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Bill C-36

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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 ``An Act to implement certain provisions of the budget tabled in Parliament on February 24, 1998''.

SUMMARY

PART 1

Part 1 establishes the Canada Millennium Scholarship Foundation with the objects and purposes of granting scholarships to students who are in financial need and who demonstrate merit. An endowment of $2.5 billion is granted to the Foundation.

PART 2

Part 2 authorizes the Canada Development Investment Corporation to dispose of or transfer its assets and liabilities, including its principal asset, the Canada Hibernia Holding Corporation. It also authorizes the dissolution of the Canada Development Investment Corporation.

PART 3

Part 3 provides that a person who takes advantage of the Early Retirement Incentive Program (ERI) will not be entitled to a separation benefit under the Work Force Adjustment Directive during the transitional period following the expiration of the suspension of the separation benefit (June 23, 1998) and September 30, 1998, the last possible date by which a person must cease to be employed in the Public Service in order to qualify for ERI.

PART 4

Part 4 enables the Kamloops Indian Band to impose a 7% value-added tax on all sales of alcoholic beverages, tobacco products and fuels on the reserves of the Kamloops Indian Band. It also amends Part IV (Westbank First Nation Tobacco Products Tax) of the Budget Implementation Act, 1997, to enable the Westbank First Nation to impose a similar tax on alcoholic beverages. Consequential amendments are also made to that Part and to Parts II and III (Cowichan Tribes Tobacco Tax and Cowichan Tribes Tobacco Products Tax) of that Act.

PART 5

Part 5 adds a new part to the Department of Human Resources Development Act that provides for the payment of grants to encourage savings under registered education savings plans.

PART 6

The amendments to the Federal-Provincial Fiscal Arrangements Act in Part 6 are required to implement administration agreements with aboriginal governments. In particular, the Minister of Finance or the Minister of National Revenue may enter into an administration agreement with an aboriginal government and payments can be made out of the Consolidated Revenue Fund to an aboriginal government or a person pursuant to the agreement.

PART 7

Part 7 amends the Excise Tax Act to implement increases in the excise tax rates on cigarettes intended for retail sale in Ontario, Quebec, New Brunswick, Nova Scotia and Prince Edward Island and on tobacco sticks intended for retail sale in Canada.

PART 8

Part 8 amends the Excise Tax Act to implement reductions in the air transportation tax. The amendments reduce the ad valorem tax rate on domestic and transborder air travel, the specific rates on international travel and the flat tax amount on domestic and transborder charter flights.

PART 9

Part 9 amends the Income Tax Act to implement the Canada Child Tax Benefit (CCTB) which will come into effect in July 1998. The CCTB will provide a national benefit to all eligible families with children. The Children's Special Allowance Act is also amended to ensure that equivalent benefits are provided to provincial agencies for children in care (e.g., foster homes and group homes). Social assistance payments made by provinces and territories will be adjusted in accordance with the increase in the CCTB.

PART 10

Part 10 amends the Canada Student Financial Assistance Act to allow for debt reduction in repayment for full-time and part-time students and to allow for the repayment of principal during special interest-free and interest-reduced periods. It also amends the Act to provide authority to prescribe the circumstances in which a loan or certificate of eligibility may be denied.

It amends the Canada Student Loans Act to allow for debt reduction in repayment and for the repayment of principal during special interest-free and interest-reduced periods.

It amends the Bankruptcy and Insolvency Act to extend, from two years to ten years after a bankrupt leaves school, the period of time during which a discharge does not release the bankrupt from the reimbursement of his or her student loan.

PART 11

Part 11 amends the Employment Insurance Act to provide a premium holiday for 1999 and 2000 to employers who increase their payroll for youth (ages 18 to 24) from their 1998 level.

PART 12

Part 12 amends the Old Age Security Act to allow for a payment period from July of one year to June of the next, to revise the definition of income, to provide for a more exact calculation for determining benefit amounts for supplements and allowances, to provide for consistency between the method of determining the entitlement of widows who are sponsored and that used for determining the entitlement of pensioners and their spouses, and to allow for more consistency and responsiveness in the case of marital status changes.

Part 12 also amends the War Veterans Allowances Act to allow for the same payment period as in the Old Age Security Act - from July in one year to June of the next and makes consequential changes to the Income Tax Act.

PART 13

Part 13 amends the International Development (Financial Institutions) Assistance Act to require the Minister of Foreign Affairs to consult with the Minister of Finance before providing financial assistance under the Act. Another amendment establishes that the assistance is provided under a statutory appropriation.

Part 13 amends the Bretton Woods and Related Agreements Act to allow for the provision of financial assistance to countries with which the International Monetary Fund has entered into arrangements to assist them achieve financial stability. Another amendment establishes that the assistance is provided under a statutory appropriation.

That Act is also amended to provide authority to increase Canada's quota in the International Monetary Fund as part of the overall quota increase agreed under the Eleventh General Quota review and to provide authority for Canada to receive a special one time special drawing rights allocation made to International Monetary Fund through an amendment to the Fund's Articles of Agreement.

EXPLANATORY NOTES

Budget Implementation Act, 1997

Clause 63: (1) The definition ``direct tax'' in section 35 reads as follows:

``direct tax'' means a tax that the legislature of a province may levy pursuant to class 2 of section 92 of the Constitution Act, 1867.

(2) New.

Clause 64: Subsection 37(4) reads as follows:

(4) The council shall, on demand, provide a copy of any by-law made under this Part and shall publish every such by-law in a newspaper having general circulation in the place where the tax applies.

Clause 65: (1) The definition ``direct tax'' in section 43 reads as follows:

``direct tax'' means a tax that the legislature of a province may levy pursuant to class 2 of section 92 of the Constitution Act, 1867.

(2) New.

Clause 66: Subsection 44(4) reads as follows:

(4) For the purposes of this Part, a tobacco product is sold on a reserve if tax under section 165 of the Excise Tax Act is not payable in respect of the sale (or would not be payable if the purchaser were an Indian within the meaning assigned by subsection 2(1) of the Indian Act and section 47 did not apply to the sale) because of the connection of the sale with the reserve and the application of section 87 of the Indian Act.

Clause 67: Subsection 45(3) reads as follows:

(3) The council shall, on demand, provide a copy of any by-law made under this Part and shall publish every such by-law in a newspaper having general circulation in the place where the tax applies.

Clause 69: (1) The definition ``direct tax'' in section 51 reads as follows:

``direct tax'' means a tax that the legislature of a province may levy pursuant to class 2 of section 92 of the Constitution Act, 1867.

(2) New.

Clause 70: (1) Subsection 52(1) reads as follows:

52. (1) Notwithstanding section 87 of the Indian Act, the council may make a by-law imposing a direct tax in respect of the sale of tobacco products on a reserve to be collected pursuant to an agreement entered into under section 54(1).

(2) Subsection 52(4) reads as follows:

(4) For the purposes of this Part, a tobacco product is sold on a reserve if tax under section 165 of the Excise Tax Act is not payable in respect of the sale (or would not be payable if the purchaser were an Indian within the meaning assigned by subsection 2(1) of the Indian Act and section 55 did not apply to the sale) because of the connection of the sale with the reserve and the application of section 87 of the Indian Act.

Clause 71: (1) The relevant portion of subsection 53(1) reads as follows:

53. (1) A by-law made under subsection 52(1)

    . . .

    (c) shall provide that the rate of tax on the sale of tobacco products is the rate at which tax is imposed under subsection 165(1) of the Excise Tax Act, as amended from time to time;

(2) Subsection 53(3) reads as follows:

(3) The council shall, on demand, provide a copy of any by-law made under this Part and shall publish every such by-law in a newspaper having general circulation in the place where the tax applies.

Department of Human Resources Development Act

Clause 72: New.

Access to Information Act

Clause 73: New.

Income Tax Act

Clause 74: New.

Clause 75: The relevant portion of paragraph 241(4)(d) reads as follows:

(4) An official may

    . . .

    (d) provide taxpayer information

Federal-Provincial Fiscal Arrangements Act

Clause 76: (1) The relevant portion of the definition ``administration agreement'' in subsection 2(1) reads as follows:

``administration agreement'' means an agreement, including a tax collection agreement, between the Government of Canada and the government of a province pursuant to which

      (a) the Government of Canada will administer and enforce an Act of the legislature of the province that imposes a tax and will make payments to the province in respect of the taxes collected, in accordance with the terms and conditions of the agreement; or

(2) New.

Clause 77: Subsection 7(1) reads as follows:

7. (1) The Minister or the Minister of National Revenue, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an administration agreement with the government of a province.

Clause 78: Section 8 reads as follows:

8. Where the government of a province has entered into an administration agreement in respect of an Act that imposes taxes on income, the Minister, in accordance with the regulations, may make advance payments to the province out of the Consolidated Revenue Fund on account of any amount that may become payable to the province pursuant to the administration agreement.

Clause 79: Subsections 8.1(1) and (2) read as follows:

8.1 (1) Subject to subsection (2), where an administration agreement has been entered into in respect of an Act of the legislature of a province, payments may be made to a person out of the Consolidated Revenue Fund on account of any amount that is payable to that person under that Act, in accordance with the terms and conditions of the administration agreement.

(2) Where no amount is held on behalf of the province from which a payment under subsection (1) may be made, or the amount of the payment exceeds the amount so held, payment pursuant to subsection (1) may be made as a recoverable advance from the Consolidated Revenue Fund if the repayment of the amount or the excess by the government of the province is provided for in the administration agreement.

Excise Tax Act

Clause 80: (1) Subsection 23.341(3) reads as follows:

(3) The tax imposed under subsection (1) shall be equal to the amount by which

    (a) the excise tax that would have been imposed under section 23 in respect of the cigarettes or tobacco sticks if the applicable rates of excise tax were the rates set out in paragraphs 1(f) and 2d) of Schedule II,

exceeds

    (b) the excise tax imposed at the rates of

      (i) $0.07013 per five cigarettes, in the case of cigarettes, and

      (ii) $0.00595 per tobacco stick, in the case of tobacco sticks.

Clause 81: (1) Subsection 68.169(3.23) is new. Subsection 68.169(3.22) reads as follows:

(3.22) Where, after December 11, 1996, a licensed wholesale vendor sells Nova Scotia cigarettes or Nova Scotia tobacco sticks to a licensed retail vendor, or to a consumer in the Province of Prince Edward Island for consumption by the consumer or by others at the expense of the consumer, the Minister may pay to the licensed wholesale vendor a tax rebate equal to the total of

    (a) $0.00625 multiplied by the number of those cigarettes, and

    (b) $0.0047 multiplied by the number of those tobacco sticks.

(2) and (3) These amendments add a reference to subsection 68.169(3.23).

Clause 82: (1) The amendment replaces ``$0.05138'' with ``$0.06638''.

(2) The amendment replaces ``$0.04138'' with ``$0.05638''.

(3) The amendment replaces ``$0.10138'' with ``$0.11638''.

(4) The amendment replaces ``$0.10138'' with ``$0.11138''.

(5) The amendment replaces ``$0.10138'' with ``$0.11638''.

Clause 83: (1) The amendment replaces ``$0.00165'' with ``$0.00925''.

(2) The amendment replaces ``$0.00165'', ``$0.00865'' and ``$0.01065'' with ``$0.00925'', ``$0.01265'' and ``$0.01465'' respectively.

Excise Tax Act

Clause 84: (1) The relevant portion of subsection 11(1) reads as follows:

11. (1) Subject to subsections (2) and (2.1), the tax imposed under subsection 10(1) or (2) on each amount paid or payable for transportation of a person by air shall be an amount that is the lesser of

    (a) the aggregate of

      (i) 7% of each amount paid or payable, and

(2) The relevant portion of subsection 11(2) reads as follows:

(2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 10(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the lesser of

    (a) the aggregate of

      (i) 7% of each amount paid or payable, and

      (ii) $3 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, and

Clause 85: (1) The relevant portion of subsection 13(1) reads as follows:

13. (1) Subject to subsection (2), the tax imposed under subsection 12(1) for transportation of a person by air shall be

    (a) an amount that is the lesser of

      (i) $55, and

(2) The relevant portion of subsection 13(2) reads as follows:

(2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 12(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the aggregate of

    (a) the lesser of

      (i) $55, and

(3) and (4) The relevant portion of subsection 13(2.2) reads as follows:

(2.2) The tax imposed under subsection 12(2) for transportation of a person by air shall be

    (a) where the first emplanement of the person occurs at an airport in Canada,

      (i) an amount that is the lesser of

        (A) $55, and

. . .

    (b) in any other case,

      (i) an amount that is the lesser of

        (A) $27.50, and

Clause 86: The relevant portion of subsection 13.1(1) reads as follows:

13.1 (1) Notwithstanding sections 11 and 13 but subject to subsection 11(3) and subsection (2) of this section, where two or more amounts are paid or payable at the same time for transportation of a person by air on a continuous journey,

    (a) the total of the taxes imposed on all such amounts under subsection 10(1) or (2), determined under subsection 11(1), shall not exceed the lesser of

      (i) the total of 7% of the total of all such amounts and $6, and

Clause 87: Section 16.1 reads as follows:

16.1 No tax shall be imposed, levied or collected on any amount paid or payable for the transportation of a person that

    (a) in the case of tax imposed under subsection 10(1) or 12(1), begins on or after the second anniversary of the transfer date within the meaning of the Civil Air Navigation Services Commercialization Act; or

    (b) in the case of tax imposed under subsection 10(2) or 12(2), includes an emplanement at an airport in Canada on or after the second anniversary of the transfer date within the meaning of the Civil Air Navigation Services Commercialization Act on a specific flight having as a destination an airport outside Canada and a subsequent deplanement by the person at an airport outside Canada.

Clause 88: Subsection 17(4) reads as follows:

(4) Subsection (1) applies only in respect of a certified air carrier that provides air transportation before the second anniversary of the transfer date within the meaning of the Civil Air Navigation Services Commercialization Act.

Clause 89: Subsection 20(2.1) reads as follows:

(2.1) No return is required under subsection (2) if the last preceding month is a month that is more than twenty-four months after the transfer date within the meaning of the Civil Air Navigation Services Commercialization Act.

Income Tax Act

Clause 91: (1) The amendment adds the word ``Canada''.

Clause 92: (1) The definitions ``adjusted earned income'' and ``earned income'' in section 122.6 read as follows:

``adjusted earned income'' of an individual for a taxation year means the total of all amounts each of which is the earned income for the year of the individual or of the person who was the individual's cohabiting spouse at the end of the year;

``earned income'' of an individual for a taxation year has the meaning assigned by subsection 63(3);

Clause 93: (1) Subsection 122.61(1) reads as follows:

122.61 (1) Where a person and, where the Minister so demands, the person's cohabiting spouse at the end of a taxation year have filed a return of income for the year, an overpayment on account of the person's liability under this Part for the year shall be deemed to have arisen during a month in relation to which the year is the base taxation year, equal to the amount determined by the formula

1/12(A - B)

where

A is the total of

      (a) the product obtained by multiplying $1,020 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of the month,

      (b) the product obtained by multiplying $75 by the number of qualified dependants, in excess of 2, in respect of whom the person was an eligible individual at the beginning of the month, and

      (c) the amount determined by the formula

[C x (D - $3,750)/($6,250)] - (G x H)

      where

      C is, where the person is an eligible individual in respect of

          (i) only one qualified dependant, $605, and

          (ii) two or more qualified dependants, the total of

            (A) $605 for the first qualified dependant,

            (B) $405 for the second qualified dependant, and

            (C) $330 for each, if any, of the third and subsequent qualified dependants,

      D is the lesser of $10,000 and the person's adjusted earned income for the year,

      G is the amount, if any, by which the person's adjusted income for the year exceeds $20,921, and

      H is, where the person is an eligible individual in respect of

          (i) only one qualified dependant, 12.1%,

          (ii) two qualified dependants, 20.2%, and

          (iii) three or more qualified dependants, 26.8%, and

      (d) the amount determined by the formula

E - F

      where

      E is the product obtained by multiplying $213 by the number of qualified dependants who have not attained the age of 7 years before the month and in respect of whom the person is an eligible individual at the beginning of the month, and

      F is 25% of the total of all amounts deducted under section 63 in respect of qualified dependants in computing the income for the year of the person or the person's cohabiting spouse; and

B is 5% (or where the person is an eligible individual in respect of only one qualified dependant at the beginning of the month, 21/2%) of the amount, if any, by which the person's adjusted income for the year exceeds $25,921.

(2) Subsection 122.61(5.1) reads as follows:

(5.1) The amount of $6,250 referred to in subsection (1) shall be adjusted so that the amount to be used under that subsection for a month in relation to a base taxation year that is after 1996 is equal to the amount by which

    (a) the amount of $10,000 referred to in that subsection, as adjusted and rounded under this section for the year,

exceeds

    (b) the amount of $3,750 referred to in that subsection, as adjusted and rounded under this section for the year.

Clause 96: The relevant portion of subsection 239(2.21)reads as follows:

(2.21) Every person

    . . .

    (b) who is an official to whom taxpayer information has been provided for a particular purpose under paragraph 241(4)(a), (d), (f) or (i)

and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows any person access to, that information is guilty of an offence and liable on summary convic tion to a fine not exceeding $5,000 or to imprisonment for a term not ex ceeding 12 months, or to both.

Clause 97: (1) New. The relevant portion of subsec tion 241(4) reads as follows:

(4) An official may

(2) The definition ``official'' in subsection 241(10) reads as follows:

``official'' means any person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of,

      (a) Her Majesty in right of Canada or a province, or

      (b) an authority engaged in administering a law of a province similar to the Pension Benefits Standards Act, 1985,

    or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged;

(3) New.

Children's Special Allowances Act

Clause 98: (1) Subsection 8(1) reads as follows:

8. (1) The amount of special allowance to be paid in respect of a child for each month is

    (a) in the case of any of the months in the period beginning on January 1, 1993 and ending on June 30, 1993, one twelfth of the amount set out in paragraph 122.61(1)(a) of the Income Tax Act; and

    (b) in the case of any month subsequent to June 1993, one twelfth of the amount set out in paragraph 122.61(1)(a) of the Income Tax Act, adjusted in accordance with subsections 122.61(5) and (7) of that Act.

Canada Student Financial Assistance Act

Clause 99: Section 9 reads as follows:

9. Where a special interest-free or interest-reduced period is granted to a borrower under regulations made under paragraph 15(n), no amount on account of the principal is required to be paid by the borrower during that period, but, in the case of an interest-reduced period, the borrower may be liable to pay, during that period, a portion of the interest in respect of that period.

Clause 100: (1) and (2) The relevant portions of section 15 reads as follows:

15. The Governor in Council may make regulations

    . . .

    (i) prescribing the circumstances under which a new loan or a new certificate of eligibility may be denied to a student, or an interest-free period referred to in subsection 7(1) may be terminated by the Minister;

    . . .

    (l) providing, in respect of student loans made to full-time students, for the gratuitous payment, including the method of calculating it, whether conditionally or unconditionally, by the Minister to lenders of amounts in respect of such loans, and for the discharge of such loans to the extent of those amounts;

Canada Student Loans Act

Clause 101: The relevant portion of section 10 reads as follows:

10. Where a special interest-free period is granted under any regulations made pursuant to section 11,

    . . .

    (c) no amount on account of the principal of the guaranteed student loan is required to be paid during that period.

Clause 102: New. The relevant portion of section 17 reads as follows:

17. The Governor in Council may make regulations

Bankruptcy and Insolvency Act

Clause 103: (1) The relevant portion of section 178 reads as follows:

178. (1) An order of discharge does not release the bankrupt from

    . . .

    (g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred

      . . .

      (ii) within two years after the date on which the bankrupt ceased to be a full- or part-time student; or

(2) The relevant portion of subsection 178(1.1) reads as follows:

(1.1) At any time after two years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that

Employment Insurance Act

Clause 104: Subsections 96(8.2) to (8.6) are new. Subsections 96(9) and (10) read as follows:

(9) If two or more employers are associated, as defined by the regulations, they shall be considered a single employer for the purposes of subsections (6) to (8) and any refund shall be allocated to them in the prescribed manner.

(10) A refund under subsections (4) to (7) is payable only if an application is made in writing to the Minister within three years after the end of the year for which the premiums were deducted or paid.

Old Age Security Act

Clause 105: (1) New.

Clause 106: Section 10 reads as follows:

10. In this Part,

``base calendar year'' means the calendar year ending immediately before the current fiscal year;

``current fiscal year'' means the fiscal year in respect of which an application for a supplement is made by an applicant;

``previous fiscal year'' means the fiscal year immediately before the current fiscal year.

Clause 107: Subsection 11(3) reads as follows:

(3) Where a spouse's allowance ceases to be payable to a person by reason of that person having reached sixty-five years of age, the Minister may deem an application under subsection (1) to have been made by that person and approved, on the day on which the person reached that age.

Clause 108: (1) Subsections 12(1) and (2) read as follows:

12. (1) The amount of the supplement that may be paid to a pensioner for any month in the payment quarter commencing on January 1, 1985 is

    (a) in the case of a person other than an applicant described in paragraph (b), three hundred and twenty-five dollars and forty-one cents; and

    (b) in the case of an applicant who, on the day immediately before that payment quarter, was a married person and to whose spouse a pension may be paid for any month in that payment quarter,

      (i) in respect of any month in that payment quarter before the first month for which a pension may be paid to the spouse, three hundred and twenty-five dollars and forty-one cents, and

      (ii) in respect of any month in that payment quarter commencing with the first month for which a pension may be paid to the spouse, two hundred and eleven dollars and ninety-three cents,

minus one dollar for each full two dollars of the pensioner's monthly base income.

(2) The amount of the supplement that may be paid to a pensioner for any month in any payment quarter commencing after March 31, 1985 is, in lieu of the amount of supplement that may be paid to the pensioner under subsection (1), the amount obtained by multiplying

    (a) the maximum amount of supplement that might have been paid to such a pensioner for any month in the three month period immediately before that payment quarter

by

    (b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter,

minus one dollar for each full two dollars of the pensioner's monthly base income.

(2) and (3) The relevant portion of subsection 12(5) reads as follows:

(5) Notwithstanding subsection (2), the amount of the supplement that may be paid to a pensioner for any month in a payment quarter commencing after December 1984 is the amount determined by the formula

[(A - B) x C] - D/2

where

. . .

D is the pensioner's monthly base income rounded, where it is not a multiple of two dollars, to the next lower multiple of two dollars.

(4) and (5) The relevant portion of subsection 12(6) reads as follows:

(6) In this section, ``monthly base income'' means, in relation to the calculation of the supplement for a month in any given payment quarter,

    . . .

    (b) in the case of an applicant who, on the day immediately before the current fiscal year, was the spouse of a person to whom no pension may be paid for any month in the current fiscal year, the amount determined by the formula

A/24 - B/2

    where

. . .

    B is the product

        (i) obtained by multiplying the amount of the full monthly pension that might have been paid to a pensioner for any month in that payment quarter by the applicant's special qualifying factor for the month, and

        (ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars; and

Clause 109: The relevant portion of section 13 reads as follows:

13. For the purposes of this Part, the income for a calendar year of a person or an applicant is the income of that person or applicant for that year computed in accordance with the Income Tax Act, except that

Clause 110: (1) Subsection 14(1) reads as follows:

14. (1) Every person by whom an application for a supplement in respect of a current fiscal year is made shall, in the application, make a statement of his income for the base calendar year.

(2) Subsections 14(2) to (6) read as follows:

(2) Where in a current fiscal year a person who is an applicant, or who is an applicant's spouse who has filed a statement as described in paragraph 15(2)(a), has ceased to hold an office or employment or has ceased to carry on a business, that person may, not later than the end of the fiscal year immediately following the current fiscal year, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant's spouse, file a statement of his estimated income, other than the estimated income from that office or employment or from that business, as the case may be, for the calendar year in which that person ceased to hold that office or employment or ceased to carry on that business, in which case,

    (a) the person's income for that calendar year, calculated as described in section 13 as though he had no income from that office or employment or from that business, as the case may be, and no pension income for that calendar year,

plus

    (b) any pension income received by the person in that part of that calendar year that is after the month in which he ceased to hold that office or employment or ceased to carry on that business, divided by the number of months in that part of that calendar year and multiplied by twelve,

shall be deemed to be the person's income for the base calendar year.

(3) Notwithstanding subsection (2), where in the ninth month of a current fiscal year a person who is an applicant, or who is an applicant's spouse who has filed a statement as described in paragraph 15(2)(a), has ceased to hold an office or employment or has ceased to carry on a business, that person may, not later than the end of the fiscal year immediately following the current fiscal year, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant's spouse, file a statement of his estimated income for the calendar year immediately following the month in which he ceased to hold that office or employment or ceased to carry on that business, in which case the person's income for that calendar year shall be deemed to be his income for the base calendar year.

(4) Where in a current fiscal year a person who is an applicant, or who is an applicant's spouse who has filed a statement as described in paragraph 15(2)(a), has suffered a loss of income due to termination or reduction of pension income, that person may, not later than the end of the fiscal year immediately following the current fiscal year, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant's spouse, file a statement of his estimated income for the calendar year in which the loss was suffered, other than pension income received by that person in that part of that calendar year that is before the month in which the loss was suffered, in which case

    (a) the person's income for that calendar year, calculated as described in section 13 as though he had no pension income for that calendar year,

plus

    (b) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss was suffered, divided by the number of months in that part of that calendar year and multiplied by twelve,

shall be deemed to be the person's income for the base calendar year.

(5) Where in the previous fiscal year or in the three month period immediately before the previous fiscal year a person who is an applicant, or who is an applicant's spouse who has filed a statement as described in paragraph 15(2)(a), has ceased to hold an office or employment or has ceased to carry on a business, that person may, not later than the end of the current fiscal year, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant's spouse,

    (a) where the person ceased to hold that office or employment or to carry on that business in the three month period immediately before the previous fiscal year or in the first nine months of the previous fiscal year, file a statement of his estimated income for the calendar year ending in the current fiscal year, in which case the person's income for that calendar year shall be deemed to be his income for the base calendar year; and

    (b) where the person ceased to hold that office or employment or to carry on that business in the last three months of the previous fiscal year, file a statement of his estimated income for the calendar year ending in the current fiscal year showing also any income actually received by the person in that calendar year from that office or employment or from that business, as the case may be, in which case

      (i) the person's income for that calendar year, calculated as described in section 13 as though he had no income from that office or employment or from that business, as the case may be, and no pension income for that calendar year,

    plus

      (ii) any pension income received by the person in that part of that calendar year that is after the month in which he ceased to hold that office or employment or ceased to carry on that business, divided by the number of months in that part of that calendar year and multiplied by twelve,

    shall be deemed to be the person's income for the base calendar year.

(6) Where in the previous fiscal year or in the three month period immediately before the previous fiscal year a person who is an applicant, or who is an applicant's spouse who has filed a statement as described in paragraph 15(2)(a), has suffered a loss of income due to termination or reduction of pension income, that person may, not later than the end of the current fiscal year, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant's spouse,

    (a) where the loss was suffered in the three month period immediate ly before the previous fiscal year or in the first nine months of the previous fiscal year, file a statement of his estimated income for the calendar year ending in the current fiscal year, in which case the person's income for that calendar year shall be deemed to be his income for the base calendar year; and

    (b) where the loss was suffered in the last three months of the previous fiscal year, file a statement of his estimated income for the calendar year ending in the current fiscal year showing also the amount of pension income actually received by the person in that part of that calendar year that is before the month in which the loss was suffered, in which case

      (i) the person's income for that calendar year, calculated as described in section 13 as though he had no pension income for that calendar year,

    plus

      (ii) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss suffered, divided by the number of months in that part of that calendar year and multiplied by twelve,

    shall be deemed to be the person's income for the base calendar year.

Clause 111: Subsections 15(3.1), (4.1), (5.1), (6.1), (7.1) and (9) are new. Section 15 and the heading before it read as follows:

Married Applicants

15. (1) Every person by whom an application for a supplement in respect of a fiscal year is made shall, in the application, state whether on the earlier of the day on which the application is made or the last day of the previous fiscal year he was married and, if so, the name and address of his spouse and whether to his knowledge the spouse is a pensioner.

(1.1) Where the requirement for an application for payment of a supplement for any month has been waived under subsection 11(4) and the person to whom the supplement is paid married during the previous fiscal year, that person shall notify the Minister without delay of the date of the marriage, the name and address of their spouse and whether, to their knowledge, the spouse is a pensioner.

(2) Subject to subsections (3) and (4), where an application for a supplement in respect of a fiscal year is made by a person who, on the earlier of the day on which the application was made or the last day of the previous fiscal year, was married, the application shall not be considered or dealt with until such time as

    (a) the applicant's spouse has filed a statement in prescribed form of the spouse's income for the base calendar year;

    (b) an application for a supplement in respect of the current fiscal year has been received from the applicant's spouse; or

    (c) the income of the applicant's spouse for the base calendar year has been estimated under subsection 14(1.1).

(3) Where an application for a supplement in respect of any fiscal year has been made by a person, the Minister may, after such investigation of the circumstances as he deems necessary, in any case where

    (a) no statement or application as described in subsection (2) has been filed by or received from the spouse of that person and no estimate of the income of the spouse of that person has been made under subsection 14(1.1), or

    (b) the Minister is satisfied that that person, as a result of circumstances not attributable to that person or the spouse, was not living with the spouse in a dwelling maintained by the person or the spouse at the time the application was made,

direct that the application be considered and dealt with as though that person had not been married on the last day of the previous fiscal year.

(4) Where an application for a supplement in respect of a fiscal year has been made by a person, the Minister, if satisfied that the person is separated from his spouse, having been so separated for a continuous period of at least six months, exclusive of the month in which the spouses became separated, shall direct that the application be considered and dealt with as though that person had ceased to be married at the end of the sixth such month.

(5) Where, after the Minister has made any direction under subsection (3) with respect to an application for a supplement made in respect of a fiscal year, a statement or application as described in subsection (2) is filed by or received from the applicant's spouse, the Minister may review the direction previously made and may thereupon direct that any supplement paid to the applicant or the spouse for months in that fiscal year following the month in which the review is made be calculated either on the basis that the applicant and the spouse were in fact married on the last day of the previous fiscal year or as though they had not been married on that day, according as the direction may specify.

(6) Where an application for a supplement in respect of a current fiscal year is or has been made by a person who at any time in that fiscal year has married or, in the case of a person described in subsection (4), has ceased to be separated from his spouse, the Minister may, if requested to do so by that person, direct that any supplement paid to that person or his spouse, for any month in that fiscal year following the month in which the direction is made, be calculated as though that person had been married on the last day of the previous fiscal year.

(7) Where an application for a supplement in respect of a current fiscal year is or has been made by a person who at any time in that fiscal year has ceased to be married, whether as a result of the death of his spouse or otherwise, the Minister may, if requested to do so by that person, direct that any supplement paid to that person, for any month in that fiscal year following the month in which the direction is made, be calculated as though that person had not been married on the last day of the previous fiscal year.

(8) Nothing in subsections (6) and (7) shall be construed as limiting or restricting the authority of the Minister to make any direction under subsection (3), (4) or (5).

Clause 112: Section 17 reads as follows:

17. Payment of a supplement for any month shall be made in arrears at the end of the month, except that where payment of a supplement in respect of any fiscal year is approved after the end of the month for which the first payment of the supplement may be made, payments thereof for the month in which payment of the supplement is approved and for months preceding that month may be made at the end of that month or at the end of the month immediately following that month.

Clause 113: Section 18 reads as follows:

18. Where it is determined that the income for a base calendar year, calculated as required by this Part (in this section referred to as the ``actual income''), of an applicant for a supplement does not accord with the income of the applicant (in this section referred to as the ``shown income'') calculated as required by this Part on the basis of a statement or an estimate made under section 14, the following adjustments shall be made:

    (a) if the actual income exceeds the shown income, any amount by which the supplement paid to the applicant for months in that fiscal year exceeds the supplement that would have been paid to the applicant for those months if the shown income had been equal to the actual income shall be deducted and retained out of any subsequent payments of supplement or pension made to the applicant, in such manner as may be prescribed; and

    (b) if the shown income exceeds the actual income, there shall be paid to the applicant any amount by which the supplement that would have been paid to the applicant for months in that fiscal year if the actual income had been equal to the shown income exceeds the supplement paid to the applicant for those months.

Clause 114: (1) and (2) The relevant portion of subsection 19(1) reads as follows:

19. (1) Subject to this Act and the regulations, for each month in any fiscal year, a spouse's allowance may be paid to the spouse of a pensioner if the spouse

    (a) is not separated from the pensioner;

(3) Subsection 19(5) reads as follows:

(5) A spouse's allowance under this section ceases to be payable on the expiration of the month in which the spouse in respect of whom it is paid dies, attains sixty-five years of age, ceases to be a spouse or becomes separated from the pensioner.

Clause 115: (1) Subsection 21(5) reads as follows:

(5) Where a spouse's allowance is payable under section 19 to the spouse of a pensioner for the month in which the pensioner dies, no application is required to be made by the pensioner's widow under subsection (4) in respect of payment of a spouse's allowance under this section for

    (a) the remainder of the fiscal year in which the pensioner dies; and

    (b) the fiscal year following the fiscal year in which the pensioner dies, where the pensioner and the spouse had, prior to the pensioner's death, made a joint application for the spouse's allowance under section 19 for the fiscal year following the fiscal year in which the pensioner dies.

(2) New. The relevant portion of subsection 21(9) reads as follows:

(9) No spouses allowance may be paid under this section to a widow pursuant to an application therefor for

(3) New.

(4) Subsection 21(11) reads as follows:

(11) Where subsection (5) applies, subsection (10) also applies in respect of the periods described in paragraphs (5)(a) and (b).

Clause 116: (1) The definition ``current fiscal year'' in subsection 22(1) reads as follows:

``current fiscal year'' means the fiscal year in respect of which an application for a spouse's allowance is made under this Part;

(2) The definitions ``base calendar year'', ``income'', ``residual family income'', ``residual income of the widow'', ``rounded pension equivalent'' and ``rounded supplement equivalent'' in subsection 22(1) read as follows:

``base calendar year'' means the calendar year ending immediately before the current fiscal year;

``income'', for a given calendar year, means the income calculated as prescribed by section 13;

``residual family income'' of a pensioner and the pensioner's spouse for a month in a current fiscal year means the amount determined by the formula

A - B

    where

    A is the monthly family income of the pensioner and the pensioner's spouse in the current fiscal year, and

    B is the product

        (a) obtained by multiplying four-thirds of the rounded pension equivalent by the spouse's special qualifying factor for the month, and

        (b) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars;

``residual income of the widow'' for a month in a current fiscal year means the amount determined by the formula

A - B

    where

    A is the monthly income of the widow in the current fiscal year, and

    B is the product

        (a) obtained by multiplying four-thirds of the rounded pension equivalent by the widow's special qualifying factor for the month, and

        (b) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars;

``rounded pension equivalent'' means the pension equivalent rounded to the higher multiple of three dollars when the pension equivalent is not a multiple of three dollars;

``rounded supplement equivalent'' means the supplement equivalent rounded to the higher multiple of one dollar when the supplement equivalent is not a multiple of one dollar;

(3) The definition ``monthly family income'' in subsection 22(1) reads as follows:

``monthly family income'' of a pensioner and the pensioner's spouse in a current fiscal year is the amount that equals one-twelfth of the total incomes of the pensioner and the spouse for the base calendar year;

(4) New.

(5) The relevant portion of subsection 22(2) reads as follows:

(2) Where, under this Part, an application has been made and approved or the requirement for an application has been waived in respect of the spouse of a pensioner for any month in a payment quarter, the amount of the supplement that may be paid for that month to the pensioner, in lieu of the amount of the supplement provided under Part II for that month, is the amount determined by the formula

[(A - B) x C] - D/4

where

. . .

D is the residual family income of the pensioner and the spouse for that month rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars.

(6) to (10) The relevant portion of subsection 22(3) reads as follows:

(3) The amount of the spouse's allowance that may be paid under section 19 for any month in a payment quarter to the spouse of a pensioner is

    (a) where there is no monthly family income of the pensioner and spouse in the current fiscal year, the total of

    . . .

    (b) where the monthly family income of the pensioner and spouse in the current fiscal year is equal to or less than the product

      (i) obtained by multiplying four-thirds of the rounded pension equivalent in respect of the month by the spouse's special qualifying factor for the month, and

      (ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,

    the amount determined by the formula

(A x B) + C

    where

    . . .

    C is the greater of zero and the amount determined by the formula

(D x B) - 3/4 E

      where

      . . .

      E is the monthly family income of the pensioner and the spouse in the current fiscal year rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars; and

    (c) where the monthly family income of the pensioner and spouse in the current fiscal year is more than the product

      (i) obtained by multiplying four-thirds of the rounded pension equivalent in respect of the month by the spouse's special qualifying factor for the month, and

      (ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,

    the amount determined by the formula

(A x B) - C/4

    where

    . . .

    C is the residual family income of the pensioner and spouse for that month rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars.

(11) to (15) The relevant portion of subsection 22(4) reads as follows:

(4) The amount of the spouse's allowance that may be paid under section 21 for any month in a payment quarter to a widow is

    (a) where there is no monthly income of the widow in the current fiscal year, the total of

    . . .

    (b) where the monthly income of the widow in the current fiscal year is equal to or less than the product

      (i) obtained by multiplying four-thirds of the rounded pension equivalent in respect of the month by the widow's special qualifying factor for the month, and

      (ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,

    the amount determined by the formula

(A x B) + C

    where

    . . .

    C is the greater of zero and the amount determined by the formula

(D x B) - 3/4 E

      where

      . . .

      E is the monthly income of the widow in the current fiscal year rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars; and

    (c) where the monthly income of the widow in the current fiscal year is more than the product

      (i) obtained by multiplying four-thirds of the rounded pension equivalent in respect of the month by the widow's special qualifying factor for the month, and

      (ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,

    the amount determined by the formula

(A x B) - C/2

    where

    . . .

    C is the residual income of the widow in respect of the month rounded, where that residual income is not a multiple of two dollars, to the next lower multiple of two dollars.

Clause 117: Paragraph 34(q) is new. The relevant portion of section 34 reads as follows:

34. The Governor in Council may make regulations for carrying the purposes and provisions of this Act into effect and, without restricting the generality of the foregoing, may make regulations

    . . .

    (p) providing events for the purposes of subsections 11(8) and 19(6.2).

Clause 118: The relevant portion of subsection 44(1) reads as follows:

44. (1) Every person who

    . . .

    (c) contravenes section 33,

is guilty of an offence punishable on summary conviction.

Income Tax Act

Clause 120: The relevant portion of subsection 241(4) reads as follows:

(4) An official may

    . . .

    (e) provide taxpayer information, or allow the inspection of or access to taxpayer information, as the case may be, under, and solely for the purposes of,

      . . .

      (viii) paragraph 33(3)(a) of the Old Age Security Act,

War Veterans Allowance Act

Clause 121: (1) and (2) The definitions ``current fiscal year'', ``first adjustment quarter'', ``payment review period'', ``previous fiscal year'' and ``second adjust ment quarter'' in subsection 2(1) read as follows:

``current fiscal year'' means the twelve month allowance payment period commencing on April 1 following the base calendar year;

``first adjustment quarter'', in relation to a payment quarter, means,

      (a) if the payment quarter commences on the first day of April in any fiscal year, the period of three months commencing on the first day of November next before that first day of April,

      (b) if the payment quarter commences on the first day of July in any fiscal year, the period of three months commencing on the first day of February next before that first day of July,

      (c) if the payment quarter commences on the first day of October in any fiscal year, the period of three months commencing on the first day of May next before that first day of October, and

      (d) if the payment quarter commences on the first day of January in any fiscal year, the period of three months commencing on the first day of August next before that first day of January;

``payment review period'' means the period commencing on April 1 in the previous fiscal year and ending on March 31 in the current fiscal year;

``previous fiscal year'' means the fiscal year ending next before the current fiscal year;

``second adjustment quarter'', in relation to a payment quarter, means,

      (a) if the payment quarter commences on the first day of April in any fiscal year, the period of three months commencing on the first day of August next before that first day of April,

      (b) if the payment quarter commences on the first day of July in any fiscal year, the period of three months commencing on the first day of November next before that first day of July,

      (c) if the payment quarter commences on the first day of October in any fiscal year, the period of three months commencing on the first day of February next before that first day of October, and

      (d) if the payment quarter commences on the first day of January in any fiscal year, the period of three months commencing on the first day of May next before that first day of January;

(3) New.

Clause 122: (1) The relevant portion of subsection 7(1) reads as follows:

7. (1) For the purposes of this Act, ``income'', of a person for a calendar year, has the same meaning as in section 13 of the Old Age Security Act except that, for the purposes of this Act,

(2) Subsection 7(2) reads as follows:

(2) Notwithstanding subsection (1), where it appears to the Minister that any amendment to the Income Tax Act or the regulations made thereunder or to section 13 of the Old Age Security Act would result in a significant change in the amount of any allowance payable in respect of any class of persons under this Act, the Minister may, with the approval of the Governor in Council, make orders to alleviate for the purposes of this Act the effect of the change by deeming revenue specified in the orders or a part of that revenue to be or not to be, as the case may require, income of a person referred to in subsection (1).

Clause 123: (1) Subsection 8.1(1) reads as follows:

8.1 (1) Every person who makes an application for an allowance in respect of a fiscal year shall include in the application a statement of the income of the person and the person's spouse, if any, for the base calendar year.

(2) Subsection 8.1(3) reads as follows:

(3) Where, in the previous fiscal year or in the three month period immediately preceding the commencement of the previous fiscal year, a recipient or a recipient's spouse experiences a change in income that is of an ongoing and continuing nature and that results in a loss or reduction of income equal to or greater than an amount prescribed by regulations made under section 25, the recipient may, not later than the end of the current fiscal year and in addition to making the statement of income required by subsection (1), file with the Minister a statement of estimated income, if any, of the recipient and spouse for the calendar year in which the loss or reduction of income occurred, in which case the income for the base calendar year in respect of the recipient and spouse for the purposes of calculating the allowance payable to the recipient for the current fiscal year shall be deemed to be the amount obtained by

    (a) dividing the income computed in respect of the recipient and spouse for the part of the calendar year commencing on the first day of the month in which the loss or reduction of income occurred by the number of months in that part of that calendar year, and

    (b) multiplying the quotient obtained under paragraph (a) by 12.

International Development (Financial Institutions) Assistance Act

Clause 125: The relevant portion of section 3 reads as follows:

3. The Minister of Foreign Affairs may, for the purpose of promoting the social and economic development of developing countries, provide financial assistance to an institution by way of

Clause 126: Section 12 reads as follows:

12. The amount of financial assistance provided to institutions pursuant to paragraph 3(b) in any period shall not exceed such equivalent amount as is specified for the purpose in respect of that period in an appropriation by Parliament.

Bretton Woods and Related Agreements Act

Clause 127: Section 7 reads as follows:

7. The Minister of Finance may provide for payment out of the Consolidated Revenue Fund to the International Monetary Fund in the manner and at the times provided for by the Agreement set out in Schedule I of a sum or sums of money, not exceeding in the whole an amount equivalent to the subscriptions required from or permitted to be made by Canada, namely, four billion, three hundred and twenty million, three hundred thousand Special Drawing Rights.

Clause 128: New.

Clause 129: Subsection 8.1(3) reads as follows:

(3) Any sum or sums required for the purposes of this section shall be paid out of the Consolidated Revenue Fund.

Clause 130: New.

Clause 131: Section 1 of Article XV of Schedule I reads as follows:

To meet the need, as and when it arises, for a supplement to existing reserve assets, the Fund is authorized to allocate special drawing rights to members that are participants in the Special Drawing Rights Department.

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