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Bill C-16

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R.S., c. 1 (5th Supp.)

AMENDMENTS TO THE INCOME TAX ACT

15. Section 168 of the Income Tax Act is amended by adding the following after subsection (2):

Charities Registration (Security Information) Act

(3) Despite subsections (1) and (2), if a registered charity is the subject of a certificate that is determined to be reasonable under paragraph 6(1)(d) of the Charities Registration (Security Information) Act, the registration of the charity is revoked as of the making of that determination.

16. (1) Section 172 of the Act is amended by adding the following after subsection (3):

Exception - Charities Registration (Security Information) Act

(3.1) Paragraphs (3)(a) and (a.1) do not apply to an applicant or a registered charity that is the subject of a certificate that has been determined to be reasonable under paragraph 6(1)(d) of the Charities Registration (Security Information) Act.

(2) The portion of subsection 172(4) of the Act after paragraph (f) is replaced by the following:

where the Minister has not notified the applicant of the disposition of the application within 180 days after the filing of the application with the Minister, and, in any such case, subject to subsection (3.1) , an appeal from the refusal to the Federal Court of Appeal pursuant to subsection (3) may, notwithstanding subsection 180(1), be instituted under section 180 at any time by filing a notice of appeal in the Court.

(3) Section 172 of the Act is amended by adding the following after subsection (4):

Exception - Charities Registration (Security Information) Act

(4.1) An appeal referred to in subsection (3) or (4) is suspended when an applicant or a registered charity is, under paragraph 5(b) of the Charities Registration (Security Information) Act, served with a copy of a certificate that has been signed under that Act, whether the appeal was instituted before or after the certificate was so signed, and

    (a) discontinued on the determination, under paragraph 6(1)(d) of that Act, that the certificate is reasonable; or

    (b) reinstated as of the date the certificate is, under paragraph 6(1)(d) of that Act, quashed.

17. The description of A in paragraph 188(1)(a) of the Act is replaced by the following:

A is the total of all amounts each of which is the fair market value of an asset of the charity on the day (in this section referred to as the ``valuation day'') that is 120 days before the day on which

        (i) the notice of the Minister's intention to revoke the charity's registration is mailed, if the registration is revoked under subsection 168(2), or

        (ii) the charity is, under paragraph 5(b) of the Charities Registration (Security Information) Act, served with a copy of a certificate, if the registration is revoked under subsection 168(3).

18. Paragraph 239(2.21)(b) of the Act is replaced by the following:

    (b) who is an official to whom taxpayer information has been provided for a particular purpose under paragraph 241(4)(a), (d), (f), (f.1) , (i) or (j.1)

19. Subsection 241(4) of the Act is amended by adding the following after paragraph (f):

    (f.1) provide taxpayer information to an official solely for the purposes of the administration and enforcement of the Charities Registration (Security Information) Act;

COORDINATING AMENDMENTS

Bill C-11

20. If Bill C-11, introduced in the 1st session of the 37th Parliament and entitled the Immigration and Refugee Protection Act (the ``other Act''), receives royal assent, then, on the later of the coming into force of section 1 of this Act and section 76 of the other Act,

    (a) the definition ``judge'' in section 3 is repealed;

    (b) the heading before section 4 and sections 4 to 9 are replaced by the following:

CERTIFICATES BASED ON INTELLIGENCE AND CONFIDENTIAL INFORMATION

Definitions

4. The definitions in this section apply in sections 5 to 9.

``information' '
« renseigneme nts »

``information'' means security or criminal intelligence information and information that is obtained in confidence from a source in Canada, from the government of a foreign state, from an international organization of states or from an institution of either of them.

``judge''
« juge »

``judge'' means the Chief Justice of the Federal Court or a judge of the Trial Division of that Court designated by the Chief Justice.

Certificate

5. The Minister and the Minister of National Revenue may sign a certificate that it is their opinion, based on information, that there are reasonable grounds to believe

    (a) that an applicant or registered charity made available any of its resources, directly or indirectly, to an organization or person and that the organization or person was at that time, and continues to be, engaged in terrorism or activities in support of terrorism; or

    (b) that an applicant or registered charity makes or will make available any of its resources, directly or indirectly, to an organization or person and that the organization or person engages or will engage in terrorism or activities in support of terrorism.

JUDICIAL CONSIDERATION OF CERTIFICATE

Notice

6. (1) As soon as the Minister of National Revenue and the Minister have signed a certificate, the Minister, or a person authorized by the Minister, shall cause the applicant or registered charity to be served, personally or by registered letter sent to its last known address, with a copy of the certificate and a notice informing it that the certificate will be referred to the Federal Court not earlier than seven days after service of the notice and that, if the certificate is determined to be reasonable, it will be ineligible to become a registered charity or that its registration as a registered charity will be revoked.

Restriction

(2) The certificate served under subsection (1) and any matters arising out of the certificate are not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with, except in accordance with this Act.

Non-publicati on or confidenti-
ality order

(3) Despite subsection (2), the applicant or registered charity may apply to a judge for an order

    (a) directing that the identity of the applicant or registered charity not be published or broadcast in any way except in accordance with this Act; or

    (b) that any documents to be filed with the court in connection with the reference be treated as confidential.

No appeal

(4) A decision on an application mentioned in subsection (3) is not subject to appeal or review by any court at the instance of a party to the application.

Reference

(5) Seven days after service of the notice under subsection (1), or as soon after that as is practicable, the Minister or a person authorized by the Minister shall

    (a) file a copy of the certificate in the Federal Court for it to make a determination under section 8; and

    (b) cause the applicant or registered charity to be served, personally or by registered letter sent to its last known address, with a notice informing it of the filing of the certificate.

Judicial consideration

7. The following provisions govern the determination:

    (a) the judge shall hear the matter;

    (b) the judge shall ensure the confidentiality of the information on which the certificate is based and of any other evidence that may be provided to the judge if, in the opinion of the judge, its disclosure would be injurious to national security or to the safety of any person;

    (c) the judge shall deal with all matters as informally and expeditiously as the circumstances and considerations of fairness and natural justice permit;

    (d) the judge shall, without delay after the matter is referred to the Federal Court, examine the information and any other evidence in private;

    (e) on each request of the Minister or the Minister of National Revenue, the judge shall hear all or part of the information or evidence in the absence of the applicant or registered charity named in the certificate and their counsel if, in the opinion of the judge, its disclosure would be injurious to national security or to the safety of any person;

    (f) the information or evidence described in paragraph (e) shall be returned to the ministers and shall not be considered by the judge in determining whether the certificate is reasonable if either

      (i) the judge determines that the information or evidence is not relevant or, if it is relevant, that it should be part of the summary, or

      (ii) the matter is withdrawn;

    (g) the information or evidence described in paragraph (e) shall not be included in the summary but may be considered by the judge in determining whether the certificate is reasonable if the judge determines that the information or evidence is relevant but that its disclosure would be injurious to national security or to the safety of any person;

    (h) the judge shall provide the applicant or registered charity with a summary of the information or evidence that enables it to be reasonably informed of the circumstances giving rise to the certificate, but that does not include anything that in the opinion of the judge would be injurious to national security or to the safety of any person if disclosed;

    (i) the judge shall provide the applicant or registered charity with an opportunity to be heard; and

    (j) the judge may receive into evidence anything that, in the opinion of the judge, is appropriate, even if it is inadmissible in a court of law, and may base the decision on that evidence.

Determina-
tion that certificate is reasonable

8. (1) The judge shall determine whether the certificate is reasonable on the basis of the information and evidence available.

Quashing certificate

(2) The judge shall quash a certificate if the judge is of the opinion that it is not reasonable.

Effect of decision

9. (1) A certificate that is determined to be reasonable under subsection 8(1) is conclusive proof that, in the case of an applicant, it is ineligible to become a registered charity or, in the case of a registered charity, that it does not comply with the requirements to continue to be a registered charity.

Determina-
tion not reviewable

(2) The determination of the judge is final and is not subject to appeal or judicial review.

Publication

(3) The Minister shall, without delay after a certificate is determined to be reasonable, cause the certificate to be published in the Canada Gazette.

    (c) subsection 10(1) is replaced by the following:

Ministerial review

10. (1) An applicant or registered charity in relation to which a certificate was determined to be reasonable under subsection 8(1) and that believes that there has been a material change in circumstances since the determination made under that subsection may apply in writing to the Minister for a review of the certificate by the Minister and the Minister of National Revenue.

    (d) the portion of paragraph 10(5)(b) before subparagraph (i) is replaced by the following:

    (b) there has been a material change in circumstances and in that case will either, on the grounds referred to in section 5,

    (e) subsection 11(1) is replaced by the following:

Review by Court

11. (1) An applicant or registered charity that applied for a review under subsection 10(1) may, after giving written notice to the Minister who in turn shall notify the Minister of National Revenue, apply to the Federal Court for a review of the decision made under paragraph 10(5)(a) or subparagraph 10(5)(b)(i). The review is to be carried out in accordance with section 7, with any modifications that the circumstances require.

    (f) section 13 is replaced by the following:

Term of a certificate

13. Unless it is earlier cancelled, a certificate is effective for a period of three years beginning on the day it is first determined to be reasonable under subsection 8(1).

    (g) section 15 is replaced by the following:

15. Section 168 of the Income Tax Act is amended by adding the following after subsection (2):

Charities Registration (Security Information) Act

(3) Despite subsections (1) and (2), if a registered charity is the subject of a certificate that is determined to be reasonable under subsection 8(1) of the Charities Registration (Security Information) Act, the registration of the charity is revoked as of the making of that determination.

    (h) subsection 16(1) is replaced by the following:

16. (1) Section 172 of the Act is amended by adding the following after subsection (3):

Exception - Charities Registration (Security Information) Act

(3.1) Paragraphs (3)(a) and (a.1) do not apply to an applicant or a registered charity that is the subject of a certificate that has been determined to be reasonable under subsection 8(1) of the Charities Registration (Security Information) Act.

    (i) subsection 16(3) is replaced by the following:

(3) Section 172 of the Act is amended by adding the following after subsection (4):

Exception - Charities Registration (Security Information) Act

(4.1) An appeal referred to in subsection (3) or (4) is suspended when an applicant or a registered charity is, under subsection 6(2) of the Charities Registration (Security Information) Act, served with a copy of a certificate that has been signed under that Act, whether the appeal was instituted before or after the certificate was so signed, and

    (a) discontinued on the determination, under subsection 8(1) of that Act, that the certificate is reasonable; or

    (b) reinstated as of the date the certificate is, under subsection 8(2) of that Act, quashed.

    (j) section 17 is replaced by the following:

17. The description of A in paragraph 188(1)(a) of the Act is replaced by the following:

A is the total of all amounts each of which is the fair market value of an asset of the charity on the day (in this section referred to as the ``valuation day'') that is 120 days before the day on which

        (i) the notice of the Minister's intention to revoke the charity's registration is mailed, if the registration is revoked under subsection 168(2), or

        (ii) the charity is, under subsection 6(2) of the Charities Registration (Security Information) Act, served with a copy of a certificate, if the registration is revoked under subsection 168(3).

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