consequential to the introduction of compassionate
care benefits; set the annual premium rate for 2004; and make other
minor consequential amendments to the Employment Insurance Act
and the Employment Insurance (Fishing) Regulations. It also makes
related amendments to the Canada Labour Code.
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Part 5 amends the Budget Implementation Act, 1997, the Budget
Implementation Act, 1998, and the Canada Foundation for Sustainable
Development Technology Act to permit repayment of public moneys
provided to, respectively, the Canada Foundation for Innovation, the
Canada Millennium Scholarship Foundation and the Canada
Foundation for Sustainable Development Technology to the Receiver
General for credit to the Consolidated Revenue Fund on the winding up
or dissolution of those foundations. Secondly, this Part provides for the
making of grants to certain organizations. Thirdly, this Part amends the
Farm Credit Canada Act to remove the temporal restriction on
investments and to increase its capital. Finally, this Part repeals the Debt
Servicing and Reduction Account Act and provides that it does not apply
to the 2002-2003 or any later fiscal year.
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Part 6 amends the Air Travellers Security Charge Act to reduce the
air travellers security charge for domestic air travel from $12 to $7 for
one-way travel and from $24 to $14 for round-trip travel, applicable to
air travel purchased on or after March 1, 2003.
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Part 7 amends the Customs Tariff, Excise Act, 2001 and Excise Tax
Act to implement tobacco tax increases proposed on June 17, 2002. The
proposed amendments include increases in the taxes and duties on
cigarettes, tobacco sticks and other manufactured tobacco, cigars,
exported tobacco products, and tobacco products delivered to duty-free
shops, sold as ships' stores or imported by Canadian residents returning
to Canada.
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Part 8 amends the Excise Tax Act to implement measures relating to
the fuel excise taxes imposed under Part III of that Act and the goods and
services tax or harmonized sales tax (GST/HST) imposed under Part IX
of that Act. With respect to excise taxes, Part 8 removes the
4-cent-per-litre federal excise tax on diesel fuel from bio-diesel fuel,
from the bio-diesel portion of blended diesel fuel, and from the
biomass-produced ethanol or methanol portion of blended diesel fuel,
effective February 19, 2003. As well, it clarifies that no rebate of the
excise tax on fuel is payable in respect of fuel taken out of the country
in the fuel tank of a vehicle being driven across the border, applicable
to rebate claims received by the Canada Customs and Revenue Agency
on or after February 18, 2003. With respect to the GST/HST, it ensures
that the supply of school transportation services by school authorities
continues to be treated as an exempt activity and that the supply of
municipal services by a private contractor to a municipality or
government continues to be treated as taxable, in both cases effective
from the date of first enactment of the respective provisions on
December 17, 1990.
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Part 9 enacts the First Nations Goods and Services Tax Act, which
provides for the imposition by eligible first nations of a first nations
goods and services tax (FNGST) on first nation lands. The FNGST
would be payable by both aboriginals and non-aboriginals and would
be identical to the 7-per-cent goods and services tax (GST) or the federal
component of the harmonized sales tax (HST) that is imposed under
Part IX of the Excise Tax Act. A first nation may enact a law that imposes
an FNGST either under the authority granted by the First Nations
Goods and Services Tax Act or under a power to enact a law that has
been recognized or granted under another Act of Parliament or under an
agreement that has been given effect by another Act of Parliament.
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A key feature of the enactment is that it provides for the seamless
operation of the GST/HST and an FNGST imposed by a first nation.
Also, the enactment provides for the authority to enter into an
administration agreement between the Government of Canada and the
authorized body of a first nation respecting the collection and
administration of the 7-per-cent first nations goods and services tax
imposed under the law of a first nation and for the estimation and
sharing of tax revenues between the Government of Canada and the first
nation.
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Part 10 enacts amendments to the Income Tax Act that
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- increase the annual National Child Benefit Supplement through
successive increases of $150 per child in July 2003, $185 in July
2005 and $185 in July 2006 (indexed after year of introduction);
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- introduce, effective July 2003, a $1600 Child Disability Benefit as
a supplement to the Canada Child Tax Benefit (with payments
starting March 2004);
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- increase, from $7,634 to $13,814 (indexed after 2003), the level of
income used to determine the financial dependence of a child or
grandchild for the purposes of the rollovers of RRSP and RRIF
proceeds on the death of an annuitant;
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- clarify the eligibility criteria for the Disability Tax Credit;
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- expand the list of expenses eligible for the Medical Expense Tax
Credit to include certain expenses for real-time captioning and
note-taking services, and voice recognition software, and the
incremental cost to individuals with celiac disease of acquiring
gluten-free food products;
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- increase the limits for tax-assisted retirement saving;
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- expand the capital gains rollover for eligible small-business shares
by eliminating the original investment limit and the reinvestment
limit and allowing an eligible reinvestment to be made in the year of
disposition of the original investment shares or within 120 days
after the year;
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- provide relieving measures concerning the deductibility of
automobile expenses and the recognition of taxable benefits
relating to automobiles;
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- increase, to $300,000 from $200,000, in increments of $25,000
commencing in 2003, the annual amount of active business income
of a small business corporation that is eligible for the special 12 per
cent federal corporate income tax rate;
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- eliminate the federal capital tax on large corporations over a period
of 5 years and increase the threshold at which it begins to apply
from $10,000,000 to $50,000,000 in 2004;
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- extend the Mineral Exploration Tax Credit to the end of 2004;
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- improve the application of the tax shelter rules to arrangements
representing the deductibility of tax credits; and
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- increase the amount of the Film or Video Production Services Tax
Credit to 16 per cent from 11 per cent.
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Part 10 also amends the Children's Special Allowances Act as a
consequence to add, with respect to special allowances payable for
months that are after June 2003, a benefit parallel to the new $1600
Child Disability Benefit Supplement to the Canada Child Tax Benefit.
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Part 11 amends the Excise Act, 2001, the non-GST/HST parts of the
Excise Tax Act and the Income Tax Act to harmonize various accounting,
interest, penalty and related administrative and enforcement
provisions, generally applicable after June 2003.
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Clause 3: The relevant portion of subsection 4(9)
reads as follows:
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(9) Notwithstanding anything in this Part, where
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(a) the total amount of the fiscal equalization payments to all
provinces as determined under this Part for any fiscal year
commencing with the fiscal year that begins on April 1, 2000
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Clause 3.1: Subsection 13(4) reads as follows:
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(4) In this section, ``social programs'' includes programs in respect
of health, post-secondary education, social assistance and social
services, including early childhood development.
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Clause 4: (1) to (3) Paragraph 14(h) is new. The
relevant portion of section 14 reads as follows:
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14. The Canada Health and Social Transfer shall consist of
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(f) a cash contribution of $15.5 billion for each fiscal year in the
period beginning on April 1, 2004 and ending on March 31, 2006;
and
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(g) a cash contribution of
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(iii) $4.3 billion for the fiscal year beginning on April 1, 2003,
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(iv) $4.9 billion for the fiscal year beginning on April 1, 2004, and
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(v) $5.5 billion for the fiscal year beginning on April 1, 2005.
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Clause 5: New.
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Clause 6: (1) and (2) The relevant portion of
subsection 16(2) reads as follows:
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(2) For the purposes of subsection (1), the amount represented by the
federal income tax reduction in a province in respect of the Canada
Health and Social Transfer for a fiscal year is an amount equal to the
aggregate of
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(a) seventy-five per cent of the amount, as determined by the
Minister, that would be derived from a tax, computed in accordance
with the Income Tax Act,
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(i) on the incomes, other than incomes from businesses, of
individuals resident in the province on the last day of the taxation
year ending in the fiscal year, within the meaning of the Income
Tax Act,
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(ii) on the incomes, other than incomes from businesses, earned
in the province in the taxation year ending in the fiscal year by
individuals not resident in Canada at any time during the taxation
year, within the meaning of the Income Tax Act, and
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(iii) on the incomes from businesses earned in the province in the
taxation year ending in the fiscal year by individuals, within the
meaning of the Income Tax Act,
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equal to the product obtained by multiplying 13.5/(100-9.143) by
the ``tax otherwise payable under this Part'', within the meaning
assigned by subsection 120(4) of the Income Tax Act, on those
incomes,
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(b) twenty-five per cent of the amount, as determined by the
Minister, that would be derived from a tax, computed in accordance
with the Income Tax Act,
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(i) on the incomes, other than incomes from businesses, of
individuals resident in the province on the last day of the taxation
year beginning in the fiscal year, within the meaning of the
Income Tax Act,
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(ii) on the incomes, other than incomes from businesses, earned
in the province in the taxation year beginning in the fiscal year by
individuals not resident in Canada at any time during the taxation
year, within the meaning of the Income Tax Act, and
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(iii) on the incomes from businesses earned in the province in the
taxation year beginning in the fiscal year by individuals, within
the meaning of the Income Tax Act,
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equal to the product obtained by multiplying 13.5/(100-9.143) by
the ``tax otherwise payable under this Part'', within the meaning
assigned by subsection 120(4) of the Income Tax Act, on those
incomes,
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Clause 7: New.
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Clause 8: New.
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Clause 9: The relevant portion of the definition
``qualifying student'' in subsection 2(1) reads as
follows:
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``qualifying student'' means a person
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(a) who is a Canadian citizen or a permanent resident within the
meaning of the Immigration Act,
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Clause 10: (1) The definitions ``net costs'' and ``total
program net costs'' in subsection 14(6) read as follows:
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``net costs'', for a province for a loan year, means the amount by which
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(a) the estimated aggregate of all amounts paid by the Minister in
that loan year
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(i) to lenders, service providers or financial institutions under
this Act, the regulations or an agreement entered into under
section 5, 6.2 or 6.3, to lenders under the Canada Student
Loans Act or the regulations made under that Act, and to
collection agencies, in respect of student loans or guaranteed
student loans made pursuant to certificates of eligibility issued
or caused to be issued in any loan year by the appropriate
authority for that province, and
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(ii) to persons pursuant to regulations made under paragraph
15(p),
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(iii) any amounts paid pursuant to paragraph 5(e) or pursuant
to regulations made under paragraph 15(o), and
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(iv) any provincial share paid pursuant to an agreement or
arrangement made under subparagraph 18(b)(ii),
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(b) the estimated aggregate of all amounts received by or on
behalf of Her Majesty in right of Canada in that loan year,
including any amount received pursuant to the Financial
Administration Act, in respect of loans referred to in paragraph
(a), excluding
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(i) any amounts received pursuant to paragraph 5(e) or
pursuant to regulations made under paragraph 15(o), and
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(ii) any amounts received by or on behalf of Her Majesty in
right of Canada in respect of a provincial share paid pursuant
to an agreement or arrangement made under subparagraph
18(b)(ii);
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``total program net costs'', for a loan year, means the amount by which
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(a) the aggregate of all amounts paid by the Minister in that loan
year
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(i) to lenders, service providers or financial institutions under
this Act, the regulations or an agreement entered into under
section 5, 6.2 or 6.3, to lenders under the Canada Student
Loans Act or the regulations made under that Act, and to
collection agencies, in respect of student loans or guaranteed
student loans made pursuant to certificates of eligibility issued
or caused to be issued in any loan year by the appropriate
authorities for participating provinces, and
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(ii) to persons pursuant to regulations made under paragraph
15(p),
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(iii) any amounts paid pursuant to paragraph 5(e) or pursuant
to regulations made under paragraph 15(o), and
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(iv) any provincial share paid pursuant to an agreement or
arrangement made under subparagraph 18(b)(ii),
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(b) the aggregate of all amounts received by or on behalf of Her
Majesty in right of Canada in that loan year, including any
amount received pursuant to the Financial Administration Act, in
respect of loans referred to in paragraph (a), excluding
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(i) any amounts received pursuant to paragraph 5(e) or
pursuant to regulations made under paragraph 15(o), and
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(ii) any amounts received by or on behalf of Her Majesty in
right of Canada in respect of a provincial share paid pursuant
to an agreement or arrangement made under subparagraph
18(b)(ii).
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(2) Subsection 14(8) is new. Subsection 14(7) reads as
follows:
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(7) Amounts paid or received in relation to subparagraph 5(a)(viii)
or section 7, 10 or 11, or in relation to programs established by
regulations made under paragraph 15(l), (m), (n) or (p) or under section
11 of the Canada Student Loans Act, shall be included in the
calculations described in the definitions ``net costs'' and ``total program
net costs'' in subsection (6) only if the government of the province
satisfies the Minister, by written notice received by the Minister before
the beginning of the loan year in question, that, in relation to the matter
in question, the provincial student financial assistance plan has
substantially the same effect as the plan established by this Act and the
regulations.
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Clause 11: New.
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Clause 12: New.
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Clause 13: New.
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Clause 15: The definition ``common-law partner'' in
subsection 2(1) reads as follows:
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``common-law partner'', in relation to a claimant, means a person who
is cohabiting with the claimant in a conjugal relationship, having so
cohabited for a period of at least one year;
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Clause 16: (1) New.
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(2) Subsections 10(13.1) to (13.3) are new.
Subsections 10(13) to (15) read as follows:
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(13) If, during a claimant's benefit period,
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(a) regular benefits were not paid to the claimant,
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(b) benefits were paid because of the three reasons mentioned in
subsection 12(3), and
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(c) with respect to the reasons mentioned in paragraphs 12(3)(b) and
(c), benefits were not paid for the maximum number of weeks
established for those reasons,
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the benefit period is extended so that benefits may be paid up to the
maximum number of weeks available to the claimant for the reason
mentioned in each of those paragraphs.
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(14) Subject to subsection (15), no extension under any of
subsections (10) to (13) may result in a benefit period of more than 104
weeks.
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(15) No extension under subsection (13) may result in a benefit
period of more than 67 weeks, unless the benefit period is also extended
under any of subsections (10) to (12).
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Clause 17: (1) Paragraph 12(3)(d) is new. The relevant
portion of subsection 12(3) reads as follows:
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(3) The maximum number of weeks for which benefits may be paid
in a benefit period
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(2) New.
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(3) Subsection 12(5) reads as follows:
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(5) In a claimant's benefit period, the claimant may combine weeks
of benefits to which the claimant is entitled because of a reason
mentioned in subsection (3), but the maximum number of combined
weeks is 50. If the benefit period is extended under subsection 10(13),
the maximum number of combined weeks is 65.
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Clause 18: Subsections 23(3.21) to (3.23) and (3.4)
are new. Subsections 23(3.2) and (3.3) read as follows:
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(3.2) If, during a claimant's benefit period,
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(a) regular benefits were not paid to the claimant,
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(b) benefits were paid because of the three reasons mentioned in
subsection 12(3), and
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(c) with respect to the reason mentioned in paragraph 12(3)(b),
benefits were not paid for the maximum number of weeks
established for that reason,
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the period referred to in subsection (2) is extended so that benefits may
be paid up to the maximum number of weeks available to the claimant
for that reason.
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(3.3) No extension under subsection (3.2) may result in the period
being longer than 67 weeks or, if the benefit period is extended under
any of subsections 10(10) to (13), 104 weeks.
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Clause 19: New.
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Clause 20: (1) and (2) Paragraphs 54(c.2) and (f.2) to
(f.7) are new. The relevant portion of section 54 reads as
follows:
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54. The Commission may, with the approval of the Governor in
Council, make regulations
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Clause 21: Section 66.2 is new. Section 67 reads as
follows:
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67. Subject to section 70, a person employed in insurable
employment shall pay, by deduction as provided in subsection 82(1), a
premium equal to their insurable earnings multiplied by the premium
rate set under section 66 or 66.1, as the case may be.
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Clause 22: (1) The relevant portion of subsection
69(1) reads as follows:
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69. (1) The Commission shall, with the approval of the Governor in
Council, make regulations to provide a system for reducing the
employer's premium where
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(a) the payment of any allowances, money or other benefits because
of illness, injury, quarantine, pregnancy or child care under a plan
that covers insured persons employed by the employer, other than
one established under provincial law, would have the effect of
reducing the special benefits payable to the insured persons; and
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(2) Subsection 69(2) reads as follows:
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(2) The Commission shall, with the approval of the Governor in
Council, make regulations to provide a system for reducing the
employer's and employee's premiums when the payment of any
allowances, money or other benefits because of illness, injury,
quarantine, pregnancy or child care under a provincial law to insured
persons would have the effect of reducing or eliminating the special
benefits payable to those insured persons.
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(3) New.
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Clause 23: (1) Subsection 8(11.1) reads as follows:
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(11.1) Notwithstanding subsection (11) and subject to the applicable
maximums referred to in subsections (17) and (18), the benefit period
of a fisher shall be extended by one week for each week in respect of
which the fisher is entitled to special benefits under section 21, 22 or 23
of the Act, but shall not exceed a maximum of 52 weeks.
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(2) Subsections 8(11.31) to (11.33) are new.
Subsections 8(11.3) to (11.5) read as follows:
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(11.3) Notwithstanding subsection (11) and subject to the applicable
maximums referred to in subsection (17), if, during a fisher's benefit
period,
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(a) benefits were not paid to the fisher under subsection (12),
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(b) benefits were paid because of the three reasons mentioned in
subsection 12(3) of the Act, and
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(c) with respect to the reasons mentioned in paragraphs 12(3)(b) and
(c) of the Act, benefits were not paid for the maximum number of
weeks established for those reasons,
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the benefit period is extended so that benefits may be paid up to the
maximum number of weeks available to the fisher for the reason
mentioned in each of those paragraphs.
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(11.4) Subject to subsection (11.5), no extension under any of
subsections (11.1) to (11.3) may result in a benefit period of more than
104 weeks.
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(11.5) No extension under subsection (11.3) may result in a benefit
period of more than 67 weeks, unless the benefit period is also extended
under subsection (11.1) or (11.2).
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(3) Subsection 8(14) reads as follows:
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(14) No benefit period established under subsection (1) or (6) shall
be extended beyond the date determined in accordance with any of
subsections (11) to (11.3).
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(4) Subsection 8(17.1) reads as follows:
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(17.1) For the purpose of subsection (17), the reference in subsection
12(5) of the Act to subsection 10(13) of the Act is to be read as a
reference to subsection (11.3) of this section.
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Clause 24: (1) Subsection 12(3) reads as follows:
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(3) Subject to subsection (4), sections 22 and 23 of the Act apply to
the payment of special benefits under this section.
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(2) The relevant portion of subsection 12(4) reads as
follows:
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(4) Notwithstanding section 18 of the Act, a claimant is not entitled
to be paid special benefits for a working day, in a benefit period
established under this section, in respect of which the claimant fails to
prove that on that day the claimant was
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(b) entitled to benefits under section 22 or 23 of the Act.
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Clause 26: The heading reads as follows:
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Clause 27: New.
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Clause 28: New.
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Clause 29: Paragraph 209.4(a.1) is new. The relevant
portion of section 209.4 reads as follows:
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209.4 The Governor in Council may make regulations
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Clause 31: New.
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Clause 32: New.
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Clause 33: New.
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Clause 41: The relevant portion of subsection 4(2)
reads as follows:
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(2) In carrying out its purpose, the Corporation has the power to
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(f.4) acquire and dispose of short- or medium-term equity interests
in farming operations or in businesses related to farming, within
parameters that are satisfactory to the Minister of Finance;
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Clause 42: 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 seventy-five
million dollars, or such greater aggregate amount as may be authorized
from time to time under an appropriation Act.
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Clause 44: (1) Subsection 12(1) reads as follows:
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12. (1) Subject to subsection (3), if an air transportation service is
acquired in Canada, the amount of the charge in respect of the service
is
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(a) $11.22 for each chargeable emplanement included in the service,
to a maximum of $22.43, if
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(i) the service does not include transportation to a destination
outside the continental zone, and
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(ii) tax under subsection 165(1) of the Excise Tax Act is required
to be paid in respect of the service;
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(b) $12.00 for each chargeable emplanement included in the service,
to a maximum of $24.00, if
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(i) the service does not include transportation to a destination
outside the continental zone, and
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(ii) tax under subsection 165(1) of the Excise Tax Act is not
required to be paid in respect of the service; or
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(c) $24.00, if the service includes transportation to a destination
outside the continental zone.
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Clause 45: Subsection 21(2) reads as follows:
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(2) There shall be levied on traveller's tobacco, at the time of its
importation, and paid in accordance with the Customs Act, a duty of
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(a) $0.0575 per cigarette, in the case of cigarettes;
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(b) $0.0425 per stick, in the case of tobacco sticks; and
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(c) $0.0375 per gram, in the case of manufactured tobacco other than
cigarettes and tobacco sticks.
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Clause 46: Section 240 reads as follows:
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240. Every tobacco licensee who contravenes subsection 50(5) is
liable to a penalty equal to the total of
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(a) $0.25995 per cigarette that was removed in contravention of that
subsection,
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(b) $0.159966 per tobacco stick that was removed in contravention
of that subsection, and
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(c) $149.966 per kilogram of manufactured tobacco, other than
cigarettes and tobacco sticks, that was removed in contravention of
that subsection.
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Clause 47: (1) and (2) The relevant portion of section
1 of Schedule 1 reads as follows:
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1. Cigarettes:
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(a) $0.287375 for each five cigarettes or fraction of five cigarettes
contained in any package, if the cigarettes are black stock
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(b) $0.308755 for each five cigarettes or fraction of five cigarettes
contained in any package, in any other case.
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Clause 48: (1) and (2) The relevant portion of section
2 of Schedule 1 reads as follows:
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2. Tobacco sticks:
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(a) $0.042483 per stick, if the tobacco sticks are black stock
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(b) $0.045483 per stick, in any other case.
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Clause 49: (1) and (2) The relevant portion of section
3 of Schedule 1 reads as follows:
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3. Manufactured tobacco other than cigarettes and tobacco sticks:
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(a) $37.483 per kilogram, if the manufactured tobacco is black stock
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(b) $41.481 per kilogram, in any other case.
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Clause 50: (1) and (2) The relevant portion of
Schedule 2 reads as follows:
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Cigars:
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(a) $0.03947 per cigar, and
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Clause 51: Section 1 of Schedule 3 reads as follows:
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1. Special duty on imported manufactured tobacco:
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(a) $0.0575 per cigarette, in the case of cigarettes;
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(b) $0.0425 per stick, in the case of tobacco sticks; and
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(c) $0.0375 per gram, in the case of manufactured tobacco other than
cigarettes or tobacco sticks.
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Clause 52: Section 2 of Schedule 3 reads as follows:
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2. Special duty on traveller's tobacco:
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(a) $0.0575 per cigarette, in the case of cigarettes;
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(b) $0.0425 per stick, in the case of tobacco sticks; and
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(c) $0.0375 per gram, in the case of manufactured tobacco other than
cigarettes or tobacco sticks.
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Clause 53: Section 3 of Schedule 3 reads as follows:
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3. Special duty on unstamped tobacco products:
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(a) $0.0575 per cigarette, in the case of cigarettes;
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(b) $0.0425 per stick, in the case of tobacco sticks; and
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(c) $37.50 per kilogram, in the case of tobacco products other than
cigarettes or tobacco sticks.
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Clause 54: Section 4 of Schedule 3 reads as follows:
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4. Special duty on stamped tobacco products:
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(a) $0.068224 per cigarette, in the case of cigarettes;
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(b) $0.0345 per stick, in the case of tobacco sticks; and
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(c) $33.502 per kilogram, in the case of tobacco products other than
cigarettes or tobacco sticks.
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Clause 55: Subsection 23.11(2) reads as follows:
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(2) The rate of tax imposed under subsection (1) is
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(a) $0.03 per cigarette, in the case of cigarettes;
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(b) $0.02415 per stick, in the case of tobacco sticks; and
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(c) $19.15 per kilogram, in the case of manufactured tobacco other
than cigarettes and tobacco sticks.
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Clause 56: Subsection 23.12(1) reads as follows:
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23.12 (1) If imported tobacco products are delivered to a duty free
shop, there shall be imposed, levied and collected in respect of them, in
addition to any other duty or tax payable under this Act or any other Act
or law, an excise tax at the rate of
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(a) $0.0575 per cigarette, in the case of cigarettes;
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(b) $0.0425 per stick, in the case of tobacco sticks; and
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(c) $0.0375 per gram, in the case of manufactured tobacco other than
cigarettes and tobacco sticks.
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Clause 57: (1) and (2) Subsections 23.13(1) and (2)
read as follows:
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23.13 (1) If tobacco products manufactured or produced in Canada
are exported in bond in accordance with subparagraph 58.1(3)(a)(i) and
paragraph 58.1(3)(b) of the Excise Act by their manufacturer or
producer, there shall be imposed, levied and collected in respect of the
tobacco products, in addition to any other duty or tax payable under this
Act or any other Act or law, an excise tax at the rate of
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(a) $0.0575 per cigarette, in the case of cigarettes;
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(b) $0.0425 per stick, in the case of tobacco sticks; and
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(c) $37.50 per kilogram, in the case of manufactured tobacco other
than cigarettes and tobacco sticks.
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(2) If tobacco products manufactured or produced in Canada are
exported and subsection (1) does not apply to those products, there shall
be imposed, levied and collected in respect of those products, in
addition to any other duty or tax payable under this Act or any other Act
or law, an excise tax at the rate of
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(a) $0.1025 per cigarette, in the case of cigarettes;
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(b) $0.06165 per stick, in the case of tobacco sticks; and
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(c) $56.65 per kilogram, in the case of manufactured tobacco other
than cigarettes and tobacco sticks.
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Clause 58: Sections 1 to 4 of Schedule II read as
follows:
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1. Cigarettes: $0.17138 for each five cigarettes or fraction of five
cigarettes contained in any package.
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2. Tobacco sticks: $0.02715 per stick.
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3. Manufactured tobacco other than cigarettes and tobacco sticks:
$23.148 per kilogram.
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4. Cigars, the greater of $0.03947 per cigar and 50 per cent.
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Clause 61: (1) New.
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Clause 62: (1) New.
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Clause 63: (1) New.
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Clause 64: (1) Section 5 of Part III of Schedule V reads
as follows:
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5. A supply made by a school authority to elementary or secondary
school students of a service of transporting the students to or from a
school that is operated by a school authority.
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Clause 65: (1) Section 21 of Part VI of Schedule V
reads as follows:
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21. A supply of a municipal service made by or on behalf of a
government or municipality to owners or occupants of real property
situated in a particular geographic area where
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(a) the owners or occupants have no option but to receive the service,
or
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(b) the service is supplied because of a failure by an owner or
occupant to comply with an obligation imposed under a law,
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but not including a supply of a service of testing or inspecting any
property for the purpose of verifying or certifying that the property
meets particular standards of quality or is suitable for consumption, use
or supply in a particular manner.
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Clause 66: (1) Section 377 reads as follows:
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377. Subsection 68.1(1) of the Act is renumbered as section 68.1
and subsection 68.1(2) of the Act is repealed.
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Clause 67: (1) and (2) New.
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Clause 68: (1) and (2) Subparagraph 295(5)(d)(iv.2)
is new. The relevant portion of subsection 295(5) reads
as follows:
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(5) An official may
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(d) provide confidential information
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|
(i) to an official of the Department of Finance solely for the
purposes of the formulation or evaluation of fiscal policy,
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|
Clause 69: (1) The relevant portion of subsection 6(2)
reads as follows:
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(2) For the purposes of paragraph (1)(e), a reasonable standby charge
for an automobile for the total number of days (in this subsection
referred to as the ``total available days'') in a taxation year during which
the automobile is made available to a taxpayer or to a person related to
the taxpayer by the employer of the taxpayer or by a person related to
the employer (both of whom are in this subsection referred to as the
``employer'') shall be deemed to be the amount determined by the
formula
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A/B x [2% x (C x D) + 2/3 x (E - F)
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where
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A is the lesser of
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(a) the total number of kilometres that the automobile is driven
(otherwise than in connection with or in the course of the
taxpayer's office or employment) during the total available days,
and
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(b) the value determined for B for the year under this subsection
in respect of the standby charge for the automobile during the
total available days,
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except that the amount determined under paragraph (a) shall be
deemed to be equal to the amount determined under paragraph (b)
unless
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(c) the taxpayer is required by the employer to use the automobile
in connection with or in the course of the office or employment,
and
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|
(d) all or substantially all of the distance travelled by the
automobile in the total available days is in connection with or in
the course of the office or employment;
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B is the product obtained when 1,000 is multiplied by the quotient
obtained by dividing the total available days by 30 and, if the
quotient so obtained is not a whole number and exceeds one, by
rounding it to the nearest whole number or, where that quotient is
equidistant from two consecutive whole numbers, by rounding it to
the lower of those two numbers;
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Clause 70: (1) The definitions ``qualifying cost'',
``qualifying portion of a capital gain'' and ``qualifying
portion of the proceeds of disposition'' in subsection
44.1(1) read as follows:
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``qualifying cost'' to an individual of particular replacement shares of
the individual in respect of a qualifying disposition of the individual
that are shares of the capital stock of a particular eligible small
business corporation means the lesser of
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(a) the total of all amounts each of which is the cost to the
individual of such a replacement share; and
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(b) the amount by which $2,000,000 exceeds the total of all
amounts each of which is the cost to the individual of a share that
was a share of the capital stock of the particular eligible small
business corporation or of a corporation related to it at the time the
particular replacement shares were acquired and that was a
replacement share of the individual in respect of another
qualifying disposition.
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``qualifying portion of a capital gain'' of an individual from a particular
qualifying disposition of the individual means the amount
determined by the formula
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J x (1 - (K/L))
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J is the individual's capital gain from the particular qualifying
disposition, determined without reference to this section
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K is the amount, if any, by which the total of
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(a) the total of all amounts each of which is the adjusted cost
base to the individual of a share of a particular corporation that
was the subject of the particular qualifying disposition (which
adjusted cost base shall be determined immediately before the
share was disposed of and without reference to this section),
and
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(b) the total of all amounts each of which is the adjusted cost
base to the individual of a share of the particular corporation
or a corporation related to it at the time of the particular
qualifying disposition that was the subject of another
qualifying disposition (in respect of which a permitted
deferral was deducted under this section by the individual)
that occurred at or before the time of the particular qualifying
disposition (which adjusted cost base shall be determined
immediately before the share was disposed of and without
reference to this section)
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L is the total of all amounts each of which is the adjusted cost base
to the individual of a share of the particular corporation that was
the subject of the particular qualifying disposition (which
adjusted cost base shall be determined immediately before the
share was disposed of and without reference to this section).
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``qualifying portion of the proceeds of disposition'' of an individual
from a qualifying disposition means the amount determined by the
formula
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M x (N/O)
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M is the individual's proceeds of disposition from the qualifying
disposition;
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N is the individual's qualifying portion of the capital gain from the
qualifying disposition; and
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O is the individual's capital gain from the qualifying disposition,
determined without reference to this section.
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(2) The relevant portion of the definition ``ACB
reduction'' in subsection 44.1(1) reads as follows:
|
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``ACB reduction'' of an individual in respect of a replacement share of
the individual in respect of a qualifying disposition of the individual
means the amount determined by the formula
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D x (E/F)
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E is the qualifying cost to the individual of the replacement share;
and
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F is the qualifying cost to the individual of all the replacement
shares of the individual in respect of the qualifying disposition.
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(3) The definition ``permitted deferral'' in subsection
44.1(1) reads as follows:
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``permitted deferral'' of an individual in respect of a qualifying
disposition of the individual means the amount determined by the
formula
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(G/H) x I
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G is the lesser of the amount included in the description of H and
the total of all amounts each of which is the qualifying cost to the
individual of a replacement share in respect of the qualifying
disposition;
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H is the qualifying portion of the individual's proceeds of
disposition from the qualifying disposition; and
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I is the qualifying portion of the individual's capital gain from the
qualifying disposition.
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(4) The relevant portion of the definition
``replacement share'' in subsection 44.1(1) reads as
follows:
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``replacement share'' of an individual in respect of a qualifying
disposition of the individual in a taxation year means an eligible
small business corporation share of the individual that is
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(a) acquired by the individual in the year or within 60 days after
the end of the year but not later than 120 days after the qualifying
disposition occurred; and
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|
Clause 71: (1) and (2) Clause 60(l)(v)(B.01) is new.
The relevant portion of section 60 reads as follows:
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60. There may be deducted in computing a taxpayer's income for a
taxation year such of the following amounts as are applicable
|
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(l) the total of all amounts each of which is an amount paid by or on
behalf of the taxpayer in the year or within 60 days after the end of
the year (or within such longer period after the end of the year as is
acceptable to the Minister)
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(v) does not exceed the total of
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(II) the amount (other than any portion thereof included in
the amount determined under clause (B) or (B.2)) included
in computing the taxpayer's income for the year as
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Clause 72: (1) and (2) The relevant portion of
subsection 104(27) reads as follows:
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(27) Where a testamentary trust has, in a taxation year throughout
which it was resident in Canada, received a superannuation or pension
benefit or a benefit out of or under a foreign retirement arrangement and
has designated, in the return of its income for the year under this Part,
an amount in respect of a beneficiary under the trust equal to such
portion (in this subsection referred to as the ``beneficiary's share'') of
the benefit as
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the following rules apply:
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(i) the benefit is an amount described in subparagraph (a)(i) of the
definition ``pension income'' in subsection 118(7), and
|
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|
(ii) the beneficiary was a spouse or common-law partner of the
settlor of the trust,
|
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the beneficiary's share of the benefit shall be deemed, for the
purposes of subsections 118(3) and (7), to be a payment described
in subparagraph (a)(i) of the definition ``pension income'' in
subsection 118(7) that is included in computing the beneficiary's
income for the particular year,
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(e) where the benefit is a single amount (within the meaning assigned
by subsection 147.1(1)) paid by a registered pension plan to the trust
as a consequence of the death of the settlor of the trust and the
beneficiary was, at the time of the settlor's death, under 18 years of
age and a child or grandchild of the settlor, the beneficiary's share of
the benefit (other than any portion thereof that relates to an actuarial
surplus) shall be deemed, for the purposes of paragraph 60(l), to be
an amount from a registered pension plan included in computing the
beneficiary's income for the particular year as a payment described
in subclause 60(l)(v)(B.1)(II).
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Clause 73: (1) and (2) Paragraphs 118.2(2)(l.41),
(l.42) and (r) are new. The relevant portion of subsection
118.2(2) reads as follows:
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(2) For the purposes of subsection (1), a medical expense of an
individual is an amount paid
|
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(l.4) on behalf of the patient who has a speech or hearing
impairment, for sign language interpretation services, to the
extent that the payment is made to a person engaged in the
business of providing such services;
|
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|
Clause 74: (1) and (2) The relevant portion of
subsection 118.3(1) reads as follows:
|
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|
118.3 (1) Where
|
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(iii) an impairment with respect to an individual's ability in
feeding and dressing themself, or in walking, a medical doctor or
an occupational therapist,
|
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|
(iv) an impairment with respect to an individual's ability in
perceiving, thinking and remembering, a medical doctor or a
psychologist, and
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has certified in prescribed form that the impairment is a severe and
prolonged mental or physical impairment the effects of which are
such that the individual's ability to perform a basic activity of daily
living is markedly restricted or would be markedly restricted but for
therapy referred to in paragraph (a.1),
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there may be deducted in computing the individual's tax payable under
this Part for the year the amount determined by the formula
|
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|
Clause 75: (1) and (2) Paragraphs 118.4(1)(e) and (f)
are new. The relevant portion of subsection 118.4(1)
reads as follows:
|
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|
118.4 (1) For the purposes of subsection 6(16), sections 118.2 and
118.3 and this subsection,
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|
(c) a basic activity of daily living in relation to an individual means
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(ii) feeding and dressing oneself,
|
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|
Clause 76: (1) to (4) Subparagraph 118.6(3)(b)(i.1) is
new. The relevant portion of subsection 118.6(3) reads
as follows:
|
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|
(3) In calculating the amount deductible under subsection (2) in
computing an individual's tax payable under this Part for a taxation
year, the reference in that subsection to ``full-time student'' shall be read
as ``student'' if either
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|
(b) the individual has in the year a mental or physical impairment the
effects of which on the individual have been certified in writing, to
be such that the individual cannot reasonably be expected to be
enrolled as a full-time student while so impaired, by a medical doctor
or, where the impairment is
|
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|
|
(iii) an impairment with respect to the individual's ability in
feeding and dressing themself, or in walking, by a medical doctor
or an occupational therapist, or
|
|
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|
Clause 77: (1) to (4) 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 or common-law partner 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 is 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) + C]
|
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|
|
where
|
|
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|
. . .
|
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|
|
C is the amount determined by the formula
|
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|
|
F - (G x H)
|
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|
|
F is, where the person is, at the beginning of the month, an
eligible individual in respect of
|
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(a) only one qualified dependant, $1,255, and
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(b) two or more qualified dependants, the total of
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(i) $1,255 for the first qualified dependant,
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(ii) $1055 for the second qualified dependant, and
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(iii) $980 for each of the third and subsequent qualified
dependants,
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G is the amount, if any, by which the person's adjusted income
for the year exceeds $21,214, and
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H is the proportion (expressed as a percentage rounded to the
nearest one-tenth of one per cent) that
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(a) the total that would be determined under the description
of F in respect of the eligible individual if that description
were applied without reference to the fourth and
subsequent qualified dependants in respect of whom the
person is an eligible individual
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(i) the amount referred to in paragraph (b) of the
description of B
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(5) Subsection 122.61(6) reads as follows:
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(6) For the purpose of subsection (5), the amount of $1,090, and the
amounts in respect of the amounts of $213 and $75, referred to in
subsection (1), that are used for the purpose of determining the amount
deemed to be an overpayment arising during particular months that are
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(a) after June 2000 and before July 2001, are deemed to be $1,104,
$219 and $77, respectively;
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(b) after June 2001 and before July 2002, shall be equal to the greater
of the amounts deemed under paragraph (a) to be an overpayment
arising during the months referred to in that paragraph and the
amounts that would otherwise be determined for those particular
months if this Act were read without reference to this subsection; and
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(c) after June 2002, shall be computed without reference to
paragraphs (a) and (b).
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Clause 78: (1) The definition ``CCPC rate reduction
percentage'' in subsection 123.4(1) reads as follows:
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``CCPC rate reduction percentage'' of a Canadian-controlled private
corporation for a taxation year is that proportion of 7% that the
number of days in the year that are after 2000 is of the number of days
in the year.
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(2) and (3) The relevant portion of the definition ``full
rate taxable income'' in subsection 123.4(1) reads as
follows:
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``full rate taxable income'' of a corporation for a taxation year is
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(b) if the corporation is a Canadian-controlled private corporation
throughout the year, the amount by which the corporation's
taxable income for the year exceeds the total of
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(iv) 100/7 of the amount, if any, deducted under subsection (3)
from the corporation's tax otherwise payable under this Part
for the year; and
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(c) if the corporation is throughout the year an investment
corporation, a mortgage investment corporation, a mutual fund
corporation, or a non-resident-owned investment corporation,
nil.
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(4) and (5) Subsection 123.4(3) reads as follows:
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(3) There may be deducted from the tax otherwise payable under this
Part for a taxation year by a Canadian-controlled private corporation the
product obtained by multiplying the corporation's CCPC rate reduction
percentage for the year by the amount by which the least of
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(a) 3/2 of the corporation's business limit for the year, as determined
under section 125 for the purpose of paragraph 125(1)(c),
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(b) the amount that would be determined under paragraph 125(1)(a)
in respect of the corporation for the year if the references in the
description of M in the definition ``specified partnership income'' in
subsection 125(7) to ``$200,000'' and ``$548'' were read as
references to ``$300,000'' and ``$822'', respectively, and
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(i) the amount that would, if subsection 126(1) did not apply in
respect of any amount included in the corporation's aggregate
investment income for the year (determined under subsection
129(4)), be determined under paragraph 125(1)(b) in respect of
the corporation for the year
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(ii) the corporation's aggregate investment income for the year,
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exceeds the total of
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(d) the amounts that would, if paragraph (a) of the definition
``full-rate taxable income'' in subsection (1) applied to the
corporation for the year, be determined under subparagraphs (a)(i)
to (iv) of that definition in respect of the corporation for the year, and
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(e) 100/16 of the amount, if any, deducted under subsection 125(1)
from the corporation's tax otherwise payable under this Part for the
year.
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Clause 79: (1) Subsections 125(2) to (4) read as
follows:
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(2) For the purposes of this section, a corporation's ``business limit''
for a taxation year is $200,000 unless the corporation is associated in the
year with one or more other Canadian-controlled private corporations
in which case, except as otherwise provided in this section, its business
limit for the year is nil.
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(3) For the purposes of this section, a corporation's ``business limit''
for a taxation year is $200,000 unless the corporation is associated in the
year with one or more other Canadian-controlled private corporations
in which case, except as otherwise provided in this section, its business
limit for the year is nil.
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(4) If any of the Canadian-controlled private corporations that are
associated with each other in a taxation year has failed to file with the
Minister an agreement as contemplated by subsection (3) within 30
days after notice in writing by the Minister has been forwarded to any
of them that such an agreement is required for the purpose of any
assessment of tax under this Part, the Minister shall, for the purpose of
this section, allocate an amount to one or more of them for the taxation
year, which amount or the total of which amounts, as the case may be,
shall equal $200,000, and in any such case, notwithstanding subsection
(2), the business limit for the year of each of the corporations is the
amount so allocated to it.
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(2) The relevant portion of the definition ``specified
partnership income'' in subsection 125(7) reads as
follows:
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``specified partnership income'' of a corporation for a taxation year
means the amount determined by the formula
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A + B
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where
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A is the total of all amounts each of which is an amount in respect of a
partnership of which the corporation was a member in the year
equal to the lesser of
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(b) the amount determined by the formula
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K/L x M
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(ii) the product obtained when $548 is multiplied by the
total of all amounts each of which is the number of days
contained in a fiscal period of the partnership ending in the
year, and
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Clause 80: (1) Subsection 125.5(3) reads as follows:
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(3) Subject to subsection (4), where
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(a) an eligible production corporation in respect of an accredited
production for a taxation year files with its return of income for
the year
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(i) a prescribed form containing prescribed information in
respect of the production,
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(ii) an accredited film or video production certificate in respect
of the production, and
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(iii) each other document prescribed in respect of the
production, and
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(b) the principal filming or taping of the production began before
the end of the year,
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the corporation is deemed to have paid on its balance-due day for the
year an amount on account of its tax payable under this Part for the
year equal to 11% of its qualified Canadian labour expenditure for
the year in respect of the production.
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Clause 81: (1) and (2) The relevant portion of the
definition ``flow-through mining expenditure'' in
subsection 127(9) reads as follows:
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``flow-through mining expenditure'' of a taxpayer for a taxation year
means an expense deemed by subsection 66(12.61) (or by
subsection 66(18) as a consequence of the application of subsection
66(12.61) to the partnership, referred to in paragraph (c) of this
definition, of which the taxpayer is a member) to be incurred by the
taxpayer in the year
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(a) that is a Canadian exploration expense incurred after October
17, 2000 and before 2004 by a corporation in conducting mining
exploration activity from or above the surface of the earth for the
purpose of determining the existence, location, extent or quality
of a mineral resource described in paragraph (a) or (d) of the
definition ``mineral resource'' in subsection 248(1),
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(e) that is an expense that would be incurred by the corporation
before 2004 if this Act were read without reference to subsection
66(12.66);
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(3) Subsection 127(10.21) is new. Subsection
127(10.2) reads as follows:
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(10.2) For the purpose of subsection (10.1), a corporation's
expenditure limit for a particular taxation year is the amount determined
by the formula
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($4,000,000 - 10A) x B/$200,000
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where
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A is the greater of $200,000 and either
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(a) where the corporation is associated with one or more other
corporations in the particular year and the particular year ends in
a calendar year, the total of all amounts each of which is the
taxable income of the corporation or such an associated
corporation for its last taxation year that ended in the preceding
calendar year (determined before taking into consideration the
specified future tax consequences for that last year), or
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(b) where paragraph (a) does not apply, the corporation's taxable
income for its immediately preceding taxation year (determined
before taking into consideration the specified future tax
consequences for that preceding year), and
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B is the total of the business limits under section 125 for the particular
year of the corporation and any such other corporations for the
particular year,
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unless the corporation is associated in the particular year with one or
more other Canadian-controlled private corporations, in which case,
except as otherwise provided in this section, its expenditure limit for the
particular year is nil.
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Clause 82: (1) The definition ``refund of premiums''
in subsection 146(1) reads as follows:
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``refund of premiums'' means
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(a) any amount paid to a spouse or common-law partner of the
annuitant out of or under a registered retirement savings plan of
the annuitant (other than any part of the amount that is a tax-paid
amount in respect of the plan), where the annuitant died before
the maturity of the plan and the amount was paid as a
consequence of the death, or
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(b) any amount paid out of or under a registered retirement
savings plan of the annuitant (other than any part of the amount
that is a tax-paid amount in respect of the plan) after the death to
a child or grandchild (in this definition referred to as a
``dependant'') of the annuitant, who was, at the time of the death,
financially dependent on the annuitant for support,
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and for the purpose of paragraph (b), it is assumed, unless the
contrary is established, that a dependant was not financially
dependent on the annuitant for support at the time of the
annuitant's death if the dependant's income for the year
preceding the taxation year in which the annuitant died exceeded
the amount used under paragraph (c) of the description of B in
subsection 118(1) for that preceding year;
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(2) The definition ``RRSP dollar limit'' in subsection
146(1) reads as follows:
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``RRSP dollar limit'' for a calendar year means
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(a) for years other than 1996, the money purchase limit for the
preceding year, and
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(3) New.
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Clause 83: (1) to (3) The relevant portion of
subsection 146.3(2) reads as follows:
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(2) The Minister shall not accept for registration for the purposes of
this Act any retirement income fund of an individual unless, in the
Minister's opinion, the following conditions are complied with:
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(a) the fund provides that the carrier shall make only those payments
described in any of paragraphs (d) and (e), the definition ``retirement
income fund'' in subsection (1) and paragraph (14)(b);
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(e.1) where the fund does not govern a trust or the fund governs a
trust created before 1998 that does not hold an annuity contract as a
qualified investment for the trust, the fund provides that if an
annuitant, at any time, directs that the carrier transfer all or part of the
property held in connection with the fund, or an amount equal to its
value at that time, to a person who has agreed to be a carrier of
another registered retirement income fund of the annuitant, the
transferor shall retain an amount equal to the lesser of
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(e.2) where paragraph (e.1) does not apply, the fund provides that if
an annuitant, at any time, directs that the carrier transfer all or part of
the property held in connection with the fund, or an amount equal to
its value at that time, to a person who has agreed to be a carrier of
another registered retirement income fund of the annuitant, the
transferor shall retain property in the fund sufficient to ensure that
the total of
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(4) Subsections 146.3(14.1) and (14.2) are new.
Subsection 146.3(14) reads as follows:
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(14) Notwithstanding anything in this section, an amount
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(a) transferred as described in paragraph (2)(e), or
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(b) transferred from a registered retirement income fund of an
annuitant to a registered retirement income fund or registered
retirement savings plan of the annuitant's spouse or common-law
partner or former spouse or common-law partner under a decree,
order or judgment of a competent tribunal, or under a written
separation agreement, relating to a division of property between the
annuitant and the annuitant's spouse or common-law partner or
former spouse or common-law partner in settlement of rights arising
out of, or on the breakdown of, their marriage or common-law
partnership,
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shall be deemed not to be an amount received by the annuitant out of or
under a registered retirement income fund.
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Clause 84: (1) The relevant portion of the definition
``money purchase limit'' in subsection 147.1(1) reads as
follows:
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``money purchase limit'' for a calendar year means
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(g) for years after 1995 and before 2003, $13,500,
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(i) for 2004, $15,500, and
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(j) for each year after 2004, the greater of
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(B) the quotient obtained when the average wage for the
year is divided by the average wage for 2004,
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rounded to the nearest multiple of $10, or, if that product is
equidistant from 2 such consecutive multiples, to the higher
thereof, and
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(ii) the money purchase limit for the preceding year;
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Clause 85: (1) Subsections 181.1(1.1) and (1.2) are
new. Subsection 181.1(1) reads as follows:
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181.1 (1) Every corporation shall pay a tax under this Part for each
taxation year equal to 0.225% of the amount, if any, by which
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(a) its taxable capital employed in Canada for the year
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exceeds
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(b) its capital deduction for the year.
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Clause 86: (1) Subsection 181.5(1.1) is new.
Subsections 181.5(1) to (3) read as follows:
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181.5 (1) The capital deduction of a corporation for a taxation year
is $10,000,000 unless the corporation was related to another
corporation at any time in the year, in which case, subject to subsection
(4), its capital deduction for the year is nil.
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(2) A corporation that is related to any other corporation at any time
in a taxation year of the corporation ending in a calendar year may file
with the Minister in prescribed form an agreement on behalf of the
related group of which the corporation is a member under which an
amount that does not exceed $10,000,000 is allocated among all
corporations that are members of the related group for each taxation
year of each such corporation ending in the calendar year and at a time
when it was a member of the related group.
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(3) The Minister may request a corporation that is related to any other
corporation at the end of a taxation year to file with the Minister an
agreement referred to in subsection (2) and, if the corporation does not
file such an agreement within 30 days after receiving the request, the
Minister may allocate an amount among the members of the related
group of which the corporation is a member for the year not exceeding
$10,000,000.
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(2) New.
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Clause 87: (1) The definition ``tax shelter'' in
subsection 237.1(1) reads as follows:
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``tax shelter'' means any property (including, for greater certainty, any
right to income) in respect of which it can reasonably be considered,
having regard to statements or representations made or proposed to
be made in connection with the property, that, if a person were to
acquire an interest in the property, at the end of a particular taxation
year that ends within 4 years after the day on which the interest is
acquired,
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(a) the total of all amounts each of which is
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(i) an amount, or a loss in the case of a partnership interest,
represented to be deductible in computing income in respect
of the interest in the property (including, where the property
is a right to income, an amount or loss in respect of that right
that is represented to be deductible) and expected to be
incurred by or allocated to the person for the particular year or
any preceding taxation year, or
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(ii) any other amount represented to be deductible in
computing income or taxable income in respect of the interest
in the property and expected to be incurred by or allocated to
the person for the particular year or any preceding taxation
year, other than any amount included in computing a loss
described in subparagraph (i),
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(b) the amount, if any, by which
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(i) the cost to the person of the interest in the property at the end
of the particular year, determined without reference to section
143.2,
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(ii) the total of all amounts each of which is the amount of any
prescribed benefit that is expected to be received or enjoyed,
directly or indirectly, in respect of the interest in the property
by the person or another person with whom the person does
not deal at arm's length,
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but does not include property that is a flow-through share or a
prescribed property.
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(2) New.
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Clause 88: (1) to (4) Paragraph (b.1) of the definition
``automobile'' in subsection 248(1) is new. The relevant
portion of that definition reads as follows:
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``automobile'' means
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(a) a motor vehicle that is designed or adapted primarily to carry
individuals on highways and streets and that has a seating
capacity for not more than the driver and 8 passengers,
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(e) a motor vehicle of a type commonly called a van or pick-up
truck or a similar vehicle
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(i) that has a seating capacity for not more than the driver and
2 passengers and that, in the taxation year in which it is
acquired, is used primarily for the transportation of goods or
equipment in the course of gaining or producing income, or
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(ii) the use of which, in the taxation year in which it is acquired,
is all or substantially all for the transportation of goods,
equipment or passengers in the course of gaining or producing
income;
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(5) New.
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Clause 89: (1) Subsection 252(3) reads as follows:
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(3) For the purposes of paragraphs 56(1)(b) and (c), section 56.1,
paragraphs 60(b), (c) and (j), section 60.1, subsections 70(6) and (6.1),
73(1) and (5) and 104(4), (5.1) and (5.4), the definition ``pre-1972
spousal trust'' in subsection 108(1), subsection 146(16), subparagraph
146.3(2)(f)(iv), paragraph 146.3(14)(b), subsections 147.3(5) and (7)
and 148(8.1) and (8.2), the definition ``small business property'' in
subsection 206(1), subparagraph 210(c)(ii) and subsections 248(22)
and (23), ``spouse'' and ``former spouse'' of a particular individual
include another individual of the opposite sex who is a party to a
voidable or void marriage with the particular individual.
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Clause 90: (1) Paragraph 8(1)(c) is new. Subsection
8(1) reads as follows:
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8. (1) the amount of special allowance to be paid in respect of a child
for each month is one twelfth of the total of
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|
(a) the amount expressed in dollars in paragraph (a) of the
description of A in subsection 122.61(1) of the Income Tax Act, and
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(b) the amount expressed in dollars in paragraph (a) of the
description of F in that subsection,
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each such amount being adjusted and rounded in accordance with
subsections 122.61(5) and (7) of that Act.
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Clause 91: (1) Section 165 reads as follows:
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165. (1) If, at any time, the total of all unpaid amounts owing by a
person to the Receiver General under this Act does not exceed a
prescribed amount, the amount owing by the person is deemed to be nil.
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(2) If, at any time, the total of all amounts payable by the Minister to
a person under this Act does not exceed a prescribed amount, the
Minister is not required to pay any of the amounts payable. The Minister
may apply those amounts against a liability of the person.
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Clause 92: (1) Subsections 170(3) to (5) read as
follows:
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(3) The Minister may serve or send to a person who is required under
this Act to pay an amount that may consist of principal and interest a
notice specifying the amount owed by the person and a date by which
the payment must be made.
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(4) If the person to whom a notice referred to in subsection (3) is
served or sent pays in full the specified amount within the specified
time, interest is not payable, despite subsection (1), on the amount for
the period beginning on the date of the notice and ending on the day on
which the amount is paid.
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(5) If at any time a person has paid all amounts, other than interest,
owed to Her Majesty under this Act and, immediately before that time,
the total amount of interest owed by the person under this Act is less than
the prescribed amount, the Minister may write off and cancel the interest
owed.
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Clause 93: (1) Section 171 reads as follows:
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171. Interest shall be compounded daily at the prescribed rate on
amounts owed by Her Majesty to a person and computed for the period
beginning on the first day after the day on which the amount is required
to be paid by Her Majesty and ending on the day on which the amount
is paid or is applied against an amount owed by the person to Her
Majesty.
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Clause 94: (1) Subsection 7(1) reads as follows:
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7. (1) Every person who refuses or neglects to make a return as
required by subsection 5(1) or neglects to pay some or all of the tax
imposed by section 4 is liable to a penalty of five per cent of the amount
of tax unpaid at the expiration of the time for filing the return together
with interest on the amount unpaid calculated at the prescribed rate from
April 30 in the year in which that amount is payable to the day of
payment.
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Clause 95: (1) New.
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|
Clause 96: New.
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|
Clause 97: (1) The relevant portion of subsection
68.5(7) reads as follows:
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|
(7) If the Minister has, under subsection (6), extended the time
required by subsection (5) for filing a reconciliation report
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(c) any interest or penalty payable under this section shall be
calculated on the basis that the person has until the expiry of the
period so extended to file the reconciliation report.
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|
(2) The relevant portion of subsection 68.5(9) reads as
follows:
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(9) If the rebate paid to a person for a rebate period is determined on
the basis of an estimate referred to in paragraph (3)(a) and the amount
paid exceeds the amount referred to in paragraph (5)(b) in respect of the
period, the person shall pay to the Receiver General
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(b) interest at the prescribed rate, in respect of each month or fraction
of a month in the period that begins on the first day following the day
on which the rebate is paid to the person and that ends on the earlier
of the day the total of the excess rebate and all interest under this
paragraph is paid and the day on or before which the reconciliation
report is required to be filed, calculated on the total of the amount of
the excess rebate that has not been paid to the Receiver General, and
of the amount of interest that is outstanding, in the month or fraction
of a month.
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(3) Subsections 68.5(11) to (13) read as follows:
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(11) A person who is in default in paying an amount of tax referred
to in subsection (10) shall pay to the Receiver General interest at the
prescribed rate, and penalty of one-half of one percent, in respect of
each month or fraction of a month in the period that begins on the first
day following the day on or before which the reconciliation report is
required to be filed and that ends on the day the total of that tax is paid,
calculated on the total of the tax, penalty and interest outstanding in that
month or fraction of a month.
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(12) Any interest under paragraph (9)(b) or subsection (11) and any
penalty under that subsection shall be paid not later than the last day of
the month in respect of which the interest or penalty was calculated.
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(13) No interest under paragraph (9)(b) or subsection (11) and no
penalty under that subsection is required to be paid if the person who
would otherwise be liable to pay the interest or the penalty pays all taxes
under this section payable by the person and, on the payment, the total
interest and penalty otherwise payable by the person under those
provisions is less than ten dollars.
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(4) The relevant portion of subsection 68.5(14) reads
as follows:
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(14) The Minister shall not, at a particular time, pay an amount to a
person under this section unless the person has
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(b) paid all excess rebates in respect of rebate periods ending before
that time and all interest and penalty under this section that have
accrued to that time.
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Clause 98: (1) Subsections 72(7) and (8) read as
follows:
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(7) If an amount is paid to an applicant under subsection (6), interest
at the prescribed rate shall be paid in respect of each day between the
day that is sixty days after the day on which the application was received
by the Minister and the day on which the payment is sent, and
compounded monthly on the total amount of the payment and interest
outstanding.
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(8) No interest of less than one dollar is payable pursuant to
subsection (7).
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Clause 99: (1) Subsections 74(3) and (4) read as
follows:
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(3) Where a deduction is authorized under subsection (1), interest at
the prescribed rate shall be authorized as a deduction in accordance with
that subsection, calculated in respect of each day between the day that
is sixty days after the day on which the application for the payment in
respect of which the deduction was authorized was received by the
Minister and the day on which the notice of determination was sent, and
compounded monthly on the total amount of the deduction and interest
outstanding.
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(4) No interest of less than one dollar shall be authorized as a
deduction under subsection (3).
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Clause 100: (1) Sections 78 and 79 read as follows:
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78. (1) Every person who is required to pay tax under Part III or IV
shall make each month a return in the prescribed form containing
prescribed information of all amounts that became payable by the
person on account of that tax in the preceding month.
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(2) Every person who holds a licence granted under or in respect of
Part III or IV and whose tax payable under Parts III and IV in the
preceding month is nil shall make a return as required by subsection (1)
reporting that fact.
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(3) Notwithstanding subsections (1) and (2), the Minister may, by
regulation,
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(a) authorize any person to make a return in respect of any
accounting period of not less than twenty-one days and not more
than thirty-five days;
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(b) authorize any person to make a return in respect of any period
longer than one month but not longer than six months, if the tax
payable by that person under Part II.1 or Parts III, IV and VI, as the
case may be, for the last preceding calendar year did not exceed four
thousand eight hundred dollars; or
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(c) authorize any person whose activities that give rise to tax payable
by the person under Part III or IV are predominantly limited to a
seasonal period of operation to make a return in respect of any period
longer than one month but not longer than six months, if the total tax
payable by the person under Parts III and IV for the equivalent period
in the preceding calendar year did not exceed an average of four
hundred dollars per month throughout that equivalent period.
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(4) Subject to subsection 79(2) and sections 79.1 and 79.2, the return
required by this section shall be filed and the tax payable shall be paid
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(a) in a case where the return is required to be made in a month in
accordance with subsection (1) or (2), not later than the last day of
that month;
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(b) in a case where the return is authorized to be made in accordance
with a regulation made under paragraph (3)(a), not later than the last
day of the first authorized accounting period following the end of the
accounting period to which the return relates; and
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(c) in a case where the return is authorized to be made in accordance
with a regulation made under paragraph (3)(b) or (c), not later than
the last day of the first month following the end of the period to which
the return relates.
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79. (1) Subject to subsections (1.1) to (3), a person who defaults in
paying tax within the time prescribed by subsection 78(4), in addition
to the amount in default, shall pay
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(a) in the case of tax required to be paid not later than the last day of
a month, a penalty of one-half of one per cent and interest at the
prescribed rate, in respect of each month or fraction of a month
between that day and the day on which the total tax, penalty and
interest outstanding is paid, calculated on the total tax, penalty and
interest outstanding in that month or fraction of a month; and
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(b) in the case of tax required to be paid not later than the last day of
an accounting period, a penalty of one-half of one per cent and
interest at the prescribed rate, in respect of each accounting period
or fraction of an accounting period between that day and the day on
which the total tax, penalty and interest outstanding is paid,
calculated on the total tax, penalty and interest outstanding in that
accounting period or fraction of an accounting period.
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(1.1) No penalty or interest is payable under subsection (1) if the
person liable to pay the tax pays all taxes payable by him under Parts
II.1, III, IV or VI and, at the time of the payment, the total penalty and
interest payable in respect of all such taxes is less than ten dollars.
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(1.2) A person who is liable to pay penalty or interest under
subsection (1) shall pay the penalty or interest not later than the last day
of the month or accounting period in respect of which the penalty or
interest was calculated.
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(2) The Minister may, before or after the expiration of the time
prescribed by subsection 78(4), extend in writing the time for filing a
return or paying any tax, and where the Minister so extends the time,
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(a) the return shall be filed or the tax shall be paid within the time as
so extended;
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(b) interest accrues under subsection (1) in respect of the tax as if the
time had not been so extended;
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(c) no penalty accrues or shall be deemed to have accrued under
subsection (1) in respect of the tax before the expiration of the time
as so extended; and
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(d) penalty accrues under subsection (1) in respect of a default in
paying the tax or any portion thereof within the time as so extended
as if the default were a default referred to in that subsection.
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(3) Where the Minister holds security under section 80.1 for the
payment of any tax that is not paid within the time prescribed by
subsection 78(4),
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(a) interest accrues under subsection (1) in respect of the tax from the
expiration of that time; and
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(b) penalty accrues under subsection (1) only if the total tax, penalty
and interest outstanding, as calculated in respect of each month or
accounting period or fraction of a month or accounting period during
which the default continues, exceeds the value of the security at the
time it is accepted by the Minister and, if accruing, the penalty shall
be calculated only on the amount of the excess.
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Clause 101: (1) and (2) The relevant portion of
subsection 79.1(1) reads as follows:
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79.1 (1) For the purposes of this section,
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(a) a person's ``instalment base''
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(i) for a month is the lesser of
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(A) the tax payable under Part II.1, or Parts III, IV and VI, as
the case may be, other than tax payable in accordance with the
Customs Act, by that person in that month, and
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(B) the tax so payable in the last preceding month,
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(ii) for an accounting period is the lesser of
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(A) the tax payable under Part II.1, or Parts III, IV and VI, as
the case may be, other than tax payable in accordance with the
Customs Act, by that person in that accounting period, and
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(B) the tax so payable in the last preceding accounting period,
and
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(iii) for any other period to which a return relates is the lesser of
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(A) the tax payable under Part II.1, or Parts III, IV and VI, as
the case may be, other than tax payable in accordance with the
Customs Act, by that person in that period, and
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(B) the tax so payable in the last preceding period multiplied
by the ratio that the number of days in the period to which the
return relates is to the number of days in the last preceding
period; and
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(b) a person is a ``large taxpayer'' at any particular time if
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(A) was, at any time in the last preceding calendar year ending
at least ninety days, or ninety-one days where that time falls in
a leap year, before that time, a member of a group of associated
corporations (within the meaning of section 256 of the Income
Tax Act) and the aggregate amount of taxes payable under
Parts II.1, III, IV and VI, other than taxes payable in
accordance with the Customs Act, and collected or collectible
under Parts II and II.2 by the group in that year exceeded
twelve million dollars, and
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(B) is not, at that time, authorized to make a return in
accordance with a regulation made under paragraph 78(3)(b)
or (c).
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(3) Subsections 79.1(2) to (8) read as follows:
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(2) A large taxpayer who is required to file a return and pay tax within
the time prescribed by subsection 78(4) shall pay instalments on
account of the tax in accordance with the following rules:
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(a) in the case where the return is required to be made in accordance
with subsection 78(1), the large taxpayer shall pay two instalments,
each equal to one-half of the taxpayer's instalment base for the
month in which the tax became payable or the sales were made, as
the case may be, the first to be paid not later than the last day of that
month and the second not later than the fifteenth day of the next
following month; and
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(b) in the case where the return is authorized to be made in
accordance with a regulation made under paragraph 78(3)(a), the
large taxpayer shall pay two instalments, each equal to one-half of
the taxpayer's instalment base for the accounting period to which the
return relates, the first to be paid not later than the last day of that
accounting period and the second not later than the fifteenth day of
the next following accounting period.
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(3) A person, other than a large taxpayer, who is required to file a
return and pay tax within the time prescribed by subsection 78(4) shall
pay an instalment on account of the tax in accordance with the following
rules:
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(a) in the case where the return is required to be made in accordance
with subsection 78(1), the person shall pay an instalment, equal to
the person's instalment base for the month in which the tax became
payable or the sales were made, as the case may be, not later than the
twenty-first day of the next following month;
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(b) in the case where the return is authorized to be made in
accordance with a regulation made under paragraph 78(3)(a), the
person shall pay an instalment, equal to the person's instalment base
for the accounting period to which the return relates, not later than
the twenty-first day of the next following accounting period; and
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(c) in the case where the return is authorized to be made in
accordance with a regulation made under paragraph 78(3)(b) or (c),
the person shall pay an instalment, equal to the person's instalment
base for the period to which the return relates, not later than the
twenty-first day of the month next following the end of that period.
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(4) Subject to subsections (6) to (8), a large taxpayer who defaults in
paying an instalment within the time prescribed by subsection (2) shall,
in addition to the amount in default, pay in respect of the period between
the end of that time and the end of the time prescribed for payment of
the tax on account of which the instalment was payable
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(a) in the case of an instalment required to be paid not later than the
last day of a month or an accounting period, a penalty of one-half of
one per cent and interest at the prescribed rate, calculated on the
amount by which
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(i) one-half of the taxpayer's instalment base for that month or
accounting period
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(ii) the aggregate of all taxes on account of which the instalment
was payable that were paid not later than that day; and
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(b) in the case of an instalment required to be paid not later than the
fifteenth day of a month or an accounting period, a penalty of
one-quarter of one per cent and interest at one-half of the prescribed
rate, calculated on the amount by which
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(i) one-half of the taxpayer's instalment base for the last
preceding month or accounting period
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(ii) the amount by which the aggregate of all taxes on account of
which the instalment was payable that were paid not later than
that day exceeds the lesser of
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(A) the aggregate of all taxes on account of which the
instalment was payable that were paid not later than the last
day of the last preceding month or accounting period, and
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(B) one-half of the taxpayer's instalment base for the last
preceding month or accounting period.
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(5) Subject to subsections (6) to (8), a person who defaults in paying
an instalment within the time prescribed by subsection (3) shall, in
addition to the amount in default, pay in respect of the period between
the end of that time and the end of the time prescribed for payment of
the tax on account of which the instalment was payable
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(a) in the case of an instalment required by paragraph (3)(a) or (b)
to be paid not later than the twenty-first day of a month or an
accounting period, a penalty of one-sixth of one per cent and interest
at one-third of the prescribed rate, calculated on the amount by
which
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(i) the person's instalment base for the last preceding month or
accounting period
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(ii) the aggregate of all taxes on account of which the instalment
was payable that were paid not later than that day; and
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(b) in the case of an instalment required by paragraph (3)(c) to be
paid not later than the twenty-first day of a month next following the
end of a period, a penalty of one-sixth of one per cent and interest at
one-third of the prescribed rate, calculated on the amount by which
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(i) the person's instalment base for that period
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(ii) the aggregate of all taxes on account of which the instalment
was payable that were paid not later than that day.
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(6) No penalty or interest is payable under subsection (4) or (5) if the
large taxpayer or other person liable to pay the instalment pays all taxes
payable by the taxpayer or other person under Parts II.1, III, IV or VI
and, at the time of the payment, the total penalty and interest payable in
respect of the instalment is less than five dollars and in respect of all
those taxes is less than ten dollars.
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(7) A large taxpayer or other person who is liable to pay penalty or
interest under subsection (4) or (5) in respect of a default in paying an
instalment shall pay the penalty or interest within the time prescribed by
subsection 78(4) for the payment of the tax on account of which the
instalment is payable.
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(8) The Minister may, before or after the expiration of the time
prescribed by subsection (2) or (3), extend in writing the time for paying
an instalment, for any period within the time prescribed by subsection
78(4) for the payment of the tax on account of which the instalment is
payable, and where the Minister so extends the time
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(a) the instalment shall be paid within the time as so extended;
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(b) interest accrues under subsection (4) or (5), as the case may be,
in respect of the instalment as if the time had not been so extended;
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(c) no penalty accrues or shall be deemed to have accrued under
subsection (4) or (5), as the case may be, in respect of the instalment
before the expiration of the time as so extended; and
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(d) penalty accrues under subsection (4) or (5), as the case may be,
in respect of a default in paying an instalment within the time as so
extended as if the default were a default referred to in that subsection.
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Clause 102: (1) Section 79.2 reads as follows:
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79.2 (1) A person who is required by this Act, other than Part I, to file
a return or to pay or remit an amount shall file the return with the
Minister or pay or remit the amount to the Receiver General at such
office of the Agency as the Governor in Council may, by regulation,
prescribe.
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(2) If a person is required by this Act, other than Part I, to file a return
or to pay or remit an amount not later than a day and that day falls on
a day when the office of the Agency at which the person is required by
the regulations to file the return or pay or remit the amount is normally
closed for business, that person shall file the return or pay or remit the
amount at that office not later than the day last preceding that day when
that office is open for business.
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(3) Where a person who is required by this section to file a return with
the Minister does so by mailing the return, the return shall be deemed
to have been filed with the Minister on the day on which the return was
mailed and the date of the postmark is evidence of that day.
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(4) A person who is required by this section to pay or remit an amount
to the Receiver General shall not be considered as having paid or
remitted the amount until it is received by the Receiver General.
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Clause 103: (1) Subsection 80(2) reads as follows:
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(2) Any person making a return under paragraph 78(3)(b) or (c) may,
in lieu of submitting a report under subsection (1), include in the return
a report in the prescribed form containing details of the person's sales,
taxes paid under this Act and deductions under subsection 69(2) in the
period to which the return relates and any other prescribed information.
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Clause 104: (1) Subsections 81.16(4) to (6) read as
follows:
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(4) Subject to subsection (5), where an amount is paid pursuant to
subsection (1), interest at the prescribed rate shall be paid, in respect of
each day between the date of the notice of the assessment that is the
subject of the objection and the day on which the payment was sent, and
compounded monthly on the total amount of the payment and interest
outstanding.
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(5) Where a person has paid an amount on account of the amount
owing as set out in a notice of assessment and a payment is made to that
person pursuant to subsection (1) on an objection to the assessment,
interest at the prescribed rate shall be paid, in respect of each day
between the day on which the amount was paid by that person and the
day on which the payment was sent to that person, and compounded
monthly on the total amount of the payment to that person and interest
outstanding.
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(6) No interest of less than one dollar is payable pursuant to this
section.
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Clause 105: (1) Subsections 81.18(3) to (5) read as
follows:
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(3) Where an amount is paid pursuant to subsection (1), interest at the
prescribed rate shall be paid, in respect of each day between the day that
is sixty days after the day on which the application that is the subject of
the reconsideration was received by the Minister and the day on which
the payment is sent, and compounded monthly on the total amount of
the payment and interest outstanding.
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(4) Where a deduction is authorized pursuant to subsection (2),
interest at the prescribed rate shall be authorized as a deduction in
accordance with subsection 74(1), calculated in respect of each day
between the day that is sixty days after the day on which the application
was received by the Minister and the day on which the notice of decision
was sent, and compounded monthly on the total amount of the
deduction and interest outstanding.
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(5) No interest of less than one dollar is payable pursuant to
subsection (3) or shall be authorized as a deduction under subsection
(4).
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Clause 106: (1) Subsections 81.38(6) to (9) read as
follows:
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(6) Subject to subsection (7), where a payment is made pursuant to
subsection (1) or (4) in respect of an assessment, interest at the
prescribed rate shall be paid, in respect of each day between the date of
the notice of assessment and the day on which the payment was sent,
and compounded monthly on the total amount of the payment and
interest outstanding.
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(7) Where a person has paid an amount on account of the amount
owing as set out in a notice of assessment or a notice of decision and a
payment is made to that person pursuant to subsection (1) or (4) in
respect of the assessment, interest at the prescribed rate shall be paid, in
respect of each day between the day on which the amount was paid by
that person and the day on which the payment was sent to that person,
and compounded monthly on the total amount of the payment to that
person and interest outstanding.
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(8) If a payment is made under subsection (1) or (4) in respect of an
application under any of sections 68 to 69, interest at the prescribed rate
shall be paid, in respect of each day between the day that is sixty days
after the day on which the application was received by the Minister and
the day on which the payment was sent, and compounded monthly on
the total amount of the payment and interest outstanding.
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(9) No interest of less than one dollar is payable pursuant to this
section.
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Clause 107: (1) Section 81.39 reads as follows:
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81.39 (1) Subject to subsection (4), where a person has
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(a) received a drawback under section 70,
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(b) received a payment under subsection 72(6) or (7), 81.14(1),
81.16(1), (4) or (5), 81.18(1) or (3) or 120(7), or
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(c) made a deduction under subsection 69(2), 73(1), (2) or (3), 74(1)
or (3) or 81.18(2) or (4)
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to which that person was not entitled or in excess of the drawback,
payment or deduction to which he was entitled, the amount of the
drawback, payment or deduction or the excess is deemed to be a tax
under this Act payable by that person not later than the last day of the
first month succeeding that in which the drawback, payment or
deduction was made.
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(2) Where a person has received a payment under subsection
81.38(1), (6), (7) or (8) and, on the final disposition of the appeal by
further appeal or otherwise, it is determined that the person was not
entitled to the payment or that the payment was in excess of the payment
to which he was entitled, the amount of the payment or the excess is
deemed to be a tax under this Act payable by that person not later than
the last day of the first month succeeding that in which the appeal was
finally disposed of.
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(3) Where a person has received a payment under subsection
81.38(4), (6), (7) or (8) and, on the final disposition by further appeal
or otherwise of the appeal referred to in subsection 81.38(1) on the basis
of which the payment was made, it is determined that the person was not
entitled to the payment or that the payment was in excess of the payment
to which he was entitled, the amount of the payment or the excess is
deemed to be a tax under this Act payable by that person not later than
the last day of the first month succeeding that in which the appeal was
finally disposed of.
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(4) Where a person is liable to pay an amount under subsection
68.15(3), 68.16(4) or 68.21(3), that amount is deemed to be a tax under
this Act payable by that person not later than the last day of the first
month succeeding that in which the liability arose.
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(5) On default of payment of any tax payable under subsection (1)
or (4) within the time prescribed therefor, the person liable to pay the tax
shall pay, in addition to the amount of the default, a penalty of one-half
of one per cent and interest at the prescribed rate, in respect of each
month or fraction of a month between the expiration of that time and the
day on which the total tax, penalty and interest is paid, calculated on the
total tax, penalty and interest outstanding in that month.
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(6) A person liable to pay tax under subsection (2) or (3), in addition
to the amount of the tax, shall pay, not later than the last day on which
the tax is payable, interest at the prescribed rate, in respect of each
month or fraction of a month beginning with the first month succeeding
that in which the amount constituting the tax was sent to that person and
ending with the month in which the appeal was finally disposed of,
calculated on the total tax and interest outstanding in that month.
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(7) On default of payment of any tax payable under subsection (2)
or (3) or interest payable under subsection (6) within the time prescribed
therefor, the person liable to pay the tax or interest shall pay, in addition
to the amount of the default, a penalty of one-half of one per cent and
interest at the prescribed rate, in respect of each month or fraction of a
month between the expiration of that time and the day on which the total
tax, penalty and interest is paid, calculated on the total tax, penalty and
interest outstanding in that month.
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(8) Any penalty or interest that accrues under subsection (5) or (7)
shall be paid not later than the last day of the month in respect of which
the penalty or interest was calculated.
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(9) Where the Minister holds security under section 80.1 for the
payment of any tax under this section or interest under subsection (6)
that is not paid within the time prescribed by this section,
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(a) interest accrues under subsection (5) or (7), as the case may be,
in respect of the tax or interest from the expiration of that time; and
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(b) penalty accrues under subsection (5) or (7), as the case may be,
only if the total tax, penalty and interest outstanding, as calculated
in respect of each month or fraction of a month during which the
default continues, exceeds the value of the security at the time it is
accepted by the Minister and, if accruing, the penalty shall be
calculated only on the amount of the excess.
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(10) No penalty or interest is payable under subsection (5), (6) or (7)
if the person otherwise liable to pay the penalty or interest pays all taxes
payable by him under this section and, at the time of the payment, the
total penalty and interest otherwise payable by that person under this
section is less than ten dollars.
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Clause 108: (1) Subsections 84(5) to (9) read as
follows:
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(5) Any person liable to pay an amount under subsection (4) shall
pay, in addition to that amount, a penalty of one-half of one per cent and
interest at the prescribed rate, in respect of each month or fraction of a
month between the first day of the month following the month in which
the default occurs and the day on which the total amount, penalty and
interest is paid, calculated on the total amount, penalty and interest
outstanding in that month or fraction of a month.
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(6) A person who is liable to pay penalty or interest under subsection
(5) shall pay the penalty or interest not later than the last day of the
month in respect of which the penalty or interest was calculated.
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(7) Any moneys paid by a person pursuant to subsection (4) or (5)
shall, in addition to being applied to that person's liability under this
section, be applied on account of the tax debtor's liability under this Act.
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(8) The receipt of the Minister for moneys paid as required by
subsection (1) or, in default thereof, by subsection (4) or (5) is a good
and sufficient discharge of the liability to the tax debtor to the extent of
the amount set out in the receipt.
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(9) In this section, ``tax debtor'' means a person by whom any tax,
penalty, interest or other sum is payable under this Act.
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Clause 109: (1) Section 88 reads as follows:
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88. The Minister may waive or cancel any amount otherwise payable
to the Receiver General under this Act that is interest or a penalty
calculated in the same manner as interest.
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Clause 110: (1) and (2) The relevant portion of
subsection 116(4) reads as follows:
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(4) Where a manufacturer or wholesaler holding a licence granted
under or in respect of Part III or VI has purchased goods from another
such licensed manufacturer or licensed wholesaler and has incorrectly
stated or certified that the goods were being purchased for a use or under
conditions rendering the sale of the goods exempt from any tax imposed
by Part III or VI,
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(a) the purchaser and not the manufacturer or wholesaler from whom
the goods were purchased is liable to pay the tax and any penalty or
interest under subsection 79(1), if
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. . .
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(b) in any other case, the purchaser and the manufacturer or
wholesaler from whom the goods were purchased are jointly and
severally liable to pay the tax and any penalty or interest under
subsection 79(1).
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Clause 111: (1) The relevant portion of subsection
129(2.1) reads as follows:
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(2.1) Where a dividend refund for a taxation year is paid to, or
applied to a liability of, a corporation, the Minister shall pay or apply
interest on the refund at the prescribed rate for the period beginning on
the day that is the later of
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(b) the day on which the corporation's return of income under this
Part for the year was filed under section 150, unless the return was
filed on or before the day on or before which it was required to be
filed,
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and ending on the day on which the refund is paid or applied.
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Clause 112: (1) The relevant portion of subsection
131(3.1) reads as follows:
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(3.1) Where a capital gains refund for a taxation year is paid to, or
applied to a liability of, a corporation, the Minister shall pay or apply
interest on the refund at the prescribed rate for the period beginning on
the day that is the later of
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(b) the day on which the corporation's return of income under this
Part for the year was filed under section 150, unless the return was
filed on or before the day on or before which it was required to be
filed,
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and ending on the day the refund is paid or applied.
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Clause 113: (1) The relevant portion of subsection
132(2.1) reads as follows:
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(2.1) Where a capital gains refund for a taxation year is paid to, or
applied to a liability of, a mutual fund trust, the Minister shall pay or
apply interest on the refund at the prescribed rate for the period
beginning on the day that is 45 days after the later of
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Clause 114: (1) The relevant portion of subsection
133(7.01) reads as follows:
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(7.01) Where an allowable refund for a taxation year is paid to, or
applied to a liability of, a non-resident-owned investment corporation,
the Minister shall pay or apply interest on the refund at the prescribed
rate for the period beginning on the day that is the later of
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(b) the day on which the corporation's return of income under this
Part for the year was filed under section 150, unless the return was
filed on or before the day on or before which it was required to be
filed,
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and ending on the day the refund is paid or applied.
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Clause 115: (1) Subsection 157(2) reads as follows:
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(2) Where in a taxation year a corporation
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(a) has held out the prospect that it will make allocations in
proportion to patronage as described in section 135, or
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and for the year or the preceding taxation year
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(c) its taxable income (determined before taking into consideration
the specified future tax consequences for the year or that preceding
year, as the case may be) was not more than $10,000, and
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(d) no tax was payable by it under any of Parts I.3, VI and VI.1
(determined before taking into consideration the specified future tax
consequences for the year or that preceding year, as the case may be),
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it may, instead of paying the instalments required by subsection (1), pay
to the Receiver General at the end of the third month following the end
of the year the total of the taxes payable by it under this Part and Parts
I.3, VI and VI.1 for the year.
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Clause 116: (1) Subsection 161(2.1) reads as follows:
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(2.1) Where the total of all amounts each of which is an amount of
interest payable under subsection (2) by a taxpayer, including any
interest payable under subsection (2) because of its application under
section 36 of the Canada Pension Plan to any amount paid or payable
under that Act, or under any provision of an Act of a province with
which the Minister of Finance has entered into an agreement for the
collection of the taxes payable to the province under that Act that is
similar to subsection (2) does not exceed $25 for a taxation year, the
Minister shall not assess the interest.
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(2) 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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(b) the amount by which the tax payable under this Part and Parts I.3,
VI and VI.1 by the taxpayer for the year is reduced as a consequence
of the deduction or exclusion of amounts described in paragraph (a)
is deemed to have been paid on account of the taxpayer's tax payable
under this Part for the year on the day that is the latest of
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Clause 117: (1) New.
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Clause 118: (1) Subsection 164(3) reads as follows:
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(3) Where under this section an amount in respect of a taxation year
(other than an amount or portion thereof that can reasonably be
considered to arise from the operation of section 122.5, 122.61 or
126.1) is refunded or repaid to a taxpayer or applied to another liability
of the taxpayer, the Minister shall pay or apply interest on it at the
prescribed rate for the period beginning on the day that is the latest of
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(a) where the taxpayer is an individual, the day that is 45 days after
the individual's balance-due day for the year,
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(b) where the taxpayer is a corporation, the day that is 120 days after
the end of the year,
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(c) where the taxpayer is
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(i) a corporation, the day on which its return of income for the year
was filed under section 150, unless the return was filed on or
before the corporation's filing-due date for the year, and
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(ii) an individual, the day that is 45 days after the day on which
the individual's return of income for the year was filed under
section 150,
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(d) in the case of a refund of an overpayment, the day the
overpayment arose, and
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(e) in the case of a repayment of an amount in controversy, the day
an overpayment equal to the amount of the repayment would have
arisen if the total of all amounts payable on account of the taxpayer's
liability under this Part for the year were the amount by which
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(i) the lesser of the total of all amounts paid on account of the
taxpayer's liability under this Part for the year and the total of all
amounts assessed by the Minister as payable under this Part by
the taxpayer for the year
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and ending on the day the amount is refunded, repaid or applied, unless
the amount of the interest so calculated is less than $1, in which event
no interest shall be paid or applied under this subsection.
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(2) Subsection 164(3.2) reads as follows:
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(3.2) Notwithstanding subsection (3), where the amount of an
overpayment of a taxpayer for a taxation year is determined because of
an assessment made under subsection 152(4.2) or 220(3.1) or (3.4) and
an amount in respect thereof is refunded to, or applied to another
liability of, the taxpayer under subsection (1.5) or (2), the Minister shall
pay or apply interest thereon at the prescribed rate for the period
beginning on the day the Minister received the application therefor, in
a form satisfactory to the Minister, and ending on the day the amount is
refunded or applied, unless the amount of the interest so calculated is
less than $1, in which case no interest shall be paid or applied under this
subsection.
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(3) 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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. . .
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shall be deemed to have arisen on the day that is the latest of
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Clause 119: (1) The relevant portion of subsection
183.1(2) reads as follows:
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(2) Where, as a part of a transaction or series of transactions or
events,
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. . .
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the corporation shall, on or before the day on or before which it is
required to file its return of income under Part I for its taxation year that
includes that time, pay a tax of 45% of that amount or portion thereof,
as the case may be.
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Clause 120: (1) The relevant portion of subsection
186(1) reads as follows:
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186. (1) Every corporation (in this section referred to as the
``particular corporation'') that is at any time in a taxation year a private
corporation or a subject corporation shall, on or before the last day of
the third month after the end of the year, pay a tax under this Part for the
year equal to the amount, if any, by which the total of
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Clause 121: (1) Section 187.2 reads as follows:
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187.2 Every corporation shall, on or before the last day of the second
month after the end of each taxation year, pay a tax under this Part for
the year equal to 10% of the total of all amounts each of which is a
dividend, other than an excepted dividend, received by the corporation
in the year on a taxable preferred share (other than a share of a class in
respect of which an election under subsection 191.2(1) has been made)
to the extent that an amount in respect of the dividend was deductible
under section subsection 112 or 113 or 138(6) in computing its taxable
income for the year or under subsection 115(1) in computing its taxable
income earned in Canada for the year.
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Clause 122: (1) Subsection 187.3(1) reads as follows:
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187.3 (1) Every restricted financial institution shall, on or before the
last day of the second month after the end of each taxation year, pay a
tax under this Part for the year equal to 10% of the total of all amounts
each of which is a dividend, other than an excepted dividend, received
by the institution at any time in the year on a share acquired by any
person before that time and after 8:00 p.m. Eastern Daylight Saving
Time, June 18, 1987 that was, at the time the dividend was paid, a
taxable RFI share to the extent that an amount in respect of the dividend
was deductible under section subsection 112 or 113 or 138(6) in
computing its taxable income for the year or under subsection 115(1)
in computing its taxable income earned in Canada for the year.
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Clause 123: (1) The relevant portion of subsection
196(3) reads as follows:
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(3) Where a corporation is liable to pay tax for a taxation year under
this Part, the corporation shall pay in respect of the year, to the Receiver
General
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(b) the remainder, if any, of the tax payable by it under this Part for
the year, on or before the end of the second month following the end
of the year.
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Clause 124: (1) The relevant portion of subsection
204.86(1) reads as follows:
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204.86 (1) Every registered labour-sponsored venture capital
corporation and every revoked corporation shall
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(c) within 90 days after the end of the year, pay to the Receiver
General the amount of tax and penalties, if any, payable under this
Part by it for the year.
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(2) The relevant portion of subsection 204.86(2) reads
as follows:
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(2) Where tax is payable under this Part for a taxation year by a
corporation because of subsection 204.82(5) or 204.85(2), the
corporation shall
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(c) within 90 days after the end of the year, pay to the Receiver
General the amount of tax payable under this Part by it for the year.
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Clause 125: (1) The relevant portion of subsection
208(2) reads as follows:
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(2) A person liable to pay a tax under this Part in respect of a year
shall, within 3 months from the end of the year,
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Clause 126: (1) The relevant portion of subsection
209(4) reads as follows:
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(4) Where a person is liable to pay tax for a taxation year under this
Part, the person shall pay in respect of the year, to the Receiver General
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(b) the remainder, if any, of the tax payable by the person under this
Part for the year, on or before the end of the second month following
the end of the year.
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Clause 127: (1) Section 211.4 reads as follows:
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211.4 Every life insurer shall pay, on or before the last day of the
second month ending after the end of a taxation year, the remainder, if
any, of the tax payable under this Part by the insurer for the year.
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Clause 128: (1) The relevant portion of subsection
219(1) reads as follows:
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219. (1) Every corporation that is non-resident in a taxation year
shall, on or before its filing-due date for the year, pay a tax under this
Part for the year equal to 25% of the amount, if any, by which the total
of
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Clause 129: (1) Subsection 220(3) reads as follows:
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(3) The Minister may at any time extend the time for making a return
under this Act.
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