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Bill C-45

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C-45
First Session, Forty-first Parliament,
60-61 Elizabeth II, 2011-2012
HOUSE OF COMMONS OF CANADA
BILL C-45
A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures

AS PASSED
BY THE HOUSE OF COMMONS
DECEMBER 5, 2012

90672

RECOMMENDATION
His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures”.
SUMMARY
Part 1 implements certain income tax measures and related measures proposed in the March 29, 2012 budget. Most notably, it
(a) amends the rules relating to Registered Disability Savings Plans (RDSPs) by
(i) replacing the 10-year repayment rule applying to withdrawals with a proportional repayment rule,
(ii) allowing investment income earned in a Registered Education Savings Plan (RESP) to be transferred on a tax-free basis to the RESP beneficiary’s RDSP,
(iii) extending the period that RDSPs of beneficiaries who cease to qualify for the Disability Tax Credit may remain open in certain circumstances,
(iv) amending the rules relating to maximum and minimum withdrawals, and
(v) amending certain RDSP administrative rules;
(b) includes an employer’s contributions to a group sickness or accident insurance plan in an employee’s income in certain circumstances;
(c) amends the rules applicable to retirement compensation arrangements;
(d) amends the rules applicable to Employees Profit Sharing Plans;
(e) expands the eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of bioenergy equipment;
(f) phases out the Corporate Mineral Exploration and Development Tax Credit;
(g) phases out the Atlantic Investment Tax Credit for activities related to the oil and gas and mining sectors;
(h) provides that qualified property for the purposes of the Atlantic Investment Tax Credit will include certain electricity generation equipment and clean energy generation equipment used primarily in an eligible activity;
(i) amends the Scientific Research and Experimental Development (SR&ED) investment tax credit by
(i) reducing the general SR&ED investment tax credit rate from 20% to 15%,
(ii) reducing the prescribed proxy amount, which taxpayers use to claim SR&ED overhead expenditures, from 65% to 55% of the salaries and wages of employees who are engaged in SR&ED activities,
(iii) removing the profit element from arm’s length third-party contracts for the purpose of the calculation of SR&ED tax credits, and
(iv) removing capital from the base of eligible expenditures for the purpose of the calculation of SR&ED tax incentives;
(j) introduces rules to prevent the avoidance of corporate income tax through the use of partnerships to convert income gains into capital gains;
(k) clarifies that transfer pricing secondary adjustments are treated as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act;
(l) amends the thin capitalization rules by
(i) reducing the debt-to-equity ratio from 2:1 to 1.5:1,
(ii) extending the scope of the thin capitalization rules to debts of partnerships of which a Canadian-resident corporation is a member,
(iii) treating disallowed interest expense under the thin capitalization rules as dividends for the purposes of withholding tax imposed under Part XIII of the Income Tax Act, and
(iv) preventing double taxation in certain circumstances when a Canadian resident corporation borrows money from its controlled foreign affiliate;
(m) imposes, in certain circumstances, withholding tax under Part XIII of the Income Tax Act when a foreign-based multinational corporation transfers a foreign affiliate to its Canadian subsidiary, while preserving the ability of the Canadian subsidiary to undertake expansion of its Canadian business; and
(n) phases out the Overseas Employment Tax Credit.
Part 1 also implements other selected income tax measures. Most notably, it introduces tax rules to accommodate Pooled Registered Pension Plans and provides that income received from a retirement compensation arrangement is eligible for pension income splitting in certain circumstances.
Part 2 amends the Excise Tax Act and the Jobs and Economic Growth Act to implement rules applicable to the financial services sector in respect of the goods and services tax and harmonized sales tax (GST/HST). They include rules that allow certain financial institutions to obtain pre-approval from the Minister of National Revenue of methods used to determine their liability in respect of the provincial component of the HST, that require certain financial institutions to have fiscal years that are calendar years, that require group registration of financial institutions in certain cases and that provide for changes to a rebate of the provincial component of the HST to certain financial institutions that render services to clients that are outside the HST provinces. This Part also confirms the authority under which certain GST/HST regulations relating to financial institutions are made.
Part 3 amends the Federal-Provincial Fiscal Arrangements Act to provide the legislative authority to share with provinces and territories taxes in respect of specified investment flow-through (SIFT) entities — trusts or partnerships — under section 122.1 and Part IX.1 of the Income Tax Act, consistent with the federal government’s proposal on the introduction of those taxes. It also provides the legislative authority to share with provinces and territories the tax on excess EPSP amounts imposed under Part XI.4 of the Income Tax Act, consistent with the measures proposed in the March 29, 2012 budget. It also allows the Minister of Finance to request from the Minister of National Revenue information that is necessary for the administration of the sharing of taxes with the provinces and territories.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Jobs and Economic Growth Act as a result of amendments introduced in the Jobs, Growth and Long-term Prosperity Act to allow certain public sector investment pools to directly invest in a federally regulated financial institution.
Division 2 of Part 4 amends the Canada Shipping Act, 2001 to permit the incorporation by reference into regulations of all Canadian modifications to an international convention or industry standard that are also incorporated by reference into the regulations, by means of a mechanism similar to that used by many other maritime nations. It also provides for third parties acting on the Minister of Transport’s behalf to set fees for certain services that they provide in accordance with an agreement with that Minister.
Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, provide for a limited, automatic stay in respect of certain eligible financial contracts when a bridge institution is established. It also amends the Payment Clearing and Settlement Act to facilitate central clearing of standardized over-the-counter derivatives.
Division 4 of Part 4 amends the Fisheries Act to amend the prohibition against obstructing the passage of fish and to provide that certain amounts are to be paid into the Environmental Damages Fund. It also amends the Jobs, Growth and Long-term Prosperity Act to amend the definition of Aboriginal fishery and another prohibition relating to the passage of fish. Finally, it provides transitional provisions relating to authorizations issued under the Fisheries Act before certain amendments to that Act come into force.
Division 5 of Part 4 enacts the Bridge To Strengthen Trade Act, which excludes the application of certain Acts to the construction of a bridge that spans the Detroit River and other works and to their initial operator. That Act also establishes ancillary measures. It also amends the International Bridges and Tunnels Act.
Division 6 of Part 4 amends Schedule I to the Bretton Woods and Related Agreements Act to reflect changes made to the Articles of Agreement of the International Monetary Fund as a result of the 2010 Quota and Governance Reforms. The amendments pertain to the rules and regulations of the Fund’s Executive Board and complete the updating of that Act to reflect those reforms.
Division 7 of Part 4 amends the Canada Pension Plan to implement the results of the 2010-12 triennial review, most notably, to clarify that contributions for certain benefits must be made during the contributory period, to clarify how certain deductions are to be determined for the purpose of calculating average monthly pensionable earnings, to determine the minimum qualifying period for certain late applicants for a disability pension and to enhance the authority of the Review Tribunal and the Pension Appeals Board. It also amends the Department of Human Resources and Skills Development Act to enhance the authority of the Social Security Tribunal.
Division 8 of Part 4 amends the Indian Act to modify the voting and approval procedures in relation to proposed land designations.
Division 9 of Part 4 amends the Judges Act to implement the Government of Canada’s response to the report of the fourth Judicial Compensation and Benefits Commission regarding salary and benefits for federally appointed judges. It also amends that Act to shorten the period in which the Government of Canada must respond to a report of the Commission.
Division 10 of Part 4 amends the Canada Labour Code to
(a) simplify the calculation of holiday pay;
(b) set out the timelines for making certain complaints under Part III of that Act and the circumstances in which an inspector may suspend or reject such complaints;
(c) set limits on the period that may be covered by payment orders; and
(d) provide for a review mechanism for payment orders and notices of unfounded complaint.
Division 11 of Part 4 amends the Merchant Seamen Compensation Act to transfer the powers and duties of the Merchant Seamen Compensation Board to the Minister of Labour and to repeal provisions that are related to the Board. It also makes consequential amendments to other Acts.
Division 12 of Part 4 amends the Customs Act to strengthen and streamline procedures related to arrivals in Canada, to clarify the obligations of owners or operators of international transport installations to maintain port of entry facilities and to allow the Minister of Public Safety and Emergency Preparedness to require prescribed information about any person who is or is expected to be on board a conveyance.
Division 13 of Part 4 amends the Hazardous Materials Information Review Act to transfer the powers and functions of the Hazardous Materials Information Review Commission to the Minister of Health and to repeal provisions of that Act that are related to the Commission. It also makes consequential amendments to other Acts.
Division 14 of Part 4 amends the Agreement on Internal Trade Implementation Act to reflect changes made to Chapter 17 of the Agreement on Internal Trade. It provides primarily for the enforceability of orders to pay tariff costs and monetary penalties made under Chapter 17. It also repeals subsection 28(3) of the Crown Liability and Proceedings Act.
Division 15 of Part 4 amends the Employment Insurance Act to provide a temporary measure to refund a portion of employer premiums for small businesses. An employer whose premiums were $10,000 or less in 2011 will be refunded the increase in 2012 premiums over those paid in 2011, to a maximum of $1,000.
Division 16 of Part 4 amends the Immigration and Refugee Protection Act to provide for an electronic travel authorization and to provide that the User Fees Act does not apply to a fee for the provision of services in relation to an application for an electronic travel authorization.
Division 17 of Part 4 amends the Canada Mortgage and Housing Corporation Act to remove the age limit for persons from outside the federal public administration being appointed or continuing as President or as a director of the Corporation.
Division 18 of Part 4 amends the Navigable Waters Protection Act to limit that Act’s application to works in certain navigable waters that are set out in its schedule. It also amends that Act so that it can be deemed to apply to certain works in other navigable waters, with the approval of the Minister of Transport. In particular, it amends that Act to provide for an assessment process for certain works and to provide that works that are assessed as likely to substantially interfere with navigation require the Minister’s approval. It also amends that Act to provide for administrative monetary penalties and additional offences. Finally, it makes consequential and related amendments to other Acts.
Division 19 of Part 4 amends the Canada Grain Act to
(a) combine terminal elevators and transfer elevators into a single class of elevators called terminal elevators;
(b) replace the requirement that the operator of a licensed terminal elevator receiving grain cause that grain to be officially weighed and officially inspected by a requirement that the operator either weigh and inspect that grain or cause that grain to be weighed and inspected by a third party;
(c) provide for recourse if an operator does not weigh or inspect the grain, or cause it to be weighed or inspected;
(d) repeal the grain appeal tribunals;
(e) repeal the requirement for weigh-overs; and
(f) provide the Canadian Grain Commission with the power to make regulations or orders with respect to weighing and inspecting grain and the security that is to be obtained and maintained by licensees.
It also amends An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to Repeal the Grain Futures Act as well as other Acts, and includes transitional provisions.
Division 20 of Part 4 amends the International Interests in Mobile Equipment (aircraft equipment) Act and other Acts to modify the manner in which certain international obligations are implemented.
Division 21 of Part 4 makes technical amendments to the Canadian Environmental Assessment Act, 2012 and amends one of its transitional provisions to make that Act applicable to designated projects, as defined in that Act, for which an environmental assessment would have been required under the former Act.
Division 22 of Part 4 provides for the temporary suspension of the Canada Employment Insurance Financing Board Act and the dissolution of the Canada Employment Insurance Financing Board. Consequently, it enacts an interim Employment Insurance premium rate-setting regime under the Employment Insurance Act and makes amendments to the Canada Employment Insurance Financing Board Act, the Department of Human Resources and Skills Development Act, the Jobs, Growth and Long-term Prosperity Act and Schedule III to the Financial Administration Act.
Division 23 of Part 4 amends the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act and makes consequential amendments to other Acts.
The Canadian Forces Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
The Public Service Superannuation Act is amended to provide that contributors pay no more than 50% of the current service cost of the pension plan. In addition, the pensionable age is raised from 60 to 65 in relation to persons who become contributors on or after January 1, 2013.
The Royal Canadian Mounted Police Superannuation Act is amended to change the limitations that apply in respect of the contribution rates at which contributors are required to pay as a result of amendments to the Public Service Superannuation Act.
Division 24 of Part 4 amends the Canada Revenue Agency Act to make section 112 of the Public Service Labour Relations Act applicable to the Canada Revenue Agency. That section makes entering into a collective agreement subject to the Governor in Council’s approval. The Division also amends the Canada Revenue Agency Act to require that the Agency have its negotiating mandate approved by the President of the Treasury Board and to require that it consult the President of the Treasury Board before determining certain other terms and conditions of employment for its employees.

Also available on the Parliament of Canada Web Site at the following address:
http://www.parl.gc.ca

TABLE OF PROVISIONS
A SECOND ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON MARCH 29, 2012 AND OTHER MEASURES
SHORT TITLE
1.       Jobs and Growth Act, 2012
PART 1
AMENDMENTS TO THE INCOME TAX ACT AND RELATED REGULATIONS
2–73.       
PART 2
MEASURES IN RESPECT OF SALES TAX
74–96.       
PART 3
FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
97–98.       
PART 4
VARIOUS MEASURES
Division 1
Financial Institutions
99–155.       
Division 2
Shipping
156–165.       
Division 3
Preserving the Stability and Strength of Canada’s Financial Sector
166–172.       
Division 4
Fisheries
173–178.       
Division 5
Bridge To Strengthen Trade Act
179.       Enactment of Act
AN ACT RESPECTING A BRIDGE SPANNING THE DETROIT RIVER BETWEEN WINDSOR AND DETROIT AND OTHER WORKS
SHORT TITLE
1.       Bridge To Strengthen Trade Act
INTERPRETATION
2.       Definitions
CONSTRUCTION OF THE BRIDGE, PARKWAY AND RELATED WORKS
3.       Exemption from certain Acts and regulations
4.       Exemption from Canadian Environmental Assessment Act, 2012
5.       Responsible authority
6.       Other exemptions
7.       Construction of bridge
8.       Impact on fish habitat
9.       Impact on listed wildlife species, etc.
10.       Adverse environmental effects
11.       Port Authorities Operations Regulations
12.       Plan amendment
13.       Implementation of and compliance with plans
OPERATION OF THE BRIDGE AND RELATED WORKS
14.       Designation of initial operator
GENERAL PROVISIONS
15.       Authorization — persons
16.       Definition of “corporation”
17.       Authorization to construct and operate
18.       Deeming — establishment of corporation
19.       Not agent of Her Majesty
20.       Public agency
21.       Public body corporate and compact entity
22.       Agreements
INFORMATION GATHERING
23.       Production of documents
OFFENCES
24.       Offence
25.       Offence committed by employee or agent or mandatary of accused
26.       Due diligence defence
27.       Limitation period
REGULATORY POWERS
28.       Regulations
180–184.       
Division 6
Bretton Woods and Related Agreements Act
185–192.       
Division 7
Canada Pension Plan
193–205.       
Division 8
Indian Act
206–209.       
Division 9
Judges Act
210–218.       
Division 10
Canada Labour Code
219–232.       
Division 11
Merchant Seamen Compensation Act
233–263.       
Division 12
Customs Act
264–268.       
Division 13
Hazardous Materials Information Review Act
269–298.       
Division 14
Agreement on Internal Trade Implementation Act
299–306.       
Division 15
Employment Insurance Act
307.       
Division 16
Immigration and Refugee Protection Act
308–314.       
Division 17
Canada Mortgage and Housing Corporation Act
315.       
Division 18
Navigable Waters Protection Act
316–350.       
Division 19
Canada Grain Act
351–410.       
Division 20
International Interests in Mobile Equipment (aircraft equipment) Act
411–424.       
Division 21
Canadian Environmental Assessment Act, 2012
425–432.       
Division 22
Canada Employment Insurance Financing Board
433–463.       
Division 23
Public Sector Pensions
464–514.       
Division 24
Canada Revenue Agency Act
515–516.       
SCHEDULE 1
SCHEDULE 2

1st Session, 41st Parliament,
60-61 Elizabeth II, 2011-2012
house of commons of canada
BILL C-45
A second Act to implement certain provisions of the budget tabled in Parliament on March 29, 2012 and other measures
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Short title
1. This Act may be cited as the Jobs and Growth Act, 2012.
PART 1
AMENDMENTS TO THE INCOME TAX ACT AND RELATED REGULATIONS
R.S., c. 1 (5th Supp.)
Income Tax Act
2. (1) Subparagraph 6(1)(a)(i) of the Income Tax Act is replaced by the following:
(i) derived from the contributions of the taxpayer’s employer to or under a deferred profit sharing plan, an employee life and health trust, a group sickness or accident insurance plan, a group term life insurance policy, a pooled registered pension plan, a private health services plan, a registered pension plan or a supplementary unemployment benefit plan,
(2) Subsection 6(1) of the Act is amended by adding the following after paragraph (e):
Group sickness or accident insurance plans
(e.1) the total of
(i) all amounts (or the portions of those amounts) contributed by the taxpayer’s employer after March 28, 2012 and before 2013 that are attributable to the taxpayer’s coverage after 2012 under a group sickness or accident insurance plan, except to the extent that the contributions (or portions of those contributions) are attributable to benefits under the plan that, if received by the taxpayer, would be included in the taxpayer’s income under paragraph (f) in the year the benefits are received if that paragraph were read without regard to its subparagraph (v), and
(ii) all amounts contributed in 2013 in respect of the taxpayer by the taxpayer’s employer to a group sickness or accident insurance plan, except to the extent that the contributions are attributable to benefits under the plan that, if received by the taxpayer, would be included in the taxpayer’s income under paragraph (f) in the year the benefits are received if that paragraph were read without regard to its subparagraph (v);
(3) Paragraph 6(1)(e.1) of the Act, as enacted by subsection (2), is replaced by the following:
Group sickness or accident insurance plans
(e.1) the total of all amounts contributed in the year in respect of the taxpayer by the taxpayer’s employer to a group sickness or accident insurance plan, except to the extent that the contributions are attributable to benefits under the plan that, if received by the taxpayer, would be included in the taxpayer’s income under paragraph (f) in the year the benefits are received if that paragraph were read without regard to its subparagraph (v);
(4) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
(5) Subsection (2) applies to the 2013 taxation year.
(6) Subsection (3) applies to the 2014 and subsequent taxation years.
3. (1) Subsection 8(1) of the Act is amended by adding the following after paragraph (o.1):
Excess EPSP amounts
(o.2) an amount that is an excess EPSP amount (as defined in subsection 207.8(1)) of the taxpayer for the year, other than any portion of the excess EPSP amount for which the taxpayer’s tax for the year under subsection 207.8(2) is waived or cancelled;
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
4. (1) Subsection 12(1) of the Act is amended by adding the following after paragraph (l):
Partnership — interest deduction add back
(l.1) the total of all amounts, each of which is the amount, if any, determined in respect of a partnership by the formula
A × B/C – D
where
A      is the total of all amounts each of which is an amount of interest that is
(i) deductible by the partnership, and
(ii) paid by the partnership in, or payable by the partnership in respect of, the taxation year of the taxpayer (depending on the method regularly followed by the taxpayer in computing the taxpayer’s income) on a debt amount included in the taxpayer’s outstanding debts to specified non-residents (as defined in subsection 18(5)),
B      is the amount determined under paragraph 18(4)(a) in respect of the taxpayer for the year,
C      is the amount determined under paragraph 18(4)(b) in respect of the taxpayer for the year, and
D      is the total of all amounts each of which is an amount included under subsection 91(1) in computing the income of the taxpayer for the year or a subsequent taxation year, or of the partnership for a fiscal period, that may reasonably be considered to be in respect of interest described in A;
(2) Subsection (1) applies to taxation years that begin after March 28, 2012.
5. (1) Subsection 15(2) of the French version of the Act is replaced by the following:
Dette d’un actionnaire
(2) La personne ou la société de personnes — actionnaire d’une société donnée, personne ou société de personnes rattachée à un tel actionnaire ou associé d’une société de personnes, ou bénéficiaire d’une fiducie, qui est un tel actionnaire — qui, au cours d’une année d’imposition, obtient un prêt ou devient la débitrice de la société donnée, d’une autre société liée à celle-ci ou d’une société de personnes dont la société donnée ou une société liée à celle-ci est un associé est tenue d’inclure le montant du prêt ou de la dette dans le calcul de son revenu pour l’année. Le présent paragraphe ne s’applique pas aux sociétés résidant au Canada ni aux sociétés de personnes dont chacun des associés est une société résidant au Canada.
(2) The portion of subsection 15(2) of the Act after paragraph (c) is replaced by the following:
and the person or partnership has in a taxation year received a loan from or become indebted to (otherwise than by way of a pertinent loan or indebtedness) the particular corporation, any other corporation related to the particular corporation or a partnership of which the particular corporation or a corporation related to the particular corporation is a member, the amount of the loan or indebtedness is included in computing the income for the year of the person or partnership.
(3) Section 15 of the Act is amended by adding the following after subsection (2.1):
Pertinent loan or indebtedness
(2.11) For the purposes of subsection (2) and subject to subsection 17.1(3), “pertinent loan or indebtedness” means a loan received, or an indebtedness incurred, at any time, by a non-resident corporation (in this subsection referred to as the “subject corporation”), or by a partnership of which the subject corporation is, at that time, a member, that is an amount owing to a corporation resident in Canada (in this subsection and subsections (2.12) and (2.14) referred to as the “CRIC”) or to a qualifying Canadian partnership in respect of the CRIC and in respect of which amount owing all of the following apply:
(a) subsection (2) would, in the absence of this subsection, apply to the amount owing;
(b) the amount becomes owing after March 28, 2012;
(c) at that time, the CRIC is controlled by a non-resident corporation that
(i) is the subject corporation, or
(ii) does not deal at arm’s length with the subject corporation; and
(d) either
(i) in the case of an amount owing to the CRIC, the CRIC and a non-resident corporation that controls the CRIC jointly elect in writing under this subparagraph in respect of the amount owing and file the election with the Minister on or before the filing-due date of the CRIC for the taxation year that includes that time, or
(ii) in the case of an amount owing to the qualifying Canadian partnership, all the members of the qualifying Canadian partnership and a non-resident corporation that controls the CRIC jointly elect in writing under this subparagraph in respect of the amount owing and file the election with the Minister on or before the filing-due date of the CRIC for its taxation year in which ends the fiscal period of the qualifying Canadian partnership that includes that time.
Late-filed elections
(2.12) Where an election referred to in paragraph (2.11)(d) was not made on or before the day on or before which the election was required by that paragraph to be made, the election is deemed to have been made on that day if the election is made on or before the day that is three years after that day and the penalty in respect of the election is paid by the CRIC when the election is made.
Penalty for late-filed election
(2.13) For the purposes of subsection (2.12), the penalty in respect of an election referred to in that subsection is the amount equal to the product obtained by multiplying $100 by the number of months each of which is a month all or part of which is during the period commenc-ing with the day on or before which the election is required by paragraph (2.11)(d) to be made and ending on the day the election is made.
Partnerships
(2.14) For the purposes of this subsection, subsection (2.11) and section 17.1,
(a) a “qualifying Canadian partnership”, at any time in respect of a CRIC, means a partnership each member of which is, at that time, the CRIC or another corporation resident in Canada to which the CRIC is, at that time, related; and
(b) a person or partnership that is (or is deemed by this paragraph to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership.
Mergers
(2.15) For the purposes of subsections (2.11) and (2.14),
(a) if there has been an amalgamation to which subsection 87(1) applies, the new corporation referred to in that subsection is deemed to be the same corporation as, and a continuation of, each predecessor corporation referred to in that subsection; and
(b) if there has been a winding-up to which subsection 88(1) applies, the parent referred to in that subsection is deemed to be the same corporation as, and a continuation of, the subsidiary referred to in that subsection.
(4) Subsection (1) applies to loans made and indebtedness arising in the 1990 and subsequent taxation years.
(5) Subsection (2) and subsections 15(2.11) to (2.14) of the Act, as enacted by subsection (3), apply to loans received and indebtedness incurred after March 28, 2012. However, any election referred to in paragraph 15(2.11)(d) of the Act, as enacted by subsection (3), that would otherwise be required to be filed with the Minister of National Revenue on or before the day that is 120 days after the day on which this Act receives royal assent is deemed to have been filed with the Minister on a timely basis if it is filed with the Minister on or before the day that is 365 days after the day on which this Act receives royal assent.
(6) Subsection 15(2.15) of the Act, as enacted by subsection (3), applies to amal-gamations that occur, and windings-up that begin, after March 28, 2012.
6. (1) The Act is amended by adding the following after section 17:
Deemed interest income — sections 15 and 212.3
17.1 (1) Subject to subsection (2), if — at any time in a taxation year of a corporation resident in Canada (in this section referred to as the “CRIC”) or in a fiscal period of a qualifying Canadian partnership in respect of the CRIC — a non-resident corporation, or a partnership of which the non-resident corporation is a member, owes an amount to the CRIC or the qualifying Canadian partnership and the amount owing is a pertinent loan or indebtedness (as defined in subsection 15(2.11) or 212.3(11)),
(a) section 17 does not apply in respect of the amount owing; and
(b) the amount, if any, determined by the following formula is to be included in computing the income of the CRIC for the year or of the qualifying Canadian partnership for the fiscal period, as the case may be:
A – B
where
A      is the amount that is the greater of
(i) the amount of interest that would be included in computing the income of the CRIC for the year or of the qualifying Canadian partnership for the fiscal period, as the case may be, in respect of the amount owing for the particular period in the year, or the fiscal period, during which the amount owing was a pertinent loan or indebtedness if that interest were computed at the prescribed rate for the particular period, and
(ii) the total of all amounts of interest payable in respect of the period in the year, or the fiscal period, during which the amount owing was a pertinent loan or indebtedness, by the CRIC, the qualifying Canadian partnership, a person resident in Canada with which the CRIC did not, at the time the amount owing arose, deal at arm’s length or a partnership of which the CRIC or the person is a member, in respect of a debt obligation — entered into as part of a series of transactions or events that includes the transaction by which the amount owing arose — to the extent that the proceeds of the debt obligation can reasonably be considered to have directly or indirectly funded, in whole or in part, the amount owing, and
B      is an amount included in computing the income of the CRIC for the year or of the qualifying Canadian partnership for the fiscal period, as the case may be, as, on account of, in lieu of or in satisfaction of, interest in respect of the amount owing for the period in the year, or the fiscal period, during which the amount owing was a pertinent loan or indebtedness.
Acquisition of control
(2) If at any time a parent referred to in section 212.3 acquires control of a CRIC and the CRIC was not controlled by a non-resident corporation immediately before that time, no amount is to be included under subsection (1) in computing the income of the CRIC in respect of a pertinent loan or indebtedness (as defined in subsection 212.3(11)) for the period that begins at that time and ends on the day that is 180 days after that time.
Tax treaties
(3) A particular loan or indebtedness that would, in the absence of this subsection, be a pertinent loan or indebtedness is deemed not to be a pertinent loan or indebtedness if, because of a provision of a tax treaty, the amount included in computing the income of the CRIC for any taxation year or of the qualifying Canadian partnership for any fiscal period, as the case may be, in respect of the particular loan or indebtedness is less than it would be if no tax treaty applied.
(2) Subsection (1) applies to taxation years and fiscal periods that end after March 28, 2012. However, in respect of acquisitions of control of a corporation resident in Canada that occur before the day on which the ways and means motion to implement this subsection is tabled in the House of Commons, subsection 17.1(2) of the Act, as enacted by subsection (1), is to be read as follows:
(2) If at any time a parent referred to in section 212.3 acquires control of a CRIC and the CRIC was not controlled by a non-resident corporation immediately before that time, no amount is to be included under subsection (1) in computing the income of the CRIC in respect of a pertinent loan or indebtedness (as defined in subsection 212.3(11)) for the period that begins on March 29, 2012 and ends on the day that is 180 days after the day on which the ways and means motion to implement this subsection is tabled in the House of Commons.
7. (1) Subparagraph 18(1)(k)(iii) of the Act is replaced by the following:
(iii) a pooled registered pension plan or registered pension plan;
(2) The portion of subsection 18(4) of the Act before paragraph (a) is replaced by the following:
Limitation — deduction of interest by certain corporations
(4) Notwithstanding any other provision of this Act (other than subsection (8)), in computing the income for a taxation year of a corporation resident in Canada from a business or property, no deduction shall be made in respect of that proportion of any amount otherwise deductible in computing its income for the year in respect of interest paid or payable by it on outstanding debts to specified non-residents that
(3) The portion of subparagraph 18(4)(a)(ii) of the Act before clause (A) is replaced by the following:
(ii) 1.5 times the total of
(4) Clause 18(4)(a)(ii)(B) of the Act is replaced by the following:
(B) the average of all amounts each of which is the corporation’s contributed surplus (other than any portion of that contributed surplus that arose in connection with an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies) at the beginning of a calendar month that ends in the year, to the extent that it was contributed by a specified non-resident shareholder of the corporation, and
(5) The portion of subsection 18(5) of the Act before the definition “outstanding debts to specified non-residents” is replaced by the following:
Definitions
(5) Notwithstanding any other provision of this Act (other than subsection (5.1)), in this subsection and subsections (4) to (7),
(6) Subsection 18(5) of the Act is amended by adding the following in alphabetical order:
“specified proportion”
« proportion déterminée »
“specified proportion”, of a member of a partnership for a fiscal period of the partnership, means the proportion that the member’s share of the total income or loss of the partnership for the partnership’s fiscal period is of the partnership’s total income or loss for that period and, for the purposes of this definition, where that income or loss for a period is nil, that proportion shall be computed as if the partnership had income for that period in the amount of $1,000,000;
(7) Section 18 of the Act is amended by adding the following after subsection (6):
Partnership debts
(7) For the purposes of this subsection, paragraph (4)(a), subsections (5) to (6) and paragraph 12(1)(l.1), each member of a partnership at any time is deemed at that time
(a) to owe the portion (in this subsection and paragraph 12(1)(l.1) referred to as the “debt amount”) of each debt or other obligation to pay an amount of the partnership that is equal to
(i) the member’s specified proportion for the last fiscal period, if any, of the partnership ending
(A) at or before the end of the taxation year referred to in subsection (4), and
(B) at a time when the member is a member of the partnership, and
(ii) if the member does not have a specified proportion described in subparagraph (i), the proportion that
(A) the fair market value of the member’s interest in the partnership at that time
is of
(B) the fair market value of all interests in the partnership at that time;
(b) to owe the debt amount to the person to whom the partnership owes the debt or other obligation to pay an amount; and
(c) to have paid interest on the debt amount that is deductible in computing the member’s income to the extent that an amount in respect of interest paid or payable on the debt amount by the partnership is deductible in computing the partnership’s income.
Exception — foreign accrual property income
(8) An amount in respect of interest paid or payable to a controlled foreign affiliate of a corporation resident in Canada that would otherwise not be deductible by the corporation for a taxation year because of subsection (4) may be deducted to the extent that an amount included under subsection 91(1) in computing the corporation’s income for the year or a subsequent year can reasonably be considered to be in respect of the interest.
(8) The portion of paragraph 18(11)(c) of the Act before subparagraph (i) is replaced by the following:
(c) making a contribution to a deferred profit sharing plan, a pooled registered pension plan or a registered pension plan, other than
(9) Subsections (1) and (8) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
(10) Subsection (2) applies to taxation years that end after March 28, 2012.
(11) Subsection (3) applies to taxation years that begin after 2012.
(12) Subsection (4) is deemed to have come into force on March 29, 2012.
(13) Subsections (5) and (6) and subsection 18(7) of the Act, as enacted by subsection (7), apply to taxation years that begin after March 28, 2012.
(14) Subsection 18(8) of the Act, as enacted by subsection (7), applies to taxation years that end after 2004.
8. (1) Paragraph 20(1)(q) of the Act is replaced by the following:
Employer’s contributions to RPP or PRPP
(q) such amount in respect of employer contributions to registered pension plans or pooled registered pension plans as is permitted under subsection 147.2(1) or 147.5(10);
(2) Paragraph 20(2.2)(a) of the Act is replaced by the following:
(a) that is or is issued pursuant to a pooled registered pension plan, a registered pension plan, a registered retirement savings plan, an income-averaging annuity contract or a deferred profit sharing plan;
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
9. (1) Subparagraph 37(1)(a)(i) of the Act is replaced by the following:
(i) on scientific research and experimental development related to a business of the taxpayer, carried on in Canada and directly undertaken by the taxpayer,
(i.01) on scientific research and experimental development related to a business of the taxpayer, carried on in Canada and directly undertaken on behalf of the taxpayer,
(2) Paragraph 37(1)(b) of the Act is re-pealed.
(3) Paragraph 37(1)(d) of the Act is replaced by the following:
(d) the total of all amounts each of which is the amount of any government assistance or non-government assistance (as defined in subsection 127(9)) in respect of an expenditure described in paragraph (a) or (b), as paragraph (a) or (b), as the case may be, read in its application in respect of the expenditure, that at the taxpayer’s filing-due date for the year the taxpayer has received, is entitled to receive or can reasonably be expected to receive,
(4) Subsection 37(6) of the Act is replaced by the following:
Expenditures of a capital nature
(6) For the purposes of section 13, an amount claimed under subsection (1) that may reasonably be considered to be in respect of a property described in paragraph (1)(b), as that paragraph read in its application in respect of the property, is deemed to be an amount allowed to the taxpayer in respect of the property under regulations made under paragraph 20(1)(a), and for that purpose the property is deemed to be of a separate prescribed class.
(5) Clause 37(6.1)(a)(i)(B) of the Act is replaced by the following:
(B) the lesser of the amounts determined immediately before that time in respect of the corporation under subparagraphs (1)(b)(i) and (ii), as those subparagraphs read on March 29, 2012, in respect of expenditures made, and property acquired, by the corporation before 2014, or
(6) Clause 37(8)(a)(ii)(A) of the Act is amended by adding “or” at the end of subclause (I), by replacing “or” with “and” at the end of subclause (II) and by repealing subclause (III).
(7) Subclause 37(8)(a)(ii)(B)(I) of the Act is repealed.
(8) Subclause 37(8)(a)(ii)(B)(II) of the Act is replaced by the following:
(II) an expenditure of a current nature in respect of the prosecution of scientific research and experimental development in Canada directly undertaken on behalf of the taxpayer,
(9) Subclause 37(8)(a)(ii)(B)(III) of the Act is repealed.
(10) Clause 37(8)(a)(ii)(B) of the Act is amended by adding “or” at the end of subclause (IV), by striking out “or” at the end of subclause (V) and by repealing subclause (VI).
(11) Paragraph 37(8)(d) of the Act is replaced by the following:
(d) references to expenditures of a current nature include any expenditure made by a taxpayer other than an expenditure made by the taxpayer for
(i) the acquisition from a person or partnership of a property that is a capital property of the taxpayer, or
(ii) the use of, or the right to use, property that would be capital property of the taxpayer if it were owned by the taxpayer.
(12) Section 37 of the Act is amended by adding the following after subsection (13):
Look-through rule
(14) For the purposes of subparagraphs (1)(a)(i.01) to (iii), the amount of a particular expenditure made by a taxpayer shall be reduced by the amount of any related expenditure of the person or partnership to whom the particular expenditure is made that is not an expenditure of a current nature of the person or partnership.
Reporting of certain payments
(15) If an expenditure is required to be reduced because of subsection (14), the person or the partnership referred to in that subsection is required to inform the taxpayer in writing of the amount of the reduction without delay if requested by the taxpayer and in any other case no later than 90 days after the end of the calendar year in which the expenditure was made.
(13) Subsection (1) applies in respect of expenditures made after 2012.
(14) Subsections (2) and (6) to (12) apply in respect of expenditures made after 2013 and expenditures that subsection 37(1.2) of the Act deems not to have been made before 2014.
(15) Subsections (3) to (5) come into force on January 1, 2014.
10. (1) Paragraph 53(2)(c) of the Act is amended by striking out “and” at the end of subparagraph (xi), by adding “and” at the end of subparagraph (xii) and by adding the following after subparagraph (xii):
(xiii) the amount of any reduction (within the meaning of paragraph 247(13)(a)) of the amount of a dividend deemed to have been received by the taxpayer in respect of a transaction (as defined in subsection 247(1)) or series of transactions in which the partnership was a participant;
(2) Subsection (1) is deemed to have come into force on March 29, 2012.
11. (1) Subsection 56(1) of the Act is amended by striking out “and” at the end of paragraph (z.1), by adding “and” at the end of paragraph (z.2) and by adding the following after paragraph (z.2):
Pooled registered pension plan
(z.3) any amount required by section 147.5 to be included in computing the taxpayer’s income for the year.
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
12. (1) Subparagraph 60(l)(v) of the Act is amended by adding the following after clause (A):
(A.1) the amount included in computing the taxpayer’s income for the year as a payment (other than a payment that is part of a series of periodic payments) received by the taxpayer out of or under a pooled registered pension plan as a consequence of the death of an individ-ual who was, immediately before the death, a spouse or common-law partner of the taxpayer,
(2) Clause 60(l)(v)(B.01) of the Act is replaced by the following:
(B.01) the amount included in computing the taxpayer’s income for the year as a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a pooled registered pension plan, a registered pension plan or a specified pension plan as a consequence of the death of an individual of whom the taxpayer was a child or grandchild, if the taxpayer was, immediately before the death, financially dependent on the individual for support because of mental or physical infirmity,
(3) Sub-subclause 60(l)(v)(B.1)(II)1 of the Act is replaced by the following:
1. a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a pooled registered pension plan, a registered pension plan or a specified pension plan,
(4) Subsections (1) to (3) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
13. (1) The definition “eligible individual” in subsection 60.02(1) of the Act is replaced by the following:
“eligible individual”
« particulier admissible »
“eligible individual” means a child or grandchild of a deceased annuitant under a registered retirement savings plan or a registered retirement income fund, or of a deceased member of a pooled registered pension plan, a registered pension plan or a specified pension plan, who was financially dependent on the deceased for support, at the time of the deceased’s death, by reason of mental or physical infirmity.
(2) Paragraph (c) of the definition “eligible proceeds” in subsection 60.02(1) of the Act is replaced by the following:
(c) a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) out of or under a pooled registered pension plan, a registered pension plan or a specified pension plan.
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
14. (1) The definition “eligible pension income” in subsection 60.03(1) of the Act is replaced by the following:
“eligible pension income”
« revenu de pension déterminé »
“eligible pension income”, of an individual for a taxation year, means the total of
(a) the eligible pension income (as defined in subsection 118(7)) of the individual for the year, and
(b) if the individual has attained the age of 65 years before the end of the year, the lesser of
(i) the total of all amounts each of which is a payment made in the year to the individual
(A) out of or under a retirement compensation arrangement that provides benefits that supplement the benefits provided under a registered pension plan (other than an individual pension plan for the purposes of Part LXXXIII of the Income Tax Regulations), and
(B) in respect of a life annuity that is attributable to periods of employment for which benefits are also provided to the individual under the registered pension plan, and
(ii) the amount, if any, by which the defined benefit limit (as defined in subsection 8500(1) of the Income Tax Regulations) for the year multiplied by 35 exceeds the amount determined under paragraph (a).
(2) Subsection (1) applies to the 2013 and subsequent taxation years.
15. (1) Paragraph 75(3)(a) of the Act is replaced by the following:
(a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a pooled registered pension plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan, a retirement compensation arrangement or a TFSA;
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
16. (1) Paragraphs 84(1)(c.1) and (c.2) of the Act are replaced by the following:
(c.1) if the corporation is an insurance corporation, any action by which it converts contributed surplus related to its insurance business (other than any portion of that contributed surplus that arose in connection with an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies) into paid-up capital in respect of the shares of its capital stock,
(c.2) if the corporation is a bank, any action by which it converts any of its contributed surplus that arose on the issuance of shares of its capital stock (other than any portion of that contributed surplus that arose in connection with an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies) into paid-up capital in respect of shares of its capital stock, or
(2) The portion of paragraph 84(1)(c.3) of the Act before subparagraph (i) is replaced by the following:
(c.3) if the corporation is neither an insurance corporation nor a bank, any action by which it converts into paid-up capital in respect of a class of shares of its capital stock any of its contributed surplus that arose after March 31, 1977 (other than any portion of that contributed surplus that arose in connection with an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies)
(3) Subsections (1) and (2) are deemed to have come into force on March 29, 2012.
17. (1) Paragraph 87(2)(g.1) of the Act is replaced by the following:
Continuation
(g.1) for the purposes of sections 12.4 and 26 and subsection 97(3), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;
(2) Subsection (1) applies in respect of amalgamations that occur, and windings-up that begin, after March 28, 2012.
18. (1) Paragraph 88(1)(d) of the Act is amended by striking out “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):
(ii.1) for the purpose of calculating the amount in subparagraph (ii) in respect of an interest of the subsidiary in a partnership, the fair market value of the interest at the time the parent last acquired control of the subsidiary is deemed to be the amount determined by the formula
A – B
where
A      is the fair market value (determined without reference to this subparagraph) of the interest at that time, and
B      is the portion of the amount by which the fair market value (determined without reference to this subparagraph) of the interest at that time exceeds its cost amount at that time as may reasonably be regarded as being attributable at that time to the total of all amounts each of which is
(A) in the case of a depreciable property held directly by the partnership or held indirectly by the partnership through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of the property exceeds its cost amount,
(B) in the case of a Canadian resource property or a foreign resource property held directly by the partnership or held indirectly by the partnership through one or more other partnerships, the fair market value (determined without reference to liabilities) of the property, or
(C) in the case of a property that is not a capital property, a Canadian resource property or a foreign resource property and that is held directly by the partnership or held indirectly through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of the property exceeds its cost amount, and
(2) Subsection 88(1) of the Act is amended by adding the following after paragraph (d.3):
(e) for the purposes of the description of A in subparagraph (d)(ii.1), the fair market value of an interest in a particular partnership held by the subsidiary at the time the parent last acquired control of the subsidiary is deemed not to include the amount that is the total of each amount that is the fair market value of a property that would otherwise be included in the fair market value of the interest, if
(i) as part of the transaction or event or series of transactions or events in which control of the subsidiary is last acquired by the parent and on or before the acquisition of control,
(A) the subsidiary disposes of the property to the particular partnership or any other partnership and subsection 97(2) applies to the disposition, or
(B) where the property is an interest in a partnership, the subsidiary acquires the interest in the particular partnership or any other partnership from a person or partnership with whom the subsidiary does not deal at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b)) and section 85 applies in respect of the acquisition of the interest, and
(ii) at the time of the acquisition of control, the particular partnership holds directly, or indirectly through one or more other partnerships, property described in clauses (A) to (C) of the description of B in subparagraph (d)(ii.1);
(3) Subsection (1) applies to amalgamations that occur and windings-up that begin after March 28, 2012, other than — if a taxable Canadian corporation (in this subsection referred to as the “parent corporation”) has acquired control of another taxable Canadian corporation (in this subsection referred to as the “subsidiary corporation”) — an amalgamation of the parent corporation and the subsidiary corporation that occurs before 2013, or a winding-up of the subsidiary corporation into the parent corporation that begins before 2013, if
(a) the parent corporation acquired control of the subsidiary corporation before March 29, 2012 or was obligated as evidenced in writing before March 29, 2012 to acquire control of the subsidiary (except that the parent corporation shall not be considered to be obligated if, as a result of amendments to the Act, it may be excused from the obligation to acquire control); and
(b) the parent corporation had the intention as evidenced in writing before March 29, 2012 to amalgamate with, or wind up, the subsidiary corporation.
(4) Subsection (2) applies to dispositions made after August 13, 2012 other than a disposition made before 2013 pursuant to an obligation under a written agreement entered into before August 14, 2012 by parties that deal with each other at arm’s length. The parties shall not be considered to be obligated if any party may be excused from the obligation as a result of amendments to the Act.
19. (1) Subparagraph (b)(iii) of the definition “paid-up capital” in subsection 89(1) of the Act is replaced by the following:
(iii) where the particular time is after March 31, 1977, an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act except subsections 51(3) and 66.3(2) and (4), sections 84.1 and 84.2, subsections 85(2.1), 85.1(2.1) and (8), 86(2.1), 87(3) and (9), paragraph 128.1(1)(c.3), subsections 128.1(2) and (3), 138(11.7), 139.1(6) and (7), 192(4.1) and 194(4.1) and sections 212.1 and 212.3,
(2) Subsection (1) is deemed to have come into force on March 29, 2012.
20. (1) The portion of subsection 93.1(1) of the Act before paragraph (a) is replaced by the following:
Shares held by partnership
93.1 (1) For the purposes of determining whether a non-resident corporation is a foreign affiliate of a corporation resident in Canada for the purposes of subsections (2) and 20(12), sections 93 and 113, paragraphs 128.1(1)(c.3) and (d), section 212.3 and subsection 219.1(2), (and any regulations made for the purposes of those provisions), section 95 (to the extent that it is applied for the purposes of those provisions) and section 126, if, based on the assumptions contained in paragraph 96(1)(c), at any time shares of a class of the capital stock of a corporation are owned by a partnership or are deemed under this subsection to be owned by a partnership, then each member of the partnership is deemed to own at that time the number of those shares that is equal to the proportion of all those shares that
(2) Subsection (1) is deemed to have come into force on March 29, 2012.
21. (1) The portion of subsection 97(2) of the Act before paragraph (a) is replaced by the following:
Rules if election by partners
(2) Notwithstanding any other provision of this Act other than subsections (3) and 13(21.2), where a taxpayer at any time disposes of any property that is a capital property, Canadian resource property, foreign resource property, eligible capital property or inventory of the taxpayer to a partnership that immediately after that time is a Canadian partnership of which the taxpayer is a member, if the taxpayer and all the other members of the partnership jointly so elect in prescribed form within the time referred to in subsection 96(4),
(2) Section 97 of the Act is amended by adding the following after subsection (2):
Election not available — section 88
(3) Subsection (2) does not apply to a disposition of a property by a taxpayer to a particular partnership if
(a) as part of a transaction or event or series of transactions or events that includes the disposition
(i) control of a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) is acquired by another taxable Canadian corporation (in this paragraph referred to as the “parent”),
(ii) the subsidiary is wound up under subsection 88(1) or amalgamated with one or more other corporations under subsection 87(11), and
(iii) the parent makes a designation under paragraph 88(1)(d) in respect of an interest in a partnership;
(b) the disposition occurs after the acquisition of control of the subsidiary;
(c) the property
(i) is referred to in clauses (A) to (C) of the description of B in subparagraph 88(1)(d)(ii.1), or
(ii) is an interest in a partnership that holds, directly or indirectly through one or more partnerships, property referred to in clauses (A) to (C) of the description of B in subparagraph 88(1)(d)(ii.1); and
(d) the subsidiary is the taxpayer or has, before the disposition of the property, directly or indirectly in any manner whatever, an interest in the taxpayer.
(3) Subsections (1) and (2) apply in respect of dispositions made after March 28, 2012.
22. (1) The portion of subsection 100(1) of the Act before paragraph (b) is replaced by the following:
Disposition of interest in partnership
100. (1) If, as part of a transaction or event or series of transactions or events, a taxpayer disposes of an interest in a partnership and an interest in the partnership is acquired by a person or partnership described in any of paragraphs (1.1)(a) to (d), then notwithstanding paragraph 38(a), the taxpayer’s taxable capital gain for a taxation year from the disposition of the interest is deemed to be the total of
(a) 1/2 of such portion of the taxpayer’s capital gain for the year from the disposition as may reasonably be regarded as attributable to increases in the value of any partnership property of the partnership that is capital property other than depreciable property held directly by the partnership or held indirectly by the partnership through one or more other partnerships, and
(2) Section 100 of the Act is amended by adding the following after subsection (1):
Acquisition by certain persons or partnerships
(1.1) Subject to subsection (1.2), subsection (1) applies in respect of a disposition of a partnership interest by a taxpayer if the interest is acquired by
(a) a person exempt from tax under section 149;
(b) a non-resident person;
(c) another partnership to the extent that the interest can reasonably be considered to be held, at the time of its acquisition by the other partnership, indirectly through one or more partnerships, by a person that is
(i) exempt from tax under section 149,
(ii) a non-resident, or
(iii) a trust resident in Canada (other than a mutual fund trust) if
(A) an interest as a beneficiary (in this subsection and subsection (1.2) having the meaning assigned by subsection 108(1)) under the trust is held, directly or indirectly through one or more other partnerships, by a person that is exempt from tax under section 149 or that is a trust (other than a mutual fund trust), and
(B) the total fair market value of the interests as beneficiaries under the trust held by persons referred to in clause (A) exceeds 10% of the fair market value of all the interests as beneficiaries under the trust; or
(d) a trust resident in Canada (other than a mutual fund trust) to the extent that the trust can reasonably be considered to have a beneficiary that is
(i) exempt from tax under section 149,
(ii) a partnership, if
(A) an interest in the partnership is held, whether directly or indirectly through one or more other partnerships, by one or more persons that are exempt from tax under section 149 or are trusts (other than mutual fund trusts), and
(B) the total fair market value of the interests held by persons referred to in clause (A) exceeds 10% of the fair market value of all the interests in the partnership, or
(iii) another trust (other than a mutual fund trust), if
(A) one or more beneficiaries under the other trust are a person exempt from tax under section 149, a partnership or a trust (other than a mutual fund trust), and
(B) the total fair market value of the interests as beneficiaries under the other trust held by the beneficiaries referred to in clause (A) exceeds 10% of the fair market value of all the interests as beneficiaries under the other trust.
De minimis
(1.2) Subsection (1) does not apply to a taxpayer’s disposition of a partnership interest to a partnership or trust described in paragraph (1.1)(c) or (d) — other than a trust under which the amount of the income or capital to be distributed at any time in respect of any interest as a beneficiary under the trust depends on the exercise by any person or partnership of, or the failure by any person or partnership to exercise, any discretionary power — if the extent to which subsection (1) would, but for this subsection, apply to the taxpayer’s disposition of the interest because of subsection (1.1) does not exceed 10% of the taxpayer’s interest.
Exception — non-resident person
(1.3) Subsection (1) does not apply in respect of a disposition of an interest in a partnership by a taxpayer to a person referred to in paragraph (1.1)(b) if
(a) property of the partnership is used, immediately before and immediately after the acquisition of the interest by the non-resident person, in carrying on business through one or more permanent establishments in Canada; and
(b) the total fair market value of the property referred to in paragraph (a) equals at least 90% of the total fair market value of all property of the partnership.
Anti-avoidance — dilution
(1.4) Subsection (1.5) applies in respect of a taxpayer’s interest in a partnership if
(a) it is reasonable to conclude that one of the purposes of a dilution, reduction or alteration of the interest was to avoid the application of subsection (1) in respect of the interest; and
(b) as part of a transaction or event or series of transactions or events that includes the dilution, reduction or alteration, there is
(i) an acquisition of an interest in the partnership by a person or partnership described in any of paragraphs (1.1)(a) to (d), or
(ii) an increase in, or alteration of, an interest in the partnership held by a person or partnership described in any of paragraphs (1.1)(a) to (d).
Deemed gain — dilution
(1.5) If this subsection applies in respect of a particular interest in a partnership of a taxpayer, then for the purposes of subsection (1),
(a) the taxpayer is deemed to have disposed of an interest in the partnership at the time of the dilution, reduction or alteration;
(b) the taxpayer is deemed to have a capital gain from the disposition equal to the amount by which the fair market value of the particular interest immediately before the dilution, reduction or alteration exceeds its fair market value immediately thereafter; and
(c) the person or partnership referred to in paragraph (1.4)(b) is deemed to have acquired an interest in the partnership as part of the transaction or event or series of transactions or events that includes the disposition referred to in paragraph (a).
(3) Subsection (1) applies in respect of any disposition made after March 28, 2012, except that
(a) in respect of any disposition made before August 14, 2012, the portion of subsection 100(1) of the Act before paragraph (b), as enacted by subsection (1), is to be read as follows:
100. (1) If, as part of a transaction or event or series of transactions or events, a taxpayer disposes of an interest in a partnership and that interest is acquired by a person exempt from tax under section 149 or by a non-resident person, notwithstanding paragraph 38(a), the taxpayer’s taxable capital gain for a taxation year from the disposition of the interest is deemed to be
(a) 1/2 of such portion of the taxpayer’s capital gain for the year therefrom as may reasonably be regarded as attributable to increases in the value of any partnership property of the partnership that is capital property other than depreciable property,
plus
(b) subsection (1) does not apply in respect of a disposition of an interest in a partnership by a taxpayer before 2013 to a person with whom the taxpayer deals at arm’s length if the taxpayer is obligated to dispose of the interest to the person pursuant to a written agreement entered into by the taxpayer before March 29, 2012. A taxpayer is not considered to be obligated if, as a result of amendments to the Act, the taxpayer may be excused from the obligation.
(4) Subsection (2) is deemed to have come into force on March 29, 2012, except that subsections 100(1.1), (1.2), (1.4) and (1.5) of the Act, as enacted by subsection (2), do not apply
(a) before August 14, 2012; or
(b) in respect of a disposition, dilution, reduction or alteration of an interest in a partnership if the disposition, dilution, reduction or alteration occurs before 2013 pursuant to an obligation under a written agreement entered into before August 14, 2012 by parties that deal with each other at arm’s length and no party to the agreement may be excused from the obligation as a result of amendments to the Act.
23. (1) Paragraph (a) of the definition “trust” in subsection 108(1) of the Act is replaced by the following:
(a) an amateur athlete trust, an employee life and health trust, an employee trust, a trust described in paragraph 149(1)(o.4) or a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a foreign retirement arrangement, a pooled registered pension plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan or a TFSA,
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
24. (1) Clause (a)(i)(C) of the definition “investment expense” in subsection 110.6(1) of the Act is replaced by the following:
(C) to make a contribution to a pooled registered pension plan, registered pension plan or deferred profit sharing plan, or
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
25. (1) Subparagraph (a)(i) of the definition “pension income” in subsection 118(7) of the Act is replaced by the following:
(i) a payment in respect of a life annuity out of or under a superannuation or pension plan (other than a pooled registered pension plan) or a specified pension plan,
(2) Paragraph (a) of the definition “pension income” in subsection 118(7) of the Act is amended by adding the following before subparagraph (iv):
(iii.2) an amount included under section 147.5,
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
26. (1) The portion of paragraph 122.3(1)(c) of the Act before subparagraph (i) is replaced by the following:
(c) an amount equal to that proportion of the specified amount for the year that the number of days
(2) Paragraph 122.3(1)(d) of the Act is replaced by the following:
(d) the specified percentage for the year of the individual’s income for the year from that employment that is reasonably attributable to duties performed on the days referred to in paragraph (c)
(3) Section 122.3 of the Act is amended by adding the following after subsection (1):
Specified amount
(1.01) For the purposes of paragraph (1)(c), the specified amount for a taxation year of an individual is
(a) for the 2013 to 2015 taxation years, the amount determined by the formula
[$80,000 × A/(A + B)] + [C × B/(A + B)]
where
A      is the individual’s income described in paragraph (1)(d) for the taxation year that is earned in connection with a contract that was committed to in writing before March 29, 2012 by a specified employer of the individual,
B      is the individual’s income described in paragraph (1)(d) for the taxation year, other than income included in the description of A, and
C      is
(i) for the 2013 taxation year, $60,000,
(ii) for the 2014 taxation year, $40,000, and
(iii) for the 2015 taxation year, $20,000; and
(b) for the 2016 and subsequent taxation years, nil.
Specified percentage
(1.02) For the purposes of paragraph (1)(d), the specified percentage for a taxation year of an individual is
(a) for the 2013 to 2015 taxation years, the amount determined by the formula
[80% × A/(A + B)] + [C × B/(A + B)]
where
A      is the value of A in subsection (1.01),
B      is the value of B in subsection (1.01), and
C      is
(i) for the 2013 taxation year, 60%,
(ii) for the 2014 taxation year, 40%, and
(iii) for the 2015 taxation year, 20%; and
(b) for the 2016 and subsequent taxation years, 0%.
(4) Subsections (1) to (3) apply to the 2013 and subsequent taxation years.
27. (1) Subparagraph (a)(i) of the definition “contract payment” in subsection 127(9) of the Act is replaced by the following:
(i) for or on behalf of a person or partnership entitled to a deduction in respect of the amount because of subparagraph 37(1)(a)(i.01) or (i.1), and
(2) Paragraph (b) of the definition “contract payment” in subsection 127(9) of the Act is replaced by the following:
(b) an amount in respect of an expenditure of a current nature (within the meaning assigned by paragraph 37(8)(d)) of a taxpayer, other than a prescribed amount, payable by a Canadian government or municipality or other Canadian public authority or by a person exempt, because of section 149, from tax under this Part on all or part of the person’s taxable income for scientific research and experimental development to be performed for it or on its behalf;
(3) The definition “first term shared-use-equipment” in subsection 127(9) of the Act is replaced by the following:
“first term shared-use-equipment”
« matériel à vocations multiples de première période »
“first term shared-use-equipment”, of a taxpayer, means depreciable property of the taxpayer (other than prescribed depreciable property of a taxpayer) acquired before 2014 that is used by the taxpayer, during its operating time in the period (in this subsection and subsection (11.1) referred to as the “first period”) beginning at the time the property was acquired by the taxpayer and ending at the end of the taxpayer’s first taxation year ending at least 12 months after that time, primarily for the prosecution of scientific research and experimental development in Canada, but does not include general purpose office equipment or furniture;
(4) Paragraph (a) of the definition “investment tax credit” in subsection 127(9) of the Act is replaced by the following:
(a) the total of all amounts each of which is the specified percentage of the capital cost to the taxpayer of qualified property or qualified resource property acquired by the taxpayer in the year,
(5) Paragraph (a.1) of the definition “investment tax credit” in subsection 127(9) of the Act is replaced by the following:
(a.1) 15% of the amount by which the taxpayer’s SR&ED qualified expenditure pool at the end of the year exceeds the total of all amounts each of which is the super-allowance benefit amount for the year in respect of the taxpayer in respect of a province,
(6) Paragraph (a.3) of the definition “investment tax credit” in subsection 127(9) of the Act is replaced by the following:
(a.3) if the taxpayer is a taxable Canadian corporation, the total of
(i) the specified percentage of the portion of the taxpayer’s pre-production mining expenditure described in subparagraph (a)(i) of the definition “pre-production mining expenditure”, and
(ii) the specified percentage of the portion of the taxpayer’s pre-production mining expenditure described in subparagraph (a)(ii) of the definition “pre-production mining expenditure”,
(7) Paragraph (a) of the definition “pre-production mining expenditure” in subsection 127(9) of the Act is replaced by the following:
(a) is a Canadian exploration expense and would be
(i) described in paragraph (f) of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in that paragraph were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, or
(ii) described in paragraph (g), and not in paragraph (f), of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in paragraph (g) were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, and
(8) Paragraphs (a) and (b) of the definition “qualified expenditure” in subsection 127(9) of the Act are replaced by the following:
(a) an amount that is an expenditure incurred in the year by the taxpayer in respect of scientific research and experimental development and is
(i) an expenditure described in subparagraph 37(1)(a)(i),
(ii) 80% of an expenditure described in any of subparagraphs 37(1)(a)(i.01) to (iii),
(iii) an expenditure for first term shared-use-equipment or second term shared-use-equipment, or
(iv) an expenditure described in subparagraph 37(1)(b)(i), or
(b) a prescribed proxy amount of the taxpayer for the year,
(9) Paragraph (a) of the definition “qualified expenditure” in subsection 127(9) of the Act, as enacted by subsection (8), is amended by adding “or” at the end of subparagraph (ii) and by repealing subparagraph (iv).
(10) Paragraph (a) of the definition “qual-ified expenditure” in subsection 127(9) of the Act, as amended by subsection (9), is amended by adding “or” at the end of subparagraph (i) and by repealing subparagraph (iii).
(11) The portion of the definition “qualified property” in subsection 127(9) of the Act before paragraph (a) is replaced by the following:
“qualified property”
« bien admissible »
“qualified property”, of a taxpayer, means property (other than a qualified resource property) that is
(12) The definition “qualified property” in subsection 127(9) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(b.1) prescribed energy generation and conservation property acquired by the taxpayer after March 28, 2012,
(13) Subparagraphs (c)(iv) to (xiii) of the definition “qualified property” in subsection 127(9) of the Act are replaced by the following:
(iv) storing grain, or
(v) harvesting peat,
(14) The portion of paragraph (c.1) of the definition “qualified property” in subsection 127(9) of the Act before subparagraph (i) is replaced by the following:
(c.1) property (other than property described in paragraph (b.1)) to be used by the taxpayer in Canada primarily for the purpose of producing or processing electrical energy or steam in a prescribed area, if
(15) The portion of paragraph (d) of the definition “qualified property” in subsection 127(9) of the Act before subparagraph (i) is replaced by the following:
(d) to be leased by the taxpayer to a lessee (other than a person exempt from tax under this Part because of section 149) who can reasonably be expected to use the property in Canada primarily for any of the purposes referred to in paragraph (c), but this paragraph does not apply to property that is prescribed for the purposes of paragraph (b) or (b.1) unless
(16) The definition “specified percentage” in subsection 127(9) of the Act is amended by adding the following after paragraph (a):
(a.1) in respect of a qualified resource property acquired by a taxpayer primarily for use in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, the Gaspé Peninsula or the prescribed offshore region, and that is acquired
(i) after March 28, 2012 and before 2014, 10%,
(ii) after 2013 and before 2017, 10% if the property
(A) is acquired by the taxpayer under a written agreement of purchase and sale entered into by the taxpayer before March 29, 2012, or
(B) is acquired as part of a phase of a project and
(I) the construction of the phase was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or
(II) the engineering and design work for the construction of the phase, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit stud-ies, and similar activities), and
(iii) in any other case,
(A) in 2014 and 2015, 5%, and
(B) after 2015, 0%,
(17) The definition “specified percentage” in subsection 127(9) of the Act is amended by striking out “and” at the end of paragraph (i) and by replacing paragraph (j) with the following:
(j) in respect of a pre-production mining expenditure of the taxpayer that is described in subparagraph (a)(i) of the definition “pre-production mining expenditure” and that is incurred
(i) before 2013, 10%,
(ii) in 2013, 5%, and
(iii) after 2013, 0%, and
(k) in respect of a pre-production mining expenditure of the taxpayer that is described in subparagraph (a)(ii) of the definition “pre-production mining expenditure” and that is incurred
(i) before 2014, 10%,
(ii) after 2013 and before 2016, 10% if the expenditure is incurred
(A) under a written agreement entered into by the taxpayer before March 29, 2012, or
(B) as part of the development of a new mine and
(I) the construction of the mine was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or
(II) the engineering and design work for the construction of the mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit stud-ies, and similar activities), and
(iii) in any other case,
(A) in 2014, 7%,
(B) in 2015, 4%, and
(C) after 2015, 0%;
(18) Subsection 127(9) of the Act is amended by adding the following in alphabetical order:
“phase”
« phase »
“phase”, of a project, means a discrete expansion in the extraction, processing or production capacity of the project of a taxpayer beyond a capacity level that was attained before March 29, 2012 and which expansion in capacity was the taxpayer’s demonstrated intention immediately before that date;
“qualified resource property”
« bien minier admissible »
“qualified resource property”, of a taxpayer, means property that is a prescribed building or prescribed machinery and equipment, that is acquired by the taxpayer after March 28, 2012, that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer and that is
(a) to be used by the taxpayer in Canada primarily for the purpose of
(i) operating an oil or gas well or extracting petroleum or natural gas from a natural accumulation of petroleum or natural gas,
(ii) extracting minerals from a mineral resource,
(iii) processing
(A) ore (other than iron ore or tar sands ore) from a mineral resource to any stage that is not beyond the prime metal stage or its equivalent,
(B) iron ore from a mineral resource to any stage that is not beyond the pellet stage or its equivalent, or
(C) tar sands ore from a mineral resource to any stage that is not beyond the crude oil stage or its equivalent,
(iv) producing industrial minerals,
(v) processing heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent,
(vi) Canadian field processing,
(vii) exploring or drilling for petroleum or natural gas, or
(viii) prospecting or exploring for or developing a mineral resource, or
(b) to be leased by the taxpayer to a lessee (other than a person exempt from tax under this Part because of section 149) who can reasonably be expected to use the property in Canada primarily for any of the purposes referred to in paragraph (a), but this paragraph does not apply to prescribed machinery and equipment unless
(i) the property is leased in the ordinary course of carrying on a business in Canada by a corporation whose principal business is any of, or a combination of, leasing property, lending money, purchasing conditional sales contracts, accounts receivable, bills of sale, chattel mortgages or hypothecary claims on movables, bills of exchange or other obligations representing all or part of the sale price of merchandise or services,
(ii) the property is manufactured and leased in the ordinary course of carrying on business in Canada by a corporation whose principal business is manufacturing property that it sells or leases, or
(iii) the property is leased in the ordinary course of carrying on business in Canada by a corporation the principal business of which is selling or servicing property of that type,
and, for the purpose of this definition, “Canada” includes the offshore region prescribed for the purpose of the definition “specified percentage”;
(19) The portion of subsection 127(10.1) of the Act before paragraph (a) is replaced by the following:
Additions to investment tax credit
(10.1) For the purposes of paragraph (e) of the definition “investment tax credit” in subsection (9), if a corporation was throughout a taxation year a Canadian-controlled private corporation, there shall be added in computing the corporation’s investment tax credit at the end of the year the amount that is 20% of the least of
(20) The portion of subsection 127(11) of the Act before paragraph (a) is replaced by the following:
Interpretation
(11) For the purposes of the definitions “qualified property” and “qualified resource property” in subsection (9),
(21) The portion of paragraph 127(11)(b) of the Act before subparagraph (i) is replaced by the following:
(b) for greater certainty, the purposes referred to in paragraph (c) of the definition “qualified property” and paragraph (a) of the definition “qualified resource property” in subsection (9) do not include
(22) Paragraph 127(11.2)(a) of the Act is replaced by the following:
(a) qualified property, qualified resource property and first term shared-use-equipment are deemed not to have been acquired, and
(23) Paragraph 127(11.2)(a) of the Act, as enacted by subsection (22), is replaced by the following:
(a) qualified property and qualified resource property are deemed not to have been acquired, and
(24) Paragraph 127(11.2)(b) of the Act is replaced by the following:
(b) expenditures included in an eligible child care space expenditure are deemed not to have been incurred
(25) Paragraph 127(11.5)(a) of the Act is replaced by the following:
(a) the amount of an expenditure (other than a prescribed proxy amount or an amount described in paragraph (b)) incurred by a taxpayer in a taxation year is deemed to be the amount of the expenditure determined under subsection (11.6); and
(26) Subsection 127(11.5) of the Act, as amended by subsection (25), is replaced by the following:
Adjustments to qualified expenditures
(11.5) For the purposes of the definition “qualified expenditure” in subsection (9), the amount of an expenditure (other than a prescribed proxy amount) incurred by a taxpayer in a taxation year is deemed to be the amount of the expenditure determined under subsection (11.6).
(27) The portion of subsection 127(11.6) of the Act after paragraph (b) and before paragraph (c) is replaced by the following:
the amount of the expenditure incurred by the taxpayer for the service or property and the cost to the taxpayer of the property are deemed to be
(28) Subparagraph 127(11.6)(d)(i) of the Act is replaced by the following:
(i) the cost to the taxpayer of the property otherwise determined, and
(29) Subsection 127(11.8) of the Act is amended by adding “and” at the end of paragraph (a), by striking out “and” at the end of paragraph (b) and by repealing paragraph (c).
(30) Subsection 127(33) of the Act is replaced by the following:
Certain non-arm’s length transfers
(33) Subsections (27) to (29), (34) and (35) do not apply to a taxpayer or partnership (in this subsection referred to as the “transferor”) that disposes of a property to a person or partnership (in this subsection and subsections (34) and (35) referred to as the “purchaser”), that does not deal at arm’s length with the transferor, if the purchaser acquired the property in circumstances where the cost of the property to the purchaser would have been an expenditure of the purchaser described in subclause 37(8)(a)(ii)(A)(III) or (B)(III) (as those subclauses read on March 29, 2012) but for subparagraph 2902(b)(iii) of the Income Tax Regulations.
(31) Subsections (1) and (8) apply in respect of expenditures made after 2012.
(32) Subsections (2), (9), (24), (25) and (29) apply in respect of expenditures made after 2013.
(33) Subsections (3), (18), (20) to (22) and (30) are deemed to have come into force on March 29, 2012.
(34) Subsections (4) and (6) apply to taxation years ending after March 28, 2012.
(35) Subsections (5) and (19) apply to taxation years that end after 2013, except that for taxation years that include January 1, 2014
(a) the reference to “15%” in paragraph (a.1) of the definition “investment tax credit” in subsection 127(9) of the Act, as enacted by subsection (5), is to be read as a reference to the percentage that is the total of
(i) 20% multiplied by the proportion that the number of days that are in the taxation year and before 2014 is of the number of days in the taxation year, and
(ii) 15% multiplied by the proportion that the number of days that are in the taxation year and after 2013 is of the number of days in the taxation year; and
(b) the reference to “20%” in the portion of subsection 127(10.1) of the Act before paragraph (a), as enacted by subsection (19), is to be read as a reference to the percentage that is the total of
(i) 15% multiplied by the proportion that the number of days that are in the taxation year and before 2014 is of the number of days in the taxation year, and
(ii) 20% multiplied by the proportion that the number of days that are in the taxation year and after 2013 is of the number of days in the taxation year.
(36) Subsections (7) and (17) apply in respect of expenditures incurred after March 28, 2012.
(37) Subsections (10), (23) and (26) to (28) come into force on February 1, 2017.
(38) Subsections (11) to (16) apply in respect of property acquired after March 28, 2012.
28. (1) Subparagraph (f)(i) of the definition “refundable investment tax credit” in subsection 127.1(2) of the Act is replaced by the following:
(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer’s investment tax credit at the end of the year that is in respect of qualified expenditures incurred by the taxpayer in the year, and
(2) Subsection 127.1(2.01) of the Act is replaced by the following:
Addition to refundable investment tax credit
(2.01) In the case of a taxpayer that is a Canadian-controlled private corporation other than a qualifying corporation or an excluded corporation, the refundable investment tax credit of the taxpayer for a taxation year is the amount, if any, by which
(a) the total of
(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer’s investment tax credit at the end of the year that is in respect of qualified expenditures incurred by the taxpayer in the year, and
(ii) all amounts determined under paragraph (a.1) of the definition “investment tax credit” in subsection 127(9) in respect of expenditures for which an amount is included in subparagraph (i)
exceeds
(b) the total of
(i) the portion of the total of all amounts deducted by the taxpayer under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to have been so deducted for the year) that can reasonably be considered to be in respect of the total determined under paragraph (a), and
(ii) the portion of the total of all amounts required by subsection 127(6) to be deducted in computing the taxpayer’s investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined under paragraph (a).
(3) Subsections (1) and (2) come into force on February 1, 2017.
29. (1) Paragraph 128(2)(d.1) of the Act is replaced by the following:
(d.1) where, by reason of paragraph (d), a taxation year of the individual is not a calendar year,
(i) paragraph 146(5)(b) shall, for the purpose of the application of subsection 146(5) to the taxation year, be read as follows:
“(b) the amount, if any, by which
(i) the amount, if any, by which the taxpayer’s RRSP deduction limit for the particular calendar year in which the taxation year ends exceeds the total of all contributions made by an employer in the particular calendar year to a pooled registered pension plan in respect of the taxpayer
exceeds
(ii) the total of the amounts deducted under this subsection and subsection (5.1) in computing the taxpayer’s income for any preceding taxation year that ends in the particular calendar year.”,
and
(ii) paragraph 146(5.1)(b) shall, for the purpose of the application of subsection 146(5.1) to the taxation year, be read as follows:
“(b) the amount, if any, by which
(i) the amount, if any, by which the taxpayer’s RRSP deduction limit for the particular calendar year in which the taxation year ends exceeds the total of all contributions made by an employer in the particular calendar year to a pooled registered pension plan in respect of the taxpayer
exceeds
(ii) the total of the amount deducted under subsection (5) in computing the taxpayer’s income for the year and the amounts deducted under this subsection and subsection (5) in computing the taxpayer’s income for any preceding taxation year that ends in the particular calendar year.”;
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
30. (1) Subsection 128.1(1) of the Act is amended by striking out “and” at the end of paragraph (c.2) and by adding the following after paragraph (c.2):
Foreign affiliate dumping — immigrating corporation
(c.3) if the taxpayer is a corporation that was, immediately before the particular time, controlled by a particular non-resident corporation and the taxpayer owned, immediately before the particular time, one or more shares of one or more non-resident corporations (each of which is in this paragraph referred to as a “subject affiliate”) that, immediately after the particular time, were — or that became, as part of a transaction or event or series of transactions or events that includes the taxpayer having become resident in Canada — foreign affiliates of the taxpayer, then
(i) in computing the paid-up capital, at any time after the time that is immediately after the particular time, of any particular class of shares of the capital stock of the taxpayer there is to be deducted the amount determined by the formula
A × B/C
where
A      is the lesser of
(A) the paid-up capital in respect of all of the shares of the capital stock of the taxpayer at the time that is immediately after the particular time, and
(B) the total of all amounts each of which is the fair market value at the particular time of
(I) a share of the capital stock of a subject affiliate owned by the taxpayer at the particular time, or
(II) an amount owing by the subject affiliate to the taxpayer at the particular time,
B      is the paid-up capital in respect of the particular class of shares of the capital stock of the taxpayer at the time that is immediately after the particular time, and
C      is the paid-up capital in respect of all the shares of the capital stock of the taxpayer at the time that is immediately after the particular time, and
(ii) for the purposes of Part XIII, the taxpayer is deemed, immediately after the particular time, to have paid to the particular non-resident corporation, and the particular non-resident corporation is deemed, immediately after the particular time, to have received from the taxpayer, a dividend equal to the amount, if any, by which the amount determined under clause (B) of the description of A in subparagraph (i) exceeds the amount determined under clause (A) of the description of A in subparagraph (i); and
(2) Subsection 128.1(3) of the Act is replaced by the following:
Paid-up capital adjustment
(3) In computing the paid-up capital at any time in respect of a class of shares of the capital stock of a corporation
(a) there is to be deducted an amount equal to the lesser of A and B, and added an amount equal to the lesser of A and C, where
A      is the absolute value of the difference between
(i) the total of all amounts deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of the class paid before that time by the corporation, and
(ii) the total that would be determined under subparagraph (i) if this Act were read without reference to subsection (2),
B      is the total of all amounts required by subsection (2) to be added in computing the paid-up capital in respect of the class before that time, and
C      is the total of all amounts required by subsection (2) to be deducted in computing the paid-up capital in respect of the class before that time; and
(b) there is to be added an amount equal to the lesser of
(i) the amount, if any, by which
(A) the total of all amounts deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of the class paid after March 28, 2012 and before that time by the corporation
exceeds
(B) the total that would be determined under clause (A) if this Act were read without reference to subparagraph (c.3)(i), and
(ii) the total of all amounts required by subparagraph (c.3)(i) to be deducted in computing the paid-up capital in respect of the class before that time.
(3) Subsection (1) applies in respect of corporations that become resident in Canada after March 28, 2012.
(4) Subsection (2) is deemed to have come into force on March 29, 2012.
31. (1) Subsection 138.1(7) of the Act is replaced by the following:
Non-application of subsections (1) to (6)
(7) Subsections (1) to (6) do not apply to the holder of a segregated fund policy with respect to such a policy that is issued or effected as or under a pooled registered pension plan, registered pension plan, registered retirement income fund, registered retirement savings plan or TFSA.
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
32. (1) The description of D in paragraph (b) of the definition “unused RRSP deduction room” in subsection 146(1) of the Act is replaced by the following:
D      is the total of all amounts each of which is
(i) an amount deducted by the taxpayer under any of subsections (5) to (5.2), in computing the taxpayer’s income for the year,
(ii) an amount deducted by the taxpayer under paragraph 10 of Article XVIII of the Canada-United States Tax Convention signed at Washington on September 26, 1980 or a similar provision in another tax treaty, in computing the taxpayer’s taxable income for the year,
(iii) a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer, or
(iv) the amount, if any, by which the taxpayer’s exempt-income contribution amount (as defined in subsection 147.5(1)) for the year exceeds the taxpayer’s unused non-deductible PRPP room (as defined in subsection 147.5(1)) at the end of the preceding taxation year, and
(2) The portion of subsection 146(1.1) of the Act before the formula is replaced by the following:
Restriction — financially dependent
(1.1) For the purposes of paragraph (b) of the definition “refund of premiums” in subsection (1), clause 60(l)(v)(B.01), the definition “eligible individual” in subsection 60.02(1), subparagraph 104(27)(e)(i) and section 147.5, it is assumed, unless the contrary is established, that an individual’s child or grandchild was not financially dependent on the individual for support immediately before the individual’s death if the income of the child or grandchild for the taxation year preceding the taxation year in which the individual died exceeded the amount determined by the formula
(3) Paragraph 146(5)(a) of the Act is amended by adding the following after subparagraph (iii):
(iii.1) that was an exempt-income contribution amount (as defined in subsection 147.5(1)) for any taxation year,
(4) Paragraph 146(5)(b) of the Act is replaced by the following:
(b) the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all contributions made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.
(5) Paragraph 146(5.1)(b) of the Act is replaced by the following:
(b) the amount, if any, by which the taxpayer’s RRSP deduction limit for the year exceeds the total of all amounts each of which is
(i) the amount deducted under subsection (5) in computing the taxpayer’s income for the year, or
(ii) a contribution made by an employer in the year to a pooled registered pension plan in respect of the taxpayer.
(6) Subparagraph 146(8.2)(b)(iii) of the Act is replaced by the following:
(iii) was not paid by way of a transfer of an amount to a registered retirement savings plan from
(A) a pooled registered pension plan in circumstances to which subsection 147.5(21) applied, or
(B) a specified pension plan in circumstances to which subsection (21) applied,
(7) Subsection 146(21.2) of the Act is replaced by the following:
Specified pension plan — account
(21.2) For the purposes of paragraph (8.2)(b), subsection (8.21), paragraphs (16)(a) and (b) and 18(1)(u), subparagraph (a)(i) of the definition “excluded right or interest” in subsection 128.1(10), paragraph (b) of the definition “excluded premium” in subsection 146.01(1), paragraph (c) of the definition “excluded premium” in subsection 146.02(1), subsections 146.3(14) and 147(19), section 147.3 and paragraph 147.5(21)(c), and for the purposes of any regulations made under subsection 147.1(18), an individual’s account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant.
(8) Subsections (1) to (7) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
33. (1) The portion of the definition “reg-istered education savings plan” in subsection 146.1(1) of the Act before paragraph (a) is replaced by the following:
“registered education savings plan” or “RESP”
« régime enregistré d’épargne-études » ou « REEE »
“registered education savings plan” or “RESP” means
(2) Section 146.1 of the Act is amended by adding the following after subsection (1):
Election
(1.1) A subscriber under an RESP that allows accumulated income payments and a holder of an RDSP may jointly elect in prescribed form to have subsection (1.2) apply in respect of a beneficiary under the RESP if, at the time the election is made, the beneficiary is also the beneficiary under the RDSP and
(a) the beneficiary has a severe and prolonged mental impairment that prevents, or can reasonably be expected to prevent, the beneficiary from enrolling in a qualifying educational program at a post-secondary educational institution; or
(b) the RESP meets the conditions described in clause (2)(d.1)(iii)(A) or (B) to make an accumulated income payment.
Effect of election
(1.2) If an election is made under subsection (1.1) and is filed by the promoter of the RESP with the Minister without delay, then notwithstanding paragraph (2)(d.1) and any terms of the RESP required by that paragraph, an accumulated income payment under the RESP may be made to the RDSP.
(3) Paragraph 146.1(2)(i.1) of the Act is replaced by the following:
(i.1) if the plan allows accumulated income payments, the plan provides that it must be terminated before March of the year following the year in which the first such payment is made out of the plan;
(4) Paragraph 146.1(7.1)(a) of the Act is replaced by the following:
(a) each accumulated income payment (other than an accumulated income payment made under subsection (1.2)) received in the year by the taxpayer under a registered education savings plan; and
(5) Subsections (2) to (4) come into force on January 1, 2014.
34. (1) Paragraph 146.3(2)(f) of the Act is amended by striking out “or” at the end of subparagraph (vi), by adding “or” at the end of subparagraph (vii) and by adding the following after subparagraph (vii):
(viii) a pooled registered pension plan in accordance with subsection 147.5(21);
(2) Subsection 146.3(14.1) of the Act is replaced by the following:
Transfer to PRPP or RPP
(14.1) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount
(a) is transferred at the direction of the annuitant directly to an account of the annuitant under a pooled registered pension plan; or
(b) is transferred at the direction of the annuitant directly to a registered pension plan of which, at any time before the transfer, the annuitant was a member (within the meaning assigned by subsection 147.1(1)) or to a prescribed registered pension plan and is allocated to the annuitant under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of the plan.
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
35. (1) The definition “registered disability savings plan” in subsection 146.4(1) of the Act is replaced by the following:
“registered disability savings plan” or “RDSP”
« régime enregistré d’épargne-invalidité » ou « REEI »
“registered disability savings plan” or “RDSP” means a disability savings plan that satisfies the conditions in subsection (2), but does not include a plan to which subsection (3) or (10) applies.
(2) Paragraph (d) of the definition “contribution” in subsection 146.4(1) of the Act is replaced by the following:
(d) other than for the purposes of paragraphs (4)(f) to (h) and (n) and paragraph (b) of the definition “advantage” in subsection 205(1),
(i) a specified RDSP payment as defined in subsection 60.02(1), or
(ii) an accumulated income payment made to the plan under subsection 146.1(1.2).
(3) Paragraph (c) of the definition “holder” in subsection 146.4(1) of the Act is replaced by the following:
(c) the beneficiary if, at that time, the beneficiary is not an entity described in paragraph (a) or (b) and has rights under the plan to make decisions (either alone or with other holders of the plan) concerning the plan, except where the only such right is a right to direct that disability assistance payments be made as provided for in subparagraph (4)(n)(ii).
(4) Subsection 146.4(1) of the Act is amended by adding the following in alphabetical order:
“specified maximum amount”
« plafond »
“specified maximum amount”, for a calendar year in respect of a disability savings plan, means the amount that is the greater of
(a) the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the calendar year, and
(b) the amount determined by the formula
A + B
where
A      is 10% of the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definition “qualified investment” in subsection 205(1)), and
B      is the total of all amounts each of which is
(i) a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definition “qualified investment” in subsection 205(1)) that is paid to the plan trust in the calendar year, or
(ii) if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year.
(5) Paragraphs 146.4(1.2)(b) to (f) of the Act are replaced by the following:
(b) the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan in the year and while it was a specified disability savings plan exceeds $10,000 (or such greater amount as is required to satisfy the condition in subparagraph (d)(i));
(c) the time that is immediately before the time that
(i) a contribution is made to the plan,
(ii) an amount described in any of paragraphs (a) and (b) and subparagraph (d)(ii) of the definition “contribution” in subsection (1) is paid into the plan,
(iii) the plan is terminated,
(iv) the plan ceases to be a registered disability savings plan as a result of the application of paragraph (10)(a), or
(v) is the beginning of the first calendar year throughout which the beneficiary under the plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1); and
(d) the time immediately following the end of a calendar year if
(i) in the year the total amount of disability assistance payments made from the plan to the beneficiary is less than the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the year (or such lesser amount as is supported by the property of the plan), and
(ii) the year is not the calendar year in which the plan became a specified disability savings plan.
(6) Subsection 146.4(3) of the Act is replaced by the following:
Registered status nullified
(3) A disability savings plan is deemed never to have been a registered disability savings plan unless
(a) the issuer of the plan provides without delay notification of the plan’s establishment in prescribed form containing prescribed information to the specified Minister; and
(b) if the beneficiary is the beneficiary under another registered disability savings plan at the time the plan is established, that other plan is terminated without delay.
(7) Subparagraphs 146.4(4)(n)(i) to (iii) of the Act are replaced by the following:
(i) if the calendar year is not a specified year for the plan, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not exceed the specified maximum amount for the calendar year, except that, in calculating that total amount, any payment made following a transfer in the calendar year from another plan in accord-ance with subsection (8) is to be disregarded if it is made
(A) to satisfy an undertaking described in paragraph (8)(d), or
(B) in lieu of a payment that would otherwise have been permitted to be made from the other plan in the calendar year had the transfer not occurred, and
(ii) if the beneficiary attained the age of 27 years, but not the age of 59 years, before the calendar year, the beneficiary has the right to direct that, within the constraints imposed by subparagraph (i) and paragraph (j), one or more disability assistance payments be made from the plan to the beneficiary in the calendar year;
(8) Subsection 146.4(4) of the Act is amended by adding the following after paragraph (n):
(n.1) the plan provides that, if the beneficiary attained the age of 59 years before a calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not be less than the amount determined by the formula set out in paragraph (l) in respect of the plan for the calendar year (or such lesser amount as is supported by the property of the plan trust);
(9) Paragraph 146.4(4)(o) of the Act is replaced by the following:
(o) the plan provides that, at the direction of the holders of the plan, the issuer shall transfer all of the property held by the plan trust (or an amount equal to its value) to another registered disability savings plan of the beneficiary, together with all information in its possession (other than information provided to the issuer of the other plan by the specified Minister) that may reasonably be considered necessary for compliance, in respect of the other plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act; and
(10) Subparagraph 146.4(4)(p)(ii) of the Act is replaced by the following:
(ii) the first calendar year
(A) if an election is made under subsection (4.1), that includes the time that the election ceases because of paragraph (4.2)(b) to be valid, and
(B) in any other case, throughout which the beneficiary has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1).
(11) Section 146.4 of the Act is amended by adding the following after subsection (4):
Election on cessation of DTC-eligibility
(4.1) A holder of a registered disability savings plan may elect in respect of a beneficiary under the plan who is not a DTC-eligible individual for a particular taxation year if
(a) a medical doctor licensed to practise under the laws of a province certifies in writing that the nature of the beneficiary’s condition is such that, in the professional opinion of the medical doctor, the beneficiary is likely to become a DTC-eligible individual for a future taxation year;
(b) the beneficiary was a DTC-eligible individual for the year that immediately precedes the particular taxation year;
(c) the holder makes the election in a manner and format acceptable to the specified Minister before the end of the year immediately following the particular taxation year and provides the election and the medical certification in respect of the beneficiary to the issuer of the plan; and
(d) the issuer notifies the specified Minister of the election in a manner and format acceptable to the specified Minister.
Election
(4.2) An election under subsection (4.1) ceases to be valid at the time that is the earlier of
(a) the beginning of the first taxation year for which the beneficiary is again a DTC-eligible individual; and
(b) the end of the fourth taxation year following the particular taxation year referred to in subsection (4.1).
Transitional rule
(4.3) Unless an election is made under subsection (4.1), if 2011 or 2012 is the first calendar year throughout which the beneficiary of a registered disability savings plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1) and the plan has not been terminated, then notwithstanding subparagraph (4)(p)(ii) as it read on March 28, 2012 and any terms of the plan required by that subparagraph, the plan must be terminated no later than December 31, 2014.
(12) Paragraph 146.4(8)(c) of the Act is replaced by the following:
(c) the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan (other than information provided to the issuer of the new plan by the specified Minister) as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act; and
(13) Subsections (2) to (5), (7), (8) and (10) and subsections 146.4(4.1) and (4.2) of the Act, as enacted by subsection (11), come into force on January 1, 2014.
(14) Subsection 146.4(4.3) of the Act, as enacted by subsection (11), is deemed to have come into force on March 29, 2012, except that before 2014 it is to be read as follows:
(4.3) If 2011 or 2012 is the first calendar year throughout which the beneficiary of a registered disability savings plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1) and the plan has not been terminated, then notwithstanding subparagraph (4)(p)(ii) as it read on March 28, 2012 and any terms of the plan required by that subparagraph, the plan must be terminated no later than December 31, 2014.
36. (1) The Act is amended by adding the following after section 147.4:
Pooled Registered Pension Plans
Definitions
147.5 (1) The following definitions apply in this section.
“administrator”
« administrateur »
“administrator”, of a pooled pension plan, means
(a) a corporation resident in Canada that is responsible for the administration of the plan and that is authorized under the Pooled Registered Pension Plans Act or a similar law of a province to act as an administrator for one or more pooled pension plans; or
(b) an entity designated in respect of the plan under section 21 of the Pooled Registered Pension Plans Act or any provision of a law of a province that is similar to that section.
“designated pooled pension plan”
« régime de pension collectif désigné »
“designated pooled pension plan”, for a calendar year, means a pooled pension plan that, at any time in the year (other than the year in which the plan became registered as a PRPP), meets any of the following conditions:
(a) the plan has fewer than 10 participating employers;
(b) the fair market value of the property held in connection with the accounts of all members of the plan employed by a particular participating employer exceeds 50% of the fair market value of the property held in connection with the plan;
(c) more than 50% of the members of the plan are employed by a particular participating employer; or
(d) it is reasonable to conclude that the participation in the plan of one or more participating employers occurs primarily to avoid the application of any of paragraphs (a) to (c).
“exempt earned income”
« revenu gagné exonéré »
“exempt earned income”, of a taxpayer for a taxation year, means the total of all amounts each of which is an amount that is
(a) not included in the taxpayer’s earned income (as defined in subsection 146(1)) for the year and that would be so included but for paragraph 81(1)(a) as it applies with respect to the Indian Act; and
(b) reported by the taxpayer in prescribed form filed with the Minister by the taxpayer’s filing-due date for the year, or such later date as is acceptable to the Minister, provided that the later date is within three calendar years following the end of the year.
“exempt-income contribution amount”
« cotisation provenant du revenu exonéré »
“exempt-income contribution amount”, of a taxpayer for a taxation year, means the total of
(a) all amounts each of which is a contribution to a PRPP made by the taxpayer for the year that is not deductible in computing the income of the taxpayer because of subsection (32), and
(b) the amount, if any, designated under subsection (34) by the taxpayer for the year in prescribed form filed with the Minister by the taxpayer’s filing-due date for the year, or such later date as is acceptable to the Minister, provided that the later date is within three calendar years following the end of the year.
“member”
« participant »
“member”, of a pooled pension plan, means an individual (other than a trust) who holds an account under the plan.
“participating employer”
« employeur participant »
“participating employer”, in relation to a pooled pension plan for a calendar year, means an employer that, in the year,
(a) makes contributions to the plan in respect of all or a class of its employees or former employees; or
(b) remits to the administrator of the plan contributions made by members of the plan under a contract with the administrator in respect of all or a class of its employees.
“pooled pension plan”
« régime de pension collectif »
“pooled pension plan” means a plan that is registered under the Pooled Registered Pension Plan Act or a similar law of a province.
“pooled registered pension plan” or “PRPP”
« régime de pension agréé collectif » ou « RPAC »
“pooled registered pension plan” or “PRPP” means a pooled pension plan that has been accepted for registration by the Minister for the purposes of this Act, which registration has not been revoked.
“qualifying annuity”
« rente admissible »
“qualifying annuity”, for an individual, means an annuity that
(a) is payable to
(i) the individual for the individual’s life, or
(ii) the individual for the lives, jointly, of the individual and the individual’s spouse or common-law partner and to the survivor of them for the survivor’s life;
(b) is payable beginning no later than the later of
(i) the end of the calendar year in which the individual attains 71 years of age, and
(ii) the end of the calendar year in which the annuity is acquired;
(c) unless the annuity is subsequently commuted into a single payment, is payable
(i) at least annually, and
(ii) in equal amounts or is not so payable solely because of an adjustment that would, if the annuity were an annuity under a retirement savings plan, in accord-ance with any of subparagraphs 146(3)(b)(iii) to (v);
(d) if the annuity includes a guaranteed period, requires that
(i) the period not exceed 15 years, and
(ii) in the event of the later of the death of the individual and that of the individual’s spouse or common-law partner during the period, any remaining amounts otherwise payable be commuted into a single payment as soon as practicable after the later death; and
(e) does not permit any premiums to be paid, other than the premium paid from the PRPP to acquire the annuity.
“qualifying survivor”
« survivant admissible »
“qualifying survivor”, in relation to a member of a PRPP, means an individual who, immediately before the death of the member
(a) was a spouse or common-law partner of the member; or
(b) was a child or grandchild of the member who was financially dependent on the member for support.
“restricted investment”
« placement non admissible »
“restricted investment”, for a pooled pension plan, means
(a) a debt of a member of the plan;
(b) a share of, an interest in, or a debt of
(i) a corporation, partnership or trust in which a member of the plan has a significant interest, or
(ii) a person or partnership that does not deal at arm’s length with the member of the plan or with a person or partnership described in subparagraph (i);
(c) an interest (or, for civil law, a right) in, or a right to acquire, a share, interest or debt described in paragraph (a) or (b); or
(d) prescribed property.
“single amount”
« montant unique »
“single amount” means an amount that is not part of a series of periodic payments.
“successor member”
« participant remplaçant »
“successor member” means an individual who was the spouse or common-law partner of a member of a PRPP immediately before the death of the member and who acquires, as a consequence of the death, all of the member’s rights in respect of the member’s account under the PRPP.
“unused non-deductible PRPP room”
« somme inutilisée non déductible au titre des RPAC »
“unused non-deductible PRPP room”, of a taxpayer at the end of a taxation year, means the amount determined by the formula
A – B
where
A      is the amount of the taxpayer’s unused RRSP deduction room at the end of the year, determined in accordance with subsection (33); and
B      is the taxpayer’s unused RRSP deduction room at the end of the year.
Registration conditions
(2) The Minister may accept for registration a pooled pension plan for the purposes of this Act, but shall not accept for registration any plan unless application for registration is made in prescribed manner by the plan administrator and, in the Minister’s opinion, the plan complies with the following conditions:
(a) the primary purpose of the plan is to accept and invest contributions in order to provide retirement income to plan members, subject to the limits and other requirements under this Act;
(b) a single and separate account is maintained for each member under the member’s Social Insurance Number
(i) to which are credited all contributions made to the plan in respect of the member, and any earnings of the plan allocated to the member, and
(ii) to which are charged all payments and distributions made in respect of the member;
(c) the only benefits provided under the plan in respect of each member are benefits determined solely with reference to, and provided by, the amount in the member’s account;
(d) all earnings of the plan are allocated to plan members on a reasonable basis and no less frequently than annually;
(e) the arrangement under which property is held in connection with the plan is acceptable to the Minister;
(f) no right of a person under the plan is capable of being assigned, charged, anticipated, given as security or surrendered, other than
(i) an assignment pursuant to a decree, order or judgment of a competent tribunal, or a under a written agreement, relating to a division of property between the member and the member’s spouse or common-law partner or former spouse or common-law partner, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or
(ii) an assignment by the legal representative of a deceased individual on the distribution of the individual’s estate;
(g) the plan requires that all amounts contributed or allocated to a member’s account vest immediately and indefeasibly for the benefit of the member;
(h) the plan permits the payment of an amount to a member if the amount is paid to reduce the amount of tax that would otherwise be payable under Part X.1 by the member;
(i) any amount payable from an account of a member after the death of the member is paid as soon as practicable after the death;
(j) there is no reason to expect that the plan may become a revocable plan; and
(k) any prescribed conditions.
Conditions applicable to PRPPs
(3) A pooled registered pension plan becomes a revocable plan at any time that
(a) a contribution is made to the plan other than an amount
(i) paid by a member of the plan,
(ii) paid by an employer or former employer of a member of the plan in respect of the member, or
(iii) transferred to the plan in accordance with any of subsections (21), 146(16) and (21), 146.3(14) and (14.1), 147(19) and 147.3(1), (4) and (5) to (7);
(b) a contribution is made to the plan in respect of a member after the calendar year in which the member attains 71 years of age, other than an amount described in subparagraph (a)(iii);
(c) a participating employer makes contributions to the plan in a calendar year in respect of a member of the plan in excess of the RRSP dollar limit for the year, except in accordance with a direction by the member;
(d) a distribution is made from the plan other than
(i) a payment of benefits in accordance with subsection (5), or
(ii) a return of contributions
(A) if a contribution to the plan has been made as a result of a reasonable error by a member of the plan or a participating employer in relation to the plan and the return of contributions is made to the person who made the contribution no later than December 31 of the year following the calendar year in which the contribution was made,
(B) to avoid the revocation of the registration of the plan,
(C) to reduce the amount of tax that would otherwise be payable under Part X.1 by a member, or
(D) to comply with any requirement under this Act;
(e) property is held in connection with the plan that
(i) the administrator knew or ought to have known was a restricted investment for the plan, or
(ii) in the case of a designated pooled pension plan, is a share or debt of, or an interest in, a participating employer of the plan or any person or partnership that does not deal at arm’s length with a participating employer, or an interest (or, for civil law, a right) in, or a right to acquire, such a share, debt or interest;
(f) the value of a member’s right under the plan depends on the value of, or income or capital gains in respect of, property that would be described in paragraph (e) if it were held in connection with the plan;
(g) the administrator borrows money or other property for the purposes of the plan; or
(h) the plan or the administrator does not comply with a prescribed condition.
Non-payment of minimum amount
(4) A PRPP becomes a revocable plan at the beginning of a calendar year if the total amount distributed from a member’s account under the PRPP in the calendar year is less than the amount that would be the minimum amount for the calendar year under subsection 8506(5) of the Income Tax Regulations if the member’s account were an account under a money purchase provision of a registered pension plan.
Permissible benefits
(5) The following benefits may be provided under a pooled pension plan:
(a) the payment of benefits to a member that would be in accordance with paragraph 8506(1)(e.1) of the Income Tax Regulations if the benefits were provided under a money purchase provision of a registered pension plan; and
(b) the payment of a single amount from the member’s account.
Additional conditions
(6) The Minister may, at any time, impose reasonable conditions, in writing, applicable with respect to PRPPs, a class of PRPPs or a particular PRPP.
Acceptance of amendments
(7) The Minister shall not accept an amendment to a PRPP unless
(a) application for the acceptance is made in prescribed manner by the administrator of the PRPP; and
(b) the amendment and the PRPP as amended comply with the registration conditions specified in subsection (2).
Trust not taxable
(8) No tax is payable under this Part by a trust governed by a PRPP on its taxable income for a taxation year, except that, if at any time in the year, it carries on a business, tax is payable under this Part by the trust on the amount that would be its taxable income for the year if it had no income or losses from sources other than the business, and for this purpose,
(a) all capital gains and capital losses from the disposition of property held in connection with the business are deemed to be income or losses, as the case may be, from the business; and
(b) the trust’s income is to be computed without reference to subsections 104(6), (19) and (21).
Obligations of administrator
(9) The administrator of a PRPP shall exercise the care, diligence and skill of a reasonably prudent trustee to minimize the possibility that the registration of the PRPP may be revoked other than at the request of the administrator.
Employer contributions deductible
(10) There may be deducted in computing a taxpayer’s income for a taxation year, the total of all amounts each of which is a contribution made by the taxpayer in the year or within 120 days after the end of the year to a PRPP in respect of the taxpayer’s employees or former employees to the extent that the contribution
(a) was made in accordance with the PRPP as registered and in respect of periods before the end of the year; and
(b) was not deducted in computing the taxpayer’s income for a preceding taxation year.
Member contributions
(11) For the purposes of paragraphs 60(j), (j.1) and (l), section 146 (other than subsections (8.3) to (8.7)), paragraphs 146.01(3)(a) and 146.02(3)(a) and Parts X.1 and X.5, a contribution made to a PRPP by a member of a PRPP is deemed to be a premium paid by the member to an RRSP under which the member is the annuitant.
Member’s account
(12) For the purposes of paragraph 18(1)(u), subparagraph (a)(i) of the definition “excluded right or interest” in subsection 128.1(10), paragraph 146(8.2)(b), subsection 146(8.21), paragraphs 146(16)(a) and (b), subparagraph 146(21)(a)(i), paragraph (b) of the definition “excluded premium” in subsection 146.01(1), paragraph (c) of the definition “excluded premium” in subsection 146.02(1), subsections 146.3(14) and 147(19) to (21), section 147.3 and paragraphs 212(1)(j.1) and (m), and of regulations made under 147.1(18), a member’s account under a PRPP is deemed to be a registered retirement savings plan under which the member is the annuitant.
Taxable amounts
(13) There shall be included in computing the income of a taxpayer for a taxation year
(a) if the taxpayer is a member of a PRPP, the total of all amounts each of which is a distribution made in the year from the member’s account under the PRPP, other than an amount that is
(i) included in computing the income of another taxpayer for the year under paragraph (b),
(ii) described in subsection (22), or
(iii) distributed after the death of the member;
(b) if the taxpayer is a participating employer in relation to a PRPP, the total of all amounts each of which is a return of contributions that is described in clause (3)(d)(ii)(A) and that is made to the taxpayer in the year.
Treatment on death — no successor member
(14) If a member of a PRPP dies and there is no successor member in respect of the deceased member’s account under the PRPP, an amount, equal to the amount by which the fair market value of all property held in connection with the account immediately before the death exceeds the total of all amounts distributed from the account that are described in subsection (16), is deemed to have been distributed from the account immediately before the death.
Treatment on death — successor member
(15) If a member of a PRPP dies and there is a successor member in respect of the deceased member’s account under the PRPP,
(a) the account ceases to be an account of the deceased member at the time of the death;
(b) the successor member is, after the time of the death, deemed to hold the account as a member of the PRPP; and
(c) the successor member is deemed to be a separate member in respect of any other account under the PRPP that the successor member holds.
Qualifying survivor
(16) If, as a consequence of the death of a member of a PRPP, an amount is distributed in a taxation year from the member’s account under the PRPP to, or on behalf of, a qualifying survivor of the member, the amount shall be included in computing the survivor’s income for the year, except to the extent that it is an amount described in subsection (22).
Deemed distribution to qualifying survivor
(17) If an amount is distributed at any time from a deceased member’s account under a PRPP to the member’s legal representative and a qualifying survivor of the member is entitled to all or a portion of the amount in full or partial satisfaction of the survivor’s rights as a beneficiary (as defined in subsection 108(1)) under the deceased’s estate, then, for the purposes of subsection (16), the amount or portion of the amount, as the case may be, is deemed to have been distributed at that time from the member’s account to the qualifying survivor (and not to the legal representative) to the extent that it is so designated jointly by the legal representative and the qualifying survivor in prescribed form filed with the Minister.
Post-death increase in value
(18) There shall be included in computing the income for a taxation year of a taxpayer who is not a qualifying survivor in relation to a member of a PRPP, the total of all amounts each of which is an amount determined by the formula
A – B
where
A      is the amount of a distribution made in the year from the member’s account under the PRPP as a consequence of the member’s death to, or on behalf of, the taxpayer, and
B      is an amount designated by the administrator of the PRPP not exceeding the lesser of
(a) the amount of the distribution, and
(b) the amount by which the fair market value of all property held in connection with the account immediately before the death exceeds the total of all amounts each of which is
(i) the value of B in respect of any prior distribution made from the account, or
(ii) an amount included under subsection (16) in computing the income of a qualifying survivor in relation to the member.
Post-death decrease in value
(19) There may be deducted in computing the income of a member of a PRPP for the taxation year in which the member dies, an amount not exceeding the amount determined, after all amounts payable from the member’s account under the PRPP have been distributed, by the formula
A – B
where
A      is the total of all amounts each of which is an amount in respect of the account
(a) included in the member’s income under subsection (13) because of the application of subsection (14),
(b) included in the income of another taxpayer under subsection (16) or (18), or
(c) transferred in accordance with subsection (21) in circumstances described in subparagraph (21)(b)(iii); and
B      is the total of all distributions made from the account after the member’s death.
Subsection (19) not applicable
(20) Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (19) in respect of a member’s account under a PRPP, that subsection does not apply if the last distribution from the account was made after the end of the calendar year following the year in which the member died.
Transfer of amounts
(21) An amount is transferred from a member’s account under a PRPP in accordance with this subsection if the amount
(a) is a single amount;
(b) is transferred on behalf of an individual who
(i) is the member,
(ii) is a spouse or common-law partner or former spouse or common-law partner of the member and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the member and the individ-ual, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or
(iii) is entitled to the amount as a consequence of the death of the member and was a spouse or common-law partner of the member immediately before the death; and
(c) is transferred directly to
(i) the individual’s account under the PRPP,
(ii) another PRPP in respect of the individual,
(iii) a registered pension plan for the benefit of the individual,
(iv) a registered retirement savings plan or registered retirement income fund under which the individual is the annuitant, or
(v) a licensed annuities provider to acquire a qualifying annuity for the individual.
Taxation of transfers
(22) If subsection (21) applies to an amount transferred from a member’s account under a PRPP on behalf of an individual,
(a) the amount shall not, by reason only of that transfer, be included in computing the income of the individual; and
(b) no deduction may be made in respect of the amount in computing the income of any taxpayer.
Taxation of qualifying annuity
(23) If an amount is transferred in accord-ance with subsection (21) to acquire a qualifying annuity, there shall be included — under this section and not under any other provision of this Act — in computing an individual’s income for a taxation year any amount received by the individual during the year out of or under the annuity or as proceeds from a disposition in respect of the annuity.
Notice of intent
(24) The Minister may give notice (in subsections (25) and (26) referred to as a “notice of intent”) to an administrator of a PRPP in writing that the Minister intends to revoke the registration of the plan as a PRPP if
(a) the plan does not comply with the conditions for registration in subsection (2);
(b) the plan is not administered in accord-ance with the terms of the plan as registered;
(c) the plan becomes a revocable plan;
(d) a condition imposed under subsection (6) that applies with respect to the plan is not complied with; or
(e) registration of the plan under the Pooled Registered Pension Plans Act or a similar law of a province is refused or revoked.
Date of revocation
(25) The notice of intent shall specify the date on which revocation of a PRPP is to be effective, which date shall not be earlier than the earliest date on which one of the events described in subsection (24) occurs.
Notice of revocation
(26) At any time after 30 days after the day on which the notice of intent is mailed to an administrator of a PRPP, the Minister may give notice (in this subsection and in subsection (27) referred to as a “notice of revocation”) in writing to the administrator that the registration of the PRPP is revoked as of the date specified in the notice of revocation and that date may not be earlier than the date specified in the notice of intent.
Revocation of registration
(27) If the Minister gives a notice of revocation to the administrator of a PRPP, the registration of the PRPP is revoked as of the date specified in the notice of revocation, unless the Federal Court of Appeal or a judge of that Court, on application made at any time before the determination of an appeal pursuant to subsection 172(3), orders otherwise.
Voluntary revocation
(28) If the administrator of a PRPP so requests in writing, the Minister may give notice in writing to the administrator that the registration of the PRPP is revoked as of a specified date and that date may not be earlier than the date specified in the administrator’s request.
Single employer
(29) For the purposes of the definition “designated pooled pension plan” in subsection (1), all employers that are related to each other are deemed to be a single employer and all the structural units of a trade union, including each local, branch, national and international unit, are deemed to be a single employer.
Significant interest
(30) For the purposes of the definition “restricted investment” in subsection (1), a member of a pooled pension plan has a significant interest in a corporation, trust or partnership at any time if, at that time,
(a) in the case of a corporation, the member is a specified shareholder of the corporation; and
(b) in the case of a partnership or trust,
(i) the member is a specified unitholder of the partnership or the trust, as the case may be, or
(ii) the total fair market value of the member’s interests in the partnership or the trust, as the case may be, together with all interests in the partnership or the trust held by persons or partnerships with whom the member does not deal at arm’s length or is affiliated, is 10% or more of the fair market value of all interests in the partnership or the trust.
Contributions from exempt income
(31) Contributions may be made to a PRPP in respect of a member of the PRPP as if the member’s earned income (as defined in subsection 146(1)) for a taxation year included the member’s exempt earned income for the year.
Non-deductible contributions
(32) A contribution made by a member of a PRPP to the member’s account under the PRPP out of or from the member’s exempt earned income may not be deducted in computing the income of the member for any taxation year.
Exempt contributions not over-contributions
(33) For the purposes of Part X.1 as it applies because of subsection (11) in respect of contributions made to a PRPP,
(a) an individual’s earned income (as defined in subsection 146(1)) for any taxation year after 2012 includes the individual’s exempt earned income for that year;
(b) an individual’s exempt-income contribution amount for any taxation year is deemed to have been deducted by the individual under subsection 146(5) in computing the individual’s income for that year; and
(c) the description of D in paragraph (b) of the definition “unused RRSP deduction room” in subsection 146(1) is to be read without reference to subparagraph (iv).
Designation of exempt-income contribution amount
(34) A taxpayer may designate an amount as the taxpayer’s exempt-income contribution amount for a taxation year if the amount designated does not exceed the lesser of
(a) the taxpayer’s unused non-deductible PRPP room at the end of the preceding taxation year, and
(b) the total of the taxpayer’s contributions as a member to a PRPP for the year (other than contributions to which subsection (32) applies).
Regulations — other
(35) The Governor in Council may make regulations
(a) prescribing conditions applicable to administrators;
(b) requiring administrators to file information returns respecting pooled pension plans;
(c) enabling the Minister to require any person to provide the Minister with information for the purposes and provisions of this Act relating to PRPPs; and
(d) generally to carry out the purposes and provisions of this Act relating to PRPPs.
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
37. (1) Subsection 148(1) of the Act is amended by adding the following after paragraph (b.2):
(b.3) a pooled registered pension plan,
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
38. (1) Subsection 149(1) of the Act is amended by adding the following after paragraph (u.2):
Pooled registered pension plan
(u.3) a trust governed by a pooled registered pension plan to the extent provided under section 147.5;
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
39. (1) Paragraph 152(6)(f.3) of the Act is replaced by following:
(f.3) a deduction (including for the purposes of this subsection a reduction of an amount otherwise required to be included in computing a taxpayer’s income) under subsection 146(8.9) or (8.92), 146.3(6.2) or (6.3) or 147.5(14) or (19),
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
40. (1) The description of A in the definition “net tax owing” in subsection 156.1(1) of the Act is replaced by the following:
A      is the total of the taxes payable under this Part and Parts I.2, X.5 and XI.4 by the individual for the year,
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
41. (1) Subsection 172(3) of the Act is amended by striking out “or” at the end of paragraph (f.1) and by adding the following after paragraph (g):
(h) refuses to accept for registration for the purposes of this Act any pooled pension plan or gives notice under subsection 147.5(24) to the administrator of a pooled registered pension plan that the Minister proposes to revoke its registration, or
(i) refuses to accept an amendment to a pooled registered pension plan,
(2) The portion of subsection 172(3) of the Act, as amended by subsection (1), after paragraph (i) is replaced by the following:
the person described in paragraph (a), (a.1) or (a.2), the applicant in a case described in paragraph (b), (e) or (g), a trustee under the plan or an employer of employees who are beneficiaries under the plan, in a case described in paragraph (c), the promoter in a case described in paragraph (e.1), the administrator of the plan or an employer who participates in the plan, in a case described in paragraph (f) or (f.1), or the administrator of the plan in a case described in paragraph (h) or (i), may appeal from the Minister’s decision, or from the giving of the notice by the Minister, to the Federal Court of Appeal.
(3) Paragraphs 172(5)(a) and (b) of the Act are replaced by the following:
(a) to register for the purposes of this Act any pension plan or pooled pension plan, or
(b) to accept an amendment to a registered pension plan or a pooled registered pension plan
(4) Subsections (1) to (3) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
42. (1) Subsection 180(1) of the Act is amended by striking out “or” at the end of paragraph (c.1) and by replacing paragraph (d) with the following:
(c.2) the mailing of notice to the administrator of the pooled registered pension plan under subsection 147.5(24), or
(d) the time the decision of the Minister to refuse the application for acceptance of the amendment to the registered pension plan or pooled registered pension plan was mailed, or otherwise communicated in writing, by the Minister to any person,
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
43. (1) The description of D in paragraph 204.2(1.1)(b) of the Act is replaced by the following:
D      is the group plan amount in respect of the individual at that time,
(2) Subparagraph (a)(iii) of the description of I in subsection 204.2(1.2) of the Act is replaced by the following:
(iii)      an amount transferred to the plan on behalf of the individual in accordance with any of subsections 146(16), 147(19), 147.3(1) and (4) to (7) and 147.5(21) or in circumstances to which subsection 146(21) applies,
(3) The description of I in subsection 204.2(1.2) of the Act is amended by striking out “or” at the end of paragraph (a), by replacing “and” at the end of paragraph (b) with “or” and by adding the following after paragraph (b):
(c) an amount contributed in the year and before that time by an employer or former employer of the individual to an account of the individual under a pooled registered pension plan, and
(4) Paragraph (a) of the description of J in subsection 204.2(1.2) of the Act is replaced by following:
(a) the total of all amounts each of which is an amount (other than the portion of it that reduces the amount on which tax is payable by the individual under subsection 204.1(1)) received by the individual in the year and before that time out of or under a pooled registered pension plan, a registered retirement savings plan or a registered retirement income fund and included in computing the individual’s income for the year
(5) The portion of subsection 204.2(1.3) of the Act before paragraph (a) is replaced by the following:
Group plan amount
(1.3) For the purposes of this section, the group plan amount in respect of an individual at any time in a taxation year is the lesser of
(6) Subparagraph (i) of the description F in paragraph 204.2(1.3)(a) of the Act is replaced by the following:
(i) the total of all amounts each of which is a qualifying group plan amount in respect of the individual, to the extent that the amount is included in determining the value of I in subsection (1.2) in respect of the individual at that time, and
(7) Subparagraph (ii) of the description K in paragraph 204.2(1.3)(a) of the Act is replaced by the following:
(ii) in any other case, the group plan amount in respect of the individual at the end of the preceding taxation year, and
(8) Subsection 204.2(1.31) of the Act is replaced by the following:
Qualifying group plan amount
(1.31) For the purposes of the description of F in paragraph (1.3)(a), a qualifying group plan amount in respect of an individual is a premium paid under a registered retirement savings plan or an amount contributed by an employer or former employer of the individual to an account of the individual under a pooled registered pension plan if
(a) the plan is part of a qualifying arrangement or is a pooled registered pension plan,
(b) the premium or contribution is an amount to which the individual is entitled for services rendered by the individual (whether or not as an employee), and
(c) the premium or contribution was remitted to the plan on behalf of the individual by the person or body of persons that is required to remunerate the individual for the services, or by an agent for that person or body,
but does not include the part, if any, of a premium or contribution that, by making (or failing to make) an election or exercising (or failing to exercise) any other right under the plan after beginning to participate in the plan and within 12 months before the time the premium was paid or the contribution was made, the individual could have prevented the premium or contribution and that would not as a consequence have been required to be remitted on behalf of the individual to another registered retirement savings plan or pooled registered pension plan or to a money purchase provision of a registered pension plan.
(9) Section 204.2 of the Act is amended by adding the following after subsection (4):
PRPP withdrawals
(5) Notwithstanding the Pooled Registered Pension Plans Act or any similar law of a province, a member of a PRPP may withdraw an amount from the member’s account under the PRPP to reduce the amount of tax that would otherwise be payable by the member under this Part, to the extent that the reduction cannot be achieved by withdrawals from plans other than PRPPs.
(10) Subsections (1) to (9) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
44. (1) Subsection 207.5(1) of the Act is amended by adding the following in alphabetical order:
“advantage”
« avantage »
“advantage”, in relation to a retirement compensation arrangement, means
(a) any benefit, loan or indebtedness that is conditional in any way on the existence of the arrangement, other than
(i) a benefit derived from the provision of administrative or investment services in respect of the arrangement,
(ii) a loan or an indebtedness the terms and conditions of which are terms and conditions that persons dealing at arm’s length with each other would have entered into, and
(iii) a payment out of or under the arrangement that is included in computing a taxpayer’s income under Part I, and
(b) a benefit that is an increase in the total fair market value of the subject property of the arrangement if it is reasonable to consider, having regard to all the circumstances, that the increase is attributable, directly or indi-rectly, to a transaction or event or a series of transactions or events one of the main purposes of which was to enable a person or a partnership to benefit from a provision of this Part, or from the exemption from tax under paragraph 149(1)(q.1), if the transaction, event or series
(i) would not have occurred in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, or
(ii) included a payment received as, on account or in lieu of, or in satisfaction of, a payment
(A) for services provided by a person who is, or does not deal at arm’s length with, a specified beneficiary of the arrangement, or
(B) of interest, of a dividend, of rent, of a royalty or of any other return on investment, or of proceeds of disposition, in respect of property (other than subject property of the arrangement) held by a person who is, or does not deal at arm’s length with, a specified beneficiary of the arrangement,
(c) a benefit that is income or a capital gain that is reasonably attributable, directly or indirectly, to
(i) a prohibited investment in respect of the arrangement,
(ii) an amount received by a specified beneficiary of the arrangement, or by a person who does not deal at arm’s length with the specified beneficiary, if it is reasonable to consider, having regard to all the circumstances, that the amount was paid in relation to, or would not have been paid but for, subject property of the arrangement and the amount was paid as, on account or in lieu of, or in satisfaction of, a payment
(A) for services provided by a person who is, or who does not deal at arm’s length with, the specified beneficiary, or
(B) of interest, of a dividend, of rent, of a royalty or of any other return on investment, or of proceeds of disposition,
(d) an RCA strip in respect of the arrangement, and
(e) a prescribed benefit;
“prohibited investment”
« placement interdit »
“prohibited investment”, for a retirement compensation arrangement at any time, means property (other than prescribed excluded property) that is at that time
(a) a debt of a specified beneficiary of the arrangement,
(b) a share of the capital stock of, an interest in, or a debt of
(i) a corporation, partnership or trust in which the specified beneficiary has a significant interest, or
(ii) a person or partnership that does not deal at arm’s length with, or is affiliated with, the specified beneficiary,
(c) an interest (or, for civil law, a right) in, or a right to acquire, a share, interest or debt described in paragraph (a) or (b), or
(d) prescribed property;
“RCA strip”
« somme découlant d’un dépouillement de CR »
“RCA strip”, in respect of a retirement compensation arrangement, means the amount of a reduction in the fair market value of subject property of the arrangement, if the value is reduced as part of a transaction or event or a series of transactions or events one of the main purposes of which is to enable a specified beneficiary of the arrangement, or a person or a partnership who does not deal at arm’s length with the specified beneficiary, to benefit from a provision of this Part or to obtain a benefit in respect of subject property of the arrangement or as a result of the reduction, but does not include an amount that is included in computing the income of the specified beneficiary or of an employer or former employer of the specified beneficiary;
“significant interest”
« participation notable »
“significant interest” has the same meaning as in subsection 207.01(4);
“specified beneficiary”
« bénéficiaire déterminé »
“specified beneficiary”, of a retirement compensation arrangement, means an individual who has an interest or a right in respect of the arrangement and who has or had a significant interest in an employer or former employer in respect of the arrangement;
(2) Section 207.5 of the Act is amended by adding the following after subsection (2):
Limitation on election
(3) Subsection (2) does not apply in respect of an RCA trust if any part of a decline in the fair market value of subject property of the retirement compensation arrangement is reasonably attributable to a prohibited investment for, or an advantage in relation to, the RCA trust unless the Minister is satisfied that it is just and equitable to allow the election to be made, having regard to all the circumstances, in which case, the Minister may adjust the amount deemed by subsection (2) to be the refundable tax of the arrangement to take into account all or part of the decline in the fair market value of the subject property.
(3) Subsection (1) applies after March 28, 2012, except that the definition “advantage” in subsection 207.5(1) of the Act, as enacted by subsection (1), does not apply in respect of transactions or events that relate to subject property of a retirement compensation arrangement acquired before March 29, 2012
(a) if the amount of what would otherwise be an advantage is included in computing the income of a beneficiary of the arrangement, or an employer in respect of the arrangement, for the taxation year in which the amount arose or the immediately following taxation year; or
(b) if the subject property is a promissory note or similar debt obligation, commercially reasonable payments of principal and interest are made at least annually after 2012 in respect of the note or obligation and no RCA strip arises after March 28, 2012 in respect of the arrangement. For the purposes of this paragraph, an amendment to the terms of the note or obligation to provide for such payments is deemed not to be a disposition or an acquisition of the note or obligation.
(4) Subsection (2) applies to elections in respect of tax paid under subsection 207.7(1) of the Act in respect of contributions made to a retirement compensation arrangement after March 28, 2012 and income earned, capital gains realized and losses incurred, in respect of such contributions.
45. (1) The Act is amended by adding the following after section 207.6:
Tax payable on prohibited investment
207.61 (1) A custodian of a retirement compensation arrangement shall pay a tax under this Part for a calendar year if, at any time in the year,
(a) the arrangement acquires property that is a prohibited investment for the arrangement; or
(b) subject property of the arrangement becomes a prohibited investment for the arrangement after March 29, 2012.
Amount of tax payable
(2) The amount of tax payable in respect of each property described in subsection (1) is 50% of the fair market value of the property at the time referred to in that subsection.
Refund
(3) If in a calendar year an RCA trust disposes of a property in respect of which a tax is imposed under subsection (1) on the custodian of the retirement compensation arrangement, the custodian is entitled to a refund for the year of an amount equal to
(a) the amount of the tax so imposed, unless paragraph (b) applies; or
(b) nil,
(i) if it is reasonable to consider that the custodian, or a specified beneficiary of the arrangement, knew, or ought to have known, at the time the property was acquired by the arrangement, that it was, or would become, a property described in subsection (1), or
(ii) if the property is not disposed of by the arrangement before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.
Deemed disposition and reacquisition
(4) If, at any time, a property held by an RCA trust ceases to be, or becomes, a prohibited investment for the RCA trust, the RCA trust is deemed to have disposed of the property immediately before that time for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired the property at that time at a cost equal to that fair market value.
Tax payable in respect of advantage
207.62 (1) A custodian of a retirement compensation arrangement shall pay a tax under this Part for a calendar year if, in the year, an advantage in relation to the arrangement is extended to, or is received or receivable by, an RCA trust under the arrangement, a specified beneficiary of the arrangement or any person who does not deal at arm’s length with the specified beneficiary.
Amount of tax payable
(2) The amount of tax payable in respect of an advantage described in subsection (1) is
(a) in the case of a benefit, the fair market value of the benefit;
(b) in the case of a loan or an indebtedness, the amount of the loan or indebtedness; and
(c) in the case of an RCA strip, the amount of the RCA strip.
Joint liability
207.63 If a custodian of a retirement compensation arrangement is liable to pay a tax under section 207.61 or 207.62, a specified beneficiary of the arrangement is jointly and severally, or solidarily, liable for that tax to the extent that the specified beneficiary participated in, assented to or acquiesced in the making of, the transaction or event or series of transactions or events that resulted in the liability.
Waiver of tax payable
207.64 If a person would otherwise be liable to pay a tax under this Part because of any of sections 207.61 to 207.63, the Minister may waive or cancel all or part of the liability if the Minister considers it just and equitable to do so having regard to all the circumstances, including
(a) whether the tax arose as a consequence of reasonable error; and
(b) the extent to which the transaction or event or series of transactions or events that gave rise to the tax also gave rise to another tax under this Act.
Deemed distribution
207.65 For the purposes of the definition “refundable tax” in subsection 207.5(1), tax paid under section 207.61 or 207.62 by a custodian of a retirement compensation arrangement out of property held in connection with the arrangement is deemed to be a distribution under the arrangement for the taxation year in which the tax is paid to the extent that the tax has not been refunded, waived or cancelled.
(2) Subsection (1) applies after March 28, 2012. For the purposes of section 207.61 of the Act, as enacted by subsection (1), an amendment to the terms of a promissory note, or similar debt obligation, that is subject property of a retirement compensation arrangement acquired before March 29, 2012 to provide for commercially reasonable payments of principal and interest is deemed not to be a disposition or an acquisition of the note or obligation.
46. (1) The Act is amended by adding the following after Part XI.3:
PART XI.4
TAX ON EXCESS EPSP AMOUNTS
Excess EPSP amount
207.8 (1) In this Part, “excess EPSP amount”, of a specified employee for a taxation year in respect of an employer, means the amount determined by the formula
A – (20% × B)
where
A      is the portion of the total of all amounts paid by the employer of the specified employee (or by a corporation with which the employer does not deal at arm’s length) to a trust governed by an employees profit sharing plan that is allocated for the year to the specified employee; and
B      is the specified employee’s total income for the year from an office or employment with the employer computed without reference to paragraph 6(1)(d) and sections 7 and 8.
Tax payable
(2) If a specified employee has an excess EPSP amount for a taxation year, the specified employee shall pay a tax for the year equal to the amount determined by the formula
(A + B) × C
where
A      is 29%;
B      is
(a) if the specified employee is resident in Quebec at the end of the year, 0%,
(b) if the specified employee is resident in a province other than Quebec at the end of the year, the highest percentage rate of tax, including surtaxes but not taxes that are limited to a maximum amount, imposed by the province for the year on the income of an individual who is a resident of the province, or
(c) in any other case, 14%; and
C      is the total of all excess EPSP amounts of the specified employee for the year.
Waiver or cancellation
(3) If a specified employee would otherwise be liable to pay a tax under subsection (2), the Minister may waive or cancel all or part of the liability if the Minister considers it just and equitable to do so having regard to all the circumstances.
Return and payment of tax
(4) Every person who is liable to pay tax under this Part for a taxation year shall
(a) on or before the person’s filing-due date for the year, file with the Minister a return for the year under this Part in prescribed form and containing prescribed information; and
(b) on or before the person’s balance-due day for the year, pay to the Receiver General the amount of tax payable under this Part by the person for the year.
Provisions applicable to this Part
(5) Subsections 150(2) and (3), sections 152, 155 to 156.1, 158 to 160.1, 161 and 161.2 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.
(2) Subsection (1) applies to the 2012 and subsequent taxation years, except that it does not apply in respect of payments made to a trust governed by an employees profit sharing plan
(a) before March 29, 2012; or
(b) before 2013 pursuant to an obligation arising under a written agreement or arrangement entered into before March 29, 2012.
47. (1) The definition “registered life insurance policy” in subsection 211(1) of the Act is replaced by the following:
“registered life insurance policy”
« police d’assurance-vie agréée »
“registered life insurance policy” means a life insurance policy issued or effected as or under a pooled registered pension plan, a registered retirement savings plan, a deferred profit sharing plan or a registered pension plan;
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
48. (1) Paragraph 212(1)(h) of the Act is amended by adding the following before subparagraph (iii):
(ii) an amount distributed from a pooled registered pension plan that has been designated by the administrator of the plan in accordance with subsection 147.5(18),
(2) The portion of subparagraph 212(1)(h)(iii.1) of the Act before clause (B) is replaced by the following:
(iii.1) the portion of the payment that is transferred by the payer on behalf of the non-resident person, pursuant to an authorization in prescribed form, to a pooled registered pension plan, registered pension plan, registered retirement savings plan or registered retirement income fund and that
(A) because of any of subsections 146(21), 147.3(9) and 147.5(22) would not, if the non-resident person had been resident in Canada throughout the taxation year in which the payment was made, be included in computing the non-resident person’s income, or
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
49. (1) The Act is amended by adding the following after section 212.2:
Foreign affiliate dumping — conditions for application
212.3 (1) Subsection (2) applies to an investment in a non-resident corporation (in this section referred to as the “subject corporation”) made at any time (in this section referred to as the “investment time”) by a corporation resident in Canada (in this section referred to as the “CRIC”) if
(a) the subject corporation is immediately after the investment time, or becomes as part of a transaction or event or series of transactions or events that includes the making of the investment, a foreign affiliate of the CRIC;
(b) the CRIC is at the investment time, or becomes as part of a transaction or event or series of transactions or events that includes the making of the investment, controlled by a non-resident corporation (in this section referred to as the “parent”); and
(c) neither subsection (16) nor (18) applies in respect of the investment.
Foreign affiliate dumping — consequences
(2) If this subsection applies to an investment in a subject corporation made by a CRIC,
(a) for the purposes of this Part and subject to subsections (3) and (7), the CRIC is deemed to have paid to the parent, and the parent is deemed to have received from the CRIC, at the investment time, a dividend equal to the total of all amounts each of which is the portion of the fair market value at the investment time of any property (not including shares of the capital stock of the CRIC) transferred, any obligation assumed or incurred, or any benefit otherwise conferred, by the CRIC, or of any property transferred to the CRIC which transfer results in the reduction of an amount owing to the CRIC, that can reasonably be considered to relate to the investment; and
(b) in computing the paid-up capital in respect of any class of shares of the capital stock of the CRIC at any time that is at or after the investment time, there is to be deducted the amount of any increase in the paid-up capital in respect of the class, determined without reference to this section, that can reasonably be considered to relate to the investment.
Dividend substitution election
(3) If a CRIC, all corporations that are, at the investment time, qualifying substitute corporations in respect of the CRIC, and the parent (or the parent and another non-resident corporation that is at the investment time controlled by the parent) jointly elect in writing under this subsection in respect of an investment, amounts are agreed on in respect of classes of shares of the capital stock of any of the CRIC and one or more of the qualifying substitute corporations, the total of the amounts agreed on equals the amount of the dividend that would, in the absence of this subsection, be deemed under paragraph (2)(a) to be paid and received, and the election is filed with the Minister on or before the earliest of the filing-due dates of the CRIC and the qualifying substitute corporations for their respective taxation years that include the investment time, then
(a) the dividend that would, in the absence of this subsection, be deemed under paragraph (2)(a) to have been paid by the CRIC to the parent and received by the parent from the CRIC
(i) is reduced by the total of all amounts each of which is an amount agreed on in the election in respect of a class of shares of the capital stock of a qualifying substitute corporation, and
(ii) is, as reduced by the application of subparagraph (i), deemed to be paid to, and received by, the parent or the other non-resident corporation (if the other non-resident corporation has elected under this subsection), as one or more dividends in the amounts, and in respect of the classes of shares of the capital stock of the CRIC, agreed on in the election; and
(b) a dividend is deemed, at the investment time, to be paid to either the parent or the other non-resident corporation, as the case may be, by each qualifying substitute corporation in respect of which an amount has been agreed on in the election, and received by the parent, or the other non-resident corporation, from that qualifying substitute corporation, in the amount, and in respect of each class referred to in subparagraph (a)(i), agreed on in the election.
Qualifying substitute corporation
(4) For the purposes of this section, “qualifying substitute corporation”, at any time in respect of a CRIC, means a corporation resident in Canada
(a) that is, at that time, controlled by the parent;
(b) that has, at that time, an equity percent-age (as defined in subsection 95(4)) in the CRIC; and
(c) shares of the capital stock of which are, at that time, owned by the parent or another non-resident corporation with which the parent does not, at that time, deal at arm’s length.
Modification of terms — paragraph (10)(e)
(5) In the case of an investment described in paragraph (10)(e), the CRIC is deemed for the purposes of paragraph (2)(a) to transfer to the subject corporation property that relates to the investment, the fair market value of which property is
(a) if the investment is described in subparagraph (10)(e)(i), the amount owing in respect of the debt obligation referred to in that subparagraph immediately after the investment time, or
(b) if the investment is described in subparagraph (10)(e)(ii), the fair market value of the shares referred to in that subparagraph immediately after the investment time.
Application of subsection (7)
(6) Subsection (7) applies if paragraph (2)(a) or (3)(b) applies to an investment in a subject corporation made by a CRIC and
(a) if an election is made under subsection (3) in respect of the investment,
(i) each class of shares of the capital stock of the CRIC or of a qualifying substitute corporation, in respect of which an amount has been agreed on in the election, is a class of which the parent, or another non-resident corporation with which the parent does not, at the investment time, deal at arm’s length, owns shares, and
(ii) the election results in the greatest possible amount that is the total of all amounts each of which would, if subparagraph (7)(b)(i) applied in respect of the investment, be a reduction of paid-up capital in respect of a share of the capital stock of the CRIC, or a qualifying substitute corporation, that is owned by the parent or another non-resident corporation with which the parent does not, at the investment time, deal at arm’s length; or
(b) in any other case, the following conditions are met:
(i) either
(A) there was only one class of issued and outstanding shares of the capital stock of the CRIC at the investment time, or
(B) the CRIC demonstrates that an amount of paid-up capital in respect of one or more classes of shares of the capital stock of the CRIC arose from one or more transfers of property to the CRIC and that
(I) in the case of an investment described in paragraph (10)(f), all the property transferred was used by the CRIC to make, in whole or in part, the direct acquisition referred to in that paragraph, and
(II) in any other case, all the property transferred was used by the CRIC to make, in whole or in part, the investment; and
(ii) at the investment time, each share of the capital stock of the CRIC that was not owned by the parent was owned by
(A) a person who was dealing at arm’s length with the CRIC, or
(B) a non-resident person who was not dealing at arm’s length with the CRIC.
Reduction of deemed dividend
(7) If this subsection applies, the following rules apply:
(a) the amount of any dividend deemed under this section to have been paid by the CRIC or a qualifying substitute corporation and to have been received by a non-resident corporation in respect of the investment is to be reduced by the lesser of
(i) the amount that would, in the absence of this subsection, be deemed to be paid and received as a dividend under this section, and
(ii) one of
(A) if paragraph (6)(a) applies, the amount of paid-up capital in respect of the class of shares in respect of which the dividend is deemed to be paid,
(B) if clause (6)(b)(i)(A) applies, the amount of paid-up capital in respect of the class referred to in that clause immediately before the investment time, or
(C) if clause (6)(b)(i)(B) applies, the total of all amounts of paid-up capital, determined under that clause, in respect of a class of shares of the capital stock of the CRIC; and
(b) in computing the paid-up capital in respect of a class of shares of the capital stock of the CRIC or a qualifying substitute corporation, as the case may be, at any time that is at or after the investment time, there is to be deducted
(i) if clause (a)(ii)(A) applies, the amount determined under paragraph (a) in respect of the class, and
(ii) if clause (a)(ii)(B) or (C) applies, the amount determined under paragraph (a) that can reasonably be considered to relate to the class.
Paid-up capital adjustment
(8) In computing the paid-up capital at any time after March 28, 2012 in respect of a class of shares of the capital stock of a corporation, there is to be added an amount equal to the lesser of
(a) the amount, if any, by which
(i) the total of all amounts deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of the class paid after March 28, 2012 and before that time by the corporation
exceeds
(ii) the total that would be determined under subparagraph (i) if this Act were read without reference to paragraphs (2)(b) and (7)(b) and subsection (9), and
(b) the amount, if any, by which
(i) the total of all amounts required by paragraph (2)(b) or (7)(b) to be deducted in computing the paid-up capital in respect of the class before that time
exceeds
(ii) the total of all amounts required by subsection (9) to be added in computing the paid-up capital in respect of the class before that time.
Paid-up capital reinstatement
(9) If, in respect of an investment in a subject corporation made by a CRIC that is described in paragraph (10)(a), (b) or (f), an amount is required by paragraph (2)(b) or (7)(b) to be deducted in computing the paid-up capital in respect of a class of shares of the capital stock of a particular corporation, and the particular corporation reduces, at a time subsequent to the investment time, the paid-up capital in respect of the class, then the paid-up capital in respect of the class is to be increased, immediately before the subsequent time, by the least of
(a) the amount of the reduction of the paid-up capital at the subsequent time,
(b) the amount, if any, by which
(i) the amount required by paragraph (2)(b) or (7)(b), as the case may be, to be deducted, in respect of the investment, in computing the paid-up capital in respect of the class
exceeds
(ii) the total of all amounts required under this subsection to be added, in respect of the investment, to the paid-up capital of the class in respect of a reduction of paid-up capital made before the subsequent time, and
(c) an amount that
(i) if the property distributed on the reduction of paid-up capital is shares of the capital stock of the subject corporation (in this paragraph referred to as the “subject shares”) or shares of the capital stock of a foreign affiliate of the particular corporation that were substituted for the subject shares, is equal to the fair market value of the subject shares, or the portion of the fair market value of the substituted shares that may reasonably be considered to relate to the subject shares, as the case may be, at the subsequent time,
(ii) the particular corporation demonstrates that it has received directly or indirectly after the investment time and no more than 180 days before the subsequent time
(A) as proceeds from the disposition of the subject shares, or as the portion of the proceeds from the disposition of the substituted shares that may reasonably be considered to relate to the subject shares, other than as proceeds from a disposition in respect of which the related acquisition is one to which subsection (18) applies, or
(B) as a dividend or reduction of paid-up capital in respect of a class of subject shares, or the portion of a dividend or reduction of paid-up capital in respect of a class of substituted shares that may reasonably be considered to relate to the subject shares, or
(iii) if neither subparagraph (i) nor (ii) applies, is equal to nil.
Investment in subject corporation
(10) In this section, “investment”, in a subject corporation made by a CRIC, means any of
(a) an acquisition of shares of the capital stock of the subject corporation by the CRIC;
(b) a contribution of capital to the subject corporation by the CRIC, which is deemed to include any transaction or event under which a benefit is conferred on the subject corporation by the CRIC;
(c) a transaction under which an amount becomes owing by the subject corporation to the CRIC, other than an amount owing
(i) that arises in the ordinary course of the business of the CRIC and that is repaid, other than as part of a series of loans or other transactions and repayments, within 180 days after the day on which the amount becomes owing, or
(ii) that is a pertinent loan or indebtedness immediately after the time of the transaction;
(d) an acquisition of a debt obligation of the subject corporation by the CRIC from a person, other than
(i) if the acquisition is made in the ordinary course of the business of the CRIC, a debt obligation acquired from a person with which the CRIC deals at arm’s length at the time of the acquisition, or
(ii) a debt obligation that is a pertinent loan or indebtedness immediately after the time of the acquisition;
(e) an extension of
(i) the maturity date of a debt obligation (other than a debt obligation that is a pertinent loan or indebtedness immediately after the time of the extension) owing by the subject corporation to the CRIC, or
(ii) the redemption, acquisition or cancellation date of shares of the capital stock of the subject corporation owned by the CRIC;
(f) an indirect acquisition by the CRIC of shares of the capital stock of the subject corporation that results from a direct acquisition by the CRIC of shares of the capital stock of another corporation resident in Canada, of which the subject corporation is a foreign affiliate, if the total fair market value of all the shares that are held directly or indirectly by the other corporation and are shares of foreign affiliates of the other corporation exceeds 75% of the total fair market value (determined without reference to debt obligations of any corporation resident in Canada in which the other corporation has a direct or indirect interest) of all of the properties owned by the other corporation; and
(g) an acquisition by the CRIC of an option in respect of, or an interest in, or for civil law a right in, shares of the capital stock of, an amount owing by (other than an amount owing described in subparagraph (c)(i) or (ii)), or a debt obligation of (other than a debt obligation described in subparagraph (d)(i) or (ii)), the subject corporation.
Pertinent loan or indebtedness
(11) For the purposes of subsection (10) and subject to subsection 17.1(3), “pertinent loan or indebtedness”, at any time, means an amount owing at that time by the subject corporation to the CRIC in respect of which all of the following apply:
(a) either
(i) the amount became owing after March 28, 2012, or
(ii) the amount became owing before March 29, 2012 and is a debt obligation for which the maturity date was extended after March 28, 2012 and at or before that time;
(b) the amount owing is not an amount owing described in subparagraph (10)(c)(i) or a debt obligation described in subparagraph (10)(d)(i); and
(c) the CRIC and the parent jointly elect in writing under this paragraph in respect of the amount owing and file the election with the Minister on or before the filing-due date of the CRIC
(i) in the case of an amount owing described in subparagraph (a)(i), for the year in which the amount became owing, or
(ii) in the case of an amount owing described in subparagraph (a)(ii), for the year in which the extension was made.
Late-filed elections
(12) Where an election referred to in subsection (3) or paragraph (11)(c) was not made on or before the day on or before which the election was required by that paragraph to be made, the election is deemed to have been made on that day if the election is made on or before the day that is three years after that day and the penalty in respect of the election is paid by the CRIC when the election is made.
Penalty for late-filed election
(13) For the purposes of subsection (12), the penalty in respect of an election referred to in that subsection is the amount equal to the product obtained by multiplying $100 by the number of months each of which is a month all or part of which is during the period commenc-ing with the day on or before which the election is required by subsection (3) or paragraph (11)(c), as the case may be, to be made and ending on the day on which the election is made.
Rules for paragraph (10)(f)
(14) For the purposes of paragraph (10)(f),
(a) the condition in that paragraph is deemed to be satisfied at the time of the acquisition if
(i) any property (other than shares of foreign affiliates of the other corporation that is referred to in that paragraph) held directly or indirectly by that other corporation is disposed of, after the time of the acquisition, directly or indirectly by that corporation as part of a series of transactions or events that includes the acquisition, and
(ii) at any time that is subsequent to the time of the acquisition and that is in the period during which the series occurs, the condition in that paragraph would have been satisfied had the acquisition occurred at the subsequent time; and
(b) the fair market value of properties held directly or indirectly by the other corporation is not to be taken into account more than once in determining whether the condition in that paragraph is satisfied.
Control
(15) For the purposes of this section and paragraph 128.1(1)(c.3), a CRIC that would, in the absence of this subsection, be controlled at any time
(a) by more than one non-resident corporation is deemed not to be controlled at that time by any such non-resident that controls at that time another non-resident corporation that controls at that time the CRIC, unless the application of this subsection would otherwise result in no non-resident corporation controlling the CRIC; and
(b) by a particular non-resident corporation is deemed not to be controlled at that time by the particular corporation if the particular corporation is controlled at that time by another corporation that is at that time
(i) resident in Canada, and
(ii) not controlled by any non-resident person.
Exception — more closely connected business activities
(16) Subject to subsection (19), subsection (2) does not apply to an investment in a subject corporation made by a CRIC if the CRIC demonstrates that all of the following conditions are met:
(a) the business activities carried on by the subject corporation and all other corporations (those other corporations in this subsection and subsection (17) referred to as the “subject subsidiary corporations”) in which the subject corporation has, at the investment time, an equity percentage (as defined in subsection 95(4)) are at the investment time, and are expected to remain, on a collective basis, more closely connected to the business activities carried on in Canada by the CRIC, or by any corporation resident in Canada with which the CRIC does not, at the investment time, deal at arm’s length, than to the business activities carried on by any non-resident corporation with which the CRIC, at the investment time, does not deal at arm’s length, other than
(i) the subject corporation,
(ii) the subject subsidiary corporations, and
(iii) any corporation that is, immediately before the investment time, a controlled foreign affiliate of the CRIC for the purposes of section 17,
(b) officers of the CRIC had and exercised the principal decision-making authority in respect of the making of the investment and a majority of those officers were, at the investment time, persons each of whom was resident, and working principally,
(i) in Canada, or
(ii) in a country in which a particular corporation is resident if the particular corporation (in this subsection and subsection (17) referred to as a “connected affiliate”) is a controlled foreign affiliate of the CRIC for the purposes of section 17 and carries on business activities that are, at the investment time, and are expected to remain, at least as closely connected to those of the subject corporation and the subject subsidiary corporations, on a collective basis, as the business activities carried on in Canada by the CRIC, or any corporation resident in Canada with which the CRIC does not, at the investment time, deal at arm’s length, as the case may be, are to those of the subject corporation and the subject subsidiary corporations, on a collective basis; and
(c) at the investment time, it is reasonably expected that
(i) officers of the CRIC will have and exercise the ongoing principal decision-making authority in respect of the investment,
(ii) a majority of those officers will be persons each of whom will be resident, and working principally, in Canada or in a country in which a connected affiliate is resident, and
(iii) the performance evaluation and compensation of the officers of the CRIC who are resident, and work principally, in Canada, or in a country in which a connected affiliate is resident, will be based on the results of operations of the subject corporation to a greater extent than will be the performance evaluation and compensation of any officer of a non-resident corporation (other than the subject corporation, a corporation controlled by the subject corporation or a connected affiliate) that does not deal at arm’s length with the CRIC.
Dual officers
(17) For the purposes of paragraphs (16)(b) and (c), any person who is an officer of the CRIC and of a non-resident corporation with which the CRIC, at the investment time, does not deal at arm’s length (other than the subject corporation, a subject subsidiary corporation or a connected affiliate) is deemed to not be resident, and to not work principally, in a country in which a connected affiliate is resident.
Exception — corporate reorganizations
(18) Subject to subsections (19) and (20), subsection (2) does not apply to an investment in a subject corporation made by a CRIC if
(a) the investment is described in paragraph (10)(a) and is an acquisition of shares of the capital stock of the subject corporation
(i) from a corporation resident in Canada
(A) to which the CRIC is, immedia-tely before the investment time, related (determined without reference to paragraph 251(5)(b)), and
(B) that is, at no time that is in the period during which the series of transactions or events that includes the making of the investment occurs and that is before the investment time, dealing at arm’s length (determin-ed without reference to paragraph 251(5)(b)) with the CRIC, or
(ii) on an amalgamation described in subsection 87(1) of two or more corporations (each of which is in this subparagraph referred to as a “predecessor corporation”) to form the CRIC if
(A) all of the predecessor corporations are, immediately before the amalgamation, related to each other (deter-mined without reference to paragraph 251(5)(b)), and
(B) none of the predecessor corpo-rations deal at arm’s length (deter-mined without reference to paragraph 251(5)(b)) with another predecessor corporation at any time that is in the period during which the series of transactions or events that includes the making of the investment occurs and that is before the investment time;
(b) the investment is described in paragraph (10)(a) and is an acquisition of shares of the capital stock of the subject corporation in which the shares are acquired by the CRIC
(i) in an exchange to which subsection 51(1) applies,
(ii) as consideration for a disposition of shares to which subsection 85.1(3) applies (determined without reference to subsection 85.1(4)),
(iii) in the course of a reorganization of the capital of the subject corporation to which subsection 86(1) applies,
(iv) as a result of a foreign merger (as defined in subsection 87(8.1)) under which the subject corporation was formed,
(v) on a liquidation and dissolution to which subsection 88(3) applies,
(vi) on a redemption of shares of another non-resident corporation that is, immediately before the investment time, a foreign affiliate of the CRIC, or
(vii) as a dividend or a reduction of paid-up capital in respect of the shares of another non-resident corporation that is, immediately before the investment time, a foreign affiliate of the CRIC;
(c) the investment is an indirect acquisition referred to in paragraph (10)(f) that results from a direct acquisition of shares of the capital stock of another corporation resident in Canada
(i) from a corporation
(A) to which the CRIC is, immediately before the investment time, related (determined without reference to paragraph 251(5)(b)), and
(B) that is, at no time that is in the period during which the series of transactions or events that includes the making of the investment occurs and that is before the investment time, dealing at arm’s length (deter-mined without reference to paragraph 251(5)(b)) with the CRIC,
(ii) on an amalgamation described in subsection 87(1) of two or more corporations (each of which is in this subparagraph referred to as a “predecessor corporation”) to form the CRIC if
(A) all of the predecessor corporations are, immediately before the amalgamation, related to each other (deter-mined without reference to paragraph 251(5)(b)), and
(B) none of the predecessor corporations deal at arm’s length (deter-mined without reference to paragraph 251(5)(b)) with another predecessor corporation at any time that is in the period during which the series of transactions or events that includes the making of the investment occurs and that is before the investment time,
(iii) in an exchange to which subsection 51(1) applies,
(iv) in the course of a reorganization of the capital of the other corporation to which subsection 86(1) applies, or
(v) to the extent that an investment (other than one described in paragraph (10)(f)) is made in the subject corporation by the other corporation, or by a particular corporation resident in Canada to which the CRIC and the other corporation are related at the investment time, using property transferred, directly or indirectly, by the CRIC to the other corporation or the particular corporation, as the case may be, if the two investments
(A) occur within 30 days of each other, and
(B) are part of the same series of transactions or events; or
(d) the investment is an acquisition of shares of the capital stock of the subject corporation that is described in paragraph (10)(a), or an indirect acquisition referred to in paragraph (10)(f) that results from a direct acquisition of shares of the capital stock of another corporation resident in Canada, under which the shares of the subject corporation or the other corporation, as the case may be, are received by the CRIC as the sole consideration for an exchange of a debt obligation owing to the CRIC, other than an exchange to which subsection 51(1) applies.
Preferred shares
(19) Subsection (16) and paragraphs (18)(b) and (d) do not apply to an acquisition of shares of the capital stock of a subject corporation by a CRIC if, having regard to all the terms and conditions of the shares and any agreement in respect of the shares, the shares may not reasonably be considered to fully participate in the profits of the subject corporation and any appreciation in the value of the subject corporation, unless the subject corporation would be a subsidiary wholly-owned corporation of the CRIC throughout the period during which the series of transactions or events that includes the acquisition occurs if the CRIC owned all of the shares of the capital stock of the subject corporation that are owned by any of
(a) the CRIC;
(b) a corporation resident in Canada that is a subsidiary wholly-owned corporation of the CRIC; and
(c) a corporation resident in Canada of which the CRIC is a subsidiary wholly-owned corporation.
Assumption of debt on liquidation or distribution
(20) Subsection (2) applies to an investment in a subject corporation made by a CRIC that is an acquisition of shares of the capital stock of the subject corporation described in any of subparagraphs (18)(b)(v) to (vii) to the extent of the lesser of
(a) the total of all amounts each of which is the amount of a debt obligation assumed by the CRIC in respect of the liquidation and dissolution, redemption, dividend or reduction of paid-up capital, as the case may be, and
(b) the fair market value of the shares at the investment time.
Persons deemed not to be related
(21) If it can reasonably be considered that one of the main purposes of one or more transactions or events is to cause two or more persons to be related to each other so that, in the absence of this subsection, subsection (2) would not apply because of subsection (18) to an investment in a subject corporation made by a CRIC, those persons are deemed not to be related to each other for the purposes of subsection (18).
Mergers
(22) For the purposes of this section and subsections 219.1(3) and (4),
(a) if there has been an amalgamation to which subsection 87(11) applies,
(i) the new corporation referred to in that subsection is deemed to be the same corporation as, and a continuation of, the parent and each subsidiary referred to in that subsection, and
(ii) the new corporation is deemed not to acquire any property of the parent, or of any subsidiary, as a result of the amalgamation; and
(b) if there has been a winding-up to which subsection 88(1) applies,
(i) the parent referred to in that subsection is deemed to be the same corporation as, and a continuation of, the subsidiary referred to in that subsection, and
(ii) the parent is deemed not to acquire any property of the subsidiary as a result of the winding-up.
Indirect investment
(23) Subsection (2) applies to an investment in a subject corporation made by a CRIC to which, in the absence of this subsection, subsection (2) would not apply because of subsection (16), to the extent that one or more properties received by the subject corporation from the CRIC as a result of the investment, or property substituted for any such property, may reasonably be considered to have been used by the subject corporation, directly or indirectly as part of a series of transactions or events that includes the making of the investment, in a transaction or event to which subsection (2) would have applied if the CRIC had entered into the transaction, or participated in the event, as the case may be, instead of the subject corporation.
Indirect funding
(24) Subsection (2) does not apply to an investment in a subject corporation made by a CRIC to which, in the absence of this subsection, subsection (2) would apply, if the CRIC demonstrates that
(a) all the properties received by the subject corporation from the CRIC as a result of the investment were used, at a particular time that is within 30 days after the investment time and at all times after the particular time, by the subject corporation to make a loan to a particular corporation that was, at the time of the loan, a controlled foreign affiliate of the CRIC for the purposes of section 17;
(b) the particular corporation is, throughout the period that begins at the investment time and during which the series of transactions or events that includes the making of the loan occurs, a corporation in which an investment made by the CRIC would not be subject to subsection (2) because of subsection (16); and
(c) the particular corporation uses, throughout the period during which the loan is outstanding, the proceeds of the loan in an active business (as defined in subsection 95(1)) carried on by it in the country in which it is resident.
Partnerships
(25) For the purposes of this section, subsection 17.1(1) (as it applies in respect of a pertinent loan or indebtedness as defined in subsection (11)), paragraph 128.1(1)(c.3) and subsection 219.1(2),
(a) any transaction entered into, or event participated in, by a partnership is deemed to have been entered into, or participated in, as the case may be, by each member of the partnership in the proportion that the fair market value, at the time of the transaction or event, of the member’s interest — held directly or indirectly through one or more other partnerships — in the partnership is of the fair market value, at that time, of all direct interests in the partnership;
(b) if at any time, based on the assumptions contained in paragraph 96(1)(c), property would be owned by a partnership, that property is deemed to be owned at that time by each member of the partnership in the proportion that the fair market value, at that time, of the member’s interest — held directly or indirectly through one or more other partnerships — in the partnership is of the fair market value, at that time, of all direct interests in the partnership;
(c) if at any time there is an increase (including, for greater certainty, as a result of a particular acquisition of an interest in a partnership in which, immediately prior to the particular acquisition, the member did not have an interest) in the portion of a property that is deemed under paragraph (b) to be owned by a member of a partnership, the member is deemed at that time
(i) to acquire the additional portion of the property, and
(ii) to transfer property that relates to the acquisition of the additional portion and that has a fair market value equal to the fair market value at that time of the additional portion;
(d) if at any time, based on the assumptions contained in paragraph 96(1)(c), an amount would be owing by a partnership, that amount is deemed to be owed by each member of the partnership in the proportion that the fair market value, at that time, of the member’s interest — held directly or indirectly through one or more other partnerships — in the partnership is of the fair market value, at that time, of all direct interests in the partnership;
(e) if a member of a partnership enters into a transaction, or participates in an event, with the partnership, paragraph (a) does not apply to the transaction or event to the extent that the transaction or event would, in the absence of this paragraph, be deemed by paragraph (a) to have been entered into, or participated in, as the case may be, by the member; and
(f) a person or partnership that is (or is deemed by this paragraph to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership.
(2) Subject to subsection (3), subsection (1) applies in respect of transactions and events that occur after March 28, 2012. However,
(a) subsection (1) does not apply to transactions that occur before 2013 between parties that deal at arm’s length with each other if
(i) either
(A) in the case of an indirect acqui-sition referred to in paragraph 212.3(10)(f) of the Act, as enacted by subsection (1), the CRIC referred to in that paragraph is obligated to complete the direct acquisition referred to in that paragraph under the terms of an agreement in writing entered into before March 29, 2012 between the CRIC and a public corporation that is the other corporation resident in Canada referred to in that paragraph, or
(B) the parties are obligated to complete the transaction under the terms of an agreement in writing entered into between the parties before March 29, 2012, and
(ii) no party to the agreement may be excused from the obligation as a result of amendments to the Act; and
(b) any election referred to in subsection 212.3(3) or paragraph 212.3(11)(c) of the Act, as enacted by subsection (1), that would otherwise be required to be filed with the Minister of National Revenue on or before the day that is 120 days after the day on which this Act receives royal assent is deemed to have been filed with the Minister on a timely basis if it is filed with the Minister on or before the day that is 365 days after the day on which this Act receives royal assent.
(3) If a corporation resident in Canada (in this subsection referred to as the “CRIC”) and a non-resident corporation that controls the CRIC jointly elect in writing under this subsection in respect of all transactions and events to which subsection 212.3(2) of the Act, as enacted by subsection (1), would, in the absence of this subsection, apply and file the election with the Minister of National Revenue on or before the day that is the later of the CRIC’s filing-due date for the CRIC’s taxation year that includes the day on which this Act receives royal assent and the day that is one year after the day on which this Act receives royal assent, then, in respect of transactions and events that occur before August 14, 2012, section 212.3 of the Act, as enacted by subsection (1), is to be read without reference to its subsections (3) to (7), (9), (11) to (14), (17) to (22) and (24) and the following rules apply:
(a) subsections 212.3(1) and (2) of the Act are to be read as follows:
212.3 (1) Subsection (2) applies to an investment in a non-resident corporation (referred to in this section as the “subject corporation”) that is made, at any time, by a corporation resident in Canada (referred to in this section as the “CRIC”) if
(a) the subject corporation is, immediately after that time, or becomes, as part of a transaction or event or series of transactions or events that includes the investment, a foreign affiliate of the CRIC;
(b) the CRIC is at that time controlled by another non-resident corporation (referred to in this section as the “parent”); and
(c) the investment may not reasonably be considered to have been made by the CRIC, instead of being made or retained by the parent or another non-resident person that does not deal at arm’s length with the parent, primarily for bona fide purposes other than to obtain a tax benefit (as defined in subsection 245(1)).
(2) If this subsection applies to an investment in a subject corporation,
(a) for the purposes of this Part, the CRIC is deemed to have paid to the parent at the time the investment was made, and the parent is deemed to have received from the CRIC at that time, a dividend equal to the total of all amounts each of which is the fair market value, at that time, of any property (not including shares of the capital stock of the CRIC) transferred, or obligation assumed or incurred, by the CRIC in respect of the investment; and
(b) in computing the paid-up capital at any time after March 28, 2012 of any class of shares of the capital stock of the CRIC, there is to be deducted the amount of any increase, because of the investment, in the paid-up capital in respect of the shares of the class, computed without reference to this section.
(b) subsection 212.3(8) of the Act is to be read as follows:
(8) In computing the paid-up capital at any time after March 28, 2012 in respect of a class of shares of the capital stock of a corporation, there is to be added an amount equal to the lesser of
(a) the amount, if any, by which
(i) the total of all amounts deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of the class paid after March 28, 2012 and before that time by the corporation,
exceeds
(ii) the total that would be determined under subparagraph (i) if this Act were read without reference to paragraph (2)(b); and
(b) the total of all amounts required by paragraph (2)(b) to be deducted in computing the paid-up capital in respect of the class before that time.
(c) subsection 212.3(10) of the Act is to be read as follows:
(10) For the purposes of this section, an investment made in a subject corporation by a CRIC means any of
(a) an acquisition of shares of the capital stock of the subject corporation by the CRIC;
(b) a contribution of capital to the subject corporation by the CRIC;
(c) a transaction under which an amount became owing by the subject corporation to the CRIC, other than an amount owing that arises in the ordinary course of the business of the CRIC and that is repaid within a commercially reasonable period;
(d) an acquisition of a debt obligation of the subject corporation by the CRIC from another person, other than, if the acquisition was made in the ordinary course of the business of the CRIC, an acquisition from a person with which the CRIC dealt, at the time of the acquisition, at arm’s length;
(e) an acquisition by the CRIC of an option in respect of, or an interest in, or for civil law a right in, shares of the capital stock, or a debt obligation, of the subject corporation; and
(f) any transaction or event that is similar in effect to any of the transactions described in paragraphs (a) to (e).
(d) subsections 212.3(15) and (16) of the Act are to be read as follows:
(15) For the purposes of this section and paragraph 128.1(1)(c.3), a CRIC that is controlled by more than one non-resident corporation is deemed not to be controlled by any such non-resident that controls another non-resident corporation that controls the CRIC, unless the application of this subsection would otherwise result in no non-resident corporation controlling the CRIC.
(16) In determining whether paragraph (1)(c) applies, the following factors are to be given primary consideration:
(a) whether the business activities carried on by the subject corporation and any other corporation in which the subject corporation has, at the time referred to in subsection (1), an equity percentage (as defined in subsection 95(4)) are at that time, and are expected to remain, more closely connected to the business activities carried on by the CRIC (or by a corporation resident in Canada that is a subsidiary wholly-owned corporation of the CRIC or that is a corporation of which the CRIC is a subsidiary wholly-owned corporation) than to the business activities carried on by any non-resident corporation (other than the subject corporation or any corporation in which the subject corporation has such an equity percentage) with which the CRIC, at that time, does not deal at arm’s length;
(b) whether the terms or conditions of any shares of the subject corporation that are owned by the CRIC at that time, or any agreement in respect of the shares or their issue, are such that the CRIC does not fully participate in the profits of the subject corporation or any appreciation in the value of the subject corporation (for greater certainty, the fact that the shares owned by the CRIC do fully participate in the profits of the subject corporation and any appreciation in the value of the subject corporation is not a relevant factor);
(c) whether the investment was made at the direction or request of a non-resident corporation with which the CRIC was not, at that time, dealing at arm’s length;
(d) whether, in the case of an investment described in paragraph (10)(a), (d), (e) or (f), negotiations with the vendor in respect of the investment were initiated by senior officers of the CRIC who were resident in, and worked principally in, Canada or, if the vendor initiated the transaction, the vendor’s principal point of contact was an officer of the CRIC who was resident in, and worked principally in, Canada;
(e) whether senior officers of the CRIC who were resident in, and worked principally in, Canada had and exercised the principal decision-making authority in respect of the making of the investment, and have and exercise the principal decision making authority in respect of the investment;
(f) whether the performance evaluation or compensation of senior officers of the CRIC who are resident in, and work principally in, Canada is connected to the results of operations of the subject corporation to a greater extent than the performance evaluation or compensation of any senior officers of a non-resident corporation (other than the subject corporation or a corporation controlled by the subject corporation) that does not deal at arm’s length with the CRIC is so connected; and
(g) whether senior officers of the subject corporation report to, and are functionally accountable to, senior officers of the CRIC who are resident in, and work principally in, Canada to a greater extent than to any senior officers of any non-resident corporation (other than the subject corporation) that does not deal at arm’s length with the CRIC.
(e) subsection 212.3(23) of the Act is to be read as follows:
(23) A particular investment by a CRIC in a subject corporation that would, in the absence of this subsection, be excluded from the application of subsection (2) because of paragraph (1)(c) is not to be so excluded to the extent that one or more properties, if any, received by the subject corporation from the CRIC as a result of the particular investment, or property substituted for any such property, may reasonably be considered to have been used by the subject corporation, directly or indirectly as part of a transaction or event or series of transactions or events that includes the particular investment, to make another investment in a non-resident corporation that would, if the other investment had been made by the CRIC, have been subject to subsection (2).
(f) subsection 212.3(25) of the Act is to be read as follows:
(25) For the purposes of this section, paragraph 128.1(1)(c.3) and subsection 219.1(2),
(a) any transaction entered into by a partnership is deemed to have been entered into by each member of the partnership in proportion to the fair market value of the member’s direct or indirect interest in the partnership;
(b) property that would, in the absence of this paragraph, be owned by a partnership is deemed to be owned by each member of the partnership in proportion to the fair market value of the member’s direct or indirect interest in the partnership; and
(c) amounts that would, in the absence of this paragraph, be owing by a partnership are deemed to be owed by each member of the partnership in proportion to the fair market value of the member’s direct or indirect interest in the partnership.
50. (1) Section 214 of the Act is amended by adding the following after subsection (15):
Deemed dividends
(16) For the purposes of this Part,
(a) an amount paid or credited as interest by a corporation resident in Canada, or by a partnership, in a taxation year of the corporation to a non-resident person is deemed to have been paid by the corporation as a dividend, and not to have been paid or credited by the corporation or the partnership as interest, to the extent that an amount in respect of the interest
(i) is not deductible in computing the income of the corporation for the year because of subsection 18(4), or
(ii) is included in computing the income of the corporation for the year under paragraph 12(1)(l.1); and
(b) to the extent that amounts paid or credited to a non-resident person in the year are deemed by paragraph (a) to have been paid by a corporation as dividends, the corporation may designate in its return of income under Part I for the year which amounts paid or credited as interest to the non-resident person in the year are deemed to have been paid as dividends and not as interest.
Deemed interest payments
(17) For the purposes of subsection (16),
(a) interest payable (other than interest payable pursuant to a legal obligation to pay interest on an amount of interest) by a corporation resident in Canada, or by a partnership, in respect of a taxation year of the corporation, but that has not been paid or credited in the year, is deemed to have been paid immediately before the end of the year and not to have been paid or credited at any other time; and
(b) if subsection (6) or (7) deems a payment of interest to have been made to a non-resident person in respect of a debt or other obligation of a corporation, interest that, at the time of the transfer or assignment, is payable by the corporation in respect of the debt or other obligation and has not been paid or credited is deemed to have been paid by the corporation immediately before that time to the non-resident person.
(2) Subsection (1) applies to taxation years that end after March 28, 2012, except that
(a) for taxation years that include March 29, 2012, the amount of each dividend deemed by paragraph 214(16)(a) of the Act, as enacted by subsection (1), to have been paid in the taxation year is the proportion of the amount of the dividend otherwise determined under the paragraph that the number of days in the taxation year that are after March 28, 2012 is of the number of days in the taxation year; and
(b) before August 14, 2012, subsection 214(17) of the Act, as enacted by subsection (1), is to be read as follows:
(17) For the purposes of subsection (16), interest payable (other than interest payable pursuant to a legal obligation to pay interest on an amount of interest) by a corporation resident in Canada, or by a partnership, in respect of a taxation year of the corporation, but that has not been paid or credited in the year, is deemed to have been paid immediately before the end of the year and not at any other time.
51. (1) Section 219.1 of the Act is replaced by the following:
Corporate emigration
219.1 (1) If a taxation year of a corporation (in this subsection and subsection (2) referred to as the “emigrating corporation”) is deemed by paragraph 128.1(4)(a) to have ended at any time, the emigrating corporation shall, on or before its filing-due date for the year, pay a tax under this Part for the year equal to the amount determined by the formula
25% × (A – B)
where
A      is the fair market value of all the property owned by the emigrating corporation immediately before that time; and
B      is the total of
(a) the paid-up capital in respect of all the shares of the capital stock of the emigrating corporation immediately before that time,
(b) all amounts (other than amounts payable by the emigrating corporation in respect of dividends and amounts payable under this section) each of which is a debt owing by the emigrating corporation, or an obligation of the emigrating corporation to pay an amount, that is outstanding at that time, and
(c) if a tax was payable by the emigrating corporation under subsection 219(1) or this section for a preceding taxation year that began before 1996 and after the emigrating corporation last became resident in Canada, four times the total of all amounts that would, but for sections 219.2 and 219.3 and any tax treaty, have been so payable.
Foreign affiliate dumping — emigrating corporation
(2) The paid-up capital referred to in paragraph (a) of the description of B in subsection (1) is deemed to be nil if
(a) one or more shares of the emigrating corporation are, at the time the emigrating corporation ceases to be resident in Canada, owned by another corporation resident in Canada;
(b) the other corporation is controlled, at that time, by a non-resident corporation; and
(c) the emigrating corporation is, immediately after that time — or becomes, as part of a transaction or event or series of transactions or events that includes the emigrating corporation ceasing to be resident in Canada — a foreign affiliate of the other corporation.
Application of subsection (4)
(3) Subsection (4) applies if
(a) a corporation ceases to be resident in Canada at any time (referred to in subsection (4) as the “emigration time”);
(b) an amount is required by paragraph 212.3(2)(b) or (7)(b) to be deducted in computing the paid-up capital in respect of a class of shares of the capital stock of the corporation because of an investment in a subject corporation made by a CRIC that is described in paragraph 212.3(10)(a), (b) or (f);
(c) subsection 212.3(9) has not applied in respect of any reduction of the paid-up capital in respect of a class of shares of the capital stock of the corporation or a specified predecessor corporation (as defined in subsection 95(1)) of the corporation; and
(d) subsection (2) does not apply in respect of the cessation of residence.
Paid-up capital reinstatement
(4) If this subsection applies, the paid-up capital referred to in paragraph (a) of the description of B in subsection (1) is to be increased, immediately before the time that is immediately before the emigration time, by the lesser of
(a) the total of all amounts each of which is an amount by which the paid-up capital of a class of shares of the capital stock of the corporation was required by paragraph 212.3(2)(b) or (7)(b) to be reduced in respect of an investment in a subject corporation made by the CRIC that is described in paragraph 212.3(10)(a), (b) or (f), and
(b) the total of all amounts each of which is
(i) the fair market value of a share of the capital stock of a subject corporation that is owned by the corporation immediately before the emigration time, or
(ii) the portion of the fair market value of a particular share of the capital stock of a foreign affiliate of the corporation owned by the corporation immediately before the emigration time that may reasonably be considered to relate to a share of the capital stock of a subject corporation that was previously owned by the corporation and for which the particular share was substituted.
Assigned meanings from section 212.3
(5) For the purposes of subsections (3) and (4), “CRIC” and “subject corporation” have the meaning assigned to those terms by subsection 212.3(1) and “investment” has the same meaning as in subsection 212.3(10).
(2) Subsection (1) applies to corporations that cease to be resident in Canada after March 28, 2012.
52. (1) Section 227 of the Act is amended by adding the following after subsection (8.4):
No penalty — certain deemed payments
(8.5) Subsection (8) does not apply to a corporation in respect of
(a) an amount of interest deemed by subsection 214(16) to have been paid as a dividend by the corporation unless, if the Act were read without reference to subsection 214(16), a penalty under subsection (8) would have applied in respect of the amount; and
(b) an amount deemed by subsection 247(12) to have been paid as a dividend by the corporation.
(2) Subsection (1) applies to taxation years that end after March 28, 2012.
53. (1) Subparagraph 241(4)(d)(vii) of the Act is replaced by the following:
(vii) to an official solely for the purposes of the administration or enforcement of the Pension Benefits Standards Act, 1985, the Pooled Registered Pension Plans Act or a similar law of a province,
(2) Paragraph (b) of the definition “official” in subsection 241(10) of the Act is replaced by the following:
(b) an authority engaged in administering a law of a province similar to the Pension Benefits Standards Act, 1985 or the Pooled Registered Pension Plans Act,
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
54. (1) Section 247 of the Act is amended by adding the following after subsection (11):
Deemed dividends to non-residents
(12) For the purposes of Part XIII, if a particular corporation that is a resident of Canada for the purposes of Part XIII would have a transfer pricing capital adjustment or a transfer pricing income adjustment for a taxation year, if the particular corporation, or a partnership of which the particular corporation is a member, had undertaken no transactions or series of transactions other than those in which a particular non-resident person, or a partnership of which the particular non-resident person is a member, that does not deal at arm’s length with the particular corporation (other than a corporation that was for the purposes of section 17 a controlled foreign affiliate of the particular corporation throughout the period during which the transaction or series of transactions occurred) was a participant,
(a) a dividend is deemed to have been paid by the particular corporation and received by the particular non-resident person immediately before the end of the taxation year; and
(b) the amount of the dividend is the amount, if any, by which
(i) the amount that would be the portion of the total of the particular corporation’s transfer pricing capital adjustment and transfer pricing income adjustment for the taxation year that could reasonably be considered to relate to the particular non-resident person if
(A) the only transactions or series of transactions undertaken by the particular corporation were those in which the particular non-resident person was a participant, and
(B) the definition “transfer pricing cap-ital adjustment” in subsection (1) were read without reference to the references therein to “1/2 of” and “3/4 of”
exceeds
(ii) the amount that would be the portion of the total of the particular corporation’s transfer pricing capital setoff adjustment, and transfer pricing income setoff adjustment, for the taxation year that could reasonably be considered to relate to the particular non-resident person if
(A) the only transactions or series of transactions undertaken by the particular corporation were those in which the particular non-resident person was a participant, and
(B) the definition “transfer pricing cap-ital adjustment” in subsection (1) were read without reference to the references therein to “1/2 of” and “3/4 of”.
Repatriation
(13) If a dividend is deemed by subsection (12) to have been paid by a corporation and received by a non-resident person, and a particular amount has been paid with the concurrence of the Minister by the non-resident person to the corporation,
(a) the amount of the dividend may be reduced by the amount (in this subsection referred to as the “reduction”) that the Minister considers appropriate, having regard to all the circumstances, and
(b) subsections 227(8.1) and (8.3) apply as if
(i) the amount of the dividend were not reduced, and
(ii) on the day on which the particular amount was paid, the corporation paid to the Receiver General an amount equal to the amount that would be required to be withheld and remitted under Part XIII in respect of the reduction.
Repatriation — interest
(14) If the amount of a dividend is reduced under paragraph (13)(a), the amount of interest payable by a taxpayer because of paragraph (13)(b) may be reduced to the amount that the Minister considers appropriate, having regard to all the circumstances, including the provision of reciprocal treatment by the country in which the non-resident person referred to in subsection (13) is resident.
Non-application of provisions
(15) Section 15, subsections 56(2) and 212.3(2) and section 246 do not apply in respect of an amount to the extent that a dividend is deemed by subsection (12) (determined without reference to subsection (13)) to have been paid in respect of the amount.
(2) Subsection (1) applies in respect of any transaction that occurs after March 28, 2012.
55. (1) The definitions “registered disability savings plan”, “registered education savings plan” and “registered pension plan” in subsection 248(1) of the Act are replaced by the following:
“registered disability savings plan” or “RDSP”
« régime enregistré d’épargne-invalidité » ou « REEI »
“registered disability savings plan” or “RDSP” has the same meaning as in subsection 146.4(1);
“registered education savings plan” or “RESP”
« régime enregistré d’épargne-études » ou « REEE »
“registered education savings plan” or “RESP” has the same meaning as in subsection 146.1(1);
“registered pension plan”
« régime de pension agréé »
“registered pension plan” means a pension plan (other than a pooled pension plan) that has been registered by the Minister for the purposes of this Act and whose registration has not been revoked;
(2) The definition “retirement compensation arrangement” in subsection 248(1) of the Act is amended by adding the following after paragraph (a):
(a.1) a pooled registered pension plan,
(3) The definition “salary deferral arrangement” in subsection 248(1) of the Act is amended by adding the following after paragraph (a):
(a.1) a pooled registered pension plan,
(4) The portion of the definition “superannuation or pension benefit” in subsection 248(1) of the Act before paragraph (a) is replaced by the following:
“superannuation or pension benefit”
« prestation de retraite ou de pension »
“superannuation or pension benefit” includes any amount received out of or under a superannuation or pension fund or plan (including, except for the purposes of subparagraph 56(1)(a)(i), a pooled registered pension plan) and, without restricting the generality of the foregoing, includes any payment made to a beneficiary under the fund or plan or to an employer or former employer of the beneficiary under the fund or plan
(5) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
“pooled pension plan”
« régime de pension collectif »
“pooled pension plan” has the same meaning as in subsection 147.5(1);
“pooled registered pension plan” or “PRPP”
« régime de pension agréé collectif » ou « RPAC »
“pooled registered pension plan” or “PRPP” has the same meaning as in subsection 147.5(1);
“specified unitholder”
« détenteur d’unité déterminé »
“specified unitholder”, of a partnership or trust (referred to in this definition as the “entity”), the interests in which are described by reference to units, means a taxpayer who would be a specified shareholder of the entity if the entity were a corporation and each unit of the entity were a share of a class of the corporation having the same attributes as the unit;
(6) The definition “registered pension plan” in subsection 248(1) of the Act, as enacted by subsection (1), and subsections (2) to (5) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
56. (1) Subsection 252(3) of the Act is replaced by the following:
Extended meaning of “spouse” and “former spouse”
(3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) 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), the definition “survivor” in subsection 146.2(1), subparagraph 146.3(2)(f)(iv), subsections 146.3(14), 147(19) and 147.3(5) and (7), section 147.5, subsections 148(8.1) and (8.2), the definition “qualifying transfer” in subsection 207.01(1), subparagraph 210(c)(ii) and subsections 248(22) and (23), “spouse” and “former spouse” of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
57. (1) Section 253.1 of the Act is replaced by the following:
Investments in limited partnerships
253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b) and 132(6)(b), subsection 146.2(6), paragraph 146.4(5)(b), subsection 147.5(8), paragraph 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the the Pooled Registered Pension Plans Act comes into force.
C.R.C., c. 945
Income Tax Regulations
58. (1) Paragraph (b) of the definition “remuneration” in subsection 100(1) of the Income Tax Regulations is replaced by the following:
(b) a superannuation or pension benefit (including an annuity payment made pursuant to or under a superannuation or pension fund or plan) other than a distribution
(i) that is made from a pooled registered pension plan and is not required to be included in computing a taxpayer’s income under paragraph 56(1)(z.3) of the Act, or
(ii) that subsection 147.5(14) of the Act deems to have been made,
(2) Paragraph 100(3)(a) of the Regulations is replaced by the following:
(a) a contribution to or under a pooled registered pension plan, a registered pension plan or a specified pension plan, or
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
59. (1) The Regulations are amended by adding the following after section 212:
Pooled Registered Pension Plans
213. An administrator of a PRPP must file with the Minister an information return for each calendar year in prescribed form in respect of the PRPP
(a) if an agreement concerning annual information returns has been entered into by the Minister and an authority responsible for the supervision of the PRPP under the Pooled Registered Pension Plans Act or a similar law of a province, on or before the day on which an information return required by that authority is to be filed for the calendar year; and
(b) in any other case, on or before May 1 of the following calendar year.
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
60. (1) Paragraph 304(1)(a) of the Regulations is replaced by the following:
(a) an annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to (b.3) and (d) of the Act;
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
61. (1) The portion of subsection 1104(13) of the Regulations before the definition “basic oxygen furnace gas” is replaced by the following:
(13) The definitions in this subsection apply for the purposes of this subsection, subsections (14) to (17) and Classes 43.1 and 43.2 in Schedule II.
(2) The definitions “eligible waste fuel” and “plant residue” in subsection 1104(13) of the Regulations are replaced by the following:
“eligible waste fuel” means biogas, bio-oil, digester gas, landfill gas, municipal waste, plant residue, pulp and paper waste and wood waste. (combustible résiduaire admissible)
“plant residue” means residue of plants (not including wood waste and waste that no longer has the chemical properties of the plants of which it is a residue) that would otherwise be waste material and that is used
(a) in a system that converts biomass into bio-oil or biogas; or
(b) as an eligible waste fuel. (résidus végétaux)
(3) Section 1104 of the Regulations is amended by adding the following after subsection (16):
(17) A property that would otherwise be eligible for inclusion in Class 43.1 or Class 43.2 in Schedule II by a taxpayer is deemed not to be eligible for inclusion in either of those classes if
(a) the property is included in Class 43.1 because of its subparagraph (c)(i) or is described in any of subparagraphs (d)(viii), (ix), (xi) and (xiii) of Class 43.1 and paragraph (a) of Class 43.2; and
(b) at the time the property becomes available for use by the taxpayer, the taxpayer has not satisfied the requirements of all environmental laws, by-laws and regulations
(i) of Canada, a province or a municipality in Canada, or
(ii) of a municipal or public body performing a function of government in Canada
applicable in respect of the property.
(4) Subsections (1) to (3) are deemed to have come into force on March 29, 2012.
62. (1) Subsection 2900(4) of the Regulations is replaced by the following:
(4) For the purposes of the definition “qual-ified expenditure” in subsection 127(9) of the Act, the prescribed proxy amount of a taxpayer for a taxation year, in respect of a business, in respect of which the taxpayer elects under clause 37(8)(a)(ii)(B) of the Act is 55% of the total of all amounts each of which is that portion of the amount incurred in the year by the taxpayer in respect of salary or wages of an employee of the taxpayer who is directly engaged in scientific research and experimental development carried on in Canada that can reasonably be considered to relate to the scientific research and experimental development having regard to the time spent by the employee on the scientific research and experimental development.
(2) Subsection (1) applies to taxation years that end after 2012, except that for taxation years that begin before 2014 the reference to “55%” in subsection 2900(4) of the Regulations, as enacted by subsection (1), is to be read as a reference to the percentage that is the total of
(a) 65% multiplied by the proportion that the number of days that are in the taxation year and before 2013 is of the number of days in the taxation year,
(b) 60% multiplied by the proportion that the number of days that are in the taxation year and in 2013 is of the number of days in the taxation year, and
(c) 55% multiplied by the proportion that the number of days that are in the taxation year and after 2013 is of the number of days in the taxation year.
63. (1) Subparagraph 2902(b)(ii) of the Regulations is replaced by the following:
(ii) the acquisition of property that is qualified property or qualified resource property within the meaning assigned by subsection 127(9) of the Act, or
(2) Paragraph 2902(b) of the Regulations, as amended by subsection (1), is replaced by the following:
(b) an expenditure incurred by a taxpayer in respect of
(i) the acquisition of property that is qualified property or qualified resource property within the meaning assigned by subsection 127(9) of the Act, or
(ii) the acquisition of property that has been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer;
(3) The portion of paragraph 2902(e) of the Regulations before subparagraph (i) is replaced by the following:
(e) an expenditure of a taxpayer, to the extent that the taxpayer has received or is entitled to receive a reimbursement in respect of it from
(4) Subsection (1) applies in respect of expenditures incurred after March 28, 2012.
(5) Subsections (2) and (3) apply in respect of expenditures incurred after 2013.
64. (1) Section 2903 of the Regulations is repealed.
(2) Subsection (1) applies after 2013.
65. (1) Section 4301 of the Regulations is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(b.1) subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and
(2) Subsection (1) is deemed to have come into force on March 29, 2012.
66. (1) The portion of subsection 4600(1) of the Regulations before paragraph (a) is replaced by the following:
4600. (1) Property is a prescribed building for the purposes of the definitions “qualified property” and “qualified resource property” in subsection 127(9) of the Act if it is depreciable property of the taxpayer that is a building or grain elevator and it is erected on land owned or leased by the taxpayer,
(2) The portion of subsection 4600(2) of the Regulations before paragraph (a) is replaced by the following:
(2) Property is prescribed machinery and equipment for the purposes of the definitions “qualified property” and “qualified resource property” in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that is
(3) Section 4600 of the Regulations is amended by adding the following after subsection (2):
(3) Property is prescribed energy generation and conservation property for the purposes of the definition “qualified property” in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1) or (2)) that is a property included in any of subparagraph (a.1)(i) of Class 17 and Classes 43.1, 43.2 and 48 in Schedule II.
(4) Subsections (1) to (3) are deemed to have come into force on March 29, 2012.
67. (1) Subsection 4802(1) of the Regulations is amended by adding the following after paragraph (c.2):
(c.3) a pooled registered pension plan;
(2) Paragraph 4802(1.1)(e) of the Regulations is replaced by the following:
(e) each of the beneficiaries of the trust was a trust governed by a deferred profit sharing plan, a pooled registered pension plan or a registered pension plan.
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
68. (1) The portion of section 8201 of the Regulations before paragraph (a) is replaced by the following:
8201. For the purposes of subsection 16.1(1), the definition “outstanding debts to specified non-residents” in subsection 18(5), the definition “excluded income” and “excluded revenue” in subsection 95(2.5), subsections 100(1.3), 112(2), 125.4(1) and 125.5(1), the definition “taxable supplier” in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), the definition “Canadian banking business” in subsection 248(1) and paragraph 260(5)(a) of the Act, a “permanent establishment” of a person or partnership (either of whom is referred to in this section as the “person”) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, if the person does not have any fixed place of business, the principal place at which the person’s business is conducted, and
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
69. (1) Subparagraph 8502(b)(iv) of the Regulations is replaced by the following:
(iv) is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (8) and 147.5(21) of the Act, or
(2) Subsection (1) comes into force or is deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
70. (1) Subparagraph (d)(ix) of Class 43.1 in Schedule II to the Regulations is replaced by the following:
(ix) equipment used by the taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, primarily from the consumption of eligible waste fuel and not using any fuel other than eligible waste fuel or fossil fuel, including such equipment that consists of fuel handling equipment used to upgrade the combustible portion of the fuel and control, feedwater and condensate systems, and other ancillary equipment, but not including equipment used for the purpose of producing heat energy to operate electrical generating equipment, buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), fuel storage facilities, other fuel handling equipment and property otherwise included in Class 10 or 17,
(2) Clause (d)(xv)(B) of Class 43.1 in Schedule II to the Regulations is replaced by the following:
(B) is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv) or (ix) or would be described in those subparagraphs if owned by the taxpayer, and
(3) Subsections (1) and (2) are deemed to have come into force on March 29, 2012.
SOR/2008-186
Canada Disability Savings Regulations
71. Paragraph 4(g) of the Canada Disability Savings Regulations is replaced by the following:
(g) the issuer shall, when transferring the property of the RDSP, provide to the issuer of the new plan all information that it is required to provide in accordance with paragraph 146.4(8)(c) of the Income Tax Act; and
72. (1) Subsections 5(1) and (2) of the Regulations are replaced by the following:
5. (1) Subject to sections 5.1 and 5.2, an issuer of an RDSP shall repay to the Minister, within the period set out in the issuer agreement, the amount referred to in subsection (2) if
(a) the RDSP is terminated;
(b) the plan ceases to be an RDSP as a result of the application of paragraph 146.4(10)(a) of the Income Tax Act;
(c) the beneficiary ceases to be a DTC-eligible individual, unless they are the subject of an election made under subsection 146.4(4.1) of the Income Tax Act; or
(d) the beneficiary dies.
(2) The amount that must be repaid as a result of the occurrence of an event described in subsection (1) is the lesser of
(a) the fair market value, immediately before the occurrence, of the property held by the RDSP, and
(b) the assistance holdback amount of the RDSP immediately before the occurrence.
(2) Subsection (1) comes into force on January 1, 2014.
73. (1) The Regulations are amended by adding the following after section 5:
5.1 If an event described in paragraph 5(1)(a), (b) or (d) occurs while the beneficiary of an RDSP is the subject of an election made under subsection 146.4(4.1) of the Income Tax Act, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the lesser of
(a) the fair market value, immediately before the occurrence of the event, of the property held by the RDSP, and
(b) the amount determined by the formula
A + B – C
where
A      is the assistance holdback amount of the RDSP immediately before the beneficiary ceased to be a DTC-eligible individual,
B      is the amount of any grant or bond that is paid into the RDSP during the period beginning on the day on which the beneficiary ceased to be a DTC-eligible individual and ending on the day on which the event occurs, and
C      is the amount of any grant or bond that has been repaid since the day on which the beneficiary ceased to be a DTC-eligible individual.
5.2 If an election made under subsection 146.4(4.1) of the Income Tax Act in respect of the beneficiary of an RDSP ceases to be valid because of paragraph 146.4(4.2)(b) of that Act, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the lesser of
(a) the fair market value, immediately before the election ceases to be valid, of the property held by the RDSP, and
(b) the amount determined by the formula
A + B – C
where
A      is the assistance holdback amount of the RDSP immediately before the beneficiary ceased to be a DTC-eligible individual,
B      is the amount of any grant or bond that is paid into the RDSP during the period beginning on the day on which the beneficiary ceased to be a DTC-eligible individual and ending on the day on which the election ceases to be valid, and
C      is the amount of any grant or bond that has been repaid since the day on which the beneficiary ceased to be a DTC-eligible individual.
5.3 (1) Subject to section 5.4, if a disability assistance payment is made, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the least of the following amounts:
(a) $3 for every $1 of disability assistance payment made,
(b) the fair market value, immediately before the making of the disability assistance payment, of the property held by the RDSP, and
(c) the assistance holdback amount of the RDSP immediately before the making of the disability assistance payment.
(2) An issuer that repays the amount referred to in paragraph (1)(a) is to do so from the grants and bonds that were paid into the RDSP within the 10-year period preceding the making of the disability assistance payment, in the order in which they were paid into it.
5.4 (1) If a disability assistance payment is made to a beneficiary who is the subject of an election made under subsection 146.4(4.1) of the Income Tax Act, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the least of the following amounts:
(a) $3 for every $1 of disability assistance payment made,
(b) the fair market value, immediately before the making of the disability assistance payment, of the property held by the RDSP, and
(c) the amount determined by the formula
A + B – C
where
A      is the assistance holdback amount of the RDSP immediately before the beneficiary ceased to be a DTC-eligible individual,
B      is the amount of any grant or bond that is paid into the RDSP during the period beginning on the day on which the beneficiary ceased to be a DTC-eligible individual and ending on the day on which the disability assistance payment is made, and
C      is the amount of any grant or bond that has been repaid since the day on which the beneficiary ceased to be a DTC-eligible individual.
(2) An issuer that repays the amount referred to in paragraph (1)(a) is to do so from the grants and bonds that were paid into the RDSP within the 10-year period before the beneficiary ceased to be a DTC-eligible individual and those that were paid into the RDSP within the period referred to in the description of B in paragraph (1)(c), in the order in which they were paid into it.
(3) Subsection (1) does not apply in respect of any disability assistance payment made in the calendar year in which the beneficiary of the RDSP attains 60 years of age, or in any subsequent calendar year, if the total amount of disability assistance payments made to the beneficiary in that calendar year is less than or equal to the amount determined in accordance with paragraph 146.4(4)(l) of the Income Tax Act for that calendar year.
(2) Subsection (1) comes into force on January 1, 2014.
PART 2
MEASURES IN RESPECT OF SALES TAX
R.S., c. E-15
Excise Tax Act
1990, c. 45, s. 12(1)
74. (1) The definition “fiscal year” in subsection 123(1) of the Excise Tax Act is replaced by the following:
“fiscal year”
« exercice »
“fiscal year” of a person means
(a) if section 244.1 applies to the person, the period determined under that section,
(b) if section 244.1 does not apply to the person and the person has made an election under section 244 that is in effect, the period that the person elected to be the fiscal year of the person, and
(c) in all other cases, the taxation year of the person;
(2) Subsection 123(1) of the Act is amended by adding the following in alphabetical order:
“participating employer”
« employeur participant »
“participating employer” of a pension plan means an employer that has made, or is required to make, contributions to the pension plan in respect of the employer’s employees or former employees, or payments under the pension plan to the employer’s employees or former employees, and includes an employer prescribed for the purposes of the definition “participating employer” in subsection 147.1(1) of the Income Tax Act;
“pension entity”
« entité de gestion »
“pension entity” of a pension plan means a person in respect of the pension plan that is
(a) a person referred to in paragraph (a) of the definition “pension plan”,
(b) a corporation referred to in paragraph (b) of that definition, or
(c) a prescribed person;
“pension plan”
« régime de pension »
“pension plan” means a registered pension plan (as defined in subsection 248(1) of the Income Tax Act)
(a) that governs a person that is a trust or that is deemed to be a trust for the purposes of that Act,
(b) in respect of which a corporation is
(i) incorporated and operated either
(A) solely for the administration of the registered pension plan, or
(B) for the administration of the registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement (as defined in subsection 248(1) of that Act), where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan, and
(ii) accepted by the Minister, under subparagraph 149(1)(o.1)(ii) of that Act, as a funding medium for the purpose of the registration of the registered pension plan, or
(c) in respect of which a person is prescribed for the purposes of the definition “pension entity”;
(3) Subsection (1) is deemed to have come into force on July 1, 2009.
(4) Subsection (2) is deemed to have come into force on September 23, 2009.
2010, c. 12, s. 58(1)
75. (1) The definitions “participating employer”, “pension entity” and “pension plan” in subsection 172.1(1) of the Act are repealed.
(2) Subsection (1) is deemed to have come into force on September 23, 2009.
2009, c. 32, s. 14(1)
76. (1) Paragraph 218.1(1)(a) of the Act is replaced by the following:
(a) every person that is resident in a participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for a prescribed purpose in respect of the supply or, in the absence of a prescribed purpose in respect of the supply, for consumption, use or supply in participating provinces to an extent that is prescribed, must, for each time an amount of consideration for the supply becomes due or is paid without having become due and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula
A × B × C
where
A      is the tax rate for the participating province,
B      is the value of that consideration that is paid or becomes due at that time, and
C      is the prescribed percentage in respect of the supply or, in the absence of a prescribed percentage in respect of the supply, the extent (expressed as a percent-age) to which the person acquired the property or service for consumption, use or supply in the participating province; and
2009, c. 32, s. 14(1)
(2) Clause (B) of the description of C in paragraph 218.1(1)(b) of the Act is replaced by the following:
(B) in any other case, the prescribed percentage in respect of the supply or, in the absence of a prescribed percent-age in respect of the supply, the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the particular participating province.
2001, c. 15, s. 8(2)
(3) Subsection 218.1(1.1) of the Act is replaced by the following:
Delivery in a province
(1.1) Section 3 of Part II of Schedule IX applies for the purpose of subparagraph (1)(b)(ii).
2010, c. 12, s. 64(2)
(4) The description of A2 in the second formula in paragraph 218.1(1.2)(a) of the Act is replaced by the following:
A2 is the prescribed percentage in respect of the internal charge or, in the absence of a prescribed percentage in respect of the internal charge, the extent (expressed as a percentage) to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province, and
2010, c. 12, s. 64(2)
(5) The description of B2 in the third formula in paragraph 218.1(1.2)(a) of the Act is replaced by the following:
B2 is the prescribed percentage in respect of the external charge or, in the absence of a prescribed percentage in respect of the external charge, the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating prov-ince; and
2010, c. 12, s. 64(2)
(6) The description of D in paragraph 218.1(1.2)(b) of the Act is replaced by the following:
D      is the prescribed percentage in respect of the qualifying consideration or, in the absence of a prescribed percentage in respect of the qualifying consideration, the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the qualifying consideration is attribut-able, in carrying on, engaging in or conducting an activity of the qual-ifying taxpayer in the particular participating province.
(7) Subsections (1) and (2) apply in respect of any supply made on or after July 1, 2010.
(8) Subsection (3) is deemed to have come into force on July 1, 2010.
(9) Subsections (4) to (6) apply in respect of any specified year of a person that ends on or after July 1, 2010.
2010, c. 12, s. 68(1)
77. (1) The portion of subsection 220.05(3.1) of the Act before paragraph (a) is replaced by the following:
Pension entities
(3.1) No tax is payable under subsection (1) in respect of property if a person that is a pension entity of a pension plan is the recipient of a particular supply of the property made by a participating employer of the pension plan and
(2) Subsection (1) is deemed to have come into force on September 23, 2009.
2009, c. 32, s. 19(1)
78. (1) Subsection 220.08(1) of the Act is replaced by the following:
Tax in participating province
220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for a prescribed purpose in respect of the supply or, in the absence of a prescribed purpose in respect of the supply, for consumption, use or supply in whole or in part in any participating province that is not the particular province must pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner.
2010, c. 12, s. 69(1)
(2) The portion of subsection 220.08(3.1) of the Act before paragraph (a) is replaced by the following:
Pension entities
(3.1) No tax is payable under subsection (1) in respect of a particular supply of property or a service made by a participating employer of a pension plan to a person that is a pension entity of the pension plan if
(3) Subsection (1) applies in respect of any supply made on or after July 1, 2010.
(4) Subsection (2) is deemed to have come into force on September 23, 2009.
1997, c. 10, s. 208(1)
79. (1) Subsection 225.2(1) of the Act is replaced by the following:
Selected listed financial institutions
225.2 (1) For the purposes of this Part, a financial institution is a selected listed financial institution throughout a reporting period in a fiscal year that ends in a taxation year of the financial institution if the financial institution is
(a) a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the taxation year; and
(b) a prescribed financial institution throughout the reporting period.
1997, c. 10, s. 208(1)
(2) Paragraph (a) of the description of F in subsection 225.2(2) of the Act is replaced by the following:
(a) all amounts of tax (other than a prescribed amount of tax) under subsection 165(2) in respect of supplies made in the participating province to the financial institution, or under section 212.1 calculated at the tax rate for the participating province, that
(i) became payable, or were paid without having become payable, by the financial institution during
(A) the particular reporting period, or
(B) any other reporting period of the financial institution that precedes the particular reporting period, provided that
(I) the particular reporting period ends within two years after the end of the financial institution’s fiscal year that includes the other reporting period, and
(II) the financial institution was a selected listed financial institution throughout the other reporting period,
(ii) were not included in determining the positive or negative amounts that the financial institution is required to add, or may deduct, under this subsection in determining its net tax for any reporting period of the financial institution other than the particular reporting period, and
(iii) are claimed by the financial institution in a return under this Division filed by the financial institution for the particular reporting period, and
1997, c. 10, s. 208(1)
(3) Paragraph (b) of the description of F in subsection 225.2(2) of the English version of the Act is replaced by the following:
(b) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A apply, equal to tax payable by the other person under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution; and
1997, c. 10, s. 208(1)
(4) Subsection 225.2(8) of the Act is repealed.
(5) Subsections (1) and (2) apply in respect of any reporting period of a person that ends on or after July 1, 2010.
(6) Subsection (4) is deemed to have come into force on July 1, 2010.
80. (1) The Act is amended by adding the following after section 225.2:
Definitions
225.3 (1) In this section, “exchange-traded fund”, “exchange-traded series”, “non-stratified investment plan” and “stratified investment plan” have the meaning prescribed by regulation.
Application to Minister
(2) A selected listed financial institution that is an exchange-traded fund may apply to the Minister to use particular methods, for a fiscal year that ends in a taxation year of the financial institution, to determine
(a) if the financial institution is a stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each exchange-traded series of the financial institution, for each participating province and for the taxation year; and
(b) if the financial institution is a non-stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each participating province and for the taxation year.
Form and manner of application
(3) An application made by a selected listed financial institution under subsection (2) is to be
(a) made in prescribed form containing prescribed information, including
(i) if the financial institution is a stratified investment plan, the particular methods to be used for each exchange-traded series of the financial institution, and
(ii) if the financial institution is a non-stratified investment plan, the particular methods to be used for the financial institution; and
(b) filed by the financial institution with the Minister in prescribed manner on or before
(i) the day that is 180 days before the first day of the fiscal year for which the application is made, or
(ii) any later day that the Minister may allow.
Authorization
(4) On receipt of an application made under subsection (2), the Minister must
(a) consider the application and authorize or deny the use of the particular methods; and
(b) notify the selected listed financial institution in writing of the decision on or before
(i) the later of
(A) the day that is 180 days after the receipt of the application, and
(B) the day that is 180 days before the first day of the fiscal year for which the application is made, or
(ii) any later day that the Minister may specify, if the day is set out in a written application filed by the financial institution with the Minister.
Effect of authorization
(5) If the Minister authorizes under subsection (4) the use of particular methods for a fiscal year of the selected listed financial institution,
(a) despite Part 2 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) the financial institution’s percentages for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those par-ticular methods, and
(ii) the financial institution’s percentages for any exchange-traded series of the financial institution, for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those particular methods; and
(b) the financial institution must consistently, throughout the fiscal year, use those particular methods as indicated in the application to determine the percentages referred to in paragraph (a).
Revocation
(6) An authorization granted under subsection (4) to a selected listed financial institution in respect of a fiscal year of the financial institution ceases to have effect on the first day of the fiscal year and, for the purposes of this Part, is deemed never to have been granted, if
(a) the Minister revokes the authorization and sends a notice of revocation to the financial institution at least 60 days before the first day of the fiscal year; or
(b) the financial institution files with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information on or before the first day of the fiscal year.
Definitions
225.4 (1) The following definitions apply in this section.
“business input”
« intrant d’entreprise »
“business input” has the same meaning as in subsection 141.02(1).
“Canadian activity”
« activité au Canada »
“Canadian activity” has the same meaning as in section 217.
“exclusive input”
« intrant exclusif »
“exclusive input” of a person means property or a service that is acquired or imported by the person for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively for purposes other than making taxable supplies for consideration.
Prescribed definitions
(2) In this section, “exchange-traded fund”, “exchange-traded series”, “individual”, “investment plan”, “non-stratified investment plan”, “plan member”, “private investment plan”, “series”, “specified investor”, “stratified investment plan” and “unit” have the meaning prescribed by regulation.
Stratified investment plans
(3) If a selected listed financial institution is a stratified investment plan and no election under subsection (6) in respect of a series of the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:
(a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) if the series is an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province,
(ii) if the series is not an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individ-ual that is resident in Canada but not resident in any participating province, and
(iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident;
(b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the series that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada;
(c) for the purposes of the definitions “external charge” and “qualifying consideration” in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the series that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and
(d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input
(i) is acquired or imported for consumption, use or supply in the course of any activity relating to the series, or
(ii) is not an exclusive input of the financial institution.
Non-stratified investment plans
(4) If a selected listed financial institution is a non-stratified investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:
(a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) if the financial institution is an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province,
(ii) if the financial institution is not an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individ-ual that is resident in Canada but not resident in any participating province, and
(iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident;
(b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada;
(c) for the purposes of the definitions “external charge” and “qualifying consideration” in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and
(d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution.
Pension entities and private investment plans
(5) If a selected listed financial institution is an investment plan that is a pension entity of a pension plan or a private investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:
(a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) all plan members of the financial institution that the financial institution knows, on December 31 of the calendar year, are not resident in Canada at a particular time in the fiscal year are deemed to be resident in Canada at the particular time but not resident in any participating province, and
(ii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which each of the plan members referred to in subparagraph (i) is resident;
(b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of plan members of the financial institution that are not resident in Canada is deemed to have been made to a person resident in Canada;
(c) for the purposes of the definitions “external charge” and “qualifying consideration” in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of plan members of the financial institution that are not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and
(d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution.
Election — stratified investment plans
(6) A stratified investment plan may make an election in respect of a series of the investment plan to have subsection (3) not apply to the series, and that election is to be effective from the first day of a fiscal year of the investment plan.
Election — other investment plans
(7) A person that is a non-stratified investment plan, a pension entity or a private investment plan may make an election to have subsection (4) or (5), as the case may be, not apply to the person, and that election is to be effective from the first day of a fiscal year of the person.
Form of election
(8) An election made under subsection (6) or (7) by a person is to
(a) be made in prescribed form containing prescribed information;
(b) set out the first fiscal year of the person during which the election is to be in effect; and
(c) be filed with the Minister in prescribed manner on or before the first day of that first fiscal year or any later day that the Minister may allow.
Cessation
(9) An election made under subsection (6) or (7) by a person ceases to have effect on the earliest of
(a) the first day of the fiscal year of the person in which the person ceases to be a selected listed financial institution,
(b) in the case of an election made under subsection (6), the first day of the fiscal year of the person in which the person ceases to be a stratified investment plan,
(c) in the case of an election made under subsection (7), the first day of the fiscal year of the person in which the person ceases to be a non-stratified investment plan, a pension entity or a private investment plan, as the case may be, and
(d) the day on which a revocation of the election becomes effective.
Revocation
(10) A person that has made an election under subsection (6) or (7) may revoke the election, effective on the first day of a fiscal year of the person that begins at least five years after the election becomes effective, or on the first day of any earlier fiscal year as the Minister may allow on application by the person, by filing with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information no later than the day on which the revocation is to become effective.
Restriction
(11) If a revocation of an election made under subsection (6) or (7) by a person becomes effective on a particular day, any subsequent election under that subsection is not a valid election unless the first day of the fiscal year of the person set out in the subsequent election is a day that is at least five years after the particular day or any earlier day as the Minister may allow on application by the person.
(2) Subsection (1) applies in respect of any fiscal year of a person that ends on or after July 1, 2010, except that for any fiscal year that begins before March 1, 2011, paragraph 225.4(8)(c) of the Act, as enacted by subsection (1), is to be read as follows:
(c) be filed with the Minister in prescribed manner on or before March 1, 2011 or any later day that the Minister may allow.
2010, c. 12, s. 71(1)
81. (1) Paragraph 232.01(1)(a) of the Act is replaced by the following:
(a) “employer resource” and “specified resource” have the same meanings as in section 172.l;
(2) Subsection (1) is deemed to have come into force on September 23, 2009.
82. (1) Section 240 of the Act is amended by adding the following after subsection (1.1):
Prescribed selected listed financial institutions
(1.2) Every selected listed financial institution that is prescribed is required to be registered for the purposes of this Part.
Group registration of selected listed financial institutions
(1.3) The following rules apply in respect of a prescribed group of selected listed financial institutions:
(a) the group is required to be registered for the purposes of this Part;
(b) a person that is prescribed in respect of the group must apply to the Minister for registration of the group before the day that is prescribed;
(c) each member of the group is deemed to be a registrant for the purposes of this Part; and
(d) despite subsections (1) to (1.2), each member of the group is not required to be separately registered.
Additional member of group
(1.4) If a selected listed financial institution becomes, on a particular day, a member of an existing group that is required to be registered for the purposes of this Part or that is registered under this Subdivision, the following rules apply:
(a) if the group is required to be registered, the application for the registration of the group under paragraph (1.3)(b) must list the financial institution as a member of the group;
(b) if the group is registered, the financial institution or the person that is prescribed in respect of the group for the purpose of paragraph (1.3)(b) must, before the day that is 30 days after the particular day, apply to the Minister to add the financial institution to the registration of the group;
(c) the financial institution is deemed to be a registrant for the purposes of this Part as of the particular day; and
(d) despite subsections (1) to (1.2), the financial institution is not required to be separately registered as of the particular day.
1993, c. 27, s. 100(1)
(2) The portion of subsection 240(2.1) of the Act before paragraph (b) is replaced by the following:
Application
(2.1) A person required under any of subsections (1) to (1.2) to be registered must apply to the Minister for registration before the day that is 30 days after
(a) in the case of a person required under subsection (1.1) to be registered in respect of a taxi business, the day the person first makes a taxable supply in Canada in the course of that business;
(a.1) in the case of a selected listed financial institution required under subsection (1.2) to be registered, the day that is prescribed; and
1993, c. 27, s. 100(1)
(3) Paragraph 240(2.1)(b) of the French version of the Act is replaced by the following:
b) dans les autres cas, la date où la personne effectue, autrement qu’à titre de petit fournisseur, une première fourniture taxable au Canada dans le cadre d’une activité commerciale qu’elle y exerce.
1993, c. 27, s. 100(1)
(4) The portion of subsection 240(3) of the Act before paragraph (a) is replaced by the following:
Registration permitted
(3) An application for registration for the purposes of this Part may be made to the Minister by any person that is not required under subsection (1), (1.1), (1.2), (2) or (4) to be registered, that is not required to be included in, or added to, the registration of a group under subsection (1.3) or (1.4) and that
1990, c. 45, s. 12(1)
(5) Subsection 240(5) of the Act is replaced by the following:
Form and contents of application
(5) An application for registration, or an application to be added to the registration of a group, is to be filed with the Minister in prescribed manner and is to be made in prescribed form containing prescribed information.
(6) Subsections (1) to (5) are deemed to have come into force on July 1, 2010.
1990, c. 45, s. 12(1); 1993, c. 27, s. 101(1)
83. (1) Subsection 241(1) of the Act is replaced by the following:
Registration
241. (1) The Minister may register any person that applies for registration and, upon doing so, must assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration.
Group registration
(1.1) If a person applies to register a group of selected listed financial institutions that is prescribed for the purposes of subsection 240(1.3), the Minister may register the group and, upon doing so, the following rules apply:
(a) the Minister must assign a registration number to the group and notify in writing the person that is prescribed in respect of the group for the purpose of paragraph 240(1.3)(b) and each financial institution listed on the application of the registration number and the effective date of the registration of the group;
(b) for each member of the group that is registered under this Subdivision on the day preceding the effective date, that registration is cancelled as of the effective date of the registration of the group; and
(c) each member of the group is deemed, for the purposes of this Part other than section 242, to be registered under this Subdivision as of the effective date of the registration of the group and to have a registration number that is the same as the registration number of the group.
Addition of new member to group registration
(1.2) If an application is made to add a selected listed financial institution to the registration of a group under paragraph 240(1.4)(b), the Minister may add the financial institution to the registration and, upon doing so, the following rules apply:
(a) the Minister must notify in writing the person that is prescribed in respect of the group for the purpose of paragraph 240(1.3)(b) and the financial institution of the effective date of the addition to the registration;
(b) if the financial institution is registered under this Subdivision on the day preceding the effective date, that registration of the financial institution is cancelled as of the effective date; and
(c) the financial institution is deemed, for the purposes of this Part other than section 242, to be registered under this Subdivision as of the effective date and to have a registration number that is the same as the registration number of the group.
(2) Subsection (1) is deemed to have come into force on July 1, 2010.
84. (1) Section 242 of the Act is amended by adding the following after subsection (1):
Cancellation of group registration
(1.1) The Minister may, after giving reasonable written notice to each member of a group that is registered under this Subdivision and to the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b), cancel the registration of the group if the Minister is satisfied that the registration is not required for the purposes of this Part.
Cancellation of group registration
(1.2) The Minister must cancel the registration of a group in prescribed circumstances.
Removal from group registration
(1.3) The Minister may, after giving reasonable written notice to a particular person that is a member of a group that is registered under this Subdivision and to the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b), remove the particular person from the registration of the group if the Minister is satisfied that the particular person is not required to be included in the registration for the purposes of this Part.
Removal from group registration
(1.4) The Minister must remove a person from the registration of a group in prescribed circumstances.
1993, c. 27, s. 102(2)
(2) Subsection 242(3) of the Act is replaced by the following:
Notice of cancellation or variation
(3) If the Minister cancels or varies the registration of a person, the Minister must notify the person in writing of the cancellation or variation and its effective date.
Group registration — notice of cancellation
(4) If the Minister cancels the registration of a group,
(a) the Minister must notify in writing each member of the group and the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b) of the cancellation and its effective date; and
(b) each member of the group is deemed, for the purposes of this Part, to no longer be registered under this Subdivision as of the effective date of the cancellation.
Group registration — notice of removal
(5) If the Minister removes a particular person from the registration of a group,
(a) the Minister must notify in writing the particular person and the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b) of the removal and its effective date; and
(b) the particular person is deemed, for the purposes of this Part, to no longer be registered under this Subdivision as of the effective date of the removal.
(3) Subsections (1) and (2) are deemed to have come into force on July 1, 2010.
85. (1) The Act is amended by adding the following after section 244:
Fiscal year — selected listed financial institution
244.1 (1) If a person is a financial institution described in subparagraph 149(1)(a)(vi) or (ix) that is a selected listed financial institution throughout a particular reporting period in a particular fiscal year of the person that begins in a particular calendar year and the person was not a selected listed financial institution throughout the reporting period immediately before the particular reporting period, the following rules apply:
(a) the particular fiscal year ends on the last day of the particular calendar year; and
(b) as of the beginning of the first day of the calendar year that is immediately after the particular calendar year, the fiscal years of the person are calendar years and any election made by the person under section 244 ceases to have effect.
Fiscal year — selected listed financial institution
(2) Despite subsection (1), if a person is a financial institution described in subparagraph 149(1)(a)(vi) or (ix) that is a selected listed financial institution throughout a particular reporting period in a particular fiscal year of the person, the following rules apply in prescribed circumstances to determine the fiscal year of the person:
(a) the particular fiscal year ends on the day immediately before the prescribed day referred to in paragraph (b); and
(b) the following fiscal year of the person begins on a prescribed day.
Ceasing to be selected listed financial institution
(3) If a person is a financial institution described in subparagraph 149(1)(a)(vi) or (ix) that is a selected listed financial institution throughout a reporting period in a particular fiscal year and the person is not a selected listed financial institution throughout a reporting period in the following fiscal year of the person, that following fiscal year ends on the day on which it would end in the absence of this section.
(2) Subsection (1) applies in respect of any fiscal year of a person that ends after 2010, except that in applying subsection 244.1(1) of the Act, as enacted by subsection (1), in respect of any fiscal year that begins before 2011, that subsection of the Act is to be read without reference to “and the person was not a selected listed financial institution throughout the reporting period immediately before the particular reporting period”.
1990, c. 45, s. 12(1)
86. (1) Subsection 246(3) of the Act is replaced by the following:
Duration of election
(3) An election made under this section by a person is to remain in effect until the earlier of
(a) the beginning of the day on which an election by the person under section 247 or 248 takes effect, and
(b) the day on which a revocation of the election by the person under subsection (4) becomes effective.
Revocation of election
(4) A listed financial institution that has made an election under this section may revoke the election, effective on the first day of a fiscal year of the financial institution, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective or any later day that the Minister may allow.
(2) Subsection (1) applies to any fiscal year that ends on or after July 1, 2010.
87. (1) Subsection 247(2) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) the day on which a revocation of the election by the person under subsection (3) becomes effective.
(2) Section 247 of the Act is amended by adding the following after subsection (2):
Revocation of election
(3) A listed financial institution that has made an election under this section may revoke the election, effective on the first day of a fiscal year of the financial institution, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective or any later day that the Minister may allow.
(3) Subsections (1) and (2) apply to any fiscal year that ends on or after July 1, 2010.
2010, c. 12, s. 75(2)
88. (1) The definitions “participating employer”, “pension entity” and “pension plan” in subsection 261.01(1) of the Act are repealed.
(2) Subsection (1) is deemed to have come into force on September 23, 2009.
1997, c. 10, s. 229(1)
89. (1) Subsection 261.3(2) of the Act is repealed.
(2) Subsection (1) is deemed to have come into force on July 1, 2010.
1997, c. 10, s. 229(1)
90. (1) Subsection 261.31(1) of the Act is repealed.
1997, c. 10, s. 229(1); 2009, c. 32, s. 34(1)
(2) Subsections 261.31(2) and (3) of the Act are replaced by the following:
Rebate for tax payable by investment plans
(2) If tax under subsection 165(2), sections 212.1 or 218.1 or Division IV.1 is payable by a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix), other than a selected listed financial institution, or by a prescribed person and prescribed conditions are satisfied, the Minister must, subject to section 261.4, pay a rebate to the financial institution or person equal to the amount determined in prescribed manner.
Election by segregated fund and insurer
(3) An insurer and a segregated fund of the insurer may elect, in prescribed form containing prescribed information, to have the insurer pay to, or credit in favour of, the segregated fund the amount of any rebates payable to the segregated fund under subsection (2) in respect of supplies made by the insurer to the segregated fund.
1997, c. 10, s. 229(1)
(3) Subsection 261.31(5) of the Act is replaced by the following:
Application to insurer
(5) An insurer may pay or credit to or in favour of a segregated fund of the insurer the amount of a rebate under subsection (2) in respect of a taxable supply made by the insurer to the segregated fund that, if the segregated fund complied with section 261.4 in relation to the supply, would be payable to the segregated fund if
(a) the insurer and the segregated fund have filed an election made under subsection (3) that is in effect when tax in respect of the supply becomes payable; and
(b) the segregated fund, within one year after the day on which tax becomes payable in respect of the supply, submits to the insurer an application for the rebate in prescribed form containing prescribed information.
(4) Subsections (1) to (3) apply in respect of any rebate that is in respect of tax that became payable, or was paid without having become payable, on or after July 1, 2010.
91. (1) Section 261.4 of the Act is renumbered as subsection 261.4(1) and is amended by adding the following:
Exception for investment plans, etc.
(2) A rebate under any of sections 261.1 to 261.3 in respect of tax paid or payable by a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix) must not be paid.
(2) Subsection (1) applies in respect of any rebate that is in respect of tax that became payable, or was paid without having become payable, on or after July 1, 2010.
92. (1) Section 263.01 of the Act is amended by adding the following after subsection (3):
Exception — prescribed person
(4) Despite subsection (1), a rebate under section 261.31 in respect of a prescribed amount of tax may be paid to a person that is prescribed for the purpose of subsection 261.31(2).
(2) Subsection (1) is deemed to have come into force on July 1, 2010.
2010, c. 12
Jobs and Economic Growth Act
93. (1) Subsection 58(2) of the Jobs and Economic Growth Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after paragraph (a):
(a.1) if a person that is a participating employer of a pension plan acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after June 2010, the amount determined for B in the formula in paragraph 172.1(5)(c) of the Act, as enacted by subsection (1), for Nova Scotia in respect of a taxable supply of all or part of the property or service that is deemed to have been made under paragraph 172.1(5)(a) of the Act, as enacted by subsection (1), on the last day of a fiscal year of the person is to be determined as if the tax rate for Nova Scotia on the last day of the fiscal year were 8%; and
(2) The formula in the read-as text in paragraph 58(2)(b) of the Act and the descriptions in that formula are replaced by the following:
E × [(F × G/H) – (I × J/H)]
where
E      is the amount determined for C,
F      is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year,
G      is
(i) if the participating province is Ontario or British Columbia, the number of days in the particular fiscal year that are after June 2010, and
(ii) in any other case, the number of days in the particular fiscal year,
H      is the number of days in the particular fiscal year,
I      is the amount (expressed as a percentage) that would be the provincial factor in respect of the pension plan and the participating province for the particular fiscal year if the tax rate for the participating province on the last day of the fiscal year were 2%, and
J      is
(i) if the participating province is Nova Scotia, the number of days in the particular fiscal year that are before July 2010, and
(ii) in any other case, zero; and
94. Section 64 of the Act is amended by adding the following after subsection (7):
(8) Despite subsections (5) and (6), the amount of tax payable by a person under subsection 218.1(1.2) of the Act, as enacted by subsections (2) and (3), for the specified year of the person that begins before July 1, 2010 and ends on or after that day and for Nova Scotia or the Nova Scotia offshore area is equal to the amount determined by the formula
A – [0.2 × A × (B/C)]
where
A      is the amount that, in the absence of this subsection, would be tax payable under subsection 218.1(1.2) of the Act, as enacted by subsections (2) and (3), for the specified year and for Nova Scotia or the Nova Scotia offshore area, as the case may be;
B      is the number of days in the specified year that are before July 2010; and
C      is the number of days in the specified year.
95. The formula in the read-as text in subsection 75(4) of the Act and the descriptions in that formula are replaced by the following:
A × B × [(C/D) – ((2% × E/F)/D)] × [(F – G)/F]
where
A      is the pension rebate amount of the pension entity for the claim period,
B      is the pension entity’s percentage for the participating province for the taxation year for the purposes of C in the formula in subsection 225.2(2),
C      is the tax rate for the participating province,
D      is the rate set out in subsection 165(1),
E      is
(i) if the participating province is Nova Scotia, the number of days in the claim period that are before July 1, 2010, and
(ii) in any other case, zero,
F      is the number of days in the claim period, and
G      is
(i) if the participating province is Ontario or British Columbia, the number of days in the claim period that are before July 1, 2010, and
(ii) in any other case, zero; and
2010, c. 12, s. 91
Input Tax Credit Allocation Methods (GST/HST) Regulations
96. The Input Tax Credit Allocation Methods (GST/HST) Regulations are deemed
(a) to have been made under section 277 of the Excise Tax Act;
(b) for the purposes of subsection 5(1) of the Statutory Instruments Act, to have been transmitted to the Clerk of the Privy Council for registration; and
(c) to have met the publication requirements of subsection 11(1) of the Statutory Instruments Act.
PART 3
R.S., c. F-8; 1995, c. 17, s. 45(1)
FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
97. (1) The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 12.3:
PART IV.11
TRANSFER PAYMENTS — TAX IN RESPECT OF SIFT TRUSTS OR SIFT PARTNERSHIPS
Definitions
12.31 The following definitions apply in this Part.
“SIFT entity”
« entité intermédiaire de placement déterminée »
“SIFT entity” means a SIFT trust or a SIFT partnership.
“SIFT partnership”
« société de personnes intermédiaire de placement déterminée »
“SIFT partnership” has the same meaning as in subsection 248(1) of the Income Tax Act.
“SIFT trust”
« fiducie intermédiaire de placement déterminée »
“SIFT trust” has the same meaning as in subsection 248(1) of the Income Tax Act.
Permanent establishment
12.32 The definition “permanent establishment” in subsection 400(2) of the Income Tax Regulations, as it read on March 12, 2009 and as it is amended from time to time after that date, applies in determining the amount payable to a province under this Part.
Transfer payments for SIFT entity with single permanent establishment
12.33 Subject to this Act, the Minister may pay to a province, in respect of tax payable under subsection 122(1) or 197(2) of the Income Tax Act by a SIFT entity that, in a taxation year, has a permanent establishment in the province and no permanent establishment outside the province, the amount determined by the formula
Z × Y
where
Z      is
(a) in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, 0.13, and
(b) in any other case, the amount determined under paragraph 414(3)(b) of the Income Tax Regulations in respect of the SIFT entity for the taxation year; and
Y      is
(a) for a SIFT entity that is a SIFT trust, the SIFT trust’s taxable SIFT trust distributions, as defined in subsection 122(3) of the Income Tax Act, for the taxation year, and
(b) for a SIFT entity that is a SIFT partnership, the SIFT partnership’s taxable non-portfolio earnings, as defined in subsection 197(1) of the Income Tax Act, for the taxation year.
Transfer payments for SIFT entity with multiple permanent establishments
12.34 (1) Subject to this Act, the Minister may pay to a province, in respect of tax payable under subsection 122(1) or 197(2) of the Income Tax Act by a SIFT entity that, in a taxation year, has a permanent establishment in the province and a permanent establishment outside the province, the amount determined by the formula
(Z/Y) × (X × W)
where
Z      is, subject to subsection (2), the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations for the taxation year in respect of the province;
Y      is
(a) subject to subsection (2), in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, the amount that would be determined under paragaph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year if the SIFT entity had made that election, and
(b) in any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year;
X      is
(a) in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, 0.13, and
(b) in any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year; and
W      is
(a) for a SIFT entity that is a SIFT trust, the SIFT trust’s taxable SIFT trust distributions, as defined in subsection 122(3) of the Income Tax Act, for the taxation year, and
(b) for a SIFT entity that is a SIFT partnership, the SIFT partnership’s taxable non-portfolio earnings, as defined in subsection 197(1) of the Income Tax Act, for the taxation year.
2007 and 2008 taxation years — permanent establishment in Quebec
(2) In respect of a taxation year that is after 2006 and before 2009 for which no election was made under subsection 34(4) of the Budget Implementation Act, 2008 by a SIFT entity that has a permanent establishment in the province of Quebec in that taxation year, in calculating the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations in respect of that province, paragraph (a) of the definition “general corporate income tax rate” in subsection 414(1) is to be read as follows:
(a) for Quebec, the highest percentage rate of tax imposed under the laws of Quebec on the taxable income of a public corporation earned in the taxation year in Quebec;
Consolidated Revenue Fund
12.35 Payments that the Minister may make under section 12.33 or 12.34 are to be made out of the Consolidated Revenue Fund at any time that the Minister may determine.
Information
12.36 A SIFT entity that has not made an election under subsection 34(4) of the Budget Implementation Act, 2008 in respect of a taxation year that is after 2006 and before 2009 must furnish to the Minister of National Revenue any information that that Minister may require for the purpose of determining the amount payable to a province under this Part in respect of taxes payable by the SIFT entity under subsection 122(1) or 197(2) of the Income Tax Act for that taxation year.
(2) Part IV.11 of the Act, as enacted by subsection (1), applies in respect of the 2007 and subsequent taxation years.
98. (1) The Act is amended by adding the following after section 12.5:
PART IV.3
TRANSFER PAYMENTS — TAX ON EXCESS EPSP AMOUNTS UNDER PART XI.4 OF THE INCOME TAX ACT
Transfer payments — Consolidated Revenue Fund
12.6 Subject to this Act, the Minister may, at such time as he or she determines, pay to a province, out of the Consolidated Revenue Fund in respect of tax payable under section 207.8 of the Income Tax Act for a taxation year by a person who is resident in the province at the end of the taxation year, the amount determined by the formula:
A × B
where
A      is the percentage applicable to the person for the taxation year under the description of B in the formula in subsection 207.8(2) of the Income Tax Act; and
B      is the amount determined for the person for the taxation year under the description of C in the formula in subsection 207.8(2) of the Income Tax Act.
Eligibility for payment
12.7 No payment may be made under this Part to a province if, in the opinion of the Minister, the province imposes or purports to impose a tax that is similar to the tax imposed under Part XI.4 of the Income Tax Act.
PART IV.4
TRANSFER PAYMENTS WITH RESPECT TO FEDERAL TAXES — NECESSARY INFORMATION
Information to be provided
12.8 The Minister of National Revenue shall provide to the Minister in a form and manner, and at a time, satisfactory to the Minister, any information necessary for the administration of Parts IV.01 to IV.3.
(2) Part IV.3 of the Act, as enacted by subsection (1), applies in respect of the 2012 and subsequent taxation years.
PART 4
VARIOUS MEASURES
Division 1
Financial Institutions
1991, c. 45
Trust And Loan Companies Act
2012, c. 19, s. 326
99. Paragraph 164(f.1) of the Trust and Loan Companies Act is replaced by the following:
(f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of section 374.1;
1994, c. 47, s. 206
100. Section 376.1 of the Act is replaced by the following:
Exception — small holdings
376.1 Despite section 376, if, as a result of a transfer or issue of shares of a class of shares of a company to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the company in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the company is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the company as a result of that issue or transfer of shares.
101. Section 377 of the Act is amended by adding the following after subsection (3):
Exception — eligible agent
(3.1) If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
2001, c. 9, s. 520
102. Paragraph 378(1)(b) of the Act is replaced by the following:
(b) a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the company acquires additional shares of the company.
103. Subsection 391(2) of the Act is replaced by the following:
Notice of decision
(2) Subject to subsections (4) and 392(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 390(1) in the following cases:
(a) the application involves the acquisition of control of a company;
(b) the application is made by an eligible agent or an entity controlled by an eligible agent; or
(c) an application is made for the approval referred to in subsection 396(3).
104. Subsection 392(2) of the English version of the Act is replaced by the following:
Reasonable opportunity to make representations
(2) If, after receipt of the notice sent in accordance with subsection 391(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
2012, c. 19, s. 328
105. Subsection 396(4) of the Act is replaced by the following:
Application made jointly
(4) The application for the approval referred to in subsection (3) must be made jointly by the company and the eligible agent.
Matters for consideration
(5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 388(1)(a) to (g).
Consequence of revocation of approval
(6) If an approval referred to in subsection (3) is revoked, the company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
Disposition of shareholdings
(7) If a company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
Representations
(8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
Appeal
(9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 530.
106. Section 399 of the Act is amended by adding the following after subsection (5):
Consequence of suspension of approval
(6) If an approval referred to in subsection 396(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the company that is beneficially owned by the eligible agent.
107. Subsection 402(1) of the Act is replaced by the following:
Application to court
402. (1) If a person fails to comply with a direction made under subsection 396(7) or 401(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
1996, c. 6, s. 132
108. Subsection 530(1) of the Act is replaced by the following:
Appeal to Federal Court
530. (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 396(7) or 401(1).
1991, c. 46
Bank Act
2012, c. 19, s. 330
109. Paragraph 160(f.1) of the Bank Act is replaced by the following:
(f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of subsection 370(1);
2001, c. 9, s. 98
110. Section 381 of the Act is replaced by the following:
Exception — small holdings
381. Despite section 379, if, as a result of a transfer or issue of shares of a class of shares of a bank to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the bank in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the bank is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the bank as a result of that issue or transfer of shares.
111. Section 382 of the Act is amended by adding the following after subsection (3):
Exception — eligible agent
(3.1) If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
2001, c. 9, s. 98
112. Paragraph 383(1)(b) of the Act is replaced by the following:
(b) a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the bank acquires additional shares of the bank.
2001, c. 9, s. 98
113. The portion of subsection 396(2) of the Act before paragraph (a) is replaced by the following:
Exception
(2) Except for an application by an eligible agent for an approval under section 373, and subject to subsection 377(1), the Minister shall take into account only paragraph (1)(d) if the application is in respect of a transaction that would result in the applicant or applicants holding
2001, c. 9, s. 98
114. Subsection 399(2) of the Act is replaced by the following:
Notice of decision
(2) Subject to subsections (4) and 400(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 398(1) in the following cases:
(a) the application involves the acquisition of control of a bank;
(b) the application is made by an eligible agent or an entity controlled by an eligible agent; or
(c) an application is made for the approval referred to in subsection 401.2(3).
2001, c. 9, s. 98
115. Subsection 400(2) of the English version of the Act is replaced by the following:
Reasonable opportunity to make representations
(2) If, after receipt of the notice sent in accordance with subsection 399(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister must provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
116. (1) Section 401.2 of the Act is amended by adding the following after subsection (2):
Certain foreign banks excluded
(2.1) Subsection (2) does not permit a bank to record in its securities register a transfer or issue of any share of the bank to a foreign bank that is a foreign bank by reason only of paragraph (f) of the definition “foreign bank” in section 2.
2012, c. 19, s. 333
(2) Subsection 401.2(4) of the Act is replaced by the following:
Application made jointly
(4) The application for the approval referred to in subsection (3) must be made jointly by the bank and the eligible agent.
Matters for consideration
(5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 396(1)(a) to (h).
Consequence of revocation of approval
(6) If an approval referred to in subsection (3) is revoked, the bank shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
Disposition of shareholdings
(7) If a bank or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the bank beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
Representations
(8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the bank concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
Appeal
(9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 977.
117. Section 401.3 of the Act is amended by adding the following after subsection (3):
Consequence of suspension of approval
(4) If an approval referred to in subsection 401.2(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the bank that is beneficially owned by the eligible agent.
118. Subsection 403(1) of the Act is replaced by the following:
Application to court
403. (1) If a person fails to comply with a direction made under subsection 401.2(7) or 402(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
2012, c. 19, s. 335
119. Paragraph 750(f.1) of the Act is replaced by the following:
(f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of subsection 370(1);
2001, c. 9, s. 183
120. Section 889 of the Act is replaced by the following:
Exception — small holdings
889. Despite section 887, if, as a result of a transfer or issue of shares of a class of shares of a bank holding company to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the bank holding company in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the bank holding company is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the bank holding company as a result of that issue or transfer of shares.
121. Section 890 of the Act is amended by adding the following after subsection (3):
Exception — eligible agent
(3.1) If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
2001, c. 9, s. 183
122. Paragraph 891(1)(b) of the Act is replaced by the following:
(b) a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the bank holding company acquires additional shares of the bank holding company.
2001, c. 9, s. 183
123. The portion of subsection 906(2) of the Act before paragraph (a) is replaced by the following:
Exception
(2) Except for an application by an eligible agent for an approval under section 875, and subject to subsection 882(1), the Minister shall take into account only paragraph (1)(d) if the application is in respect of a transaction that would result in the applicant or applicants holding
2001, c. 9, s. 183
124. Subsection 909(2) of the Act is replaced by the following:
Notice of decision
(2) Subject to subsections (4) and 910(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 908(1) in the following cases:
(a) the application involves the acquisition of control of a bank holding company;
(b) the application is made by an eligible agent or an entity controlled by an eligible agent; or
(c) an application is made for the approval referred to in subsection 913(3).
2001, c. 9, s. 183
125. Subsection 910(2) of the English version of the Act is replaced by the following:
Reasonable opportunity to make representations
(2) If, after receipt of the notice sent in accordance with subsection 909(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister must provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
126. (1) Section 913 of the Act is amended by adding the following after subsection (2):
Certain foreign banks excluded
(2.1) Subsection (2) does not permit a bank holding company to record in its securities register a transfer or issue of any share of the bank holding company to a foreign bank that is a foreign bank by reason only of paragraph (f) of the definition “foreign bank” in section 2.
2012, c. 19, s. 337
(2) Subsection 913(4) of the Act is replaced by the following:
Application made jointly
(4) The application for the approval referred to in subsection (3) must be made jointly by the bank holding company and the eligible agent.
Matters for consideration
(5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 906(1)(a) to (g).
Consequence of revocation of approval
(6) If an approval referred to in subsection (3) is revoked, the bank holding company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
Disposition of shareholdings
(7) If a bank holding company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the bank holding company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
Representations
(8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the bank holding company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
Appeal
(9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 977.
127. Section 914 of the Act is amended by adding the following after subsection (3):
Consequence of suspension of approval
(4) If an approval referred to in subsection 913(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the bank holding company that is beneficially owned by the eligible agent.
2001, c. 9, s. 183
128. Section 916 of the French version of the Act is replaced by the following:
Appel
916. Les personnes visées par l’arrêté prévu au paragraphe 915(1) peuvent, dans les trente jours qui suivent sa prise, en appeler conformément à l’article 977.
2001, c. 9, s. 183
129. Subsection 917(1) of the Act is replaced by the following:
Application to court
917. (1) If a person fails to comply with a direction made under subsection 913(7) or 915(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
2001, c. 9, s. 183
130. Subsection 977(1) of the Act is replaced by the following:
Appeal to Federal Court
977. (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 401.2(7), 402(1), 913(7) or 915(1).
1991, c. 47
Insurance Companies Act
2012, c. 19, s. 339
131. Paragraph 168(1)(f.1) of the Insurance Companies Act is replaced by the following:
(f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of section 406.1;
1994, c. 47, s. 123
132. Section 408.1 of the Act is replaced by the following:
Exception — small holdings
408.1 Despite section 408, if, as a result of a transfer or issue of shares of a class of shares of a company to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the company in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the company is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the company as a result of that issue or transfer of shares.
133. Section 409 of the Act is amended by adding the following after subsection (3):
Exception — eligible agent
(3.1) If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
2001, c. 9, s. 405
134. Paragraph 410(1)(b) of the Act is replaced by the following:
(b) a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the company acquires additional shares of the company.
2001, c. 9, s. 412
135. The portion of subsection 420(1.1) of the Act before paragraph (a) is replaced by the following:
Exception
(1.1) Except for an application by an eligible agent for an approval under section 407, and subject to subsection 407.2(1), the Minister shall take into account only paragraph (1)(d) if the application is in respect of a transaction that would result in the applicant or applicants holding
136. Subsection 423(2) of the Act is replaced by the following:
Notice of decision
(2) Subject to subsections (4) and 424(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 422(1) in the following cases:
(a) the application involves the acquisition of control of a company;
(b) the application is made by an eligible agent or an entity controlled by an eligible agent; or
(c) an application is made for the approval referred to in subsection 428(3).
137. Subsection 424(2) of the English version of the Act is replaced by the following:
Reasonable opportunity to make representations
(2) If, after receipt of the notice sent in accordance with subsection 423(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
2012, c. 19, s. 341
138. Subsection 428(4) of the Act is replaced by the following:
Application made jointly
(4) The application for the approval referred to in subsection (3) must be made jointly by the company and the eligible agent.
Matters for consideration
(5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 420(1)(a) to (h).
Consequence of revocation of approval
(6) If an approval referred to in subsection (3) is revoked, the company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
Disposition of shareholdings
(7) If a company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
Representations
(8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
Appeal
(9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 1020.
139. Section 430 of the Act is amended by adding the following after subsection (5):
Consequence of suspension of approval
(6) If an approval referred to in subsection 428(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the company that is beneficially owned by the eligible agent.
140. Subsection 433(1) of the Act is replaced by the following:
Application to court
433. (1) If a person fails to comply with a direction made under subsection 428(7) or 432(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
2012, c. 19, s. 344
141. Paragraph 797(f.1) of the Act is replaced by the following:
(f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of section 406.1;
2012, c. 19, s. 345
142. Section 926 of the English version of the Act is replaced by the following:
Sections 406.1 and 406.2 apply
926. Sections 406.1 and 406.2 apply in respect of insurance holding companies, except that references to “company” in section 406.2 are to be read as references to “insurance holding company”.
2001, c. 9, s. 465
143. Section 935 of the Act is replaced by the following:
Exception — small holdings
935. Despite section 934, if, as a result of a transfer or issue of shares of a class of shares of an insurance holding company to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the insurance holding company in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the insurance holding company is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the insurance holding company as a result of that issue or transfer of shares.
144. Section 936 of the Act is amended by adding the following after subsection (3):
Exception — eligible agent
(3.1) If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
2001, c. 9, s. 465
145. Paragraph 937(1)(b) of the Act is replaced by the following:
(b) a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the insurance holding company acquires additional shares of the insurance holding company.
2001, c. 9, s. 465
146. The portion of subsection 947(2) of the Act before paragraph (a) is replaced by the following:
Exception
(2) Except for an application by an eligible agent for an approval under section 927, and subject to section 933, the Minister shall take into account only paragraph (1)(d) if the application is in respect of a transaction that would result in the applicant or applicants holding
2001, c. 9, s. 465
147. Subsection 950(2) of the Act is replaced by the following:
Notice of decision
(2) Subject to subsections (4) and 951(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 949(1) in the following cases:
(a) the application involves the acquisition of control of an insurance holding company;
(b) the application is made by an eligible agent or an entity controlled by an eligible agent; or
(c) an application is made for the approval referred to in subsection 954(3).
2001, c. 9, s. 465
148. Subsection 951(2) of the English version of the Act is replaced by the following:
Reasonable opportunity to make representations
(2) If, after receipt of the notice sent in accordance with subsection 950(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
2012, c. 19, s. 346
149. Subsection 954(4) of the Act is replaced by the following:
Application made jointly
(4) The application for the approval referred to in subsection (3) must be made jointly by the insurance holding company and the eligible agent.
Matters for consideration
(5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 947(1)(a) to (g).
Consequence of revocation of approval
(6) If an approval referred to in subsection (3) is revoked, the insurance holding company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
Disposition of shareholdings
(7) If an insurance holding company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the insurance holding company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
Representations
(8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the insurance holding company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
Appeal
(9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 1020.
150. Section 955 of the Act is amended by adding the following after subsection (3):
Consequence of suspension of approval
(4) If an approval referred to in subsection 954(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the insurance holding company that is beneficially owned by the eligible agent.
2001, c. 9, s. 465
151. Subsection 957(1) of the Act is replaced by the following:
Application to court
957. (1) If a person fails to comply with a direction made under subsection 954(7) or 956(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
2001, c. 9, s. 465
152. Subsection 1020(1) of the Act is replaced by the following:
Appeal to Federal Court
1020. (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 428(7), 432(1), 954(7) or 956(1).
2010, c. 12
Jobs and Economic Growth Act
153. Section 2073 of the English version of the Jobs and Economic Growth Act is amended by replacing the portion of subsection 402(1) that it enacts before paragraph (a) with the following:
Disposition
402. (1) If, with respect to any bank, a person contravenes section 372 or subsection 373(1), 374(1) or 375(1) or section 376.1 or 376.2, subsection 377(1) or section 377.1 or 377.2 or fails to comply with an undertaking referred to in subsection 390(2) or with any terms and conditions imposed under section 397, the Minister may, if the Minister considers it in the public interest to do so, by order, direct that person and any person controlled by that person to
Coordinating Amendments
2010, c. 12
154. (1) In this section, “other Act” means the Jobs and Economic Growth Act.
(2) On the first day on which both section 2062 of the other Act and section 110 of this Act are in force, section 381 of the Bank Act is replaced by the following:
Exception — small holdings
381. Despite section 379, if, as a result of a transfer or issue of shares of a class of shares, or of membership shares, of a bank to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the bank, or the total number of membership shares registered in the members register of the bank, as the case may be, in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class or of the outstanding membership shares, as the case may be, the bank is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares or in membership shares of the bank as a result of that issue or transfer of shares or membership shares.
(3) On the first day on which both subsection 2071(2) of the other Act and subsection 116(1) of this Act are in force, subsection 401.2(2.1) of the Bank Act is replaced by the following:
Certain foreign banks excluded
(2.1) Subsection (2) does not permit a bank to record in its securities register or members register a transfer or issue of any share or membership share of the bank to a foreign bank that is a foreign bank by reason only of paragraph (f) of the definition “foreign bank” in section 2.
(4) If section 2073 of the other Act comes into force before section 153 of this Act, then
(a) that section 153 and the heading before it are deemed never to have come into force and are repealed; and
(b) the portion of subsection 402(1) of the English version of the Bank Act preceding paragraph (a) is replaced by the following:
Disposition
402. (1) If, with respect to any bank, a person contravenes section 372 or subsection 373(1), 374(1) or 375(1) or section 376.1 or 376.2, subsection 377(1) or section 377.1 or 377.2 or fails to comply with an undertaking referred to in subsection 390(2) or with any terms and conditions imposed under section 397, the Minister may, if the Minister considers it in the public interest to do so, by order, direct that person and any person controlled by that person to
(5) If section 2073 of the other Act comes into force on the same day as section 153 of this Act, then that section 153 is deemed to have come into force before that section 2073.
2012, c. 19
155. On the first day on which both section 117 of this Act is in force and subsection 348(2) of the Jobs, Growth and Long-term Prosperity Act has produced its effects, subsection 401.3(4) of the Bank Act, as enacted by section 117 of this Act, is renumbered as subsection 401.3(5) and is repositioned accordingly if required.
Division 2
Shipping
2001, c. 26
Canada Shipping Act, 2001
156. Paragraph 16(4)(d) of the Canada Shipping Act, 2001 is replaced by the following:
(d) the applicant has not paid a fee for services related to the document or has not paid a fine or penalty imposed on them under this Act; or
2001, c. 29, par. 72(g)
157. Subparagraph 20(1)(g)(i) of the Act is replaced by the following:
(i) the applicant has not paid a fee for services related to the document, or
158. Subsection 32(5) of the Act is replaced by the following:
Variations of externally produced material
(4.1) A regulation made under this Act on the recommendation of the Minister of Transport or on the joint recommendation of that Minister and the Minister of Natural Resources may incorporate by reference material produced by the Minister of Transport that varies material incorporated by reference under subsection (1).
Scope of incorporation
(5) Material referred to in subsections (1) to (4) may be incorporated by reference as amended from time to time or as it exists on a particular date. Material referred to in subsection (4.1) that is to be incorporated by reference must be incorporated as it exists on a particular date.
159. Subsection 35(1) of the Act is amended by striking out “and” at the end of paragraph (f) and by adding the following after paragraph (g):
(h) specifying the services for the purposes of paragraph 36.1(1)(d); and
(i) specifying the services to which section 36.1 does not apply or the circumstances in which that section does not apply.
160. (1) Subsection 36(1) of the French version of the Act is replaced by the following:
Créances de Sa Majesté
36. (1) Les droits imposés sous le régime des alinéas 35(1)g) ou (3)d) et les intérêts afférents constituent des créances de Sa Majesté du chef du Canada, dont le recouvrement peut être poursuivi à ce titre devant tout tribunal compétent.
(2) The portion of subsection 36(2) of the French version of the Act before paragraph (a) is replaced by the following:
Paiement des droits
(2) Les droits imposés sous le régime des alinéas 35(1)g) ou (3)d) et les intérêts afférents frappant un bâtiment sont à payer :
161. The Act is amended by adding the following after section 36:
Services provided by third parties
36.1 (1) Unless otherwise provided in the regulations, any person or organization that provides, in the exercise of powers or the performance of duties under this Act in accordance with an agreement or arrangement entered into by the Minister of Transport under paragraph 10(1)(c), any of the following services may, if that person or organization is not part of the federal public administration, set the fees to be paid to it for those services:
(a) services related to a Canadian maritime document;
(b) services related to any approvals or certifications;
(c) the conduct or witnessing of tests; and
(d) services specified in the regulations.
Not public money
(2) Unless otherwise provided in the regulations, the fees referred to in subsection (1) are not public money within the meaning of the Financial Administration Act and the User Fees Act does not apply in respect of them.
Non-application of certain regulations
(3) Unless otherwise provided in the regulations, the regulations made under paragraph 35(1)(g) do not apply in respect of any service referred to in any of paragraphs (1)(a) to (d) that is provided by any person or organization that is not part of the federal public administration in the exercise of powers or the performance of duties under this Act in accordance with an agreement or arrangement entered into by the Minister of Transport under paragraph 10(1)(c).
Services Provided by Classification Societies
Setting of fees — Canada Shipping Act, 2001
162. (1) A classification society that provides, during the period beginning on July 1, 2007 and ending on the day before the day on which this Act receives royal assent, any of the following services in the exercise of powers or the performance of duties under the Canada Shipping Act, 2001 in accordance with an agreement or arrangement entered into by the Minister of Transport under paragraph 10(1)(c) of that Act may set the fees to be paid to it for those services:
(a) services related to a Canadian maritime document;
(b) services related to any approvals or certifications; and
(c) the conduct or witnessing of tests.
Not public money
(2) The fees referred to in subsection (1) are not public money within the meaning of the Financial Administration Act and the User Fees Act does not apply in respect of them.
Non-application of certain regulations
(3) The regulations made under paragraph 35(1)(g) of the Canada Shipping Act, 2001 do not apply in respect of any service referred to in any of paragraphs (1)(a) to (c) that is provided, during the period beginning on July 1, 2007 and ending on the day before the day on which this Act receives royal assent, by a classification society in the exercise of powers or the performance of duties under that Act in accordance with an agreement or arrangement entered into by the Minister of Transport under paragraph 10(1)(c) of that Act.
Setting of fees — Canada Shipping Act
163. (1) A classification society that provides, during the period beginning on January 1, 1999 and ending on June 30, 2007, any of the following services in the exercise of powers or the performance of duties under the Canada Shipping Act in accordance with an agreement or arrangement entered into by the Minister of Transport under paragraph 8(1)(c) of that Act may set the fees to be paid to it for those services:
(a) services related to an inspection certif-icate;
(b) services related to any approvals or certifications; and
(c) the conduct or witnessing of tests.
Not public money
(2) The fees referred to in subsection (1) are not public money within the meaning of the Financial Administration Act and are not subject to subsection 408(2) of the Canada Shipping Act.
User Fees Act
(3) The User Fees Act does not apply in respect of the fees referred to in subsection (1).
Non-application of certain regulations
164. The regulations made under paragraph 231(1)(d), subsections 408(1) or (4) or paragraphs 657(1)(l) or (m) of the Canada Shipping Act do not apply in respect of any service referred to in any of paragraphs 163(1)(a) to (c) that is provided, during the period beginning on January 1, 1999 and ending on June 30, 2007, by a classification society in the exercise of powers or the performance of duties under that Act.
Coming into Force
July 1, 2007
165. (1) Sections 160 and 162 are deemed to have come into force on July 1, 2007.
March 31, 2004
(2) Subsection 163(3) is deemed to have come into force on March 31, 2004.
January 1, 1999
(3) Subsections 163(1) and (2) and section 164 are deemed to have come into force on January 1, 1999.
Division 3
Preserving the Stability and Strength of Canada’s Financial Sector
R.S., c. C-3
Canada Deposit Insurance Corporation Act
2009, c. 2, s. 245(7)
166. (1) Subsection 39.15(7.1) of the Can-ada Deposit Insurance Corporation Act is replaced by the following:
Stay — eligible financial contracts
(7.01) If an order directing the incorporation of a bridge institution is made, the actions referred to in subsection (7) are not to be taken during the period beginning on the coming into force of the order and ending on the following business day at 5:00 p.m. at the location of the Corporation’s head office, by reason only of
(a) the federal member institution’s insolvency;
(b) the making of an order appointing the Corporation as receiver in respect of the federal member institution or the making of the order directing the incorporation of the bridge institution; or
(c) the eligible financial contract being assigned to or assumed by the bridge institution.
Exception
(7.02) Subsection (7.01) does not apply in respect of an eligible financial contract between the federal member institution and a clearing house, as defined in section 2 of the Payment Clearing and Settlement Act, that provides clearing and settlement services for a clearing and settlement system designated under section 4 of that Act or between the federal member institution and a securities and derivatives clearing house as defined in subsection 13.1(3) of that Act.
Definition of “business day”
(7.03) For the purpose of subsection (7.01), “business day” means a day other than a Saturday, a Sunday or any other day on which the clearing and settlement systems operated by the Canadian Payments Association are closed.
Corporation’s undertaking — eligible financial contracts
(7.1) If an order directing the incorporation of a bridge institution is made and the Corporation undertakes to unconditionally guarantee the payment of any amount due or that may become due by the federal member institution, in accordance with the provisions of the eligible financial contract, or to ensure that all obligations of the federal member institution arising from the eligible financial contract will be assumed by the bridge institution, the actions referred to in subsection (7) are not to be taken by reason only of
(a) the federal member institution’s insolvency;
(b) the making of an order appointing the Corporation as receiver in respect of the federal member institution or the making of the order directing the incorporation of the bridge institution; or
(c) the eligible financial contract being assigned to or assumed by the bridge institution.
Agreements overridden
(7.11) Any stipulation in an eligible financial contract is of no force or effect if it
(a) has the effect of providing for or permitting anything that, in substance, is contrary to subsection (7.01) or (7.1); or
(b) provides, in substance, that, by reason of the occurrence of any circumstance described in any of paragraphs (7.01)(a) to (c) and (7.1)(a) to (c), the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have.
2007, c. 29, s. 103(1)
(2) The definition “financial collateral” in subsection 39.15(9) of the Act is replaced by the following:
“financial collateral”
« garantie financière »
“financial collateral” has the same meaning as in subsection 13(2) of the Payment Clearing and Settlement Act.
1996, c. 6, s. 41
167. Section 39.18 of the Act is renumbered as subsection 39.18(1) and is amended by adding the following:
Exception
(2) Subsection (1) does not apply to subsections 39.15(7.01), (7.02), (7.11) and (7.2) and, only for the purpose of interpreting those subsections, to subsections 39.15(7), (7.03) and (9).
1996, c. 6, Sch.
Payment Clearing and Settlement Act
2012, c. 5, s. 213(2)
168. The definitions “clearing and settlement system” and “clearing house” in section 2 of the Payment Clearing and Settlement Act are replaced by the following:
“clearing and settlement system”
« système de compensation et de règlement »
“clearing and settlement system” means a system or arrangement for the clearing or settlement of payment obligations or payment messages in which
(a) there are at least three participants, at least one of which is a Canadian participant and at least one of which has its head office in a jurisdiction other than the jurisdiction where the head office of the clearing house is located;
(b) clearing or settlement is all or partly in Canadian dollars; and
(c) except in the case of a system or arrangement for the clearing or settlement of derivatives contracts, the payment obligations that arise from clearing within the system or arrangement are ultimately settled through adjustments to the account or accounts of one or more of the participants at the Bank.
For greater certainty, it includes a system or arrangement for the clearing or settlement of securities transactions, derivatives contracts, foreign exchange transactions or other transactions if the system or arrangement also clears or settles payment obligations arising from those transactions.
“clearing house”
« chambre de compensation »
“clearing house” means a corporation, association, partnership, agency or other entity that provides clearing or settlement services for a clearing and settlement system. It includes a securities and derivatives clearing house, as defined in subsection 13.1(3), but does not include a stock exchange or the Bank.
169. (1) Paragraph 8(1)(c) of the Act is replaced by the following:
(c) if a payment is made, property is delivered or an interest in, or in Quebec a right to, property is transferred in accordance with the settlement rules of a designated clearing and settlement system, the payment, delivery or transfer shall not be required to be reversed, repaid or set aside.
(2) Section 8 of the Act is amended by adding the following after subsection (3):
Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act
(3.1) Despite subsections (1) to (3) and the settlement rules, no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.01), (7.1) or (7.11) or section 39.152 of that Act.
(3) Subsection 8(5) of the Act is replaced by the following:
Interpretation
(5) In this section, “settlement rules” means the rules, however established, that provide the basis on which payment obligations, delivery obligations or other transfers of property or interests in, or in Quebec rights to, property are made, calculated, netted or settled and includes rules for the taking of action in the event that a participant is unable or likely to become unable to meet its obligations to the clearing house, a central counter-party, other participants or the Bank.
1999, c. 28, s. 133(1)
170. (1) Subsection 13(1) of the Act is replaced by the following:
Termination
13. (1) Despite anything in any law relating to bankruptcy or insolvency or any order of a court made in respect of a reorganization, arrangement or receivership involving insolvency, a party to a netting agreement may terminate the agreement and determine a net termination value or net settlement amount in accordance with the provisions of the agreement and the party entitled to the net termination value or net settlement amount is to be a creditor of the party owing the net termination value or net settlement amount for that value or amount.
2007, c. 29, s. 111(1)
(2) The portion of subsection 13(1.1) of the Act before paragraph (a) is replaced by the following:
Eligible financial contract
(1.1) If a netting agreement referred to in subsection (1) is an eligible financial contract, a party to the agreement may also, in accordance with the provisions of that agreement, deal with financial collateral including
(3) Section 13 of the Act is amended by adding the following after subsection (1.1):
Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act
(1.2) Despite subsections (1) and (1.1), no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.01), (7.1) or (7.11) or section 39.152 of that Act.
(4) The portion of subsection 13(2) of the Act before the definition “financial collateral” is replaced by the following:
Interpretation
(2) The following definitions apply in this section.
(5) The definition “financial collateral” in subsection 13(2) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):
(d) an assignment of a right to payment or delivery against a clearing house, or
(e) any other collateral that is prescribed.
2007, c. 29, s. 111(2)
(6) The definition “netting agreement” in subsection 13(2) of the Act is replaced by the following:
“netting agreement”
« accord de compensation »
“netting agreement” means an agreement between two or more financial institutions, between the Bank and one or more financial institutions or between a participant and a customer to which the participant provides clearing services that is
(a) an eligible financial contract; or
(b) an agreement that provides for the netting or set-off or compensation of present or future obligations to make payments against the present or future rights to receive payments.
2002, c. 14, s. 1
171. (1) Paragraph 13.1(1)(b) of the Act is replaced by the following:
(b) interfering with the rights or remedies of a securities and derivatives clearing house in respect of any collateral that has been granted to it as security for the performance of an obligation incurred in respect of the clearing and settlement services provided by the securities and derivatives clearing house.
(2) Section 13.1 of the Act is amended by adding the following after subsection (1):
Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act
(1.1) Despite subsection (1), no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.01), (7.1) or (7.11) or section 39.152 of that Act.
172. The Act is amended by adding the following after section 23:
REGULATIONS
Financial collateral
24. The Governor in Council may make regulations prescribing collateral for the purpose of paragraph (e) of the definition “financial collateral” in subsection 13(2).
Division 4
Fisheries
R.S., c. F-14
Fisheries Act
173. Section 29 of the Fisheries Act is replaced by the following:
Obstructing passage of fish or waters
29. (1) No person shall erect, use or maintain any seine, net, weir or other fishing appliance that
(a) unduly obstructs the passage of fish in any Canadian fisheries waters, whether subject to any exclusive right of fishery or not; or
(b) obstructs more than two thirds of the width of any river or stream or more than one third of the width of the main channel at low tide of any tidal stream.
Removal
(2) The Minister or a fishery officer may order the removal of or remove any seine, net, weir or other fishing appliance that, in the opinion of the Minister or fishery officer, results in an obstruction referred to in paragraph (1)(a) or (b).
Tidal streams
(3) For the purposes of paragraph (1)(b), if a tidal stream has no main channel at low tide, then the tidal stream’s width is considered to be the width of its main channel.
174. Section 40 of the Act is amended by adding the following after subsection (5):
Application of fines
(6) All fines received by the Receiver General in respect of the commission of an offence under this section are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to the conservation and protection of fish or fish habitat or the restoration of fish habitat, or for administering that Fund.
Recommendations of court
(7) The court imposing the fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization specified by the court for a purpose referred to in subsection (6).
2012, c. 19
Jobs, Growth and Long-term Prosperity Act
175. Subsection 133(3) of the Jobs, Growth and Long-term Prosperity Act is amended by replacing the definition “Aboriginal” that it enacts with the following:
“Aboriginal”
« autochtone »
“Aboriginal”, in relation to a fishery, means that fish is harvested by an Aboriginal organization or any of its members for the purpose of using the fish as food, for social or ceremonial purposes or for purposes set out in a land claims agreement entered into with the Aborig- inal organization;
176. Section 136 of the Act is amended by replacing the subsections 20(4) and (5) that it enacts with the following:
Obstruction of free passage of fish
(4) No person shall
(a) damage or obstruct any fishway constructed or used to enable fish to pass over or around any obstruction;
(b) damage or obstruct any fishway, fish stop or diverter constructed or installed on the Minister’s request;
(c) stop or hinder fish from entering or passing through any fishway, or from surmounting any obstacle or leap;
(d) damage, remove or authorize the removal of any fish guard, screen, covering, netting or other device installed on the Minister’s request; or
(e) fish in any manner within 23 m downstream from the lower entrance to any fishway, obstruction or leap.
Exception — removal for repairs
(5) Despite paragraph (4)(d), a person may remove or authorize the removal of any fish guard, screen, covering, netting or other device installed on the Minister’s request if the removal is required for modification, repair or maintenance.
Transitional Provisions
Ministerial authorizations
177. (1) An authorization issued by the Minister under section 32 or subsection 35(2) of the Fisheries Act as it existed before June 29, 2012, or under paragraph 32(2)(c) or paragraph 35(2)(b) of the Fisheries Act as it existed before the coming into force of subsection 142(2) of the Jobs, Growth and Long-term Prosperity Act, and that is still valid on the day on which that subsection 142(2) comes into force, is deemed to be an authorization issued by the Minister under paragraph 35(2)(b) of the Fisheries Act after that coming into force.
Amendment
(2) On the request of the holder of an authorization referred to in subsection (1) that is made within 90 days after the day on which subsection 142(2) of the Jobs, Growth and Long-term Prosperity Act comes into force, the Minister must examine the authorization, and the Minister may, within 210 days after the day on which that subsection 142(2) comes into force, confirm or amend the authorization or, if the Minister is of the opinion that the holder no longer needs an authorization, cancel it.
Conditions of authorizations
(3) Paragraph 40(3)(a) of the Fisheries Act does not apply to the holder of an authorization referred to in subsection (1) until 90 days after the day on which subsection 142(2) of the Jobs, Growth and Long-term Prosperity Act comes into force. However, if the holder makes a request under subsection (2), then that paragraph does not apply to that holder until the day on which that holder receives notice of the Minister’s decision to confirm, amend or cancel the authorization or until 210 days after the day on which that subsection 142(2) comes into force, whichever is earlier.
Coming into Force
2012, c. 19
178. Sections 173 and 174 come into force on the day on which subsection 147(1) of the Jobs, Growth and Long-term Prosperity Act comes into force.
Division 5
Bridge To Strengthen Trade Act
Enactment of Act
Enactment
179. The Bridge To Strengthen Trade Act, whose schedule is set out in Schedule 1 to this Act, is enacted as follows:
An Act respecting a bridge spanning the Detroit River between Windsor and Detroit and other works
SHORT TITLE
Short title
1. This Act may be cited as the Bridge To Strengthen Trade Act.
INTERPRETATION
Definitions
2. The following definitions apply in this Act.
“bridge”
« pont »
“bridge” means a bridge that spans the Detroit River and connects Windsor, Ontario to Detroit, Michigan and whose piers, in Ontario, are located within the boundaries of the territory described in the schedule, as well as the approaches to the bridge.
“construction”
« construction »
“construction” in relation to the bridge, the parkway or a related work, includes any work or activity related to its construction.
“Minister”
« ministre »
“Minister” means the Minister of Transport.
“operation”
« exploitation »
“operation” in relation to the bridge or a related work, includes its maintenance and repair.
“parkway”
« promenade »
“parkway” means a road connecting Highway 401 with any work referred to in paragraph (a) or (b) of the definition “related work” that is located within the boundaries of the territory described in the schedule and any works ancillary to that road.
“person”
« personne »
“person” means an individual, corporation, partnership, trust, joint venture or unincorporated association or organization.
“related work”
« ouvrage connexe »
“related work” means any of the following works:
(a) any border services facility related to the bridge that is located in Michigan or within the boundaries of the territory described in the schedule;
(b) any work useful to the operation of the bridge or any border services facility referred to in paragraph (a), including toll booths, duty-free shops and parking lots, that is located in Michigan or within the boundaries of the territory described in the schedule;
(c) any road or interchange connecting Interstate 75 with any work referred to in paragraph (a) or (b) that is located in Michigan;
(d) any work that is accessory to the bridge or to any work referred to in paragraphs (a) to (c); and
(e) any other work specified in the regulations.
CONSTRUCTION OF THE BRIDGE, PARKWAY AND RELATED WORKS
Exemption from certain Acts and regulations
3. (1) The Fisheries Act, the Navigable Waters Protection Act, the Species at Risk Act, section 6 of the International Bridges and Tunnels Act and the Port Authorities Operations Regulations do not apply to the construction of the bridge, parkway or any related work.
Authorizations deemed issued
(2) After completion of the construction of the bridge, parkway or any related work, as the case may be, any authorization that would have been required for its construction but for subsection (1), is deemed to have been issued for the purpose of the application of the Acts and regulations referred to in subsection (1).
Exemption from Canadian Environmental Assessment Act, 2012
4. (1) Subject to subsection (2), the Canadian Environmental Assessment Act, 2012 does not apply to the bridge, parkway or any related work.
Expansion, decommis-sioning, abandonment
(2) The expansion, decommissioning or abandonment of the bridge, parkway or any related work is a project as defined in section 66 of the Canadian Environmental Assessment Act, 2012 and is subject to sections 67 to 72 of that Act.
Responsible authority
5. (1) A responsible authority is exempt from any obligation accrued or accruing under subsections 20(2) and 38(1) of the Canadian Environmental Assessment Act, chapter 37 of the Statutes of Canada, 1992, in relation to the bridge, parkway or any related work.
Windsor Port Authority
(2) The Windsor Port Authority is exempt from any obligation accrued or accruing under subsection 15(2) of the Canada Port Authority Environmental Assessment Regulations in relation to the bridge, parkway or any related work.
Other exemptions
6. (1) The Governor in Council may, by order, exempt any person, on any condition that the Governor in Council considers to be in the public interest, from any requirement under any federal Act to obtain a permit, licence, approval or other authorization in relation to the construction of the bridge, parkway or any related work.
Exemption from Statutory Instruments Act
(2) The Statutory Instruments Act does not apply to the order. However, the order must be published in the Canada Gazette.
Authorizations deemed issued
(3) After completion of the construction of the bridge, parkway or the related work, as the case may be, any authorization that would have been required in relation to its construction but for an exemption granted under subsection (1), is deemed to have been issued for the purpose of the application of the federal Act for which the exemption was granted.
Construction of bridge
7. (1) Before a person who proposes the construction of the bridge begins its construction, they must file with the Minister a plan that includes all measures to be taken to mitigate the bridge’s impact on navigation, the plans for its design and construction, a description of its proposed site and the plans for its management and operation.
Obligation to consult
(2) The person must consult with the Minister before filing the plan.
Impact on fish habitat
8. (1) Before a person who proposes to carry on any work, undertaking or activity, for the purpose of the construction of the bridge, parkway or any related work and for which an authorization referred to in paragraphs 35(2)(b) or (c) of the Fisheries Act would have been required but for section 3, begins to carry on the work, undertaking or activity, they must file with the Minister a plan that includes all measures to be taken to offset any loss of fish habitat resulting from the carrying on of the work, undertaking or activity.
Obligation to consult
(2) The person must consult with the Minister of Fisheries and Oceans before filing the plan.
Authorizations under Fisheries Act
(3) Any authorization referred to in paragraph 35(2)(b) or (c) of the Fisheries Act that was issued before the coming into force of this section in relation to the carrying on of such a work, undertaking or activity is deemed to be a plan that has been filed in accordance with subsections (1) and (2).
Impact on listed wildlife species, etc.
9. (1) Before a person who proposes to engage in an activity affecting a listed wildlife species, any part of its critical habitat or the residences of its individuals, for the purpose of the construction of the bridge, parkway or any related work and for which an authorization under subsection 73(1) of the Species at Risk Act would have been required but for section 3, begins to engage in the activity, they must file with the Minister a plan that includes all measures to be taken to mitigate the impact of the activity on the species, its critical habitat or the residences of its individuals.
Obligation to consult
(2) The person must consult with the Minister of the Environment before filing the plan.
Authorizations under Species at Risk Act
(3) Any authorization referred to in subsection 73(1) of the Species at Risk Act that was granted before the coming into force of this section in relation to the activity is deemed to be a plan that has been filed in accordance with subsections (1) and (2).
Adverse environmental effects
10. Before a person who proposes the construction in Canada of the bridge or of any work referred to in paragraph (a) or (b) of the definition “related work” in section 2 begins its construction, they must file with the Minister a plan that includes all measures to be taken to mitigate any adverse environmental effects caused by the construction and sets out a process for consulting the public with respect to the construction.
Port Authorities Operations Regulations
11. (1) Before a person who proposes to do anything in the Port of Windsor — in order to construct the bridge — that will have or is likely to have any result that is listed in section 5 of the Port Authorities Operations Regulations begins to do any such thing, they must file with the Minister a plan that includes all measures to be taken to mitigate or prevent the result.
Obligation to consult
(2) The person must consult with the Windsor Port Authority before filing the plan.
Plan amendment
12. (1) Any person who files a plan under any of sections 7 to 11 may amend that plan.
Application of sections 7 to 11 to amended plan
(2) The requirements regarding the content of a plan filed under any of sections 7 to 11, as well as any obligation to consult with respect to that plan, also apply to the corresponding amended plan.
Filing of amended plan
(3) The person must file the amended plan with the Minister. Once filed, the amended plan replaces the plan previously filed.
Implementation of and compliance with plans
13. Any person who files a plan must ensure that it is implemented and complied with.
OPERATION OF THE BRIDGE AND RELATED WORKS
Designation of initial operator
14. (1) The Minister may designate, in writing, a person as the initial operator of the bridge and any related work.
Exemption from International Bridges and Tunnels Act
(2) Paragraph 23(1)(b) of the International Bridges and Tunnels Act does not apply to the initial operator.
Exemption from Statutory Instruments Act
(3) The Statutory Instruments Act does not apply to the designation.
GENERAL PROVISIONS
Authorization — persons
15. (1) Any person may, with the approval of the Governor in Council, do anything referred to in any of paragraphs 90(1)(a) to (e) of the Financial Administration Act for any purpose relating to the construction or operation of the bridge or any related work.
Authorization — parent Crown corporation
(2) Any parent Crown corporation as defined in subsection 83(1) of the Financial Administration Act may, with the approval of the Governor in Council, sell or otherwise dispose of all or substantially all of the corporation’s assets for any purpose relating to the construction or operation of the bridge or any related work.
Definition of “corporation”
16. For the purposes of sections 17 to 21, “corporation” means a corporation established under section 29 of the International Bridges and Tunnels Act for any purpose relating to the construction or operation of the bridge or any related work.
Authorization to construct and operate
17. (1) Subject to its letters patent, a corporation is authorized to construct and operate the bridge or any related work.
Authorization by corporation
(2) The corporation may authorize another person to construct or operate the bridge or related work.
Deeming — establishment of corporation
18. (1) A corporation that was established before the coming into force of section 180 of the Jobs and Growth Act, 2012 is deemed to have been established under section 29 of the International Bridges and Tunnels Act as amended by that section 180 and its establishment is deemed to have been authorized for the purpose of paragraph 90(1)(a) of the Financial Administration Act.
Deeming — action taken by corporation
(2) Any action taken by the corporation between the date of its establishment and the date of the coming into force of this section is deemed to have been taken as if sections 16, 17 and 19 to 21 were in force at the time that the action was taken.
Not agent of Her Majesty
19. A corporation is not an agent of Her Majesty in right of Canada.
Public agency
20. A corporation is deemed to be a public agency for the purposes of the Urban Cooperation Act of 1967, MCL 124.501 to 124.512, an Act of the state of Michigan.
Public body corporate and compact entity
21. A corporation may enter into an agreement with the government of the state of Michigan or of any political subdivision of that state or with any of their agencies or agents to establish an entity that is both a public body corporate and a compact entity under the laws of the United States.
Agreements
22. (1) The Minister may enter into an agreement for any purpose relating to the construction or operation of the bridge, parkway or any related work with any person or with the government of the United States or of any political subdivision of the United States or any of their agencies or agents.
Contents of agreement
(2) The agreement may include undertakings to provide financial assistance by Canada, including the granting of guarantees.
Authority to carry out agreement
(3) The Minister may take any measures that he or she considers appropriate to carry out the agreement or to protect the interests or enforce the rights of Her Majesty in right of Canada under the agreement, including accepting and holding on behalf of Her Majesty any security granted under the agreement or releasing or realizing on that security.
INFORMATION GATHERING
Production of documents
23. (1) The Minister may, for the purpose of verifying compliance with this Act, by registered letter or by a demand served personally, require any person to produce at a place specified in the letter or in the demand any document that the Minister believes is relevant for that purpose that is in the person’s possession, or to which the person may reasonably be expected to have access, within any reasonable time and in any reasonable manner that is specified in the letter or demand.
Compliance
(2) A person who is required to produce any document under subsection (1) must do so as required.
OFFENCES
Offence
24. A person who contravenes any of sections 7 to 11 and 13 and subsection 23(2) is guilty of an offence punishable on summary conviction and liable
(a) in the case of an individual, to a fine of not more than $25,000; and
(b) in any other case, to a fine of not more than $500,000.
Offence committed by employee or agent or mandatary of accused
25. In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised due diligence to prevent its commission.
Due diligence defence
26. Subject to section 25, a person is not to be found guilty of an offence under this Act if they establish that they exercised due diligence to prevent its commission.
Limitation period
27. Proceedings in respect of an offence under this Act may be instituted within two years after the day on which the subject matter of the proceedings arose.
REGULATORY POWERS
Regulations
28. (1) The Minister may, by regulation,
(a) specify that a work is a related work for the purpose of the definition “related work” in section 2; and
(b) amend the schedule to change the boundaries of the territory described in the schedule.
Coming into effect
(2) A regulation has effect from the day on which it is made.
2007, c. 1
Related Amendments to the International Bridges and Tunnels Act
180. Subsection 29(1) of the International Bridges and Tunnels Act is replaced by the following:
Letters patent
29. (1) The Governor in Council may, on the recommendation of the Minister, issue letters patent of incorporation for the establishment of a corporation, with or without share capital, for any purpose relating to the construction or operation of an international bridge or tunnel. Letters patent take effect on the date stated in them.
181. Subsection 32(1) of the Act is replaced by the following:
Capacity and powers
32. (1) A corporation that is incorporated for any purpose relating to the construction or operation of an international bridge or tunnel in respect of which its letters patent are issued has, for that purpose and for the purposes of this Act, the capacity, rights, powers and privileges of a natural person.
182. Section 33 of the Act is replaced by the following:
Charges
33. (1) Subject to this Act and to its letters patent, a corporation may fix and charge tolls, fees or other charges for the use of an international bridge or tunnel.
Authorization by corporation
(2) The corporation may authorize another person to fix or charge tolls, fees or other charges for the use of the international bridge or tunnel.
Coordinating Amendments
183. On the first day on which both sections 179 and 316 of this Act are in force, section 3 of the Bridge To Strengthen Trade Act is replaced by the following:
Exemption from certain Acts and regulations
3. The Fisheries Act, the Navigation Protection Act, the Species at Risk Act, section 6 of the International Bridges and Tunnels Act and the Port Authorities Operations Regulations do not apply to the construction of the bridge, parkway or any related work.
2012, c. 19
184. (1) In this section, “other Act” means the Jobs, Growth and Long-term Prosperity Act.
(2) If subsection 142(2) of the other Act comes into force before section 179 of this Act, then on the day on which that section 179 comes into force, subsection 8(1) of the Bridge To Strengthen Trade Act is replaced by the following:
Harm to fish
8. (1) Before a person who proposes to carry on any work, undertaking or activity, for the purpose of the construction of the bridge, parkway or any related work and for which an authorization referred to in paragraphs 35(2)(b) or (c) of the Fisheries Act would have been required but for section 3, begins to carry on the work, undertaking or activity, they must file with the Minister a plan that includes all measures to be taken to mitigate the harm to fish that are part of a commercial, recreational or Aboriginal fishery, or to fish that support such a fishery resulting from the carrying on of the work, undertaking or activity.
(3) If section 179 of this Act comes into force before subsection 142(2) of the other Act, then, on the day on which that subsection 142(2) comes into force,
(a) subsection 8(1) of the Bridge To Strengthen Trade Act is replaced by the following:
Harm to fish
8. (1) Before a person who proposes to carry on any work, undertaking or activity, for the purpose of the construction of the bridge, parkway or any related work and for which an authorization referred to in paragraphs 35(2)(b) or (c) of the Fisheries Act would have been required but for section 3, begins to carry on the work, undertaking or activity, they must file with the Minister a plan that includes all measures to be taken to mitigate the harm to fish that are part of a commercial, recreational or Aboriginal fishery, or to fish that support such a fishery resulting from the carrying on of the work, undertaking or activity.
(b) section 8 of the Bridge To Strengthen Trade Act is amended by adding the following after subsection (3):
Transitional provision
(4) If a plan was filed with respect to a work, undertaking or activity under subsection (1) as it read before the coming into force of this subsection, then, as of that coming into force, that subsection (1) continues to apply with respect to that work, undertaking or activity.
(4) If subsection 142(2) of the other Act comes into force on the same day as section 179 of this Act, then that subsection 142(2) is deemed to have come into force before that section 179 and subsection (2) applies as a consequence.
Division 6
R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3
Bretton Woods and Related Agreements Act
185. (1) Paragraphs 3(b) to (d) of Article XII of Schedule I to the Bretton Woods and Related Agreements Act are replaced by the following:
(b) Subject to (c) below, the Executive Board shall consist of twenty Executive Directors elected by the members, with the Managing Director as chairman.
(c) For the purpose of each regular election of Executive Directors, the Board of Governors, by an eighty-five percent majority of the total voting power, may increase or decrease the number of Executive Directors specified in (b) above.
(d) Elections of Executive Directors shall be conducted at intervals of two years in accord-ance with regulations which shall be adopted by the Board of Governors. Such regulations shall include a limit on the total number of votes that more than one member may cast for the same candidate.
(2) Paragraph 3(f) of Article XII of Schedule I to the Act is replaced by the following:
(f) Executive Directors shall continue in office until their successors are elected. If the office of an Executive Director becomes vacant more than ninety days before the end of his term, another Executive Director shall be elected for the remainder of the term by the members that elected the former Executive Director. A majority of the votes cast shall be required for election. While the office remains vacant, the Alternate of the former Executive Director shall exercise his powers, except that of appointing an Alternate.
1991, c. 21, s. 2
(3) Paragraphs 3(i) and (j) of Article XII of Schedule I to the Act are replaced by the following:
(i)(i) Each Executive Director shall be entitled to cast the number of votes which counted towards his election.
(ii) When the provisions of Section 5(b) of this Article are applicable, the votes which an Executive Director would otherwise be entitled to cast shall be increased or decreased correspondingly. All the votes which an Executive Director is entitled to cast shall be cast as a unit.
(iii) When the suspension of the voting rights of a member is terminated under Article XXVI, Section 2(b), the member may agree with all the members that have elected an Executive Director that the number of votes allotted to that member shall be cast by such Executive Director, provided that, if no regular election of Executive Directors has been conducted during the period of the suspension, the Executive Director in whose election the member had participated prior to the suspension, or his successor elected in accordance with paragraph 3(c)(i) of Schedule L or with (f) above, shall be entitled to cast the number of votes allotted to the member. The member shall be deemed to have participated in the election of the Executive Director entitled to cast the number of votes allotted to the member.
(j) The Board of Governors shall adopt regulations under which a member may send a representative to attend any meeting of the Executive Board when a request made by, or a matter particularly affecting, that member is under consideration.
(4) Section 8 of Article XII of Schedule I to the Act is replaced by the following:
Section 8. Communication of views to members
The Fund shall at all times have the right to communicate its views informally to any member on any matter arising under this Agreement. The Fund may, by a seventy percent majority of the total voting power, decide to publish a report made to a member regarding its monetary or economic conditions and developments which directly tend to produce a serious disequilibrium in the international balance of payments of members. The relevant member shall be entitled to representation in accordance with Section 3(j) of this Article. The Fund shall not publish a report involving changes in the fundamental structure of the economic organization of members.
186. Subparagraph (a)(ii) of Article XXI of Schedule I to the Act is replaced by the following:
(ii) For decisions by the Executive Board on matters pertaining exclusively to the Special Drawing Rights Department only Executive Directors elected by at least one member that is a participant shall be entitled to vote. Each of these Executive Directors shall be entitled to cast the number of votes allotted to the members that are participants whose votes counted towards his election. Only the presence of Executive Directors elected by members that are participants and the votes allotted to members that are participants shall be counted for the purpose of determining whether a quorum exists or whether a decision is made by the required majority.
187. Paragraph (a) of Article XXIX of Schedule I to the Act is replaced by the following:
(a) Any question of interpretation of the provisions of this Agreement arising between any member and the Fund or between any members of the Fund shall be submitted to the Executive Board for its decision. If the question particularly affects any member, it shall be entitled to representation in accordance with Article XII, Section 3(j).
188. Paragraph 1(a) of Schedule D of Schedule I to the Act is replaced by the following:
1. (a) Each member or group of members that has the number of votes allotted to it or them cast by an Executive Director shall appoint to the Council one Councillor, who shall be a Governor, Minister in the government of a member, or person of comparable rank, and may appoint not more than seven Associates. The Board of Governors may change, by an eighty-five percent majority of the total voting power, the number of Associates who may be appointed. A Councillor or Associate shall serve until a new appointment is made or until the next regular election of Executive Directors, whichever shall occur sooner.
1991, c. 21, s. 4
189. Paragraphs 5(e) and (f) of Schedule D of Schedule I to the Act are replaced by the following:
(e) When an Executive Director is entitled to cast the number of votes allotted to a member pursuant to Article XII, Section 3(i)(iii), the Councillor appointed by the group whose members elected such Executive Director shall be entitled to vote and cast the number of votes allotted to such member. The member shall be deemed to have participated in the appointment of the Councillor entitled to vote and cast the number of votes allotted to the member.
190. Schedule E of Schedule I to the Act is replaced by the following:
SCHEDULE E
TRANSITIONAL PROVISIONS WITH RESPECT TO EXECUTIVE DIRECTORS
1. Upon the entry into force of this Schedule:
(a) Each Executive Director who was appointed pursuant to former Article XII, Sections 3(b)(i) or 3(c), and was in office immediately prior to the entry into force of this Schedule, shall be deemed to have been elected by the member who appointed him; and
(b) Each Executive Director who cast the number of votes of a member pursuant to former Article XII, Section 3(i)(ii) immediately prior to the entry into force of this Schedule, shall be deemed to have been elected by such a member.
1991, c. 21, s. 5
191. Paragraph 1(b) of Schedule L of Schedule I to the Act is replaced by the following:
(b) appoint a Governor or Alternate Governor, appoint or participate in the appointment of a Councillor or Alternate Councillor, or elect or participate in the election of an Executive Director.
1991, c. 21, s. 5
192. The portion of paragraph 3(c) of Schedule L of Schedule I to the Act before subparagraph (i) is replaced by the following:
(c) The Executive Director elected by the member, or in whose election the member has participated, shall cease to hold office, unless such Executive Director was entitled to cast the number of votes allotted to other members whose voting rights have not been suspended. In the latter case:
Division 7
R.S., c. C-8
Canada Pension Plan
Amendments to the Act
R.S., c. 30 (2nd Supp.), s. 1(2)
193. The definition “contributor” in subsection 2(1) of the Canada Pension Plan is replaced by the following:
“contributor”
« cotisant »
“contributor” means a person who has made an employee’s contribution or a contribution in respect of the person’s self-employed earnings, and includes a person the amount of whose earnings on which a contribution has been made for a year under this Act calculated as provided in subparagraph 53(1)(b)(i) exceeds zero and a person to whom unadjusted pensionable earnings have been attributed under section 55, 55.1 or 55.2;
194. Subsection 42(1) of the Act is amended by adding the following in alphabetical order:
“substantially gainful”
« véritablement rémunératrice »
“substantially gainful”, in respect of an occupation, has the meaning that may be prescribed;
1997, c. 40, s. 69(3)
195. (1) The portion of paragraph 44(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) a contributor shall be considered to have made contributions for not less than the minimum qualifying period only if the contributor has made contributions during the contributor’s contributory period on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),
(2) Section 44 of the Act is amended by adding the following after subsection (2.1):
Family allowance — late applications for disability pensions
(2.2) A contributor referred to in subparagraph (1)(b)(ii) is deemed to have made contributions for not less than the minimum qualifying period for the purposes of subparagraph (1)(b)(i) if
(a) they became disabled in a month in which they were a family allowance recipient;
(b) in the year in which they became disabled
(i) the child in respect of which they were a family allowance recipient reached seven years of age, and
(ii) their unadjusted pensionable earnings were less than their basic exemption, calculated without regard to subsection 20(2); and
(c) in the absence of this subsection, a disability pension would not be payable to them, but had they become disabled in the year immediately before the year in which they became disabled, a disability pension would have been payable to them under subparagraph (1)(b)(ii).
(3) The portion of subsection 44(3) of the Act before paragraph (a) is replaced by the following:
Calculation for other supplementary benefits
(3) For the purposes of paragraphs (1)(c), (d) and (f), a contributor shall be considered to have made contributions for not less than the minimum qualifying period only if the contributor has made contributions during the contributor’s contributory period
196. (1) Paragraph 48(3)(b) of the Act is replaced by the following:
(b) from the contributor’s total pensionable earnings remaining after the deduction under paragraph (2)(b), the aggregate of the contributor’s pensionable earnings for a number of months equal to the number of months deducted under paragraph (a), for which months that aggregate is less than — or, if not less than, then equal to — the aggregate of the contributor’s pensionable earnings for any other like number of months in the contributor’s contributory period other than for months for which a deduction has already been made under subsection (2).
(2) Paragraph 48(4)(b) of the Act is replaced by the following:
(b) from the contributor’s total pensionable earnings remaining after making any deduction under subsection (2) or (3), the aggregate of the contributor’s pensionable earnings for a number of months equal to the number of months deducted under paragraph (a), for which months that aggregate is less than — or, if not less than, then equal to — the contributor’s aggregate pensionable earnings for any like number of months in the contributor’s contributory period other than for months for which a deduction has already been made under subsection (2) or (3).
2000, c. 12, s. 46(1)
197. (1) Subsection 55(1) of the Act is replaced by the following:
Application for division
55. (1) Subject to this section, subsections 55.2(2), (3) and (4) and section 55.3, an application for a division of the unadjusted pensionable earnings of former spouses may be made in writing to the Minister by or on behalf of either former spouse, by the estate or succession of either former spouse or by any person that may be prescribed, within 36 months or, if both former spouses agree in writing, at any time after the date of a judgment granting a divorce or of a judgment of nullity of the marriage, rendered on or after January 1, 1978 and before January 1, 1987.
R.S., c. 30 (2nd Supp.), s. 22(2); 2000, c. 12, s. 46(2)(F)
(2) Paragraph 55(2)(b) of the Act is replaced by the following:
(b) the marriage is deemed to have been solemnized or nullified or a divorce is deemed to have been made final on the last day of the year preceding the registered date of the marriage or the judgment of nullity or the effective date of the judgment granting a divorce; and
2000, c. 12, s. 47
198. Paragraph 55.1(1)(a) of the Act is replaced by the following:
(a) in the case of spouses, following a judgment granting a divorce or a judgment of nullity of the marriage, on the Minister’s being informed of the judgment and receiving the prescribed information;
2000, c. 12, s. 47
199. Paragraph 55.11(a) of the Act is replaced by the following:
(a) in respect of judgments granting a divorce and judgments of nullity of a marriage, rendered on or after January 1, 1987;
2000, c. 12, s. 48(2)
200. (1) Subparagraph 55.2(3)(c)(ii) of the Act is replaced by the following:
(ii) in the case of a division under paragraph 55.1(1)(a), before the rendering of the judgment granting a divorce or the judgment of nullity of the marriage, as the case may be, and
2000, c. 12, s. 48(2)
(2) Subsection 55.2(4) of the Act is replaced by the following:
Minister to notify parties
(4) The Minister shall, without delay after being informed of a judgment granting a divorce or a judgment of nullity of a marriage or after receiving an application under section 55 or paragraph 55.1(1)(b) or (c), notify each of the persons subject to the division, in the prescribed manner, of the periods of unadjusted pensionable earnings to be divided, and of any other information that the Minister considers necessary.
201. (1) Paragraph 78(a) of the Act is replaced by the following:
(a) the contributor’s earnings on which a contribution has been made for the year under this Act, calculated as provided in subparagraph 53(1)(b)(i),
(2) Paragraph 78(b) of the Act is replaced by the following:
(b) the aggregate of the amount mentioned in paragraph (a) and the contributor’s earnings on which a contribution has been made for the year under a provincial pension plan, calculated as provided in subparagraph 53(1)(b)(ii).
202. Subsection 84(1) of the Act is amended by striking out “or” at the end of paragraph (e) and by adding the following after paragraph (f):
(g) whether a penalty should be imposed under this Part, or
(h) the amount of that penalty,
R.S., c. 30 (2nd Supp.), s. 58
203. Subsection 115(2) of the Act is replaced by the following:
Report when certain Bills introduced
(2) In addition to any report required under subsection (1) and in accordance with a request of the Minister of Finance, whenever any Bill is introduced in the House of Commons to amend this Act in a manner that would in the opinion of the Chief Actuary materially affect any of the estimates contained in the most recent report made under that subsection, the Chief Actuary shall prepare a report as set out in subsection (3).
Contents of report
(3) A report that is prepared under subsection (2) in respect of a Bill shall set out the extent to which the Bill would, if enacted by Parliament, materially affect any of the estimates contained in the most recent report made under subsection (1), using the same actuarial assumptions and basis that were used in that report and using, in addition, other actuarial assumptions and another basis if the Chief Actuary is of the opinion that these other actuarial assumptions and the other basis more accurately reflect a change in demographic or economic circumstances since the most recent report made under subsection (1) was prepared.
2005, c. 34
Related Amendment to the Department of Human Resources and Skills Development Act
204. Subsection 64(2) of the Department of Human Resources and Skills Development Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) whether a penalty should be imposed under Part II of that Act or its amount.
Coming into Force
Subsection 114(2) of Canada Pension Plan does not apply
205. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in this Division.
Order in council
(2) Sections 195 and 196 come into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day or days to be fixed by order of the Governor in Council.
Division 8
R.S., c. I-5
Indian Act
Amendments to the Act
R.S., c. 17 (4th Supp.), s. 2
206. Subsection 37(2) of the Indian Act is replaced by the following:
Other transactions
(2) Except where this Act otherwise provides, lands in a reserve shall not be leased nor an interest in them granted until they have been designated under subsection 38(2) by the band for whose use and benefit in common the reserve was set apart.
R.S., c. 17 (4th Supp.), s. 3
207. (1) The portion of subsection 39(1) of the Act before paragraph (a) is replaced by the following:
Conditions — surrender
39. (1) An absolute surrender is void unless
R.S., c. 17 (4th Supp.), s. 3
(2) Subparagraph 39(1)(b)(ii) of the Act is replaced by the following:
(ii) at a special meeting of the band called by the Minister for the purpose of considering a proposed absolute surrender, or
R.S., c. 17 (4th Supp.), s. 3
(3) Subsections 39(2) and (3) of the Act are replaced by the following:
Minister may call meeting or referendum
(2) If a majority of the electors of a band did not vote at a meeting or referendum called under subsection (1), the Minister may, if the proposed absolute surrender was assented to by a majority of the electors who did vote, call another meeting by giving 30 days’ notice of that other meeting or another referendum as provided in the regulations.
Assent of band
(3) If a meeting or referendum is called under subsection (2) and the proposed absolute surrender is assented to at the meeting or referendum by a majority of the electors voting, the surrender is deemed, for the purposes of this section, to have been assented to by a majority of the electors of the band.
R.S., c. 17 (4th Supp.), s. 4
208. Section 40 of the Act is replaced by the following:
Conditions — designation
39.1 A designation is valid if it is made to Her Majesty, is assented to by a majority of the electors of the band voting at a referendum held in accordance with the regulations, is recommended to the Minister by the council of the band and is accepted by the Minister.
Certification — surrender
40. A proposed absolute surrender that is assented to by the band in accordance with section 39 shall be certified on oath by the superintendent or other officer who attended the meeting and by the chief or a member of the council of the band and then submitted to the Governor in Council for acceptance or refusal.
Certification — designation
40.1 (1) A proposed designation that is assented to in accordance with section 39.1 shall be certified on oath by an officer of the Department and by the chief or a member of the council of the band.
Ministerial decision
(2) On the recommendation of the council of the band, the proposed designation shall be submitted to the Minister who may accept or reject it.
Coming into Force
Order in council
209. This Division comes into force on a day to be fixed by order of the Governor in Council.
Division 9
R.S., c. J-1
Judges Act
1999, c. 3, s. 72; 2006, c. 11, ss. 1 and 2; 2011, c. 24, s. 170
210. Sections 9 to 22 of the Judges Act are replaced by the following:
Supreme Court of Canada
9. The yearly salaries of the judges of the Supreme Court of Canada are as follows:
(a) the Chief Justice of Canada, $370,300; and
(b) the eight puisne judges, $342,800 each.
Federal Courts
10. The yearly salaries of the judges of the Federal Courts are as follows:
(a) the Chief Justice of the Federal Court of Appeal, $315,900;
(b) the other judges of the Federal Court of Appeal, $288,100 each;
(c) the Chief Justice of the Federal Court, $315,900; and
(d) the other judges of the Federal Court, $288,100 each.
Tax Court of Canada
11. The yearly salaries of the judges of the Tax Court of Canada are as follows:
(a) the Chief Justice, $315,900;
(b) the Associate Chief Justice, $315,900; and
(c) the other judges, $288,100 each.
Court of Appeal for Ontario and Superior Court of Justice
12. The yearly salaries of the judges of the Court of Appeal for Ontario and of the Superior Court of Justice in and for the Province of Ontario are as follows:
(a) the Chief Justice and the Associate Chief Justice of Ontario, $315,900 each;
(b) the 14 Justices of Appeal, $288,100 each;
(c) the Chief Justice and the Associate Chief Justice of the Superior Court of Justice, $315,900 each; and
(d) the 192 other judges of the Superior Court of Justice, $288,100 each.
Court of Appeal and Superior Court of Quebec
13. The yearly salaries of the judges of the Court of Appeal and of the Superior Court in and for the Province of Quebec are as follows:
(a) the Chief Justice of Quebec, $315,900;
(b) the 18 puisne judges of the Court of Appeal, $288,100 each;
(c) the Chief Justice, the Senior Associate Chief Justice and the Associate Chief Justice of the Superior Court, $315,900 each; and
(d) the 140 puisne judges of the Superior Court, $288,100 each.
Court of Appeal and Supreme Court of Nova Scotia
14. The yearly salaries of the judges of the Nova Scotia Court of Appeal and the Supreme Court of Nova Scotia are as follows:
(a) the Chief Justice of Nova Scotia, $315,900;
(b) the seven other judges of the Court of Appeal, $288,100 each;
(c) the Chief Justice and the Associate Chief Justice of the Supreme Court, $315,900 each; and
(d) the 23 other judges of the Supreme Court, $288,100 each.
Court of Appeal and Court of Queen’s Bench of New Brunswick
15. The yearly salaries of the judges of the Court of Appeal of New Brunswick and of the Court of Queen’s Bench of New Brunswick are as follows:
(a) the Chief Justice of New Brunswick, $315,900;
(b) the five other judges of the Court of Appeal, $288,100 each;
(c) the Chief Justice of the Court of Queen’s Bench, $315,900; and
(d) the 21 other judges of the Court of Queen’s Bench, $288,100 each.
Court of Appeal and Court of Queen’s Bench for Manitoba
16. The yearly salaries of the judges of the Court of Appeal for Manitoba and of Her Majesty’s Court of Queen’s Bench for Manitoba are as follows:
(a) the Chief Justice of Manitoba, $315,900;
(b) the six Judges of Appeal, $288,100 each;
(c) the Chief Justice, the Senior Associate Chief Justice and the Associate Chief Justice of the Court of Queen’s Bench, $315,900 each; and
(d) the 31 puisne judges of the Court of Queen’s Bench, $288,100 each.
Court of Appeal and Supreme Court of British Columbia
17. The yearly salaries of the judges of the Court of Appeal for British Columbia and of the Supreme Court of British Columbia are as follows:
(a) the Chief Justice of British Columbia, $315,900;
(b) the 12 Justices of Appeal, $288,100 each;
(c) the Chief Justice and the Associate Chief Justice of the Supreme Court, $315,900 each; and
(d) the 81 other judges of the Supreme Court, $288,100 each.
Supreme Court of Prince Edward Island
18. The yearly salaries of the judges of the Supreme Court of Prince Edward Island are as follows:
(a) the Chief Justice of Prince Edward Island, $315,900;
(b) the two other judges of the Appeal Division, $288,100 each;
(c) the Chief Justice of the Trial Division, $315,900; and
(d) the three other judges of the Trial Division, $288,100 each.
Court of Appeal and Court of Queen’s Bench for Saskatchewan
19. The yearly salaries of the judges of the Court of Appeal for Saskatchewan and of Her Majesty’s Court of Queen’s Bench for Saskatchewan are as follows:
(a) the Chief Justice of Saskatchewan, $315,900;
(b) the six Judges of Appeal, $288,100 each;
(c) the Chief Justice of the Court of Queen’s Bench, $315,900; and
(d) the 29 other judges of the Court of Queen’s Bench, $288,100 each.
Court of Appeal and Court of Queen’s Bench of Alberta
20. The yearly salaries of the judges of the Court of Appeal of Alberta and of the Court of Queen’s Bench of Alberta are as follows:
(a) the Chief Justice of Alberta, $315,900;
(b) the 10 Justices of Appeal, $288,100 each;
(c) the Chief Justice and the Associate Chief Justice of the Court of Queen’s Bench, $315,900 each; and
(d) the 55 other Justices of the Court of Queen’s Bench, $288,100 each.
Supreme Court of Newfoundland and Labrador
21. The yearly salaries of the judges of the Supreme Court of Newfoundland and Labrador are as follows:
(a) the Chief Justice of Newfoundland and Labrador, $315,900;
(b) the five Judges of Appeal, $288,100 each;
(c) the Chief Justice of the Trial Division, $315,900; and
(d) the 18 other judges of the Trial Division, $288,100 each.
Supreme Court of Yukon
22. (1) The yearly salaries of the judges of the Supreme Court of Yukon are as follows:
(a) the senior judge, $315,900; and
(b) the other judge, $288,100.
Supreme Court of the Northwest Territories
(2) The yearly salaries of the judges of the Supreme Court of the Northwest Territories are as follows:
(a) the senior judge, $315,900; and
(b) the two other judges, $288,100 each.
Nunavut Court of Justice
(2.1) The yearly salaries of the judges of the Nunavut Court of Justice are as follows:
(a) the senior judge, $315,900; and
(b) the four other judges, $288,100 each.
Definition of “senior judge”
(3) In this section, “senior judge” means the judge with the earliest date of appointment to the court in question who has not made an election under subsection 29(1) or 32.1(1) or, in the case of more than one such judge having been appointed on the same day, the judge that the Governor in Council may designate as the senior judge.
2006, c. 11, s. 4(1)
211. (1) Subsection 25(1) of the Act is replaced by the following:
Annual adjustment of salary
25. (1) The yearly salaries referred to in sections 9 to 22 apply in respect of the twelve month period commencing April 1, 2012.
2006, c. 11, s. 4(2)
(2) The portion of subsection 25(2) of the Act before paragraph (a) is replaced by the following:
Annual adjustment of salary
(2) The salary annexed to an office of judge in sections 9 to 22 for the twelve month period commencing April 1, 2013, and for each subsequent twelve month period, shall be the amount obtained by multiplying
1998, c. 30, s. 5
212. (1) Subsection 26(2) of the Act is replaced by the following:
Quadrennial inquiry
(2) The Commission shall commence an inquiry on October 1, 2015, and on October 1 of every fourth year after 2015, and shall submit a report containing its recommendations to the Minister of Justice of Canada within nine months after the date of commencement.
1998, c. 30, s. 5
(2) Subsection 26(7) of the Act is replaced by the following:
Response to report
(7) The Minister of Justice shall respond to a report of the Commission within four months after receiving it. Following that response, if applicable, he or she shall, within a reasonable period, cause to be prepared and introduced a bill to implement the response.
2006, c. 11, s. 6(2)
213. (1) Paragraph 27(6)(g) of the Act is replaced by the following:
(g) the Senior Judge of the Family Court, and each regional senior judge, of the Superior Court of Justice in and for the Province of Ontario, $5,000.
2002, c. 7, s. 190(5)
(2) The definition “senior judge” in subsection 27(9) of the Act is replaced by the following:
“senior judge”
« juge principal »
“senior judge” of the Supreme Court of Yukon, of the Supreme Court of the Northwest Territories or of the Nunavut Court of Justice means the judge with the earliest date of appointment to the court in question who has not made an election under subsection 29(1) or 32.1(1) or, in the case of more than one such judge having been appointed on the same day, the judge that the Governor in Council may designate as the senior judge.
214. (1) Subsection 29(4) of the English version of the Act is replaced by the following:
Salary of supernumerary judge
(4) The salary of each supernumerary judge of a superior court is the salary annexed to the office of a judge of that court other than a chief justice, senior associate chief justice, associate chief justice or senior judge.
2002, c. 7, s. 191(2)
(2) Subsection 29(6) of the Act is replaced by the following:
Definition of “senior judge”
(6) In this section, “senior judge” of the Supreme Court of Yukon, of the Supreme Court of the Northwest Territories or of the Nunavut Court of Justice means the judge with the earliest date of appointment to the court in question who has not made an election under subsection (1) or 32.1(1) or, in the case of more than one such judge having been appointed on the same day, the judge that the Governor in Council may designate as the senior judge.
2002, c. 8, s. 89(E)
215. The heading before section 31 of the Act is replaced by the following:
Chief Justice or Senior Judge Continuing as Judge
216. The Act is amended by adding the following after section 32:
Senior judge
32.1 (1) If the senior judge, as defined in subsection 22(3), of the Supreme Court of Yukon, of the Supreme Court of the Northwest Territories or of the Nunavut Court of Justice has notified the Minister of Justice of Canada and the attorney general of the territory of his or her election to cease to perform the duties of senior judge and to perform only the duties of a judge, he or she shall then hold only the office of a judge, other than the senior judge, of that court and shall be paid the salary annexed to the office of a judge, other than the senior judge, of the applicable court until he or she reaches the age of retirement, resigns or is removed from or otherwise ceases to hold office.
Restriction on election
(2) The senior judge may make the election referred to in subsection (1) only if he or she has continued in that position for at least five years.
Duties
(3) The senior judge who has made the election referred to in subsection (1) shall perform all of the judicial duties normally performed by a judge, other than the senior judge, of the applicable court.
Salary
(4) The salary of a senior judge who has made the election referred to in subsection (1) is the salary annexed to the office of a judge of the applicable court, other than the senior judge.
2002, c. 8, ss. 96(1)(E) and (2)
217. Subsections 43(1) and (2) of the Act are replaced by the following:
Annuity payable to supernumer-ary judge
43. (1) If a supernumerary judge, before becoming a supernumerary judge, held the office of chief justice, senior associate chief justice or associate chief justice, or served in the position of senior judge, as defined in subsection 29(6), of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice, the annuity payable to the judge under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office or position previously held by him or her of chief justice, senior associate chief justice, associate chief justice or senior judge.
Annuity — election under section 31, 32 or 32.1
(2) If the Chief Justice of the Federal Court of Appeal or of the Federal Court or the Chief Justice or Associate Chief Justice of the Tax Court of Canada, in accordance with section 31, or a chief justice of a superior court of a province, in accordance with section 32, or a senior judge, as defined in subsection 22(3), of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice, in accordance with section 32.1, has elected to cease to perform his or her duties as such and to perform only the duties of a judge, the annuity payable to him or her under section 42 is an annuity equal to two thirds of the salary annexed, at the time of his or her resignation, removal or attaining the age of retirement, to the office or position held by him or her immediately before his or her election.
2002, c. 7, s. 194
218. Subsection 54(4) of the Act is replaced by the following:
Definition of “senior judge”
(4) In this section, “senior judge”, in respect of the Supreme Court of Yukon, the Supreme Court of the Northwest Territories or the Nunavut Court of Justice, means the judge with the earliest date of appointment to the court in question who has not made an election under subsection 29(1) or 32.1(1) or, in the case of more than one such judge having been appointed on the same day, the judge that the Governor in Council may designate as the senior judge.
Division 10
R.S., c. L-2
Canada Labour Code
Amendments to the Act
219. (1) The portion of section 188 of the Canada Labour Code before paragraph (a) is replaced by the following:
Termination of employment during year
188. When an employee ceases to be employed, the employer shall pay to the employee within 30 days after the day on which the employee ceases to be employed
(2) Paragraph 188(b) of the English version of the Act is replaced by the following:
(b) four per cent or, if the employee has completed six consecutive years of employment by one employer, six per cent of the wages of the employee during any part of the completed portion of their year of employment in respect of which vacation pay has not been paid to the employee.
220. Section 191 of the Act is replaced by the following:
Definitions
191. The following definitions apply in this Division.
“employed in a continuous operation”
« occupé à un travail ininterrompu »
“employed in a continuous operation” means, in respect of an employee, employment in
(a) any industrial establishment in which, in each seven-day period, operations once begun normally continue without cessation until the completion of the regularly scheduled operations for that period;
(b) any operations or services concerned with the running of trains, planes, ships, trucks or other vehicles, whether in scheduled or non-scheduled operations;
(c) any telephone, radio, television, telegraph or other communication or broadcasting operations or services; or
(d) any operation or service normally carried on without regard to Sundays or general holidays.
“holiday pay”
« indemnité de congé »
“holiday pay” means pay calculated in accord-ance with section 196.
“holiday with pay”
« congé payé »
“holiday with pay” means a holiday for which an employee is entitled to holiday pay.
2001, c. 34, ss. 18(F) and 19(F)
221. Sections 196 to 198 of the Act are replaced by the following:
Holiday pay
196. (1) Subject to subsections (2) to (4), an employee shall, for each general holiday, be paid holiday pay equal to at least one twentieth of the wages, excluding overtime pay, that they earned in the four-week period immediately preceding the week in which the general holiday occurs.
Employees on commission
(2) An employee whose wages are paid in whole or in part on a commission basis and who has completed at least 12 weeks of continuous employment with an employer shall, for each general holiday, be paid holiday pay equal to at least one sixtieth of the wages, excluding overtime pay, that they earned in the 12-week period immediately preceding the week in which the general holiday occurs.
First 30 days of employment
(3) An employee is not entitled to holiday pay for a general holiday that occurs in their first 30 days of employment with an employer.
Continuous operation employee not reporting for work
(4) An employee who is employed in a continuous operation is not entitled to holiday pay for a general holiday
(a) on which they do not report for work after having been called to work on that day; or
(b) for which they make themselves unavailable to work when the conditions of employment in the industrial establishment in which they are employed
(i) require them to be available, or
(ii) allow them to make themselves unavailable.
Employment
(5) For the purposes of subsection (3), a person is deemed to be in the employment of another person when they are available at the call of that other person, whether or not they are called on to perform any work.
Additional pay for holiday work
197. (1) An employee who is required to work on a day on which they are entitled to holiday pay shall be paid, in addition to the holiday pay for that day, wages at a rate equal to at least one and one-half times their regular rate of wages for the time that they work on that day.
Employment in continuous operation
(2) An employee employed in a continuous operation who is required to work on a day on which they are entitled to holiday pay shall
(a) be paid in accordance with subsection (1);
(b) be given a holiday with pay at some other time, either by adding it to their annual vacation or by granting it at a time convenient to both the employee and the employer; or
(c) be paid holiday pay for the first day on which they do not work after that day, if a collective agreement that is binding on the employer and the employee so provides.
Employees not entitled to holiday pay
(3) If an employee who is not entitled to holiday pay under subsection 196(3) is required to work on a general holiday, they shall be paid at a rate equal to at least one and one-half times their regular rate of wages for the time that they work on that day unless they are employed in a continuous operation, in which case they are entitled to their regular rate of wages for the time that they work on that day.
R.S., c. 9 (1st Supp.), s. 8; 1993, c. 42, ss. 24 and 25; 2001, c. 34, s. 20(F)
222. Sections 199 to 202 of the Act are replaced by the following:
Holiday work for managers, etc.
199. Despite section 197, an employee excluded from the application of Division I under subsection 167(2) who is required to work on a day on which they are entitled to holiday pay shall be given a holiday with pay at some other time, either by adding it to their annual vacation or by granting it at a time convenient to both the employee and the employer.
Holiday pay deemed to be wages
200. Holiday pay granted to an employee is for all purposes deemed to be wages.
Application of section 189
201. Section 189 applies for the purposes of this Division.
223. The Act is amended by adding the following after section 251:
Complaints
Making of complaint
251.01 (1) Any employee may make a complaint in writing to an inspector if they believe that the employer has contravened
(a) any provision of this Part or of the regulations made under this Part; or
(b) any order.
Time for making complaint
(2) A complaint under subsection (1) shall be made within the following period
(a) in the case of a complaint of non-payment of wages or other amounts to which the employee is entitled under this Part, six months from the last day on which the employer was required to pay those wages or other amounts under this Part; and
(b) in the case of any other complaint, six months from the day on which the subject-matter of the complaint arose.
Extension of time
(3) The Minister may, subject to the regulations, extend the period set out in subsection (2)
(a) if the Minister is satisfied that a complaint was made within that period to a government official who had no authority to deal with the complaint and that the person making the complaint believed the official had that authority;
(b) in any circumstances prescribed by regulation; or
(c) in the conditions prescribed by regulation.
Limitation
(4) An employee is not permitted to make a complaint under subsection (1) if the complaint is that the employee has been dismissed and considers the dismissal to be unjust.
For greater certainty
(5) For greater certainty, a complaint is not permitted under this section if it relates to a disagreement whose settlement is governed exclusively by a collective agreement under subsection 168(1.1).
Suspension of complaint
251.02 (1) If satisfied that the employee must take measures before the complaint may be dealt with, an inspector may suspend consideration of the complaint made under section 251.01, in whole or in part.
Notice
(2) If the inspector suspends a complaint, the inspector must notify the employee in writing and specify in the notice
(a) the measures that the employee must take; and
(b) the period of time within which the employee must take those measures.
Extension of time
(3) The inspector may, upon request, extend the time period specified in the notice.
End of suspension
(4) The suspension ends when, in the inspector’s opinion, the measures specified in the notice have been taken.
Inspector to assist parties
251.03 After receipt of a complaint, an inspector may assist the parties to the complaint to settle the complaint or cause another inspector to do so.
Settlement of amounts due
251.04 (1) If an employer and an employee who has made a complaint relating to the non-payment of wages or other amounts to which they are entitled under this Part reach a settlement in writing on the wages or other amounts to be paid, the employer may pay those amounts to the employee or to the Minister.
If amount paid to Minister
(2) If an employer pays the amounts to the Minister, the Minister shall, without delay after receiving them, pay them over to the employee who is entitled to the amounts.
Minister’s consent required for prosecution
(3) No prosecution for failure to pay an employee the wages or other amounts that were the subject of the complaint may without the written consent of the Minister be instituted against an employer if the employer has paid the amount of wages or other amounts referred to in subsection (1) to the employee or the Minister.
Rejection of complaint
251.05 (1) An inspector may reject a complaint made under section 251.01, in whole or in part,
(a) if the inspector is satisfied
(i) that the complaint is not within their jurisdiction,
(ii) that the complaint is frivolous, vexatious or not made in good faith,
(iii) that the complaint has been settled,
(iv) that there are other means available to the employee to resolve the subject-matter of the complaint that the inspector considers should be pursued,
(v) that the subject-matter of the complaint has been adequately dealt with through recourse obtained before a court, tribunal, arbitrator or adjudicator,
(vi) that in respect of a complaint other than a complaint of non-payment of wages or other amounts to which the employee is entitled under this Part, there is insufficient evidence to substantiate the complaint, or
(vii) that in respect of a complaint made by an employee who is subject to a collective agreement, the collective agreement covers the subject-matter of the complaint and provides a third party dispute resolution process; or
(b) if consideration of the complaint was suspended under subsection 251.02(1) and if, in the inspector’s opinion, the other measures specified in the notice under subsection 251.02(2) were not taken within the specified time period.
Notice of rejection of complaint
(2) If a complaint has been rejected, the inspector shall notify the employee in writing, with reasons.
Request for review
(3) The employee may, within 15 days after the day on which the employee is notified of the rejection, request in writing, with reasons, that the Minister review the inspector’s decision.
Review
(4) The Minister may confirm the inspector’s decision, or rescind it and direct an inspector to deal with the complaint.
Notice of Minister’s decision
(5) The Minister shall notify the employee in writing of the Minister’s decision.
Review is final
(6) The Minister’s confirmation or rescission is final and conclusive and is not subject to appeal to or review by any court.
1993, c. 42, s. 37
224. Subsection 251.1(2) of the Act is replaced by the following:
Limitation
(1.1) A payment order must not relate to wages or other amounts to which the employee is entitled for the period preceding
(a) in the case where the employee made a complaint under subsection 251.01(1) that was not rejected under subsection 251.05(1), the 12 months before the day on which the complaint was made or, if there was a termination of employment prior to the complaint being made, the 12 months before the date of termination; and
(b) in any other case, the 12 months before the day on which an inspection under this Part, during the course of which the inspector made the finding referred to in subsection (1), began.
Unpaid vacation pay
(1.2) In respect of unpaid vacation pay, a reference to a period of 12 months in subsection (1.1) shall be read as a reference to a period of 24 months.
If complaint unfounded
(2) An inspector dealing with a complaint of non-payment of wages or other amounts to which an employee is entitled under this Part shall notify the employee in writing that their complaint is unfounded if the inspector concludes that the employer has paid to the employee all wages and other amounts to which the employee is entitled under this Part for the period of six months set out in paragraph 251.01(2)(a) or for the extended period provided for in subsection 251.01(3).
1993, c. 42, s. 37
225. Section 251.11 of the Act is replaced by the following:
Request for review
251.101 (1) A person who is affected by a payment order or a notice of unfounded complaint may send a written request with reasons for a review of the inspector’s decision to the Minister within 15 days after the day on which the order or a copy of the order or the notice is served.
Payment of amount
(2) An employer or a director of a corporation is not permitted to request a review of a payment order unless the employer or director pays to the Minister the amount indicated in the payment order, subject to, in the case of a director, the maximum amount of the director’s liability under section 251.18.
Review
(3) On receipt of the request for review, the Minister may, in writing, confirm, rescind or vary, in whole or in part, the payment order or the notice of unfounded complaint and, if the Minister rescinds the notice, the Minister shall direct an inspector to re-examine the complaint.
Service of documents
(4) Service of a decision made under subsection (3) shall be made to the persons who are affected by the payment order or by the notice of unfounded complaint, by personal service or by registered or certified mail and, in the case of registered or certified mail, the decision is deemed to have been received by the addressee on the seventh day after the day on which it is mailed.
Proof of service of documents
(5) A certificate purporting to be signed by the Minister certifying that a decision referred to in subsection (4) was sent by registered or certified mail to the person to whom it was addressed, accompanied by an identifying post office certificate of the registration or certification and a true copy of the decision, is admissible in evidence and is proof of the statements contained in it, without proof of the signature or official character of the person appearing to have signed the certificate.
Review is final
(6) Subject to the right of appeal under section 251.11, the decision made under subsection (3) is final and conclusive and is not subject to appeal to or review by any court.
Request treated as an appeal
(7) The Minister may, if the Minister considers it appropriate in the circumstances, treat the request for review as an appeal of the inspector’s decision, in which case the Minister shall so inform the persons affected by the payment order or by the notice of unfounded complaint, and the request for review shall be considered to be an appeal for the purposes of section 251.12.
Appeal
251.11 (1) A person who is affected by a decision made under subsection 251.101(3), other than a decision to rescind a notice of unfounded complaint, may appeal the decision to the Minister, in writing, within 15 days after the day on which the decision is served, but only on a question of law or jurisdiction.
Grounds of appeal
(2) The request for appeal shall contain a statement of the grounds of appeal.
Payment of amount
(3) An employer or director of a corporation is not permitted to appeal from a decision unless the employer or director pays to the Minister
(a) if no amount was paid under subsection 251.101(2), the amount indicated in the payment order or, if the decision varied that amount, the amount indicated in the decision; and
(b) if an amount was paid under subsection 251.101(2) that is less than the amount indicated in the decision, the amount equal to the difference between the two amounts.
Limitation
(4) In the case of a director, subsection (3) applies subject to the maximum amount of the director’s liability under section 251.18.
1993, c. 42, s. 37
226. (1) Subsection 251.12(1) of the Act is replaced by the following:
Appointment of referee
251.12 (1) The Minister shall appoint any person that the Minister considers appropriate as a referee to hear and adjudicate an appeal and shall provide that person with the decision being appealed and either the request for appeal or, if subsection 251.101(7) applies, the request for review submitted under subsection 251.101(1).
1993, c. 42, s. 37
(2) Paragraph 251.12(4)(a) of the Act is replaced by the following:
(a) confirm, rescind or vary, in whole or in part, the decision being appealed;
1993, c. 42, s. 37
227. Subsection 251.14(1) of the Act is replaced by the following:
Deposit of moneys
251.14 (1) If the Minister receives moneys under this Division, the Minister shall deposit those moneys to the credit of the Receiver General in the account known as the “Labour Standards Suspense Account” or in any other special account created for the purposes of this section and may authorize payments out of that account to any employee or other person who is entitled to that money.
1993, c. 42, s. 37
228. Subsection 251.15(1) of the Act is replaced by the following:
Enforcement of orders
251.15 (1) Any person who is affected by a payment order issued under subsection 251.1(1) or confirmed or varied under subsection 251.101(3) or by a referee’s order made under subsection 251.12(4), or the Minister on the request of any such person, may, after the day provided in the order for compliance or after 15 days following the day on which the order is made, confirmed or varied, whichever is the later, file in the Federal Court a copy of the payment order, or a copy of the referee’s order exclusive of the reasons.
Limitation
(1.1) However, a payment order is not to be filed while it is or may be the subject of a review under subsection 251.101(1) or an appeal under subsection 251.101(7) or section 251.11 or if a referee’s order is made under paragraph 251.12(4)(a) relating to the payment order.
229. Section 264 of the Act is amended by striking out “and” at the end of paragraph (j) and by adding the following after paragraph (j):
(j.1) prescribing the circumstances and conditions for the purposes of subsection 251.01(3); and
Transitional Provisions
Complaints, notices and payment orders
230. The Canada Labour Code, as it read immediately before the day on which this section comes into force, applies
(a) to complaints that allege that an employer contravened any provision of Part III of that Act, any provision of regulations made under that Part or any order within the meaning of that Part and that were received by the Minister of Labour before that day;
(b) to notices of unfounded complaint issued under subsection 251.1(2) of that Act that relate to complaints referred to in paragraph (a); and
(c) to payment orders issued under subsection 251.1(1) of that Act
(i) before that day, and
(ii) on or after that day, if the inspector made the finding that resulted in the payment order during the course of an inspection under Part III of that Act that began before that day or as a result of dealing with a complaint referred to in paragraph (a).
Payment orders and notices
231. The Canada Labour Code, as it read immediately before the day on which this section comes into force, applies to any payment orders and notices of unfounded complaint issued before that day under section 251.1 of that Act.
Coming into Force
Order in council
232. (1) Section 219 comes into force on a day to be fixed by order of the Governor in Council.
Order in council
(2) Sections 220 to 222 come into force on a day to be fixed by order of the Governor in Council.
Order in council
(3) Sections 223, 224, 229 and 230 come into force on a day to be fixed by order of the Governor in Council.
Order in council
(4) Sections 225 to 228 and 231 come into force on a day to be fixed by order of the Governor in Council.
Division 11
R.S., c. M-6
Merchant Seamen Compensation Act
Amendments to the Act
233. The definition “Board” in subsection 2(1) of the Merchant Seamen Compensation Act is repealed.
234. The heading before section 3 and sections 3 and 4 of the Act are repealed.
235. Subsections 6(2) and (3) of the Act are replaced by the following:
Notice of election
(2) Notice of an election under subsection (1) shall be given to the Minister within three months after the happening of an accident or, if an accident results in death, within three months after the death or within any longer period that, either before or after the expiry of the three months, the Minister may allow.
Waiver of all claims
(3) No compensation is payable in respect of any accident mentioned in subsection (1) unless the seaman or their dependants submit to the Minister, in a form approved by the Minister, a waiver of all claims for compensation under the foreign law referred to in that subsection.
236. Sections 9 and 10 of the Act are replaced by the following:
Deductions
9. Except with the Minister’s approval, the amount of compensation payable under this Act is not subject to any deduction or abatement by reason of, on account of or in respect of any matter or thing whatever except in respect of any sums of money that have been paid by the employer to a seaman on account of an injury received by the seaman, which sum or sums shall be deducted from the amount of the compensation.
Amount not to be assigned, etc.
10. Except with the Minister’s approval, the amount of compensation payable under this Act is not capable of being assigned, charged or attached and shall not pass to any other person by operation of law nor shall any claim be set off against it, including, in Quebec, by way of compensation.
237. Section 11 of the French version of the Act is replaced by the following:
Aucune renonciation
11. Un marin ne peut s’engager envers son employeur à renoncer à ses droits à l’une des prestations auxquelles lui-même ou les personnes à sa charge ont droit ou peuvent avoir droit en vertu de la présente loi ou à délaisser ceux-ci, et toute entente à cette fin est absolument de nul effet.
238. Section 12 of the Act is replaced by the following:
Claims to be heard by Minister
12. No action lies for the recovery of compensation payable under this Act, but all claims for compensation shall be heard and determined by the Minister.
239. Sections 14 to 20 of the Act are replaced by the following:
Minister decides right to compensation
14. Any party to an action may apply to the Minister for adjudication and determination of the question of the plaintiff’s right to compensation under this Act, or whether the right to bring the action is taken away by this Act.
Exclusive jurisdiction of Minister
15. The Minister has exclusive jurisdiction to examine, hear and determine all matters and questions arising under this Act and with respect to any matter or thing in respect of which any power, authority or discretion is conferred on him or her.
Reconsideration and amendment
16. The Minister may reconsider any matter that has been dealt with by him or her or rescind or amend any decision or order previously made.
Production of information
17. In any matter arising under this Act, the Minister has the power to require the production of any information that he or she considers necessary.
Decisions final
19. The Minister’s decisions and findings are final and conclusive.
Award
20. The Minister may award any sum that he or she considers reasonable to the successful party to a contested claim for compensation or to any other contested matter as compensation for the expenses that the party incurred by reason of or incidental to the contest. An order of the Minister for the payment by any employer of any sum so awarded when filed in the manner provided by section 21 becomes a judgment of the court in which it is filed and may be enforced accordingly.
1992, c. 51, s. 57(1)
240. The portion of section 21 of the Act before paragraph (a) is replaced by the following:
Order enforced as judgment of court
21. An order of the Minister for the payment of compensation by an employer or any other order of the Minister for the payment of money under this Act, or a copy of the order that is certified to be a true copy by a person who is duly authorized by the Minister, may be filed with
241. Section 23 of the Act is replaced by the following:
Minister’s discretion
23. Despite section 22, compensation or a sum in lieu of compensation may be awarded to any seaman who is not a resident of Canada or to any non-resident dependant, as the Minister considers appropriate, but the compensation or sum shall not in any case exceed the amount of compensation provided for under this Act.
242. Subsection 24(4) of the Act is replaced by the following:
Notice of election
(4) Notice of the election referred to in subsection (3) shall be given to the employer within three months after the happening of an accident or, if an accident results in death, within three months after the death or within any longer period that, either before or after the expiry of the three months, the Minister may allow.
243. Subsection 25(4) of the Act is replaced by the following:
Failure to give notice
(4) Failure to give the prescribed notice or to make the claim referred to in subsection (1), or any defect or inaccuracy in a notice, does not bar the right to compensation if the Minister considers that the employer was not prejudiced by it or it appears that the claim for compensation is a just one and ought to be allowed.
244. (1) The portion of subsection 26(1) of the Act before paragraph (a) is replaced by the following:
Employer to give notice
26. (1) Subject to subsection (2), every employer shall, within 30 days after the happening of an accident to a seaman in its employment by which the seaman is disabled from performing their duties or that necessitates medical aid, notify the Minister in writing of
(2) The portion of subsection 26(1) of the Act after paragraph (e) is replaced by the following:
The employer shall also produce any further information respecting any other accident or claim to compensation that the Minister may require.
(3) Subsections 26(2) to (4) of the Act are replaced by the following:
Minister may relieve employer
(2) The Minister may, by order, relieve any employer from the obligation to comply with subsection (1) to the extent provided for in the order.
Failure to comply
(3) Every person who fails to comply with subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both.
Due diligence
(4) A person is not to be found guilty of an offence under subsection (3) if they establish that they exercised due diligence to prevent the commission of the offence.
Minister’s consent
(5) No proceedings shall be taken under this section against any person without the Minister’s consent.
245. Subsection 27(1) of the Act is replaced by the following:
Medical examination
27. (1) A seaman who claims compensation, or to whom compensation is payable under this Act, shall, if required to do so by their employer, submit themselves for examination by a duly qualified medical practitioner who is selected and paid for by the employer and shall, if required to do so by the Minister, submit themselves for examination by a medical referee.
246. (1) Subsections 28(1) and (2) of the Act are replaced by the following:
Minister may refer matter to medical referee
28. (1) If a seaman has, on their employer’s request, submitted themselves for examination, or has been examined by a duly qualified medical practitioner selected by themselves, and a copy of the medical practitioner’s report on the seaman’s condition has been furnished in the former case by the employer to the seaman and in the latter case by the seaman to the employer, the Minister may, on the application of either of them or of his or her own motion, refer the matter to a medical referee.
Certificate of medical referee
(2) The medical referee to whom a reference is made under subsection (1) or who has examined the seaman by the Minister’s direction under subsection 27(1) shall certify to the Minister as to the condition of the seaman and their fitness for employment, specifying, if necessary, the kind of employment and, if unfit, the cause and degree of the unfitness, and the referee’s certificate, unless the Minister otherwise directs, is conclusive as to the matters certified.
(2) Subsection 28(4) of the Act is replaced by the following:
Diminution or suspension of compensation
(4) The Minister may diminish the compensation to which a seaman is entitled, or suspend payment of it, whenever the seaman persists in dangerous or unsanitary practices imperilling or retarding their cure and whenever they refuse to submit to any medical treatment that the Minister, on the medical referee’s advice, considers necessary for their cure.
R.S., c. 1 (2nd Supp.), s. 213(1) (Sch. I, item 8)
247. Sections 29 and 30 of the Act are replaced by the following:
Payments may be reviewed
29. Any weekly or other periodic payment to a seaman may be reviewed at the employer’s or seaman’s request, and on such review the Minister may put an end to or diminish the payment or increase the payment to a sum not beyond the maximum prescribed in this Act.
INSURANCE
Employer to be insured
30. (1) Every employer shall cover by insurance or other means satisfactory to the Minister the risks of compensation arising under this Act.
Failure to comply
(2) Every person who fails to comply with subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both.
Due diligence
(3) A person is not to be found guilty of an offence under subsection (2) if they establish that they exercised due diligence to prevent the commission of the offence.
Minister’s consent
(4) No proceedings shall be taken under this section against any person without the Minister’s consent.
248. (1) Subparagraph 31(1)(e)(ii) of the Act is replaced by the following:
(ii) with the Minister’s approval, for each child under the age of 21 years who is attending school;
(2) Subparagraph 31(1)(f)(ii) of the Act is replaced by the following:
(ii) with the Minister’s approval, to each child under the age of 21 years who is attending school; and
(3) Paragraph 31(1)(g) of the Act is replaced by the following:
(g) if the dependants are persons other than those mentioned in paragraphs (d) to (f), a reasonable sum that is proportionate to the pecuniary loss to those dependants occasioned by the death, to be determined by the Minister.
2000, c. 12, s. 188(3)
(4) Subsection 31(2) of the Act is replaced by the following:
If no survivor
(2) If a seaman leaves no survivor or the survivor subsequently dies, and a competent authority has appointed a person to care for the children who are entitled to compensation, the Minister may pay that person the same monthly payments of compensation as if that person were the survivor of the deceased, and in that case the children’s part of the payments shall be in lieu of the monthly payments that they would otherwise have been entitled to receive.
(5) Subsections 31(4) to (6) of the Act are replaced by the following:
Duration of payments
(4) In the case provided for by paragraph (1)(g), the payments shall continue only so long as, in the Minister’s opinion, it might reasonably have been expected that the seaman, had they lived, would have continued to contribute to the support of the dependants, and, in any case under that paragraph, compensation may be made wholly or partly in a lump sum or by any form of payment that the Minister considers most suitable in the circumstances.
Dependant to whom seaman stood in place of parent
(5) A dependant to whom the seaman stood in the place of a parent or a dependant who stood in the place of a parent to the seaman is entitled, as the Minister may determine, to share in or receive compensation under paragraph (1)(e), (f) or (g).
Disabled child
(6) Compensation is payable to a disabled child without regard to their age, and payments to the child shall continue until, in the Minister’s opinion, the child ceases to be disabled.
(6) Subsection 31(8) of the Act is replaced by the following:
Payments to other persons
(8) If the Minister is of the opinion that it is desirable that a payment in respect of a child should not be made directly to their parent, the Minister may direct that the payment be made to any person or be applied in any manner that he or she considers most advantageous for the child.
249. Subsection 32(2) of the Act is replaced by the following:
Dependent minors attending school
(2) In addition to the amounts of compensation payable under section 31 to or for a seaman’s dependent children as a result of the seaman’s death from an accident incurred before May 1, 1965, there shall be paid, with the Minister’s approval, to or for each dependent child under the age of 21 years who is attending school, the compensation that would have been payable had the accident from which the death of the seaman resulted occurred on or after May 1, 1965.
250. Subsections 37(2) to (4) of the Act are replaced by the following:
Difference in earnings before and after accident
(2) If the Minister considers it more equitable to do so, he or she may award compensation for permanent partial disability, having regard to the difference between the seaman’s average weekly earnings before the accident and the average amount that they are earning or are able to earn in a suitable employment or business after the accident, and the compensation may be a weekly payment of 75% of the difference, and regard shall be had to the seaman’s fitness to continue the employment in the course of which they were injured or to adapt themselves to some other suitable occupation.
Rating schedule
(3) The Minister may compile a rating schedule of percentages of impairment of earning capacity for specified injuries or mutilations that may be used as a guide in determining the compensation payable in permanent partial disability cases.
Fixed amount
(4) Despite subsections (1) and (2), if the impairment of the seaman’s earning capacity does not exceed 10% of their earning capacity, instead of a weekly payment payable under those subsections, the Minister may, unless he or she is of the opinion that it would not be to the seaman’s advantage to do so, fix an amount to be paid to the seaman as full compensation and pay the seaman the amount either in one sum or in periodic payments as the Minister may direct.
251. Subsection 41(5) of the Act is replaced by the following:
Earnings at time of accident considered
(5) If in any case it seems more equitable to do so, the Minister may award compensation, having regard to a seaman’s earnings at the time of an accident.
252. Section 43 of the Act is replaced by the following:
Semi-monthly or monthly payments
43. (1) Whenever the Minister considers it advisable, the payment of compensation may be made semi-monthly or monthly instead of weekly.
Residence outside Canada
(2) Subject to section 23, if a seaman or a dependant is not a resident of Canada or ceases to reside in Canada, the periods of payments may be otherwise fixed or the compensation commuted as the Minister considers appropriate.
2000, c. 12, s. 191
253. Subsections 44(1) and (2) of the Act are replaced by the following:
Cases where compensation may be diverted
44. (1) If a seaman is entitled to compensation and it is made to appear to the Minister that the seaman’s spouse, former spouse, common-law partner, former common-law partner or children under 18 years of age are without adequate means of support, the Minister may divert the compensation in whole or in part from the seaman for their benefit.
Diversion of compensation from survivor
(2) If a seaman’s survivor is entitled to compensation under section 31 and it is made to appear to the Minister that the seaman’s spouse, former spouse, former common-law partner or children under 18 years of age are without adequate means of support, the Minister may divert the compensation in whole or in part from the survivor for their benefit.
254. Section 45 of the Act is replaced by the following:
If seaman or dependant is a minor
45. If a seaman or a dependant is a minor or under any other legal incapacity, the compensation to which they are entitled may be paid to any person or be applied in any manner that the Minister considers is to the seaman’s or the dependant’s best advantage.
255. Subsection 46(3) of the Act is replaced by the following:
Question of necessity
(3) Any question as to the necessity, character and sufficiency of any medical aid furnished or to be furnished may be referred to the Minister for a decision.
256. Sections 48 to 51 of the Act are replaced by the following:
Reports by physician, etc.
48. Every physician, surgeon or hospital official attending, consulted respecting or having the care of any seaman shall furnish the employer from time to time with any reports that are required by the employer in respect of that seaman, and may charge for the preparation of those reports any reasonable fees that are agreed on with the employer or, in the absence of an agreement, that the Minister approves.
RULES AND ORDERS
Minister may make rules and orders
49. The Minister may make any rules and orders that he or she considers expedient or necessary for regulating his or her procedure and for carrying any of the purposes or provisions of this Act into effect.
DELEGATION AND COSTS OF ADMINISTRATION
Delegation
50. The Minister may delegate to any person the exercise of any power or the performance of any duty that may be exercised or performed by the Minister under this Act, except for the powers referred to in section 49.
Costs chargeable against employers
51. All costs incurred relative to the administration of this Act, including salaries, expenses, fees and commissions, are chargeable against the various employers, apportioned on a basis to be determined by the Minister.
Transitional Provisions
Definition of “Board”
257. In sections 258 to 260, “Board” means the Merchant Seamen Compensation Board established by section 3 of the Merchant Seamen Compensation Act as that Act read immediately before the coming into force of this section.
Appointments terminated
258. (1) Members of the Board cease to hold office on the coming into force of this subsection.
No compensation
(2) Despite the provisions of any contract, agreement or order, no person appointed to hold office as a member of the Board has any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any employee or agent of Her Majesty for ceasing to hold that office or for the abolition of that office by operation of this Division.
Continuation of proceedings
259. Every proceeding commenced under the Merchant Seamen Compensation Act before the coming into force of this section is to be taken up and continued under and in conformity with that Act, as it is amended by this Act.
Reconsideration of Board’s decisions
260. The Minister of Labour may reconsider any matter that has been dealt with by the Board or rescind or amend any decision or order previously made by it.
Consequential Amendments
R.S., c. A-1
Access to Information Act
261. Schedule I to the Access to Information Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:
Merchant Seamen Compensation Board
Commission d’indemnisation des marins marchands
R.S., c. P-21
Privacy Act
262. The schedule to the Privacy Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:
Merchant Seamen Compensation Board
Commission d’indemnisation des marins marchands
Coming into Force
Order in council
263. This Division comes into force on a day to be fixed by order of the Governor in Council.
Division 12
R.S., c. 1 (2nd Supp.)
Customs Act
Amendments to the Act
264. Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order:
“carrier code”
« code de transporteur »
“carrier code” means the unique identification number issued by the Minister either under subsection 12.1(4) or before the coming into force of that subsection;
265. (1) Section 6 of the Act is amended by adding the following after subsection (1):
Clarification
(1.1) For the purposes of subsection (1), “maintain” means, in addition to performing general maintenance, paying all costs related to the operation of the buildings, accommodation and other facilities, including electricity, lighting, ventilation, heating, cooling, water supply, sewage treatment, fire protection, snow removal and cleaning.
Retroactive effect
(1.2) Subsection (1.1) has retroactive effect to the day on which subsection (1) came into force and applies in respect of any action or judicial proceeding that is pending on the day on which this subsection comes into force.
(2) Section 6 of the Act is amended by adding the following after subsection (3):
Retroactive effect of regulations
(3.1) A regulation made under subsection (3) may, if it so provides, have retroactive effect and apply in respect of any pending action or judicial proceeding.
2009, c. 10, s. 6
266. Section 12.1 of the Act is replaced by the following:
Advance information
12.1 (1) Before the arrival of a conveyance in Canada, the owner or person in charge of a conveyance who is prescribed or any other prescribed person shall give the Agency prescribed information about the conveyance and the persons and goods on board or expected to be on board the conveyance.
Exemption
(2) A person who is required to provide information under subsection (1) shall hold a valid carrier code unless they are exempt.
Carrier code — requirements
(3) An application for a carrier code shall be made in the prescribed form with the prescribed information.
Carrier code — issuance
(4) The Minister shall issue a carrier code to a person who applies for it if the application meets the requirements referred to in subsection (3) and the Minister is satisfied that the prescribed requirements and conditions for the carrier code to be issued have been met.
Carrier code — suspension, cancellation and reinstatement
(5) The Minister may, subject to the regulations, suspend, cancel or reinstate a carrier code.
Notification
(6) The Minister may issue a notification to any person who provides information under subsection (1) to require the person to take any specified measure with respect to the information.
Obligation to comply
(7) The person to whom a notification is issued shall comply with the notification.
Regulations
(8) The Governor in Council may make regulations for the purposes of this section, including regulations
(a) respecting the information that must be given under subsection (1);
(b) prescribing the persons or classes of persons who must give the information under subsection (1);
(c) respecting the circumstances in which the information must be given under subsection (1);
(d) respecting the time within which and the manner in which the information must be given under subsection (1);
(e) regarding the requirements and conditions that are to be met before a carrier code may be issued;
(f) regarding the persons or classes of persons who are exempt from holding a valid carrier code; and
(g) regarding the manner and circumstances in which a carrier code may be suspended, cancelled or reinstated.
2009, c. 10, s. 12
267. Subsection 107.1(1) of the Act is replaced by the following:
Passenger information
107.1 (1) The Minister may, under prescribed circumstances and conditions, require any prescribed person or prescribed class of persons to provide, or to provide access to, within the prescribed time and in the prescribed manner, prescribed information about any person on board or expected to be on board a conveyance.
Coming into Force
Order in council
268. Sections 264 and 266 come into force on a day or days to be fixed by order of the Governor in Council.
Division 13
R.S., c. 24 (3rd Supp.), Part III
Hazardous Materials Information Review Act
Amendments to the Act
269. (1) The portion of subsection 10(1) of the Hazardous Materials Information Review Act before the first definition is replaced by the following:
Definitions
10. (1) The following definitions apply in this Act.
(2) The definitions “Commission”, “Pres-ident”, “rule” and “screening officer” in subsection 10(1) of the Act are repealed.
(3) The definitions “directeur de la Section d’appel” and “directeur de la Section de contrôle” in subsection 10(1) of the French version of the Act are repealed.
(4) The definitions “Chief Appeals Officer” and “Chief Screening Officer” in subsection 10(1) of the English version of the Act are replaced by the following:
“Chief Appeals Officer”
« agent d’appel en chef »
“Chief Appeals Officer” means an individual designated as the Chief Appeals Officer under subsection 47(1);
“Chief Screening Officer”
« agent de contrôle en chef »
“Chief Screening Officer” means an individual designated as the Chief Screening Officer under subsection 47(1);
(5) The definition “affected party” in subsection 10(1) of the English version of the Act is amended by replacing “this Part” with “this Act”.
(6) Subsection 10(1) of the French version of the Act is amended by adding the following in alphabetical order:
« agent d’appel en chef »
Chief Appeals Officer
« agent d’appel en chef » Individu désigné à ce titre en vertu du paragraphe 47(1).
« agent de contrôle en chef »
Chief Screening Officer
« agent de contrôle en chef » Individu désigné à ce titre en vertu du paragraphe 47(1).
1996, c. 8, par. 34(1)(b)
270. Subsection 13(2) of the Act is repealed.
2007, c. 7, s. 7(2)
271. (1) Paragraph 23(1)(b) of the Act is amended by adding “and” at the end of subparagraph (ii), by striking out “and” at the end of subparagraph (iii), and by repealing subparagraph (iv).
(2) Section 23 of the Act is amended by adding the following after subsection (1):
Appearance of Minister
(1.1) The Minister may appear before the appeal board to make representations with respect to a submission made to it.
272. Paragraph 24(1)(a) of the Act is replaced by the following:
(a) cause a copy of the decision to be given to the claimant and the Minister; and
273. The heading before section 28 of the Act is replaced by the following:
COUNCIL
274. Subsection 28 of the Act is replaced by the following:
Council established
28. (1) The Minister shall establish a council, whose members are appointed by the Minister, to advise and assist him or her on matters arising in connection with the operation of this Act.
Appointment of members
(2) The council shall consist of the following members:
(a) two members to represent workers, appointed after consultation by the Minister with any organizations representative of workers that the Minister considers appropriate;
(b) one member to represent suppliers, appointed after consultation by the Minister with any organizations representative of suppliers that the Minister considers appropriate;
(c) one member to represent employers, appointed after consultation by the Minister with any organizations representative of employers that the Minister considers appropriate;
(d) one member to represent the Government of Canada, appointed on the recommendation of the Minister of Labour; and
(e) not fewer than four and not more than 13 members to represent the governments of the 10 provinces, the Government of Yukon, the Government of the Northwest Territories and the Government of Nunavut, appointed after consultation by the Minister with each of those governments.
275. The heading before section 29 and sections 29 to 42 of the Act are repealed.
276. Subsection 43(3) of the Act is replaced by the following:
Lists of nominees
(3) The Chief Appeals Officer shall establish and maintain in respect of each province the following lists of nominees for appointment to appeal boards to be convened in that province:
(a) in relation to appeals relating to the provisions of the Hazardous Products Act,
(i) a list containing the names of persons nominated for appointment by any organizations representative of workers in that province that the Minister considers appropriate, and
(ii) a list containing the names of persons nominated for appointment by any organizations representative of suppliers and any organizations representative of employers in that province that the Minister considers appropriate; and
(b) in relation to appeals relating to the provisions of the Canada Labour Code,
(i) a list containing the names of persons nominated for appointment by any organizations representative of employees in that province to whom the Canada Labour Code applies that the Minister of Labour considers appropriate, and
(ii) a list containing the names of persons nominated for appointment by any organizations representative of employers in that province to whom the Canada Labour Code applies that the Minister of Labour considers appropriate.
Council consulted
(3.1) The Minister shall consult the council in identifying the organizations that the Minister considers appropriate for the purposes of paragraph (3)(a).
277. Section 45 of the Act and the heading before it are replaced by the following:
SUPERANNUATION
Members
45. A member of the council or of an appeal board shall be deemed not to be employed in the public service for the purposes of the Public Service Superannuation Act unless the Governor in Council, by order, deems the member to be so employed for those purposes.
278. (1) Subsection 46(1) of the Act is replaced by the following:
Information privileged
46. (1) Subject to this Act and any regulations made under it, all information obtained from a supplier or employer for the purposes of this Act is privileged and, despite the Access to Information Act or any other Act or law, no person who has obtained information from a supplier or employer for the purposes of this Act shall knowingly, without the written consent of the person who provided the information,
(a) communicate the information, or allow it to be communicated, to any person; or
(b) allow any person to inspect or to have access to any book, record, writing or other document containing that information.
Exception — administration or enforcement of Act
(1.1) A person who has obtained information from a supplier or employer for the purposes of this Act may communicate the information or allow it to be communicated, or allow inspection of or access to any book, record, writing or other document containing that information for the purposes of the administration or enforcement of this Act.
1996, c. 8, s. 24
(2) The portion of subsection 46(2) of the Act before paragraph (c) is replaced by the following:
Exceptions
(2) A person who has obtained information from a supplier or employer for the purposes of this Act may communicate the information or allow it to be communicated, or allow inspection of or access to any book, record, writing or other document containing that information, to or by
(3) Subsection 46(3) of the Act is replaced by the following:
Other exceptions
(3) A person who has obtained information from a supplier or employer for the purposes of this Act may communicate or disclose the information or cause it to be communicated or disclosed to any physician or prescribed medical professional who requests that information for the purpose of making a medical diagnosis of, or rendering medical treatment to, a person in an emergency.
279. Section 47 of the Act and the heading before it are replaced by the following:
POWERS OF THE MINISTER
Designations
47. (1) The Minister may designate any individual as Chief Screening Officer and any other individual as Chief Appeals Officer.
Powers and functions
(2) The Minister may, in addition to exercising the powers and performing the functions specified in this Act,
(a) exercise the powers and perform the functions that were previously conferred on or assigned to the Hazardous Materials Information Review Commission by any law of a province relating to occupational health and safety; and
(b) exercise the powers and perform the functions that are conferred on or assigned to him or her, in relation to the review of claims for exemption and to appeals, by any law of a province relating to occupational health and safety.
2007, c. 7, s. 8
280. (1) Paragraph 48(1)(b.2) of the Act is replaced by the following:
(b.2) respecting the participation of the Minister in an appeal heard before an appeal board;
(2) Subsection 48(2) of the Act is replaced by the following:
Regulations prescribing fees
(2) The Governor in Council may, on the recommendation of the Minister, after consultation by the Minister with the council, make regulations prescribing fees or the manner of calculating fees to be paid under this Act.
281. Sections 50 and 51 of the Act are replaced by the following:
No personal liability
50. No member of an appeal board is personally liable for anything done or omitted to be done in good faith in the exercise or performance of their powers, duties or functions under this Act.
282. The Act is amended by replacing “this Part” with “this Act” in the following provisions:
(a) section 9;
(b) subsections 10(2) and (3);
(c) subsection 19(3);
(d) subsection 43(4);
(e) paragraphs 48(1)(d) to (f); and
(f) the portion of subsection 49(1) before paragraph (a).
283. The French version of the Act is amended by replacing “directeur de la Section d’appel” with “agent d’appel en chef”, with any grammatical changes that the circumstances require, in the following provisions:
(a) subsection 20(1.1);
(b) the portion of section 21 before paragraph (a);
(c) section 22;
(d) subsections 27(1) and (2); and
(e) paragraphs 43(1)(a) and (2)(a).
284. The French version of the Act is amended by replacing “directeur de la Section de contrôle” with “agent de contrôle en chef”, with any grammatical changes that the circumstances require, in the following provisions:
(a) subsections 11(1) and (2);
(b) the portion of subsection 12(1) before paragraph (a); and
(c) subsections 18(1) and (2).
Transfer of Employees and Positions
Order
285. (1) Before section 275 comes into force, the Governor in Council may, by order made on the recommendation of the Treasury Board, declare that any person appointed under section 38 of the Hazardous Materials Information Review Act or any class of those persons shall, on the coming into force of the order, occupy their positions in the Department of Health.
Transfer
(2) Any person appointed under section 38 of the Hazardous Materials Information Review Act who has been advised that they will be laid off in accordance with subsection 64(1) of the Public Service Employment Act and who is not the subject of an order made under subsection (1) is, for the purpose of any workforce adjustment measure taken with respect to the person, transferred to the Department of Health on the day on which section 275 comes into force.
Transitional Provisions
Definitions
286. The following definitions apply for the purposes of 287 to 289.
“Commission”
« Conseil »
“Commission” means the Hazardous Materials Information Review Commission established by subsection 28(1) of the Hazardous Materials Information Review Act.
“Minister”
« ministre »
“Minister” means the Minister of Health.
Transfer of appropriations
287. Any amount appropriated, for the fiscal year in which this section comes into force, by an appropriation Act based on the Estimates for that year for defraying the charges and expenses of the Commission that is unexpended on the day on which this section comes into force is deemed, on that day, to be an amount appropriated for defraying the charges and expenses of the Department of Health.
Transfer of powers, duties and functions
288. If, under any Act of Parliament, any instrument made under an Act of Parliament or any order, contract, lease, licence or other document, any power, duty or function is vested in or may be exercised or performed by the Commission or its President in relation to any matter to which the powers, duties and functions of the Minister extend by virtue of the Hazardous Materials Information Review Act, that power, duty or function is vested in or may be exercised or performed by the Minister, unless the Governor in Council by order designates another Minister to exercise that power or perform that duty or function.
Rights and obligations transferred
289. All rights and property held by or in the name of or in trust for the Commission and all obligations and liabilities of the Commission are deemed to be rights, property, obligations and liabilities of Her Maj-esty in right of Canada.
Consequential Amendments
R.S., c. A-1
Access to Information Act
R.S., c. 24 (3rd Supp.), s. 52
290. Schedule I to the Access to Information Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:
Hazardous Materials Information Review Commission
Conseil de contrôle des renseignements relatifs aux matières dangereuses
R.S., c. F-11
Financial Administration Act
1992, c. 1, s. 72; 1996, c. 8, s. 23
291. Schedule I.1 to the Financial Administration Act is amended by striking out, in column I, the reference to
Hazardous Materials Information Review Commission
Conseil de contrôle des renseignements relatifs aux matières dangereuses
and the corresponding reference in column II to “Minister of Health”.
2003, c. 22, s. 11
292. Schedule IV to the Act is amended by striking out the following:
Hazardous Materials Information Review Commission
Conseil de contrôle des renseignements relatifs aux matières dangereuses
2006, c. 9, s. 270
293. Part III of Schedule VI to the Act is amended by striking out, in column I, the reference to
Hazardous Materials Information Review Commission
Conseil de contrôle des renseignements relatifs aux matières dangereuses
and the corresponding reference in column II to “President”.
R.S., c. P-21
Privacy Act
R.S., c. 24 (3rd Supp.), s. 53
294. The schedule to the Privacy Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:
Hazardous Materials Information Review Commission
Conseil de contrôle des renseignements relatifs aux matières dangereuses
1991, c. 30
Public Sector Compensation Act
295. Schedule I to the Public Sector Compensation Act is amended by striking out the following under the heading “OTHER PORTIONS OF THE PUBLIC SERVICE”:
Hazardous Materials Information Review Commission
Conseil de contrôle des renseignements relatifs aux matières dangereuses
SI/93-81
Canadian Security Intelligence Service Act Deputy Heads of the Public Service of Canada Order
296. Item 53 of the schedule to the Canadian Security Intelligence Service Act Deputy Heads of the Public Service of Canada Order is repealed.
Repeal
Repeal
297. Order in Council P.C. 1988-2030, dated September 15, 1988 and registered as SI/88-137, is repealed.
Coming into Force
Order in council
298. This Division, other than section 285, comes into force on a day to be fixed by order of the Governor in Council.
Division 14
1996, c. 17
Agreement on Internal Trade Implementation Act
Amendments to the Act
299. The definition “Agreement” in section 2 of the Agreement on Internal Trade Implementation Act is replaced by the following:
“Agreement”
« Accord »
“Agreement” means the Agreement on Internal Trade signed in 1994, as amended from time to time;
300. The Act is amended by adding the following after section 8:
Orders Made Under Chapter 17 of Agreement
Orders of Federal Court
8.1 (1) An order to pay a monetary penalty or tariff costs made under Chapter 17 of the Agreement may, for the purpose of its enforcement only, be made an order of the Federal Court.
Procedure
(2) To make the order an order of the Federal Court, the party to the Agreement or the person in favour of whom the order is made must file a certified copy of the order in the Registry of the Federal Court and, on filing, the order becomes an order of that Court.
Enforcement
8.2 An order that is made an order of the Federal Court is enforceable in the same manner as any other order of that Court.
Orders final and binding
8.3 An order that is made an order of the Federal Court is final and binding and is not subject to appeal to any court.
301. The heading before section 9 of the English version of the Act is replaced by the following:
Orders of Governor in Council
302. (1) The portion of subsection 9(1) of the Act before paragraph (a) is replaced by the following:
Orders
9. (1) For the purpose of suspending benefits of equivalent effect or imposing retaliatory measures of equivalent effect in respect of a province under Article 1709 of the Agreement, the Governor in Council may, by order, do any one or more of the following:
(2) Paragraphs 9(3)(a) and (b) of the Act are replaced by the following:
(a) the requirements for standing set out in Article 1703(8) of the Agreement; and
(b) the conditions and limitations set out in Articles 1709(3), (4) and (10) of the Agreement.
303. Section 12 of the Act is replaced by the following:
Rosters
12. The Governor in Council may appoint any person who meets the requirements set out in Annex 1704(2) of the Agreement to be on the rosters referred to in Article 1704(2) of the Agreement.
304. Section 15 of the Act and the headings before it are replaced by the following:
Screener
15. The Governor in Council may, by order, appoint any person to be a screener for the purposes of Part B of Chapter 17 of the Agreement if the person meets the requirements set out in that Part.
RELATED AND CONSEQUENTIAL AMENDMENTS
R.S., c. C-50; 1990, c. 8, s. 21
Related Amendment to the Crown Liability and Proceedings Act
1996, c. 17, s. 15
305. Subsection 28(3) of the Crown Liabil-ity and Proceedings Act is repealed.
Coming into Force
Order in council
306. This Division comes into force on a day to be fixed by order of the Governor in Council.
Division 15
1996, c. 23
Employment Insurance Act
307. (1) Section 96 of the Employment Insurance Act is amended by adding the following after subsection (8.9):
Temporary measure — small business refund 2012
(8.91) If an employer’s premium is $10,000 or less for 2011, the Minister shall refund to the employer a portion of the premium for 2012 determined by the following formula if that amount is more than $2:
P2 – P1
where
P1      is the amount of the employer’s premium in 2011; and
P2      is the amount of the employer’s premium in 2012.
P1 can equal zero
(8.92) For the purposes of subsection (8.91), P1 is equal to zero if a person was not required to pay an employer’s premium in 2011.
Maximum refund
(8.93) A refund under subsection (8.91) shall not exceed $1,000.
2011, c. 24, s. 160(2)
(2) Subsection 96(13.1) of the Act is replaced by the following:
No interest payable
(13.1) Despite subsection (13), no interest shall be paid on refunds payable under subsection (8.7) or (8.91).
Division 16
2001, c. 27
Immigration and Refugee Protection Act
Amendments to the Act
308. Section 11 of the Immigration and Refugee Protection Act is amended by adding the following after subsection (1):
Electronic travel authorization
(1.01) Despite subsection (1), a foreign national must, before entering Canada, apply for an electronic travel authorization required by the regulations by means of an electronic system, unless the regulations provide that the application may be made by other means. The application may be examined by the system or by an officer and, if the system or officer determines that the foreign national is not inadmissible and meets the requirements of this Act, the authorization may be issued by the system or officer.
309. Section 14 of the Act is amended by adding the following after subsection (2):
Electronic travel authorization
(3) For the purposes of subsection 11(1.01), the regulations may include provisions respecting the circumstances in which an application may be made by other means and respecting those other means.
310. Subsection 15(1) of the Act is replaced by the following:
Examination by officer
15. (1) An officer is authorized to proceed with an examination if a person makes an application to the officer in accordance with this Act or if an application is made under subsection 11(1.01).
2012, c. 19, s. 706(1)
311. Subsection 87.3(1) of the Act is replaced by the following:
Application
87.3 (1) This section applies to applications for visas or other documents made under subsections 11(1) and (1.01), other than those made by persons referred to in subsection 99(2), to sponsorship applications made by persons referred to in subsection 13(1), to applications for permanent resident status under subsection 21(1) or temporary resident status under subsection 22(1) made by foreign nationals in Canada, to applications for work or study permits and to requests under subsection 25(1) made by foreign nationals outside Canada.
312. Section 89 of the Act is renumbered as subsection 89(1) and is amended by adding the following:
User Fees Act
(2) The User Fees Act does not apply to a fee for the provision of services in relation to an application referred to in subsection 11(1.01).
Coordinating Amendments
2012, c. 17
313. (1) In this section, “other Act” means the Protecting Canada’s Immigration System Act.
(2) On the first day on which both subsection 14(3) of the Immigration and Refugee Protection Act, as enacted by subsection 9(2) of the other Act, and subsection 14(3) of the Immigration and Refugee Protection Act, as enacted by section 309 of this Act, are in force, subsection 14(3) of the Immigration and Refugee Protection Act, as enacted by subsection 9(2) of the other Act, is renumbered as subsection 14(4) and is repositioned accordingly if required.
(3) If section 30 of the other Act comes into force before section 312 of this Act, then
(a) that section 312 is deemed never to have come into force and is repealed; and
(b) section 89 of the Immigration and Refugee Protection Act is amended by adding the following after subsection (2):
User Fees Act
(3) The User Fees Act does not apply to a fee for the provision of services in relation to an application referred to in subsection 11(1.01).
(4) If section 312 of this Act comes into force before section 30 of the other Act, then that section 30 is replaced by the following:
30. Section 89 of the Act is amended by adding the following after subsection (2):
User Fees Act
(3) The User Fees Act does not apply to a fee for the provision of services in relation to the collection, use and disclosure of biometric information and for the provision of related services.
(5) If section 30 of the other Act comes into force on the same day as section 312 of this Act, then that section 30 is deemed to have come into force before that section 312 and subsection (3) applies as a consequence.
2012, c. 19
314. On the first day on which both section 311 of this Act is in force and subsection 710(2) of the Jobs, Growth and Long-term Prosperity Act has produced its effects, subsection 87.3(1) of the Immigration and Refugee Protection Act is replaced by the following:
Application
87.3 (1) This section applies to applications for visas or other documents made under subsections 11(1) and (1.01), other than those made by persons referred to in subsection 99(2), to sponsorship applications made under subsection 13(1), to applications for permanent resident status under subsection 21(1) or temporary resident status under subsection 22(1) made by foreign nationals in Canada, to applications for work or study permits and to requests under subsection 25(1) made by foreign nationals outside Canada.
Division 17
R.S., c. C-7
Canada Mortgage and Housing Corporation Act
315. Subsection 8(1) of the Canada Mortgage and Housing Corporation Act is amended by adding “or” at the end of paragraph (b) and by repealing paragraph (c).
Division 18
R.S., c. N-22
Navigable Waters Protection Act
Amendments to the Act
316. Section 1 of the Navigable Waters Protection Act is replaced by the following:
Short title
1. This Act may be cited as the Navigation Protection Act.
317. (1) The portion of section 2 of the English version of the Act before the first definition is replaced by the following:
Definitions
2. The following definitions apply in this Act.
2009, c. 2, s. 317
(2) The definition “ferry cable” in section 2 of the Act is repealed.
2009, c. 2, s. 317
(3) The definition “bateau” in section 2 of the French version of the Act is repealed.
2009, c. 2, s. 317
(4) The definition “work” in section 2 of the Act is replaced by the following:
“work”
« ouvrage »
“work” includes any structure, device or thing, whether temporary or permanent, that is made by humans. It also includes the dumping of fill or the excavation of materials from the bed of any navigable water.
(5) Section 2 of the Act is amended by adding the following in alphabetical order:
“designated work”
« ouvrage désigné »
“designated work” means a minor work or a work that is constructed or placed in, on, over, under, through or across any minor water.
“minor water”
« eaux secondaires »
“minor water” means any navigable water designated under paragraph 28(2)(b).
“minor work”
« ouvrage secondaire »
“minor work” means any work designated under paragraph 28(2)(a).
“obstruction”
« obstacle »
“obstruction” means a vessel, or part of one, that is wrecked, sunk, partially sunk, lying ashore or grounded, or any thing, that obstructs or impedes navigation or renders it more difficult or dangerous, but does not include a thing of natural origin unless a person causes the thing of natural origin to obstruct or impede navigation or to render it more difficult or dangerous.
“owner”
« propriétaire »
“owner”, in relation to a work, means the actual or reputed owner of the work or that owner’s agent or mandatary. It includes a person who is in possession or claiming ownership of the work and a person who is authorizing or otherwise responsible for the construction, placement, alteration, repair, rebuilding, removal, decommissioning, maintenance, operation, safety or use of the work. It also includes a person who proposes to construct or place a work.
“person in charge”
« responsable »
“person in charge”, with respect to an obstruction, includes the owner of the obstruction and, in the case of a vessel, or part of one, that is an obstruction, the registered owner or other owner at the time the obstruction was occasioned, as well as the managing owner, master and any subsequent purchaser.
“Tribunal”
« Tribunal »
“Tribunal” means the Transportation Appeal Tribunal of Canada established by subsection 2(1) of the Transportation Appeal Tribunal of Canada Act.
(6) Section 2 of the French version of the Act is amended by adding the following in alphabetical order:
« bâtiment »
vessel
« bâtiment » Toute construction flottante conçue ou utilisée pour la navigation en mer ou dans les eaux internes, qu’elle soit pourvue ou non d’un moyen propre de propulsion. Est compris dans la présente définition tout ce qui fait partie des machines, de l’outillage de chargement, de l’équipement, de la cargaison, des approvisionnements ou du lest du bâtiment.
R.S., c. 1 (2nd suppl.), s. 213(1), Sch. I, item 9(1); 2004, c. 15, s. 95; 2009, c. 2, ss. 319 to 328, 329(F) and 330 to 334
318. The headings before section 3 and sections 3 to 18 of the Act are replaced by the following:
WORKS
Prohibition
3. It is prohibited to construct, place, alter, repair, rebuild, remove or decommission a work in, on, over, under, through or across any navigable water that is listed in the schedule except in accordance with this Act or any other federal Act.
Opt in
4. (1) An owner of a work that is constructed or placed, or proposed to be constructed or placed, in, on, over, under, through or across any navigable water, other than any navigable water that is listed in the schedule, may request that this Act be made applicable to the work as if it were a work that is constructed or placed, or proposed to be constructed or placed, in, on, over, under, through or across any navigable water that is listed in the schedule.
Request
(2) The request shall be made to the Minister in the form and manner, and contain the information, that is specified by the Minister and shall be accompanied by the applicable fee.
Deeming
(3) The Minister may accept the request if he or she considers that it is justified in the circumstances, in which case the work is deemed, for the purposes of this Act, to be a work that is constructed or placed, or proposed to be constructed or placed, in, on, over, under, through or across any navigable water that is listed in the schedule, as the case may be.
Assessment by Minister
5. (1) An owner who proposes to construct, place, alter, repair, rebuild, remove or decommission a work — other than a designated work — in, on, over, under, through or across any navigable water that is listed in the schedule shall give notice of the proposal to the Minister.
Notice
(2) The notice shall be made in the form and manner, and contain the information, that is specified by the Minister and shall be accompanied by the applicable fee.
Application
(3) Subsection (1) also applies even if the construction, placement, alteration, repair, rebuilding, removal or decommissioning of the work has begun or is completed before the Minister is notified under subsection (1).
Assessment — factors
(4) In determining whether the work is likely to substantially interfere with navigation, the Minister shall, on receipt of the notice and the applicable fee, assess the proposal and in doing so shall take into account any relevant factor, including
(a) the characteristics of the navigable water in question;
(b) the safety of navigation;
(c) the current or anticipated navigation in that navigable water;
(d) the impact of the work on navigation in that navigable water, for example, as a result of its construction, placement, alteration, repair, rebuilding, removal, decommissioning, maintenance, operation or use; and
(e) the cumulative impact of the work on navigation in that navigable water.
Related works
(5) If the Minister is of the opinion that two or more works are related, the Minister may consider them to be a single work.
Minister’s powers
(6) In determining whether the work is likely to substantially interfere with navigation, the Minister may require from the owner
(a) any additional information that the Minister considers appropriate; and
(b) the deposit of any information specified by the Minister in the local land registry or land titles office or in any other place specified by the Minister and the publication of a notice containing any information specified by the Minister in the Canada Gazette and in any other publication specified by the Minister.
Notice
(7) The notice referred to in paragraph (6)(b) shall invite any interested person to provide written comments to the Minister within 30 days after its publication.
Assessment results
(8) On completion of the assessment of the proposal, the Minister shall determine whether or not the work is likely to substantially interfere with navigation and shall so inform the owner.
Notice
(9) If the work does not conform to the description that the owner provided in the notice referred to in subsection (1), the owner shall so notify the Minister. The Minister may then require that a new notice be given under that subsection.
Approval
6. (1) An owner may construct, place, alter, repair, rebuild, remove or decommission a work in, on, over, under, through or across any navigable water that is listed in the schedule that the Minister has determined under section 5 is likely to substantially interfere with navigation only if the Minister has issued an approval for the work, which may be issued only if an application for the approval is submitted and the application is accompanied by the applicable fee.
Application for approval
(2) The application for an approval shall be made in the form and manner, and contain the information, specified by the Minister.
Refusal
(3) The Minister may refuse to issue an approval if he or she considers that the refusal is in the public interest, including by reason of the record of compliance of the owner under this Act.
Terms and conditions
(4) The Minister may attach any term or condition that he or she considers appropriate to an approval including a requirement that the owner give security in the form of a letter of credit, guarantee, suretyship or indemnity bond or insurance or any other form that is satisfactory to the Minister.
Compliance with requirements
(5) The owner shall comply with the approval and maintain, operate and use the work in accordance with the requirements under this Act.
Contiguous area
(6) The Minister may, in an approval, designate an area contiguous with a work that is necessary for the safety of persons and navigation.
Transfer
(7) An approval may only be transferred if written notice of the transfer is given to the Minister 30 days before the transfer takes place.
Approval after construction or placement begins
(8) The Minister may, if he or she considers that it is justified in the circumstances, approve the construction or placement of the work after its construction or placement begins or is completed.
Amendment of approval
7. (1) The Minister may amend an approval by amending or revoking any term or condition of the approval.
Other amendment of approval
(2) The Minister may otherwise amend the approval, including by adding terms and conditions, only if he or she is satisfied that
(a) the work that is the subject of the approval interferes more with navigation at the time in question than it did when the approval was issued;
(b) the work causes or is likely to cause a serious and imminent danger to navigation; or
(c) the amendment of the approval is in the public interest.
Suspension or cancellation
(3) The Minister may suspend or cancel an approval if he or she considers that
(a) the owner has not complied with the approval;
(b) the approval was obtained by a fraudulent or improper means or by the misrepresentation of a material fact;
(c) the owner has not paid a fine or penalty imposed under this Act;
(d) the owner has contravened this Act; or
(e) the suspension or cancellation is in the public interest, including by reason of the record of compliance of the owner under this Act.
Emergency
8. Even if the notice referred to in subsection 5(1) has not yet been given, the Minister may authorize the construction, placement, alteration, repair, rebuilding, removal or decommissioning of a work — other than a designated work — in, on, over, under, through or across any navigable water that is listed in the schedule if the Minister considers that such an authorization is necessary as a result of an emergency that has resulted in or may result in a danger to life or property, social disruption or a breakdown in the flow of essential goods, services or resources and that is caused by a real or imminent
(a) fire, flood, drought, storm, earthquake or other natural phenomenon;
(b) disease in human beings, animals or plants; or
(c) accident or pollution incident.
Permitted works
9. (1) An owner may construct, place, alter, repair, rebuild, remove or decommission a work in, on, over, under, through or across any navigable water that is listed in the schedule that the Minister has determined under section 5 is not likely to substantially interfere with navigation only if the construction, placement, alteration, repair, rebuilding, removal or decom-missioning is in accordance with the requirements under this Act.
Terms and conditions
(2) The Minister may impose any term or condition that he or she considers appropriate on the construction, placement, alteration, repair, rebuilding, removal, decommissioning, maintenance, operation, safety or use of the work including the designation of an area contiguous with a work that is necessary for the safety of persons and navigation.
Security
(3) In addition, the Minister may require, as a term or condition, that the owner give security in the form of a letter of credit, guarantee, suretyship or indemnity bond or insurance or any other form satisfactory to the Minister.
Compliance with requirements
(4) The owner shall comply with the terms and conditions imposed under subsections (2) and (3) and maintain, operate and use the work in accordance with the requirements under this Act.
Amendment of terms and conditions
(5) The Minister may amend or revoke any term or condition.
Designated works
10. (1) An owner may construct, place, alter, repair, rebuild, remove or decommission a designated work in, on, over, under, through or across any navigable water that is listed in the schedule only if the construction, placement, alteration, repair, rebuilding, removal or decommissioning is in accordance with the requirements under this Act.
Maintenance, operation and use
(2) The owner shall maintain, operate and use the designated work in accordance with the requirements under this Act.
Application
11. (1) This section applies to any work that is constructed, placed, altered, repaired, rebuilt, removed, decommissioned, maintained, operated or used contrary to the requirements under this Act.
Minister’s powers
(2) The Minister may
(a) order the owner of a work to remove or alter the work;
(b) during the construction, placement, alteration, repair, rebuilding, removal or decommissioning of a work, order any person to remove or alter the work or to do any other thing with respect to the work, including taking all measures necessary for the safety of navigation;
(c) if the owner or the person fails to comply with an order given under paragraph (a) or (b), cause any thing to be done with respect to the work, including the removal of the work, its destruction and the sale, donation or other disposal of the materials contained in the work; and
(d) order any person to refrain from proceeding with the construction, placement, alteration, repair, rebuilding, removal or decom-missioning of a work.
Costs of removal or disposal
(3) The amount of the costs incurred by the Minister while acting under paragraph (2)(c), after deducting from that amount any sum that may be realized by sale or otherwise, is recoverable with costs in the name of Her Majesty from the owner.
Obligation to notify Minister
12. (1) An owner of a work in, on, over, under, through or across any navigable water that is listed in the schedule shall immediately notify the Minister if the work causes or is likely to cause a serious and imminent danger to navigation.
Duty to take corrective measures
(2) The owner shall, as soon as feasible, take all reasonable measures consistent with public safety and with the safety of navigation to prevent any serious and imminent danger to navigation that is caused or likely to be caused by the work or to counteract, mitigate or remedy any adverse effects that result from that danger to navigation or might reasonably be expected to result from it.
Removal of works, etc.
13. (1) The Minister may order the owner of a work constructed or placed in, on, over, under, through or across any navigable water that is listed in the schedule to repair, alter or remove it if he or she is satisfied that
(a) it interferes more with navigation at the time in question than it did when it was constructed or placed;
(b) it is causing or is likely to cause a serious and imminent danger to navigation; or
(c) its repair, alteration or removal is in the public interest.
Works
(2) The Minister may, if he or she is satisfied that it is necessary in the circumstances, order the owner to do any other thing with respect to the work.
Owner’s expense
(3) If the owner fails to comply with an order made under subsections (1) or (2), the Minister may cause the order to be carried out at the expense of the owner.
Statutory Instruments Act
14. For greater certainty, approvals issued under section 6, terms and conditions imposed under subsection 9(2) or (3) and orders given under paragraph 11(2)(a), (b) or (d) or subsection 13(1) or (2) are not statutory instruments as defined in subsection 2(1) of the Statutory Instruments Act.
OBSTRUCTIONS
Notice and indication of obstruction
15. (1) The person in charge of an obstruction in a navigable water — other than a minor water — listed in the schedule shall
(a) immediately give notice of the existence of the obstruction to the Minister, in the form and manner, and including the information, specified by the Minister; and
(b) place and, as long as the obstruction is present, maintain, by day, a sufficient signal and, by night, a sufficient light, to indicate the position of the obstruction.
Failure to signal and light rectifiable by Minister
(2) The Minister may cause the signal and light to be placed and maintained if the person in charge of the obstruction fails to do so.
Removal of obstruction
(3) Unless otherwise ordered by the Minister, the person in charge of the obstruction shall immediately begin its removal and shall carry on the removal diligently to completion.
Failure to remove obstruction rectifiable by Minister
(4) The Minister may cause the obstruction to be removed or destroyed if the person in charge of the obstruction fails to remove the obstruction.
Minister’s powers
16. (1) The Minister may order the person in charge of an obstruction or potential obstruction in a navigable water — other than a minor water — that is listed in the schedule to secure, remove or destroy it in the manner that the Minister considers appropriate if the situation has persisted for more than 24 hours.
Property belonging to Her Majesty
(2) The Minister may order any person to secure, remove or destroy a wreck, vessel, part of a vessel or any thing that is cast ashore, stranded or left on any property belonging to Her Majesty in right of Canada and impedes, for more than 24 hours, the use of that property as may be required for the public purposes of Canada.
Failure to comply with order
(3) If the person to whom an order is given under subsection (1) or (2) fails to comply with the order, the Minister may cause the order to be carried out.
Not a statutory instrument
(4) For greater certainty, an order given under this section is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act.
Moving and sale
17. (1) The Minister may cause an obstruction in a navigable water — other than in a minor water — that is listed in the schedule or the wreck, vessel, part of a vessel or thing referred to in subsection 16(2) to be moved to a place that the Minister considers appropriate and to be sold by auction or otherwise as the Minister considers appropriate. The Minister may apply the proceeds of the sale to make good the expenses incurred by the Minister in placing and maintaining any signal or light to indicate the position of the obstruction, wreck, vessel, part of a vessel or thing or in securing, removing, destroying or selling it.
Surplus
(2) The Minister shall pay over all or any portion of the surplus of the proceeds of the sale to the person in charge of the obstruction sold or to any other person that is entitled to the proceeds.
Costs constituting debt
18. (1) The amount of the costs incurred by the Minister while acting under subsection 15(2) or (4) or section 16 — whether or not a sale has been held under section 17 — constitutes a debt due to Her Majesty in right of Canada.
Recovery by Her Majesty
(2) Such debts are recoverable from
(a) the person in charge of the obstruction at the time the obstruction was occasioned;
(b) any person through whose act or fault or through the act or fault of whose servant the obstruction was occasioned or continued; or
(c) the person to whom the order referred to in subsection 16(2) is given.
Application of moneys recovered
(3) Any sum recovered under subsection (2) shall be paid into the Consolidated Revenue Fund.
2009, c. 2, s. 335
319. (1) Subsections 19(1) and (2) of the Act are replaced by the following:
Order to remove vessel left anchored
19. (1) If a vessel has been left anchored, moored or adrift in any navigable water — other than in any minor water — that is listed in the schedule so that, in the Minister’s opinion, it obstructs or is likely to obstruct navigation, the Minister may order the registered owner or other owner, managing owner, master, person in charge of the vessel or subsequent purchaser to secure it or remove it to a place that the Minister considers appropriate.
Failure to comply with order
(2) If a person to whom an order is given under subsection (1) fails to comply without delay with the order, the Minister may cause the vessel to be secured or removed to the place that the Minister considers appropriate, and the costs of securing or removing the vessel are recoverable from the person as a debt due to Her Majesty.
2009, c. 2, s. 335
(2) Subsection 19(3) of the French version of the Act is replaced by the following:
Loi sur les textes réglementaires
(3) Il est entendu que l’ordre donné au titre du présent article n’est pas un texte réglementaire au sens de la Loi sur les textes réglementaires.
2009, c. 2, s. 335
320. Section 20 of the Act is replaced by the following:
Abandoned vessel
20. If any vessel or thing is wrecked, sunk, partially sunk, lying ashore, grounded or abandoned in any navigable water — other than in any minor water — that is listed in the schedule, the Minister may, under the restrictions that he or she considers appropriate, authorize any person to take possession of and remove the vessel, part of the vessel or thing for that person’s own benefit, on that person’s giving to the registered owner or other owner of the vessel or to the owner of the thing, if known, one month’s notice or, if the registered owner or other owner of the vessel or owner of the thing is not known, public notice for the same period in a publication specified by the Minister.
DEPOSIT AND DEWATERING
1998, c. 10, s. 189; 2009, c. 2, ss. 336 to 338
321. Sections 22 to 30 of the Act are replaced by the following:
Throwing or depositing stone, etc., prohibited
22. No person shall throw or deposit or cause, suffer or permit to be thrown or deposited any stone, gravel, earth, cinders, ashes or other material or rubbish that is liable to sink to the bottom in any water, any part of which is navigable or flows into any navigable water, where there is not a minimum depth of 36 metres of water at all times, but nothing in this section shall be construed so as to permit the throwing or depositing of any substance in any part of a navigable water if it is prohibited by or under any other federal Act.
Dewatering
23. No person shall dewater any navigable water.
Exemption by order
24. The Governor in Council may, by order, exempt from any of sections 21 to 23, any rivers, streams or waters, in whole or in part, if it is shown to the satisfaction of the Governor in Council that the exemption would be in the public interest.
Powers of certain persons
25. Sections 21, 22 and 26 do not affect the legal powers, rights or duties of harbour masters, port wardens, the person responsible for the management of the St. Lawrence Seaway or a port authority established under the Canada Marine Act in respect of materials that, under those sections, are not allowed to be deposited in navigable waters.
Dumping places
26. The Minister may designate places in any navigable water that is not within the jurisdiction of any person referred to in section 25, where stone, gravel, earth, cinders, ashes or other material may be deposited even if the minimum depth of water at that place may be less than 36 metres, and the Minister may make rules respecting the deposit of the materials.
AGREEMENTS AND ARRANGEMENTS
Agreements and arrangements
27. The Minister may, with respect to his or her responsibilities under this Act, enter into agreements or arrangements for carrying out the purposes of this Act and authorize any person or organization with whom an agreement or arrangement is entered into to exercise the powers or perform the duties under this Act that are specified in the agreement or arrangement.
REGULATIONS, ORDERS, INCORPORATION BY REFERENCE AND INTERIM ORDERS
Regulations and Orders
Regulations by Governor in Council
28. (1) The Governor in Council may, for the purposes of this Act, make regulations
(a) respecting time limits for issuing approvals or for refusing to do so;
(b) prescribing fees, or the method of calculating fees, to be paid with the request referred to in section 4, to be paid for the assessment referred to in section 5, to be paid with the application referred to in section 6 and to be paid for any other service, right or privilege provided under this Act and respecting the payment of those fees;
(c) respecting the issuing, amendment, suspension and cancellation of approvals under section 6;
(d) respecting the water levels and water flow necessary for navigation;
(e) respecting the construction, placement, alteration, repair, rebuilding, removal, decommissioning, maintenance, operation, safety or use of works in, on, over, under, through or across any navigable waters — other than any minor waters — that are listed in the schedule;
(f) respecting the designation of areas contiguous with works that are necessary for the safety of persons and navigation;
(g) respecting notification requirements in the case of a change in owner of a work;
(h) excluding any thing from the definition “obstruction” in section 2;
(i) designating any provision of this Act, of the regulations or of an order as a provision whose contravention may be proceeded with as a violation in accordance with sections 39.1 to 39.26;
(j) establishing a penalty, or a range of penalties, in respect of each violation;
(k) establishing criteria to be considered in determining the amount of the penalty if a range of penalties is established;
(l) classifying each violation as a minor violation, a serious violation or a very serious violation;
(m) respecting the circumstances under which, the criteria by which and the manner in which the amount of a penalty may be increased or reduced in whole or in part;
(n) providing for a lesser amount that may be paid as complete satisfaction of a penalty if it is paid within the prescribed time and in the prescribed manner and providing, among other things, the circumstances in which the lesser amount may be set out in a notice of violation;
(o) prescribing anything that is to be prescribed under this Act; and
(p) for carrying out the purposes and provisions of this Act.
Minister’s power
(2) The Minister may make an order
(a) designating any works as minor works;
(b) designating, as minor waters, any of the navigable waters, in whole or in part, that are listed in the schedule;
(c) respecting the construction, placement, alteration, repair, rebuilding, removal, decommissioning, maintenance, operation, safety or use of works in, on, over, under, through or across any navigable waters — other than any minor waters — that are listed in the schedule; and
(d) respecting the construction, placement, alteration, repair, rebuilding, removal, decommissioning, maintenance, operation, safety or use of works in, on, over, under, through or across any minor waters.
Classes
(3) A regulation or order made under this section may establish classes and distinguish among those classes.
Conflict
(4) If there is a conflict between a regulation made under paragraph (1)(e) and an order made under paragraph (2)(c), the regulation prevails.
Exemption from Statutory Instruments Act
(5) An order made under subsection (2) is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act. However, it shall be published in the Canada Gazette within 23 days after the day on which it is made.
Definition of “local authority”
29. (1) For the purposes of this section, “local authority” means the government of a municipality, any other government constituted under the laws of a province or a department of a provincial government.
Addition to schedule
(2) The Governor in Council may, by regulation, amend the schedule by adding to it a reference to a navigable water if the Governor in Council is satisfied that the addition
(a) is in the national or regional economic interest;
(b) is in the public interest; or
(c) was requested by a local authority.
Minister’s recommendation
(3) The Minister may recommend the addition of a reference to a navigable water to the schedule at the request of a local authority only if the Minister is satisfied that the local authority meets the criteria specified by the Minister.
Other amendment of schedule
(4) The Governor in Council may, by regulation, amend the schedule by amending or deleting a reference to a navigable water.
Incorporation by Reference
Incorporation by reference
30. (1) A regulation or order made under this Act may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time.
Accessibility
(2) The Minister shall ensure that any document that is incorporated by reference in the regulation or order is accessible.
Defence
(3) A person is not liable to be found guilty of an offence for any contravention in respect of which a document that is incorporated by reference in the regulation or order is relevant unless, at the time of the alleged contravention, the document was accessible as required by subsection (2) or it was otherwise accessible to the person.
No registration or publication
(4) For greater certainty, a document that is incorporated by reference in the regulation or order is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference.
2004, c. 15, s. 96
322. (1) Subsection 32(1) of the Act is replaced by the following:
Interim orders
32. (1) The Minister may make an interim order that contains any provision that may be contained in a regulation made under this Act if the Minister believes that immediate action is required to deal with a significant risk, direct or indirect, to safety or security.
2004, c. 15, s. 96
(2) Paragraph 32(2)(c) of the Act is replaced by the following:
(c) the day on which a regulation made under this Act, that has the same effect as the interim order, comes into force, and
2004, c. 15, s. 96
(3) Subsection 32(5) of the Act is replaced by the following:
Deeming
(5) For the purpose of any provision of this Act other than this section, any reference to regulations made under this Act is deemed to include interim orders, and any reference to a regulation made under a specified provision of this Act is deemed to include a reference to the portion of an interim order containing any provision that may be contained in a regulation made under the specified provision.
2009, c. 2, s. 340
323. Section 33 of the Act and the headings before it are replaced by the following:
ADMINISTRATION AND ENFORCEMENT
Designation
Designation
33. The Minister may designate persons or classes of persons for the purposes of the administration and enforcement of this Act.
2009, c. 2, s. 340
324. (1) Subsection 34(1) of the Act is replaced by the following:
Authority to enter
34. (1) A designated person may, for a purpose related to verifying compliance with this Act, enter a place in which they have reasonable grounds to believe that any of the following items are located:
(a) a work or anything related to a work; and
(b) an obstruction or potential obstruction.
2009, c. 2, s. 340
(2) Subsection 34(2) of the French version of the Act is replaced by the following:
Certificat
(2) La personne désignée présente, sur demande, au responsable du lieu le certificat établi en la forme déterminée par le ministre et attestant sa qualité.
2009, c. 2, s. 340
(3) Paragraph 34(3)(c) of the French version of the Act is replaced by the following:
c) ordonner de mettre en marche les machines, le bâtiment ou tout autre moyen de transport, ou de faire fonctionner l’ouvrage ou l’équipement, situés dans le lieu, ou d’arrêter les machines, le bâtiment ou le moyen de transport ou de cesser de faire fonctionner l’ouvrage ou l’équipement;
2009, c. 2, s. 340
325. The portion of section 35 of the French version of the Act before paragraph (a) is replaced by the following:
Obligation d’assistance
35. Le propriétaire ou le responsable du lieu visé au paragraphe 34(1), ainsi que toute personne qui s’y trouve, sont tenus :
2009, c. 2, s. 340
326. (1) The portion of subsection 36(2) of the French version of the Act before paragraph (a) is replaced by the following:
Pouvoir de décerner un mandat
(2) Sur demande ex parte, le juge de paix peut décerner un mandat autorisant, sous réserve des conditions éventuellement fixées, la personne qui y est nommée à entrer dans une maison d’habitation, s’il est convaincu, sur la foi d’une dénonciation sous serment, que sont réunis les éléments suivants :
2009, c. 2, s. 340
(2) Paragraph 36(2)(b) of the Act is replaced by the following:
(b) entry to the dwelling-house is necessary for a purpose related to verifying compliance with this Act; and
2009, c. 2, s. 340
327. Subsection 38(1) of the Act is replaced by the following:
Injunction
38. (1) If, on the application of the Minister, it appears to a court of competent jurisdiction that a person has done, is about to do or is likely to do any act constituting or directed toward the commission of an offence or a violation under this Act, the court may issue an injunction ordering a person named in the application
(a) to refrain from doing an act that, in the opinion of the court, may constitute or be directed toward the commission of the offence or the violation; or
(b) to do an act that, in the opinion of the court, may prevent the commission of the offence or the violation.
328. The Act is amended by adding the following after section 39:
Administrative Monetary Penalties
Violations
Commission of violation
39.1 (1) Every person who contravenes a provision designated under paragraph 28(1)(i) commits a violation and is liable to a penalty established in accordance with the regulations.
Purpose of penalty
(2) The purpose of a penalty is to promote compliance with this Act and not to punish.
Maximum penalty
(3) The maximum penalty for a violation is $5,000, in the case of an individual, and $40,000 in any other case.
Proceedings
Notice of violation
39.11 (1) A designated person may issue a notice of violation and cause it to be provided to a person if the designated person has reasonable grounds to believe that the person has committed a violation.
Contents of notice
(2) The notice of violation shall
(a) name the person believed to have committed the violation;
(b) identify the acts or omissions that constitute the alleged violation;
(c) set out the penalty for the violation that the person is liable to pay;
(d) set out the particulars concerning the time and manner of payment; and
(e) set out a lesser amount that may be paid as complete satisfaction of the penalty if it is paid within the prescribed time and in the prescribed manner that are specified in the notice.
Summary of rights
(3) A notice of violation shall summarize, in plain language, the rights and obligations under this section and sections 39.12 to 39.23 of the person to whom it is provided, including the right to request a review of the acts or omissions that constitute the alleged violation or of the amount of the penalty and the procedure for requesting the review.
Short-form descriptions
(4) The Minister may establish a short-form description of each violation to be used in notices of violation.
Penalties
Effect of payment
39.12 (1) If the person who is named in a notice of violation pays, within the prescribed time and in the prescribed manner that are specified in the notice, the amount of the penalty — or, if applicable, the lesser amount that may be paid as complete satisfaction of the penalty — set out in the notice,
(a) the person is deemed to have committed the violation to which the amount paid relates;
(b) the Minister shall accept the amount paid as complete satisfaction of the penalty; and
(c) the proceedings commenced in respect of the violation under section 39.11 are ended.
Alternatives to payment
(2) Instead of paying the penalty or, if applicable, the lesser amount that may be paid as complete satisfaction of the penalty, the person who is named in the notice may, within the prescribed time and in the prescribed manner that are specified in the notice, request a review by the Tribunal of the acts or omissions that constitute the alleged violation or of the amount of the penalty, as the case may be.
Deeming
(3) If the person who is named in the notice does not pay the penalty or, if applicable, the lesser amount that may be paid as complete satisfaction of the penalty, within the prescribed time and in the prescribed manner and does not exercise the right referred to in subsection (2) within the prescribed time and in the prescribed manner, the person is deemed to have committed the violation identified in the notice.
Review by Tribunal
Review — violation
39.13 (1) After completing a review requested under subsection 39.12(2) with respect to the acts or omissions that constitute the alleged violation identified in the notice of violation, the Tribunal shall determine whether the person who is named in the notice committed the violation and, if the Tribunal determines that the person did so but considers that the amount of the penalty for the violation was not established in accordance with the regulations, the Tribunal shall correct that amount and cause the person to be provided with a notice of the Tribunal’s decision.
Review — penalty
(2) After completing a review requested under subsection 39.12(2) with respect to the amount of the penalty set out in the notice of violation, the Tribunal shall determine whether the amount of the penalty was established in accordance with the regulations and, if the Tribunal determines that it was not, the Tribunal shall correct that amount and cause the person to be provided with a notice of the Tribunal’s decision.
Payment
(3) The person who is provided with a notice of the Tribunal’s decision is liable to pay the amount of the penalty that is set out in it within the prescribed time and in the prescribed manner that are specified in the notice.
Effect of payment
(4) If the person pays the amount of the penalty that is set out in the notice of the Tribunal’s decision within the prescribed time and in the prescribed manner that are specified in the notice,
(a) the Tribunal shall accept the amount as complete satisfaction of the penalty; and
(b) the proceedings commenced in respect of the violation under section 39.11 are ended.
Recovery of Debts
Debts to Her Majesty
39.14 (1) The following amounts are debts due to Her Majesty in right of Canada that may be recovered in the Federal Court:
(a) the amount of a penalty set out in a notice of violation, beginning on the day on which it is required to be paid in accordance with the notice, unless a request is made to have the Tribunal review the acts or omissions that constitute the violation or the amount of the penalty, as the case may be;
(b) the amount of a penalty set out in the notice of the Tribunal’s decision made under subsection 39.13(1) or (2), beginning on the day specified in the notice; and
(c) the amount of any reasonable expenses incurred in attempting to recover an amount referred to in paragraph (a) or (b).
Limitation period or prescription
(2) Proceedings to recover such a debt may be commenced no later than five years after the debt becomes payable.
Debt final
(3) The debt is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 39.12 and 39.13.
Certificate of default
39.15 (1) The Minister may issue a certificate certifying the unpaid amount of any debt referred to in subsection 39.14(1).
Effect of registration
(2) Registration of the certificate in the Federal Court has the same effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs.
Rules of Law About Violations
Violations not offences
39.16 For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply.
Due diligence defence
39.17 (1) A person shall not be found to be liable for a violation if they establish that they exercised due diligence to prevent the commission of the violation.
Common law principles
(2) Every rule and principle of the common law that renders any circumstance a justification or an excuse in relation to a charge for an offence under this Act applies in respect of a violation to the extent that it is not inconsistent with this Act.
Burden of proof
39.18 If the Tribunal is to determine whether a person who is named in a notice of violation committed any violation that is identified in it, the Tribunal shall do so on a balance of probabilities.
Offences by corporate officers, etc.
39.19 If a person other than an individual commits a violation under this Act, any of the person’s officers, directors and agents or mandataries who directed, authorized, assented to or acquiesced or participated in the commission of the violation is a party to and liable for the violation, whether or not the person who actually committed it is proceeded against in accordance with this Act.
Vicarious liability — acts of employees, agents and mandataries
39.2 A person is liable for a violation that is committed by that person’s employee or agent or mandatary who is acting in the course of the employee’s employment or within the scope of the agent or mandatary’s authority, whether or not the employee or agent or mandatary who actually committed the violation is identified or proceeded against in accordance with this Act.
Continuing violation
39.21 A violation that is continued on more than one day constitutes a separate violation in respect of each day during which it is continued.
Other Provisions
Evidence
39.22 In any proceeding for a violation, a notice of violation purporting to be issued under this Act is admissible in evidence without proof of the signature or official character of the person appearing to have signed it.
Limitation period or prescription
39.23 Proceedings in respect of a violation may be commenced no later than six months after the day on which a designated person becomes aware of the acts or omissions that constitute the alleged violation.
Certification by Minister
39.24 A document appearing to have been issued by the Minister and certifying the day on which the acts or omissions that constitute the alleged violation became known to a designated person is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and, in the absence of evidence to the contrary, is proof that the designated person became aware of the acts or omissions on that day.
Information may be made public
39.25 The Minister may make public the name and business address of a person who is deemed to have committed a violation or who was determined to have committed a violation, the acts or omissions and provisions at issue, and the amount payable as a result, if any.
How act or omission may be proceeded with
39.26 If an act or omission may be proceeded with either as a violation or as an offence, proceeding in one manner precludes proceeding in the other.
2009, c. 2, s. 340
329. (1) Subsection 40(1) of the Act is replaced by the following:
Offence
40. (1) Every person is guilty of an offence and is liable on summary conviction to imprisonment for a term of not more than six months or to a fine of not more than $50,000, or to both, if the person
(a) contravenes section 3;
(b) does not give the notice required under subsection 5(1) or (9) or 12(1) or paragraph 15(1)(a);
(c) contravenes subsection 6(5), 9(4), 10(2) or 15(3), section 21, 22, 23 or 35 or subsection 37(1) or (2);
(d) contravenes an order given under paragraph 11(2)(a), (b) or (d) or subsection 13(1) or (2), 16(1) or (2) or 19(1);
(e) does not take the measures required under subsection 12(2) or paragraph 15(1)(b);
(f) contravenes a regulation or order made under section 28; or
(g) contravenes an interim order made under section 32.
2009, c. 2, s. 340
(2) Subsection 40(2) of the French version of the Act is replaced by the following:
Amende
(2) Dans le cas où des matières visées à l’article 22 ont été jetées d’un bâtiment ou déposées par un bâtiment et qu’une déclaration de culpabilité a été obtenue à cet égard, le bâtiment est passible de l’amende imposée et peut être détenu par un gardien de port ou par le chef du service des douanes de tout port jusqu’au paiement de l’amende.
(3) Section 40 of the Act is amended by adding the following after subsection (3):
Officers, etc., of corporations
(4) If a corporation commits an offence under this Act, any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to, and guilty of, the offence and liable on conviction to the punishment provided for the offence, whether or not the corporation has been prosecuted or convicted.
Duty to ensure compliance
(5) Every director and officer of a corporation shall take all reasonable care to ensure that the corporation complies with this Act.
2009, c. 2, s. 340
330. The heading “PART V” after section 40 of the Act is repealed.
331. The Act is amended by adding, after section 41, the schedule set out in Schedule 2 to this Act.
Transitional Provisions
Approvals
332. (1) Every work in respect of which an approval was granted under the Navigable Waters Protection Act as it read immediately before the coming into force of this Division is deemed to be approved under section 6 of the Navigation Protection Act, except if it is stated in the approval that the work interferes, other than substantially, with navigation, in which case the work is deemed to be validly constructed or placed in accordance with section 9 of the Navigation Protection Act.
Terms and conditions
(2) Any term or condition imposed on an approval granted under the Navigable Waters Protection Act as it read immediately before the coming into force of this Division remains in effect.
Designated works
(3) Every work, the construction or placement of which was permitted under section 5.1 of the Navigable Waters Protection Act as it read immediately before the coming into force of this Division, is deemed to be validly constructed or placed in accordance with section 10 of the Navigation Protection Act.
Lawful works
(4) A work referred to in subsection 4(1) or (2) or section 8 of the Navigable Waters Protection Act as it read immediately before the coming into force of this Division remains validly constructed or placed under the Navigation Protection Act.
Works — navigable waters
(5) Every work referred to in subsection (1), (3) or (4) that is constructed or placed in, on, over, under, through or across any navigable water other than any navigable water listed in the schedule to the Navigation Protection Act is deemed to be constructed or placed in, on, over, under, through or across a navigable water listed in the schedule.
Opt out
(6) Subsection (5) does not apply to a work on receipt by the Minister of Transport of a notice to that effect. The notice shall be given by the owner, as defined in section 2 of the Navigation Protection Act, no later than five years after the coming into force of this Division.
Request for approval not decided
333. Every request for approval of a work submitted under the Navigable Waters Protection Act as it read immediately before the coming into force of this Division that has not been decided before that coming into force is deemed to be a notice referred to in subsection 5(1) of the Navigation Protection Act.
Minor Works and Waters (Navigable Waters Protection Act) Order
334. (1) The works established as classes of works in the Minor Works and Waters (Navigable Waters Protection Act) Order are deemed to be minor works designated under paragraph 28(2)(a) of the Navigation Protection Act until an order is made under that paragraph.
Terms and conditions
(2) Every term and condition imposed under paragraph 13(1)(b) of the Navigable Waters Protection Act as it read immediately before the coming into force of this Division with respect to the minor works referred to in subsection (1) is deemed to be made under paragraph 28(2)(c) of the Navigation Protection Act until an order is made under that paragraph.
Minor Works and Waters (Navigable Waters Protection Act) Order
(3) The navigable waters established as classes of navigable waters in the Minor Works and Waters (Navigable Waters Protection Act) Order are deemed to be minor waters designated under paragraph 28(2)(b) of the Navigation Protection Act until an order is made under that paragraph.
Terms and conditions
(4) Every term and condition imposed under paragraph 13(1)(b) of the Navigable Waters Protection Act as it read immediately before the coming into force of this Division with respect to the minor waters referred to in subsection (3) is deemed to be made under paragraph 28(2)(d) of the Navigation Protection Act until an order is made under that paragraph.
Repeal
Repeal
335. The Minor Works and Waters (Navi-gable Waters Protection Act) Order is repealed.
Consequential Amendments
R.S., c. H-1
Harbour Commissions Act
336. Section 33 of the Harbour Commissions Act is replaced by the following:
Navigation Protection Act
33. Any work undertaken by or on behalf of the Commission affecting the use of any navigable waters is subject to the Navigation Protection Act.
R.S., c. N-7
National Energy Board Act
2012, c.19, s. 69
337. The definition “navigable water” in section 2 of the National Energy Board Act is replaced by the following:
“navigable water”
« eaux navigables »
“navigable water” has the same meaning as in section 2 of the Navigation Protection Act;
1990, c. 7, s. 23
338. Subsection 58.3(1) of the Act is replaced by the following:
Exceptions
58.3 (1) No approval under the Navigation Protection Act is required for the construction of any work if leave for its construction is first obtained under section 58.29.
1990, c. 7, s. 27
339. Section 109 of the Act is replaced by the following:
Approval under Navigation Protection Act
109. No approval under the Navigation Protection Act is required for the construction of any work if leave for its construction is first obtained under section 108.
R.S., c. 32 (4th Supp.)
Railway Safety Act
340. The heading before section 5 of the English version of the Railway Safety Act is replaced by the following:
RELATIONSHIP TO NAVIGATION PROTECTION ACT
341. Section 5 of the Act is replaced by the following:
Compliance with Navigation Protection Act
5. If a person proposes to construct or alter a railway work in, on, over, under, through or across any navigable water as defined in section 2 of the Navigation Protection Act, the requirements imposed by or under this Act apply in addition to, and not in substitution for, the requirements imposed by or under the Navigation Protection Act.
1998, c. 10
Canada Marine Act
2008, c. 21, s. 26
342. Section 47 of the Canada Marine Act is replaced by the following:
Navigation Protection Act
47. The Navigation Protection Act does not apply to a work, as defined in section 2 of that Act, that has been exempted by a regulation made under section 62.
2008, c. 21, s. 40
343. Section 73 of the Act is replaced by the following:
Navigation Protection Act
73. The Navigation Protection Act does not apply to a work, as defined in section 2 of that Act, that has been exempted by a regulation made under section 74.
2008, c. 21, s. 47
344. Section 101 of the Act is replaced by the following:
Navigation Protection Act
101. The Navigation Protection Act does not apply to a work, as defined in section 2 of that Act, that has been exempted by a regulation made under section 98.
2001, c. 29
Transportation Appeal Tribunal of Canada Act
2008, c. 21, s. 65
345. Subsection 2(3) of the Transportation Appeal Tribunal of Canada Act is replaced by the following:
Jurisdiction in respect of other Acts
(3) The Tribunal also has jurisdiction in respect of reviews and appeals in connection with administrative monetary penalties provided for under sections 177 to 181 of the Canada Transportation Act, sections 43 to 55 of the International Bridges and Tunnels Act, sections 129.01 to 129.19 of the Canada Marine Act and sections 39.1 to 39.26 of the Navigation Protection Act.
2002, c. 18
Canada National Marine Conservation Areas Act
2001, c. 26, s. 322(3)
346. Subsection 16(5) of the Canada National Marine Conservation Areas Act is replaced by the following:
Conflicts
(5) Regulations referred to in subsection (2), (3) or (4) prevail over regulations made under the Fisheries Act, the Coastal Fisheries Protection Act, the Canada Shipping Act, 2001, the Arctic Waters Pollution Prevention Act, the Navigation Protection Act or the Aeronautics Act to the extent of any conflict between them.
2005, c. 37
Highway 30 Completion Bridges Act
347. Section 5 of the Highway 30 Completion Bridges Act is replaced by the following:
Application of other Acts
5. For greater certainty, nothing in this Act limits the application of the Navigation Protection Act or any other Act of Parliament in respect of the construction and maintenance of the bridges and ancillary works authorized by this Act.
2004, c. 15
Related Amendment to the Public Safety Act, 2002
348. Section 94 of the Public Safety Act, 2002 is repealed.
Coordinating Amendments
2012, c. 19
349. (1) In this section, “other Act” means the Jobs, Growth and Long-term Prosperity Act.
(2) On the first day on which both section 87 of the other Act and section 316 of this Act are in force,
(a) section 58.301 of the National Energy Board Act is replaced by the following:
Power lines not works
58.301 Despite the definition “work” in section 2 of the Navigation Protection Act, neither an interprovincial power line in respect of which an order made under section 58.4 is in force nor an international power line is a work to which that Act applies.
(b) subsection 58.304(1) of the National Energy Board Act is replaced by the following:
Existing terms and conditions
58.304 (1) Terms and conditions in respect of any international or interprovincial power line that were, at any time before the coming into force of this section, imposed under section 58.29 or 108, as that section read from time to time before the coming into force of this section — or imposed by the Minister of Transport under the Navigation Protection Act — apply as if they were terms and conditions set out in the certificate or permit, as the case may be, issued in respect of the power line.
(3) If section 87 of the other Act comes into force before section 338 of this Act, then that section 338 is repealed.
(4) If section 87 of the other Act comes into force on the same day as section 338 of this Act, then that section 338 is deemed to have come into force before that section 87.
(5) On the first day on which both section 91 of the other Act and section 316 of this Act are in force, section 111 of the National Energy Board Act is replaced by the following:
Pipeline not work
111. Despite the definition “work” in section 2 of the Navigation Protection Act, a pipeline is not a work to which that Act applies.
(6) If section 91 of the other Act comes into force before section 339 of this Act, then that section 339 is repealed.
(7) If section 91 of the other Act comes into force on the same day as section 339 of this Act, then that section 339 is deemed to have come into force before that section 91.
(8) On the first day on which both section 116 of the other Act and section 316 of this Act are in force, the definition “navigable water” in section 2 of the Canada Oil and Gas Operations Act is replaced by the following:
“navigable water”
« eaux navigables »
“navigable water” has the same meaning as in section 2 of the Navigation Protection Act;
(9) On the first day on which both section 119 of the other Act and section 316 of this Act are in force,
(a) section 5.013 of the Canada Oil and Gas Operations Act is replaced by the following:
Pipeline not work
5.013 Despite the definition “work” in section 2 of the Navigation Protection Act, a pipeline in respect of which an authorization has been or may be issued under paragraph 5(1)(b) is not a work to which that Act applies.
(b) section 5.015 of the Canada Oil and Gas Operations Act is replaced by the following:
Existing terms and conditions
5.015 Terms and conditions imposed at any time before the coming into force of this section in relation to an approval given under the Navigation Protection Act in respect of a pipeline, in respect of which an authorization has been issued under paragraph 5(1)(b), apply as if they were requirements determined by the National Energy Board to be requirements to which the authorization is subject.
Coming into Force
Order in council
350. This Division, other than section 349, comes into force on a day to be fixed by order of the Governor in Council.
Division 19
R.S., c. G-10
Canada Grain Act
Amendments to the Act
1994, c. 45, s. 1(6)(F)
351. (1) The definitions “overage”, “shortage”, “transfer elevator” and “weigh-over” in section 2 of the Canada Grain Act are repealed.
1994, c. 45, s. 1(6)(F)
(2) The definition “terminal elevator” in section 2 of the Act is replaced by the following:
“terminal elevator”
« installation terminale » ou « silo terminal »
“terminal elevator” means an elevator whose principal uses are the receiving of grain from another elevator and the cleaning, storing and treating of the grain before it is moved forward;
(3) Subparagraph (b)(ii) of the definition “lawfully” in section 2 of the Act is replaced by the following:
(ii) the delivery of grain to a terminal elevator or process elevator or to a consignee at a destination other than an elevator, or
1994, c. 45, s. 4
352. Paragraph 12(g) of the Act is replaced by the following:
(g) fixing the allowance to be paid to members of grain standards committees.
353. Subparagraphs 14(1)(e)(i) and (ii) of the Act are replaced by the following:
(i) may request that a grain dealer or an operator of an elevator provide it with any sample of grain, grain products or screenings in their possession that the Commission specifies,
(ii) wherever appropriate, utilize technical, economic and statistical information and advice from any department or agency of the Government of Canada, and
(iii) maintain an efficient and adequately equipped laboratory;
354. Paragraph 20(2)(b) of the Act is repealed.
355. (1) Paragraph 27(1)(a) of the Act is replaced by the following:
(a) shall be used as the visual grading standard in the grading of western grain of that grade discharged from a terminal elevator or process elevator; and
(2) Paragraph 27(2)(a) of the Act is replaced by the following:
(a) shall be used as a visual grading guide in the grading of grain of that grade, other than western grain discharged from a terminal elevator or process elevator; and
356. Section 33 of the Act is replaced by the following:
Transmission of inspection certificate
33. An inspection certificate issued when grain is discharged from a terminal elevator shall be transmitted with the shipping documents relating to the grain.
1994, c. 45, s. 8; 2003, c. 22, par. 224(n)(E)
357. The heading before section 35 and sections 35 to 38 of the Act are repealed.
358. Section 39 of the Act is replaced by the following:
Right of appeal
39. (1) Any person who is dissatisfied with the grade assigned to grain on an official inspection may appeal the decision of the inspector in respect of any characteristics of the grain, by way of an application for reinspection of the grain, to the chief grain inspector for Canada.
Time for appeal
(2) Except with the Commission’s permission, no appeal lies under this section unless, within 15 days after the decision that is the subject of the appeal is made, notice of the appeal is given to the chief grain inspector for Canada.
R.S., c. 37 (4th Supp.), s. 15
359. Section 41 of the Act is replaced by the following:
Duties of chief grain inspector on appeal
41. (1) If an appeal is taken, the chief grain inspector for Canada shall
(a) inspect the grain to which the appeal relates or a sample of that grain;
(b) review the decision appealed;
(c) assign to the grain the grade that he or she considers to be the appropriate grade for the grain; and
(d) if a grade is assigned to the grain that is different from the grade previously assigned to it, require all inspection certificates, and all other documents specified by the Commission, relating to the grain to be revised accordingly.
Decision is final
(2) The decision of the chief grain inspector for Canada is final and conclusive and not subject to appeal to or review by any court.
Delegation
(3) The chief grain inspector for Canada may delegate all or part of the duties and functions conferred on him or her under subsection (1).
360. Paragraph 42(c) of the Act is repealed.
1994, c. 45, s. 10; 2001, c. 4, s. 88(E)
361. Subsections 45(1) and (2) of the Act are replaced by the following:
Issue of licences — elevator operators and grain dealers
45. (1) If a person who proposes to operate an elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act and any conditions that the Commission may specify, the Commission may issue to the applicant the licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer.
362. The Act is amended by adding the following after section 45:
Security
45.1 (1) Unless exempted by regulation or by order of the Commission, a licensee shall obtain any prescribed security for the purpose of covering the licensee’s potential obligations for the payment of money or the delivery of grain to holders of cash purchase tickets, elevator receipts or grain receipts issued under this Act and shall maintain that security for as long as they are a licensee.
Proof of security
(2) The licensee shall, on request, provide the Commission with proof of that security.
Agreements
45.2 The Commission may enter into agreements with third parties in respect of any prescribed security.
1994, c. 45, s. 10
363. (1) The portion of subsection 46(1) of the Act before paragraph (a) is replaced by the following:
Refusal to issue elevator licence
46. (1) The Commission may refuse to issue an elevator licence if the applicant has not obtained security as required by subsection 45.1(1) or fails to establish to the satisfaction of the Commission that
1994, c. 45, s. 10
(2) Subsection 46(2) of the Act is replaced by the following:
Refusal to issue grain dealer’s licence
(2) The Commission may refuse to issue a grain dealer’s licence if the applicant has not obtained security as required by subsection 45.1(1).
R.S., c. 37 (4th Supp.), s. 17(1); 1994, c. 45, s. 12; 1998, c. 22, s. 6(3) and par. 25(b)(F)
364. Section 49 of the Act is replaced by the following:
Additional security
49. (1) If the Commission has reason to believe that any security obtained by a licensee under this Act is not sufficient, the Commission may, by order, require the licensee to obtain, within any period that the Commission considers reasonable, any additional security that it considers is sufficient.
Limitation — prescribed percentage
(2) Despite any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security obtained by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage.
Interpretation — failure to meet payment obligations
(3) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer.
R.S., c. 37 (4th Supp.), s. 20(1)
365. (1) Subsection 54.1(1) of the Act is replaced by the following:
Recovery of charges
54.1 (1) If an elevator receipt issued by the licensee of a terminal elevator has been outstanding for more than one year and any charges accruing under the receipt have accrued for more than one year and are unpaid, the licensee, with the Commission’s written permission, after giving any notice of sale to the last known holder of the receipt that may be specified by the Commission, may, on any terms and conditions that may be specified in writing by the Commission, sell the grain referred to in the receipt or grain of the same kind, grade and quantity to recover the charges.
R.S., c. 37 (4th Supp.), s. 20(1)
(2) Subsection 54.1(3) of the Act is replaced by the following:
Warning
(3) Each elevator receipt issued by the licensee of a terminal elevator shall bear the following warning:
“WARNING: If the charges accruing under this receipt have been unpaid for more than one year, the grain may be sold, in which case the holder is entitled to receive, on surrender of this receipt, only the money received for the grain less those charges and the costs of sale.
AVERTISSEMENT : En cas de non-paiement, pendant plus d’un an, des droits exigibles aux termes d’un récépissé, le grain peut être vendu, le détenteur du récépissé n’ayant droit par la suite, sur remise de ce document, qu’au produit de la vente, déduction faite de ces droits et des frais exposés pour la vente.”
1998, c. 22, par. 25(d)(F)
366. Subsection 62(4) of the Act is replaced by the following:
Restriction
(4) No order shall be made under subsection (3) unless written notice of the dispute has been received by the Commission within 30 days after the delivery of the grain that is the subject of the dispute to a terminal elevator or process elevator.
367. Paragraph 65(3)(c) of the Act is replaced by the following:
(c) deliver to the holder of the surrendered receipt an elevator receipt issued by the operator of a licensed terminal elevator for grain of the same kind, grade and quantity as the grain referred to in the surrendered receipt.
368. (1) The portion of subsection 67(1) of the Act before paragraph (b) is replaced by the following:
Discharge of grain from primary elevator
67. (1) Subject to section 86, the operator of a licensed primary elevator shall without delay discharge into a conveyance referred to in paragraph (b), to the extent of the conveyance’s capacity, the identical grain or grain of the same kind, grade and quantity that any elevator receipt issued by the operator requires if the holder of the receipt who is entitled to the delivery of grain referred to in that receipt
(a) may lawfully deliver the grain to a terminal elevator or process elevator or to a consignee at a destination other than an elevator; and
(2) The portion of subsection 67(1) of the English version of the Act after paragraph (a) is replaced by the following:
(b) has caused to be placed at the elevator, to transport the grain, a railway car or other conveyance that is capable of receiving grain discharged out of the elevator and to which the grain may lawfully be delivered.
R.S., c. 37 (4th Supp.), s. 21(1); 1994, c. 45, s. 18; 1998, c. 22, par. 25(f)(F)
369. Sections 68.1 to 71 of the Act are replaced by the following:
Terminal Elevators
Receipt of grain
69. (1) Subject to section 58 and any order made under subsection (2) or section 118, an operator of a licensed terminal elevator shall, at all reasonable hours on each day on which the elevator is open, without discrimination and in the order in which grain arrives, receive into the elevator all grain that is lawfully offered at the elevator, for which there is available storage accommodation of the type required by the person who offered the grain.
Orders respecting receipt of grain
(2) The Commission may, by order, on any conditions that it may specify, authorize or require the operator of a licensed terminal elevator to receive grain that is lawfully offered for storage or transfer at the elevator otherwise than as required by subsection (1).
Weighing on receipt of grain
69.1 (1) Subject to subsection (2), and unless exempted by regulation or by order of the Commission, an operator of a licensed terminal elevator shall weigh grain received into the elevator in a manner authorized by the Commission.
Weighing by third party
(2) Unless exempted by regulation or by order of the Commission, an operator shall cause the grain to be weighed by a third party authorized by the Commission and chosen by the operator, if the person who caused the grain to be delivered so requests.
Weighing in manner authorized by Commission
(3) The third party shall weigh the grain in a manner authorized by the Commission.
Access
(4) The operator shall provide the third party with access to the operator’s premises to permit the third party to weigh the grain.
Failure to weigh
69.2 If an operator of a licensed terminal elevator does not comply with subsection 69.1(1) or (2), the person who caused the grain to be delivered may, for the purpose of settling any transaction between that person and the operator in relation to the grain, rely on any record or document that states the weight of that grain before he or she caused it to be delivered.
Inspection by operator
70. (1) Subject to subsection (2), and unless exempted by regulation or by order of the Commission, an operator of a licensed terminal elevator shall inspect the grain received into the elevator in a manner authorized by the Commission.
Inspection by third party
(2) Unless exempted by regulation or by order of the Commission, the operator shall cause the grain to be inspected by a third party authorized by the Commission and chosen by the operator, if the person who caused the grain to be delivered so requests.
Third party authorized
(3) The third party shall inspect the grain in a manner authorized by the Commission.
Access
(4) The operator shall provide the third party with access to the operator’s premises to permit the