C-47 , 40th Parliament, 3rd session Wednesday, March 3, 2010, to Saturday, March 26, 2011

On 30 September 2010, the Minister of Finance introduced Bill C-47, A second Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures (Sustaining Canada's Economic Recovery Act), in the House of Commons and it was given first reading.

Part 1 implements a number of income tax measures proposed in the March 4, 2010 Budget. Among other things it:

• allows for the sharing of the Canada Child Tax Benefit, the Universal Child Care Benefit and the Goods and Services Tax/Harmonized Sales Tax credit for eligible shared custody parents;
• allows Registered Retirement Savings Plan proceeds to be transferred to a Registered Disability Savings Plan on a tax-deferred basis;
• implements disbursement quota reform for registered charities;
• better targets the tax incentives in place for employee stock options;
• expands the availability of accelerated capital cost allowance for clean energy generation;
• adjusts the capital cost allowance rate for television set-top boxes to better reflect the useful life of these assets;
• clarifies the definition of a principal-business corporation for the purposes of the rules relating to Canadian Renewable and Conservation Expenses;
• introduces amendments that are consequential to the introduction in 2011 of new International Financial Reporting Standards by the Accounting Standards Board; and
• amends the Canada Pension Plan, the Employment Insurance Act and the Income Tax Act to provide legislative authority for the Canada Revenue Agency to issue online notices if the taxpayer so requests.

Part 1 also implements income tax measures that were previously announced including:
• rules to facilitate the implementation of Employee Life and Health Trusts
• indexing of the working income tax benefit;
• technical changes concerning TFSAs; and
• an amendment to the rules regarding labour sponsored venture capital corporations that are consequential to the introduction of TFSAs.

Part 2 amends the Air Travellers Security Charge Act, the Excise Act, 2001, the Excise Tax Act and the New Harmonized Value-added Tax System Regulations to provide legislative authority for the Canada Revenue Agency to issue online notices if the taxpayer so requests. It also amends the Air Travellers Security Charge Act, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Brewery Departmental Regulations and the Brewery Regulations to allow certain small remitters to file and remit semi-annually rather than monthly. Part 2 also amends the Air Travellers Security Charge Act and the Excise Tax Act to extend the protection from civil liability claims that is already provided under the Income Tax Act and other federal statutes to agents of the Crown who collect the Goods and Services Tax/Harmonized Sales Tax and the air travellers security charge in intended compliance with their statutory obligations.

Part 3 amends the Federal-Provincial Fiscal Arrangements Act to facilitate the sharing of taxes under Part I.01 and Part X.5 of the Income Tax Act with provinces and territories.

Part 4 amends the Bank Act and the Financial Consumer Agency of Canada Act to require that banks belong to an approved external complaints body and to authorize the Governor in Council to prescribe the approval requirement for that body. The amendments also assign the responsibility for managing the approval process and supervising the approved external complaints bodies to the Financial Consumer Agency of Canada.

Part 5 amends the Canada Disability Savings Act to allow a 10-year carry forward of Canada Disability Savings Grant and Canada Disability Savings Bond entitlements.

Part 6 amends section 11.1 of the Customs Act to exempt from the User Fees Act fees that are charged for expedited border clearance programs and that are coordinated with international partners.

Part 7 amends the Federal-Provincial Fiscal Arrangements Act to implement the total transfer protection for 2010-11, to set out the treatment of the one-time transfer protection payment under the fiscal stabilization program, update legislative references made in the fiscal stabilization provisions and give greater clarity to the calculation of the fiscal stabilization payment.

Part 8 amends the Office of the Superintendent of Financial Institutions Act. Among other things it
• harmonizes the assessment of costs associated with the administration of the Pension Benefits Standards Act, 1985 with the regime in place for the assessment of costs associated with the administration of laws governing financial institutions; and
• allows the Superintendent to remit assessments, interim assessments and penalties and to write off certain debts.

Part 9 amends the Pension Benefits Standards Act, 1985. Among other things it
• authorizes the Minister of Finance to enter into an agreement with the provinces respecting pension plans that are subject to the pension legislation of more than one jurisdiction;
• authorizes the Minister of Finance to designate an entity for the purposes of receiving, holding and disbursing the pension benefit credit of any person who cannot be located;
• permits information to be provided in electronic form, including information provided by the administrator of a pension plan to members or to the Superintendent;
• allows the administrator of a pension plan to offer investment options with respect to accounts maintained in respect of a defined contribution provision or accounts maintained for additional voluntary contributions;
• provides rules regarding negotiated contribution plans;
• requires consent of a member’s spouse or common-law partner before the transfer of the member’s pension benefit credit to a retirement savings plan; and
• authorizes the Superintendent to direct the administrator of a pension plan that is subject to the pension legislation of more than one jurisdiction to establish a separate pension plan for certain members, former members and survivors.