;

Bill C-28

If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.

PDF

	235. (1) Section 239 of the Act is amended by adding the following after subsection (1):
Offenses re refunds and credits	(1.1) Every person who obtains or claims a refund or credit under this Act to which the person or any other person is not entitled or obtains or claims a refund or credit under this Act in an amount that is greater than the amount to which the person or other person is entitled
	(a) by making, or participating in, assenting to or acquiescing in the making of, a false or deceptive statement in a return, certificate, statement or answer filed or made under this Act or a regulation,
	(b) by destroying, altering, mutilating, hiding or otherwise disposing of a record or book of account of the person or other person,
	(c) by making, or assenting to or acquiescing in the making of, a false or deceptive entry in a record or book of account of the person or other person,
	(d) by omitting, or assenting to or acquiescing in an omission to enter a material particular in a record or book of account of the person or other person,
	(e) wilfully in any manner, or
	(f) by conspiring with any person to commit any offence under this subsection,
	is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to
	(g) a fine of not less than 50% and not more than 200% of the amount by which the amount of the refund or credit obtained or claimed exceeds the amount, if any, of the refund or credit to which the person or other person, as the case may be, is entitled, or
	(h) both the fine described in paragraph (g) and imprisonment for a term not exceeding 2 years.
	(2) Subsection 239(2) of the Act is replaced by the following:
Prosecution on indictment	(2) Every person who is charged with an offence described in subsection (1) or (1.1) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to
	(a) a fine of not less than 100% and not more than 200% of
	(i) where the offence is described in subsection (1), the amount of the tax that was sought to be evaded, and
	(ii) where the offence is described in subsection (1.1), the amount by which the amount of the refund or credit obtained or claimed exceeds the amount, if any, of the refund or credit to which the person or other person, as the case may be, is entitled; and
	(b) imprisonment for a term not exceeding 5 years.
	(3) Subsection 239(2.3) of the Act is replaced by the following:
Offence with respect to an identification number	(2.3) Every person to whom the Social Insurance Number of an individual or to whom the business number of a taxpayer or partnership has been provided under this Act or a regulation, and every officer, employee and agent of such a person, who without written consent of the individual, taxpayer or partnership, as the case may be, knowingly uses, communicates or allows to be communicated the number (otherwise than as required or authorized by law, in the course of duties in connection with the administration or enforcement of this Act or for a purpose for which it was provided by the individual, taxpayer or partnership, as the case may be) 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.
	(4) Subsection 239(3) of the Act is replaced by the following:
Penalty on conviction	(3) Where a person is convicted under this section, the person is not liable to pay a penalty imposed under section 162 or 163 for the same contravention unless the penalty was assessed before the information or complaint giving rise to the conviction was laid or made.
	236. (1) Paragraph 241(1)(c) of the Act is replaced by the following:
	(c) knowingly use any taxpayer information otherwise than in the course of the administration or enforcement of this Act, the Canada Pension Plan, the Unemployment Insurance Act or the Employment Insurance Act or for the purpose for which it was provided under this section.
	(2) Paragraph 241(3)(b) of the Act is replaced by the following:
	(b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan, the Unemployment Insurance Act or the Employment Insurance Act or any other Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty.
	(3) Paragraph 241(4)(a) of the Act is replaced by the following:
	(a) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, the Canada Pension Plan, the Unemployment Insurance Act or the Employment Insurance Act, solely for that purpose;
	(4) Subparagraph 241(4)(d)(x) of the Act is replaced by the following:
	(x) to an official of the Canada Employment Insurance Commission or the Department of Employment and Immigration solely for the purpose of the administration or enforcement of, or the evaluation or formation of policy for the purposes of, the Unemployment Insurance Act, the Employment Insurance Act or an employment program of the Government of Canada,
	(5) Clause 241(4)(d)(xiii)(B) of the Act is replaced by the following:
	(B) Her Majesty in right of a province, or
	(6) Subparagraph 241(4)(e)(vii) of the Act is replaced by the following:
	(vii) section 79 of the Family Orders and Agreements Enforcement Assistance Act,
	(7) Paragraph 241(4)(h) of the Act is replaced by the following:
	(h) use, or provide to any person, taxpayer information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by Her Majesty in right of Canada in respect of a period during which the authorized person was employed by or engaged by or on behalf of Her Majesty in right of Canada to assist in the administration or enforcement of this Act, the Canada Pension Plan, the Unemployment Insurance Act or the Employment Insurance Act, to the extent that the information is relevant for the purpose;
	(8) Subsection 241(4) of the Act is amended by striking out the word ``or'' at the end of paragraph (k), by adding the word ``or'' at the end of paragraph (l) and by adding the following after paragraph (l):
	(m) provide taxpayer information to an official of the government of a province solely for use in the management or administration by that government of a program relating to payments under subsection 164(1.8).
	(9) The definition ``business number'' in subsection 241(10) of the Act is repealed.
	(10) The definition ``authorized person'' in subsection 241(10) of the Act is replaced by the following:
``authorized person'' « personne autorisée »	``authorized person'' means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of Her Majesty in right of Canada to assist in carrying out the provisions of this Act, the Canada Pension Plan, the Unemployment Insurance Act or the Employment Insurance Act;
	(11) Subsections (1) to (4), (7) and (10) are deemed to have come into force on June 30, 1996.
	(12) Subsection (6) is deemed to have come into force on May 1, 1997.
	237. (1) Subsection 244(9) of the Act is replaced by the following:
Proof of documents	(9) An affidavit of an officer of the Department of National Revenue, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that a document annexed to the affidavit is a document or true copy of a document, or a print-out of an electronic document, made by or on behalf of the Minister or a person exercising a power of the Minister or by or on behalf of a taxpayer, is evidence of the nature and contents of the document.
	(2) Subsections 244(13) to (15) of the Act are replaced by the following:
Proof of documents	(13) Every document purporting to have been executed under, or in the course of the administration or enforcement of, this Act over the name in writing of the Minister, the Deputy Minister of National Revenue or an officer authorized to exercise a power or perform a duty of the Minister under this Act is deemed to have been signed, made and issued by the Minister, the Deputy Minister or the officer unless it has been called in question by the Minister or by a person acting for the Minister or Her Majesty.
Mailing date	(14) For the purposes of this Act, where any notice or notification described in subsection 149.1(6.3), 152(3.1), 165(3) or 166.1(5) or any notice of assessment or determination is mailed, it shall be presumed to be mailed on the date of that notice or notification.
Date when assessment made	(15) Where any notice of assessment or determination has been sent by the Minister as required by this Act, the assessment or determination is deemed to have been made on the day of mailing of the notice of the assessment or determination.
	238. (1) The Act is amended by adding the following after section 246:
	PART XVI.1
	TRANSFER PRICING
Definitions	247. (1) The definitions in this subsection apply in this section.
``arm's length allocation'' « attribution de pleine concurrence »	``arm's length allocation'' means, in respect of a transaction, an allocation of profit or loss that would have occurred between the participants in the transaction if they had been dealing at arm's length with each other.
``arm's length transfer price'' « prix de transfert de pleine concurrence »	``arm's length transfer price'' means, in respect of a transaction, an amount that would have been a transfer price in respect of the transaction if the participants in the transaction had been dealing at arm's length with each other.
``documentati on-due date'' « date limite de production »	``documentation-due date'' for a taxation year or fiscal period of a person or partnership means
	(a) in the case of a person, the person's filing-due date for the year; or
	(b) in the case of a partnership, the day on or before which a return is required by section 229 of the Income Tax Regulations to be filed in respect of the period or would be required to be so filed if that section applied to the partnership.
``qualifying cost contribution arrangement'' « arrangemen t admissible de participation au coût »	``qualifying cost contribution arrangement'' means an arrangement under which reasonable efforts are made by the participants in the arrangement to establish a basis for contributing to, and to contribute on that basis to, the cost of producing, developing or acquiring any property, or acquiring or performing any services, in proportion to the benefits which each participant is reasonably expected to derive from the property or services, as the case may be, as a result of the arrangement.
``tax benefit'' « avantage fiscal »	``tax benefit'' means a reduction, avoidance or deferral of tax or other amount payable under this Act or an increase in a refund of tax or other amount under this Act.
``transaction'' « opération »	``transaction'' includes an arrangement or event.
``transfer price'' « prix de transfert »	``transfer price'' means, in respect of a transaction, an amount paid or payable or an amount received or receivable, as the case may be, by a participant in the transaction as a price, a rental, a royalty, a premium or other payment for, or for the use, production or reproduction of, property or as consideration for services (including services provided as an employee and the insurance or reinsurance of risks) as part of the transaction.
``transfer pricing capital adjustment'' « redressemen t de capital »	``transfer pricing capital adjustment'' of a taxpayer for a taxation year means the total of
	(a) all amounts each of which is
	(i) 3/4 of the amount, if any, by which the adjusted cost base to the taxpayer of a capital property (other than a depreciable property) or an eligible capital expenditure of the taxpayer in respect of a business is reduced in the year because of an adjustment made under subsection (2), or
	(ii) the amount, if any, by which the capital cost to the taxpayer of a depreciable property is reduced in the year because of an adjustment made under subsection (2); and
	(b) all amounts each of which is that proportion of the total of
	(i) 3/4 of the amount, if any, by which the adjusted cost base to a partnership of a capital property (other than a depreciable property ) or an eligible capital expenditure of a partnership in respect of a business is reduced in a fiscal period that ends in the year because of an adjustment made under subsection (2), and
	(ii) the amount, if any, by which the capital cost to a partnership of a depreciable property is reduced in the period because of an adjustment made under subsection (2),
	that
	(iii) the taxpayer's share of the income or loss of the partnership for the period
	is of
	(iv) the income or loss of the partnership for the period,
	and where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000 for the purpose of determining a taxpayer's share of the partnership's income for the purpose of this definition.
``transfer pricing capital setoff adjustment'' « redressemen t compensatoire de capital »	``transfer pricing capital setoff adjustment'' of a taxpayer for a taxation year means the amount, if any, that would be the taxpayer's transfer pricing capital adjustment for the year if the references, in the definition ``transfer pricing capital adjustment'', to ``reduced'' were read as ``increased''.
``transfer pricing income adjustment'' « redressemen t de revenu »	``transfer pricing income adjustment'' of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, by which an adjustment made under subsection (2) (other than an adjustment included in determining a transfer pricing capital adjustment of the taxpayer for a taxation year) would result in an increase in the taxpayer's income for the year or a decrease in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2).
``transfer pricing income setoff adjustment'' « redressemen t compensatoire de revenu »	``transfer pricing income setoff adjustment'' of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, by which an adjustment made under subsection (2) (other than an adjustment included in determining a transfer pricing capital setoff adjustment of the taxpayer for a taxation year) would result in a decrease in the taxpayer's income for the year or an increase in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2).
Transfer pricing adjustment	(2) Where a taxpayer or a partnership and a non-resident person with whom the taxpayer or the partnership, or a member of the partnership, does not deal at arm's length (or a partnership of which the non-resident person is a member) are participants in a transaction or a series of transactions and
	(a) the terms or conditions made or imposed, in respect of the transaction or series, between any of the participants in the transaction or series differ from those that would have been made between persons dealing at arm's length, or
	(b) the transaction or series
	(i) would not have been entered into between persons dealing at arm's length, and
	(ii) can reasonably be considered not to have been entered into primarily for bona fide purposes other than to obtain a tax benefit,
	any amounts that, but for this section and section 245, would be determined for the purposes of this Act in respect of the taxpayer or the partnership for a taxation year or fiscal period shall be adjusted (in this section referred to as an ``adjustment'') to the quantum or nature of the amounts that would have been determined if,
	(c) where only paragraph (a) applies, the terms and conditions made or imposed, in respect of the transaction or series, between the participants in the transaction or series had been those that would have been made between persons dealing at arm's length, or

Bill C-28

PART XVI.1

TRANSFER PRICING