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Bill C-24

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RECOMMENDATION

Her 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 amend the Canada Elections Act and the Income Tax Act (political financing)''.

SUMMARY

This enactment amends the Canada Elections Act to extend disclosure requirements to electoral district associations and to leadership contestants and nomination contestants of registered parties. It introduces limits on contributions that may be made to parties, candidates, electoral district associations and leadership and nomination contestants.

It imposes on registered electoral district associations, leadership contestants and nomination contestants the obligation to report to the Chief Electoral Officer on contributions received and expenses incurred.

The enactment stipulates that contributions to registered parties, candidates, registered electoral district associations, leadership contestants and nomination contestants may be made only by individuals and are subject to limits. A limited exception allows contributions of up to $1,000 to be made by corporations and trade unions, or by associations from money given by individuals, to registered associations, nomination contestants and candidates.

The enactment provides for payment of a quarterly allowance to registered political parties, based on the percentage of votes obtained by the party in the previous general election. It increases the election expenses limit for parties and the percentage of election expenses that are reimbursed and broadens the definition of election expenses to include expenditures on polling.

The enactment amends the Income Tax Act to increase by $200 each of the brackets for which a tax credit for political contributions is eligible and to allow electoral district associations to issue tax receipts.

EXPLANATORY NOTES

Canada Elections Act

Clause 1: New.

Clause 2: Subsection 24(6) reads as follows:

(6) No returning officer shall, while in office, knowingly engage in politically partisan conduct and in particular shall not make a contribution to a candidate or belong to or make a contribution to, be an employee of or hold a position in, a registered party or an eligible party.

Clause 3: Paragraph 84(b.1) is new. The relevant portion of section 84 reads as follows:

84. The following persons are not eligible to be an official agent:

    . . .

    (b) an election officer;

Clause 4: (1) and (2) Paragraphs 85(2)(f) to (i) are new. The relevant portion of subsection 85(2) reads as follows:

(2) The following persons are not eligible to be an auditor for a candidate:

    (a) an election officer;

Clause 5: (1) Subsection 340(1) reads as follows:

340. (1) Where a registered party to which broadcasting time has been allocated under section 335 is subsequently suspended and a notice of its suspension is published in the Canada Gazette, the Broadcasting Arbitrator, within two weeks after the suspension, shall convene the representatives of the remaining registered parties and eligible parties to which broadcasting time has been allocated for the purpose of reallocating that party's broadcasting time.

(2) Subsection 340(3) reads as follows:

(3) If the suspension or cessation of eligibility referred to in subsection (1) or (2), respectively, occurs after the issue of the writs for a general election, the broadcasting time that was allocated to the suspended party or to the party that has ceased to be eligible shall not be reallocated.

Clause 6: Section 363 reads as follows:

363. In this Part, ``electoral district association'' of a political party means an association of members of the political party in an electoral district.

Clause 7: New.

Clause 8: The relevant portion of section 372 reads as follows:

372. Within six months after becoming a registered party, the registered party shall provide the Chief Electoral Officer with

    (a) a statement, prepared in accordance with generally accepted accounting principles, of its assets and liabilities, including any surplus or deficit, as of the effective date of the registration;

Clause 9: Subsection 375(2) reads as follows:

(2) On the recommendation of an electoral district association of a registered party, the registered party may appoint a person, to be known as an electoral district agent, to exercise the powers and perform the duties of a registered agent of the registered party in the electoral district.

Clause 10: Paragraphs 376(2)(a.1) and (a.2) are new. The relevant portion of subsection 376(2) reads as follows:

(2) The following persons are not eligible to be a chief agent, a registered agent or an agent:

    (a) an election officer;

Clause 11: (1) and (2) Paragraphs 377(2)(f) to (i) are new. The relevant portion of subsection 377(2) reads as follows:

(2) The following persons are not eligible to be an auditor:

    (a) an election officer;

Clause 12: New.

Clause 13: Section 385 and the heading before it read as follows:

Suspension and Deregistration of Registered Parties

385. The Chief Electoral Officer shall suspend the registration of a registered party that, after notice of confirmation of nomination is given under subsection 71(1), has not endorsed a candidate in at least 50 electoral districts in a general election.

Clause 14: (1) and (2) Paragraphs 386(h) and (i) are new. The relevant portion of section 386 reads as follows:

386. The Chief Electoral Officer may suspend the registration of a registered party if the registered party fails to provide

Clause 15: The relevant portion of section 387 reads as follows:

387. The Chief Electoral Officer may suspend a registered party if its chief agent fails to provide the Chief Electoral Officer

Clause 16: Section 388 reads as follows:

388. On application, other than during the election period of a general election, by a registered party to become deregistered, signed by the leader and any two officers of the registered party, the Chief Electoral Officer may suspend the registered party.

Clause 17: Subsection 389(3) reads as follows:

(3) The Chief Electoral Officer may suspend a registered party if its leader, its chief agent or one of its officers fails to comply with a notice referred to in subsection (1), or amended notice under subsection (2).

Clause 18: New.

Clause 19: Sections 390 and 391 read as follows:

390. (1) If a registered party is suspended, the Chief Electoral Officer shall without delay cause a notice of suspension to be published in the Canada Gazette.

(2) The Chief Electoral Officer shall send copies of the notice of suspension to the leader, the chief agent and any other officer of the registered party set out in the registry of parties.

(3) The Chief Electoral Officer shall indicate the suspension of the registered party in the registry of parties.

391. On the publication of a notice of its suspension, a suspended party is deemed to no longer be a registered party.

Clause 20: The relevant portion of section 392 reads as follows:

392. The chief agent of a suspended party shall, within six months after the publication of the notice of suspension, provide the Chief Electoral Officer with

    (a) the documents referred to in subsection 424(1) for

      (i) the portion of its current fiscal period that ends on the day before the day on which the notice of suspension was published, and

Clause 21: Sections 393 to 399 read as follows:

393. The chief agent shall provide, together with the return on financial transactions required by subparagraph 392(a)(i),

    (a) a statement, prepared in accordance with generally accepted accounting principles, of the fair market value of the suspended party's assets and liabilities as of the date of publication of the notice of suspension mentioned in section 392;

    (b) a report on that statement made by the suspended party's auditor to the chief agent containing the auditor's opinion as to whether the statement presents, in accordance with generally accepted accounting principles the fair market value of those assets and liabilities; and

    (c) a declaration in the prescribed form by the chief agent concerning that statement.

394. (1) Section 397 does not apply to a suspended party referred to in section 385 if

    (a) the statement provided under paragraph 393(a) discloses a net balance of assets over liabilities; and

    (b) within six months after the publication of the notice of suspension, the leader of the suspended party applies under section 366 for it to be registered.

(2) An application referred to in paragraph (1)(b) must include a declaration, signed by the leader of the suspended party, that states that the suspended party intends to endorse candidates in subsequent general elections.

395. The fiscal period of a suspended party referred to in subsection 394(1) is the calendar year.

396. (1) The chief agent of a suspended party referred to in subsection 394(1) shall provide the Chief Electoral Officer with

    (a) a statement of the party's expenses for the portion of the current fiscal period after the portion described in subparagraph 392(a)(i) and for each subsequent fiscal period;

    (b) a report as to whether, in the auditor's opinion, the statements present fairly the information on which they are based; and

    (c) a declaration in the prescribed form by the chief agent concerning those statements.

(2) Each statement and other document referred to in subsection (1) shall be provided within six months after the end of the fiscal period to which they relate.

(3) The requirement to provide a statement of expenses under subsection (1) ceases at the end of the fiscal period in which the total expenses incurred by the party after the provision of documents under subparagraph 392(a)(i) is more than the net balance of assets over liabilities disclosed in those documents.

397. (1) Within three months after providing the documents referred to in subparagraph 392(a)(i) and section 393, the chief agent of the suspended party shall remit an amount equal to any net balance of the suspended party's assets over liabilities, calculated on the basis of the statement mentioned in paragraph 393(a) to the Chief Electoral Officer who shall forward that amount to the Receiver General.

(2) The chief agent of the suspended party is liable for the remittance of an amount equal to the net balance of its assets over liabilities referred to in subsection (1).

398. (1) The Chief Electoral Officer shall deregister a suspended party, other than a suspended party that satisfies the conditions set out in subsection 394(1), on the day on which the Chief Electoral Officer receives

    (a) the documents referred to in section 392, if the return under subparagraph 392(a)(i) discloses no net balance of assets over liabilities; or

    (b) the amount remitted under subsection 397(1), in any other case.

(2) The Chief Electoral Officer shall deregister a suspended party that satisfies the conditions set out in subsection 394(1) on the day

    (a) that is six months after the end of the period for providing the documents referred to in subsection 396(1), if they have not been provided;

    (b) after which the requirement to provide a statement of expenses ceases to apply by virtue of subsection 396(3);

    (c) on which the party withdraws its application under section 367; or

    (d) that is 48 hours after the closing of nominations for candidates in a subsequent general election, if the suspended party has not endorsed candidates in that general election.

399. (1) A suspended party referred to in paragraph 398(2)(a) shall remit to the Chief Electoral Officer the amount of any net balance of its assets over liabilities as disclosed by

    (a) the immediately preceding statement of the party's expenses provided under paragraph 396(1)(a); or

    (b) the statement provided under paragraph 393(a), if the statement referred to in paragraph (a) has not been provided.

The Chief Electoral Officer shall forward the amount remitted to the Receiver General.

(2) A suspended party referred to in paragraph 398(2)(c) or (d) shall

    (a) provide the Chief Electoral Officer with the statement and other documents referred to in subsection 396(1) for the portion of its current fiscal period since the end of the fiscal period for which it last provided such a statement or, if no such statement has been provided, the date on which the statement referred to in paragraph 393(a) was provided; and

    (b) remit to the Chief Electoral Officer, who shall forward it to the Receiver General, the amount of any net balance of its assets over liabilities as disclosed by the statement provided under paragraph (a).

(3) A statement shall be provided under paragraph (2)(a) within six months after the deregistration of the suspended party.

(4) A remittance under subsection (1) or paragraph (2)(b) shall be made within three months after the statement referred to in subsection (3) is provided.

(5) The chief agent of the suspended party is liable for the remittance of an amount equal to the net balance of its assets over liabilities referred to in subsection (1) or paragraph (2)(b).

Clause 22: New.

Clause 23: New.

Clause 24: Sections 404.1 to 404.4 are new. Section 404 reads as follows:

404. (1) The following are not eligible to make a contribution to a registered party, to one of its trust funds, to an electoral district association or to a candidate:

    (a) a person who is not a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration Act;

    (b) a corporation or an association that does not carry on business in Canada;

    (c) a trade union that does not hold bargaining rights for employees in Canada;

    (d) a foreign political party; and

    (e) a foreign government or an agent of one.

(2) Where a contribution is received from an ineligible contributor, the chief agent of the registered party or official agent of the candidate, as the case may be, shall, within 30 days after becoming aware of the ineligibility, return the contribution unused to the contributor or, if that is not possible, pay the amount of it or, in the case of a non-monetary contribution, an amount of money equal to its value, to the Chief Electoral Officer who shall forward that amount to the Receiver General.

Clause 25: Sections 405.1 to 405.4 are new. Section 405 reads as follows:

405. (1) No person or entity shall make a contribution to a registered party that comes from money, property or the services of another person or entity.

(2) Subsection (1) does not apply to the registered party's electoral district associations, to trust funds established for the election of a candidate endorsed by the registered party or to candidates endorsed by the registered party who transfer contributions to the registered party.

(3) No person, other than a chief agent or registered agent of a registered party, shall accept contributions to the registered party.

Clause 26: New. The relevant portion of subsection 407(3) reads as follows:

(3) An election expense referred to in subsection (1) includes a cost incurred for, or a non-monetary contribution in relation to,

Clause 27: Section 408 reads as follows:

408. If a fund-raising activity is held for the primary purpose of soliciting a monetary contribution for a registered party or a candidate by way of selling a ticket, the amount of the monetary contribution received is the difference between the price of the ticket and the fair market value of what the ticket entitles the bearer to obtain.

Clause 28: Subsection 410(1) reads as follows:

410. (1) Where an expense of $50 or more was incurred under this Act on behalf of a registered party and paid by the chief agent, registered agent or person authorized under subsection 411(1) or on behalf of a candidate and paid by the official agent of the candidate or person authorized under that subsection, the chief agent, registered agent, official agent or authorized person, as the case may be, must keep a copy of the invoice prepared by the person who provided the good or service to which the expense relates together with proof that it was paid.

Clause 29: (1) New. The relevant portion of subsection 411(1) reads as follows:

411. (1) A person may pay a petty expense incurred for office supplies, postage, courier services and other incidental expenses under the written authorization of

(2) New. The relevant portion of subsection 411(3) reads as follows:

(3) A person who is authorized to pay a petty expense shall provide the registered agent or official agent who authorized it with the documentation referred to in section 410 within three months after

Clause 30: (1) Subsection 412(2) reads as follows:

(2) The Chief Electoral Officer shall, in the manner that he or she considers appropriate, publish the return on financial transactions of a registered party and any updated version of it, as soon as practicable after he or she receives the return or updated return.

(2) Subsection 412(4) reads as follows:

(4) As soon as practicable after receiving a return on financial transactions under subparagraph 392(a)(i) or a statement of expenses under paragraph 396(1)(a) from a suspended party, the Chief Electoral Officer shall publish it in the manner that he or she considers appropriate.

Clause 31: New.

Clause 32: (1) The relevant portion of subsection 422(1) reads as follows:

422. (1) The maximum amount that is allowed for election expenses of a registered party for an election is the product of

    (a) $0.62 multiplied by the number of names on the preliminary lists of electors for electoral districts in which the registered party has endorsed a candidate or by the number of names on the revised lists of electors for those electoral districts, whichever is greater, and

(2) The relevant portion of subsection 422(2) reads as follows:

(2) For the purpose of subsection (1), an election expense of a registered party does not include

    (a) a contribution made by or on behalf of it for the use of candidates in the election; or

Clause 33: New.

Clause 34: (1) The relevant portion of subsection 424(1) reads as follows:

424. (1) For each fiscal period of a registered party, its chief agent shall provide the Chief Electoral Officer with

    . . .

    (d) a trust fund return prepared under section 428 and the auditor's report on it made under subsection 426(1).

(2) and (3) Paragraphs 424(2)(h.1) and (h.2) are new. The relevant portion of subsection 424(2) reads as follows:

(2) A financial transactions return must set out

    (a) a statement of contributions received from the following classes of contributor: individuals, businesses, commercial organizations, governments, trade unions, corporations without share capital other than trade unions, and unincorporated organizations or associations other than trade unions;

    (b) the number of contributors in each class listed in paragraph (a);

    (c) subject to paragraph (c.1), the name and address of each contributor in a class listed in paragraph (a) who made contributions of a total amount of more than $200 to the registered party for its use, either directly or through one of its electoral district associations or a trust fund established for the election of a candidate endorsed by the registered party, and that total amount;

    (c.1) in the case of a numbered company that is a contributor referred to in paragraph (c), the name of the chief executive officer or president of that company;

    (d) in the absence of information identifying a contributor referred to in paragraph (c) who contributed through an electoral district association, the name and address of every contributor by class referred to in paragraph (a) who made contributions of a total amount of more than $200 to that electoral district association in the fiscal period to which the return relates, as well as, where the contributor is a numbered company, the name of the chief executive officer or president of that company, as if the contributions had been contributions for the use of the registered party;

    (e) a statement of contributions received by the registered party from any of its trust funds;

    . . .

    (h) a statement, for each electoral district, of transfers of funds by the registered party to the candidate endorsed by the registered party, one of its electoral district associations or a trust fund established for the election of the candidate endorsed by the registered party;

Clause 35: Section 425 reads as follows:

425. A registered agent of a registered party shall, without delay, pay an amount of money equal to the value of a contribution received by the registered party, to the Chief Electoral Officer who shall forward it to the Receiver General, if

    (a) the registered agent cannot determine to which of the classes specified in paragraph 424(2)(a) the contributor belongs; or

    (b) the amount is more than $200 and the name or address of a contributor referred to in paragraph 424(2)(c) or the name of the chief executive officer or president of a contributor referred to in paragraph 424(2)(c.1) is not known.

Clause 36: Subsection 426(1) reads as follows:

426. (1) The auditor of a registered party shall report to its chief agent on its financial transactions return and trust fund return referred to in section 428 and shall make any examination that will enable the auditor to give an opinion in the report as to whether it presents fairly and in accordance with generally accepted accounting principles the information contained in the financial records on which it is based.

Clause 37: Section 428 and the heading before it read as follows:

Trust Funds

428. (1) If a registered party establishes a trust fund to be used for an election, its chief agent or one of its other registered agents shall prepare a trust fund return in accordance with generally accepted accounting principles on the financial transactions in relation to the trust fund.

(2) A trust fund return must set out

    (a) a statement of contributions received from the following classes of contributor: individuals, businesses, commercial organizations, governments, trade unions, corporations without share capital other than trade unions, and unincorporated organizations or associations other than trade unions;

    (b) the number of contributors in each class listed in paragraph (a);

    (c) subject to paragraph (c.1), the name and address of each contributor in a class listed in paragraph (a) who made contributions of a total amount of more than $200, and that total amount;

    (c.1) in the case of a numbered company that is a contributor referred to in paragraph (c), the name of the chief executive officer or president of that company;

    (d) a statement of contributions received from the registered party, a trust fund established for the election of a candidate endorsed by the registered party or its electoral district associations, by electoral district;

    (e) a statement, in accordance with generally accepted accounting principles, of the trust fund's assets and liabilities and any surplus or deficit;

    (f) a statement, in accordance with generally accepted accounting principles, of revenues and expenses;

    (g) a statement, for each electoral district, of transfers of funds by the trust fund to an electoral district association, the candidate endorsed by the registered party or a trust fund established for the election of that candidate;

    (h) a statement of loans or security received, including any conditions on them; and

    (i) a statement of contributions received but returned to the contributors or otherwise dealt with in accordance with this Act.

(3) For the purpose of subsection (2), other than paragraph (2)(i), a contribution includes a loan.

Clause 38: Subsection 430(1) reads as follows:

430. (1) As soon as practicable after a general election, the auditor of a registered party shall report to its chief agent on its return on general election expenses and shall make any examination that will enable the auditor to give an opinion in the report as to whether the report presents fairly and in accordance with generally accepted accounting principles the information contained in the financial records on which the return is based.

Clause 39: The relevant portion of subsection 435(1) reads as follows:

435. (1) On receipt from a registered party of the documents referred to in subsection 429(1), the Chief Electoral Officer shall provide the Receiver General with a certificate that sets out the amount that is 22.5% of the registered party's election expenses that were paid by its registered agents as set out in the return for its general election expenses, if

Clause 40: New.

Clause 41: (1) Subsections 437(1) and (2) read as follows:

437. (1) An official agent of a candidate shall open a separate bank account in a Canadian financial institution as defined in section 2 of the Bank Act, or in an authorized foreign bank as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

(2) The account must indicate the date on which it was opened and name the account holder as follows: ``(name of official agent), official agent for (name of candidate, year)''.

(2) Subsection 437(4) reads as follows:

(4) The official agent of a candidate shall close the account after the election or the withdrawal or death of the candidate, and the subsequent disposal of any surplus of electoral funds in accordance with this Act.

Clause 42: Subsection 438(1) reads as follows:

438. (1) No person or entity, other than an electoral district association or a registered party, shall make

    (a) a contribution to a candidate's electoral campaign that comes from money, property or the services of another person or entity; or

    (b) a loan to a candidate's electoral campaign that comes from money of another person or entity.

Clause 43: Subsection 450(1) reads as follows:

450. (1) An unpaid claim mentioned in a return referred to in subsection 451(1) that, on the day that is 18 months after polling day for the election to which the return relates, remains unpaid, in whole or in part, is, on that day, deemed to be a contribution of the unpaid amount to the candidate.

Clause 44: (1) The relevant portion of subsection 451(1) reads as follows:

451. (1) The official agent of a candidate shall provide the Chief Electoral Officer with the following in respect of an election:

    . . .

    (c) all documents evidencing expenses set out in the return, including bank statements, deposit slips and cancelled cheques;

(2) to (5) The relevant portion of subsection 451(2) reads as follows:

(2) The electoral campaign return shall include the following in respect of the candidate:

    . . .

    (c) the candidate's written statement concerning personal expenses mentioned in subsection 456(1);

    . . .

    (f) a statement of contributions received from any of the following classes of contributor: individuals, businesses, commercial organizations, governments, trade unions, corporations without share capital other than trade unions, and unincorporated organizations or associations other than trade unions;

    . . .

    (h) subject to paragraph (h.1), the name and address of each contributor in a class listed in paragraph (f) who made contributions of a total amount of more than $200 to the candidate's official agent either directly or through a registered party that endorses the candidate or through one of its trust funds, a trust fund established for the election of the candidate or an electoral district association, and that total amount;

    . . .

    (i) in the absence of information identifying a contributor referred to in paragraph (h) who contributed through a trust fund established for the election of the candidate or an electoral district association, the name and address of every contributor by class listed in paragraph (f) who made contributions of a total amount of more than $200 to that trust fund or electoral district association since the election before the one to which the return relates, as well as, where the contributor is a numbered company, the name of the chief executive officer or president of that company, as if those contributions had been contributions for the use of the candidate;

    (j) a statement of transfers of funds by the candidate to an electoral district association of the registered party that endorses the candidate or to that registered party; and

(6) New.

Clause 45: The relevant portion of section 452 reads as follows:

452. An official agent of a candidate shall, without delay, pay an amount of money equal to the value of a contribution that the candidate received to the Chief Electoral Officer who shall forward it to the Receiver General if

    . . .

    (b) the amount is more than $200 and the name or address of a contributor referred to in paragraph 451(2)(h) or the name of the chief executive officer or president of a contributor referred to in paragraph 451(2)(h.1) is not known.

Clause 46: Subsection 453(1) reads as follows:

453. (1) As soon as is practicable after an election, the auditor of a candidate shall report to the candidate's official agent on the electoral campaign return referred to in paragraph 451(1)(a) and shall make any examination that will enable the auditor to give an opinion in the report as to whether the return presents fairly the information contained in the financial records on which it is based.

Clause 47: The relevant portion of section 461 reads as follows:

461. A candidate may apply to a judge who is competent to conduct a recount for an order that relieves the candidate from any liability or consequence under this or any other Act in relation to an act or omission of the candidate's official agent that gave rise to an authorization under subsection 458(1) or order under subsection 459(1), if the candidate establishes that

Clause 48: (1) The relevant portion of subsection 464(1) reads as follows:

464. (1) Without delay after receipt of a return of the writ for an electoral district, the Chief Electoral Officer shall provide the Receiver General with a certificate that sets out

    . . .

    (b) the name of any candidate who received 15% or more of the number of valid votes cast; and

(2) Subsection 464(2) reads as follows:

(2) On receipt of the certificate, the Receiver General shall pay the amount set out in it out of the Consolidated Revenue Fund to the official agent of any candidate named in the certificate as partial reimbursement for the candidate's election expenses and personal expenses.

Clause 49: Subsection 465(3) reads as follows:

(3) On receipt of the certificate, the Receiver General shall pay the amount set out in it out of the Consolidated Revenue Fund to the official agent of the candidate.

Clause 50: Sections 466 and 467 read as follows:

466. On receipt of the documents referred to in subsection 451(1) and, if it applies, subsection 455(1), from a candidate who is ineligible for reimbursement under subsection 464(1), the Chief Electoral Officer shall provide the Receiver General with a confirmation of compliance that sets out that the candidate and his or her official agent have complied with the requirements of this Part.

467. On receipt of a certificate under section 465 or confirmation of compliance under section 466 in an amount of $250 or more, the Receiver General shall pay out of the Consolidated Revenue Fund to the auditor the amount billed, up to the lesser of 3% of the candidate's election expenses and $1,500.

Clause 51: Subsection 468(2) reads as follows:

(2) On receipt of the certificate, the Receiver General shall pay out of the Consolidated Revenue Fund the amount of each listed candidate's nomination deposit to his or her official agent.

Clause 52: The relevant portion of section 469 reads as follows:

469. If a candidate who was endorsed by a registered party dies in the period beginning at 2:00 p.m. on the 5th day before the closing day for nominations and ending on polling day,

    (a) he or she is deemed for the purpose of section 464 to receive 15% of the valid votes cast in the electoral district in which he or she was a candidate; and

Clause 53: (1) and (2) The relevant portion of section 470(1) reads as follows:

470. (1) This Part applies, with the following modifications, to electoral campaign expenses of candidates in an electoral district in which a writ is withdrawn under section 59 or deemed to be withdrawn under section 551:

    . . .

    (b) each candidate is deemed to have obtained 15% of the votes that would have been validly cast at that deemed election; and

    (c) on receipt of a certificate referred to in section 464 or 465, the Receiver General shall pay out of the Consolidated Revenue Fund to the candidate's official agent the lesser of

Clause 54: Subsection 471(3) reads as follows:

(3) A transfer made by a candidate is a transfer of

    (a) any funds that the candidate transfers, during the election, to the registered party that endorses the candidate or to an electoral district association of that registered party in his or her electoral district; and

    (b) any amount of a reimbursement referred to in paragraphs (2)(b) and (c) that the candidate assigns to that registered party.

Clause 55: The relevant portion of subsection 473(2) reads as follows:

(2) Surplus electoral funds must be transferred

    (a) in the case of a candidate who was endorsed by a registered party, to the registered party or to an electoral district association of that registered party in the candidate's electoral district; or

Clause 56: Section 476 reads as follows:

476. No registered agent of a registered party and no electoral district association of a registered party shall transfer contributions to a candidate after polling day except

    (a) to pay unpaid claims that are disclosed in the candidate's electoral campaign return; or

    (b) as authorized by the Chief Electoral Officer or a court under this Part.

Clause 57: New.

Clause 58: (1) to (8) Paragraphs 497(1)(h.01) to (h.11), (i), (i.2) to (i.7), (q.01) to (q.17), (u.1) and (z.21) to (z.36) are new. The relevant portion of subsection 497(1) reads as follows:

497. (1) Every person is guilty of an offence who

    . . .

    (e) being a chief agent of a suspended party, contravenes section 392 (failure to provide financial transactions return or election expenses return or related documents);

    (f) being a chief agent of a suspended party, contravenes section 393 (failure to provide statement of fair market value or related documents);

    (g) being a chief agent of a suspended party, contravenes section 396 (failure to provide statement of party's expenses or related documents);

    . . .

    (i) being a chief agent or an official agent, contravenes subsection 404(2) (failure to return or pay amount of ineligible contribution);

    . . .

    (p) being a registered party, contravenes section 428 (failure to prepare trust fund return);

    . . .

    (u) being an official agent, contravenes any of subsections 451(1) to (4) (failure to provide electoral campaign return or related documents);

    . . .

    (z.1) being a registered agent or an electoral district association, contravenes section 476 (improper or unauthorized transfer of contributions); or

(9) Paragraphs 497(2) (a) and (a.2) are new. The relevant portion of subsection 497(2) reads as follows:

(2) Every person is guilty of an offence who

    (a) being a person or an entity, knowingly contravenes subsection 405(1) (contribution to registered party coming from other source) or, not being a chief agent or registered agent, knowingly contravenes subsection 405(3) (accepting contributions); or

(10) to (16) Paragraphs 497(3)(f.01) to (f.19), (m.01) to (m.17), (r.1) and (y) to (z.13) are new. The relevant portion of subsection 497(3) reads as follows:

(3) Every person is guilty of an offence who

    . . .

    (c) being a chief agent of a suspended party, wilfully contravenes section 392 (failure to provide final transactions return or election expenses return or related documents);

    (d) being the chief agent of a suspended party, wilfully contravenes section 393 (failure to provide statement of fair market value or related documents);

    (e) being a chief agent of a suspended party, wilfully contravenes section 396 (failure to provide statement of party's expenses or related documents);

    . . .

    (l) being a registered party, wilfully contravenes section 428 (failure to prepare trust fund return);

    . . .

    (n) being a person or entity, knowingly contravenes subsection 438(1) (making contribution or loan from prohibited source), being a person other than an official agent, contravenes subsection 438(2) or (3) (accepting or issuing receipts for contributions), being a person or entity, other than a candidate, official agent or person authorized under paragraph 446(c), contravenes subsection 438(4) or (5) (paying or incurring electoral campaign expenses) or, being a person other than a candidate or official agent, contravenes subsection 438(6) (paying candidate's personal expenses);

    . . .

    (r) being an official agent, wilfully contravenes any of subsections 451(1) to (4) (failure to provide electoral campaign return or related documents);

    . . .

    (x) being a registered agent or an electoral district association, knowingly contravenes section 476 (unauthorized or improper transfer of contributions).

Clause 59: (1) Subsection 503(1) reads as follows:

503. (1) A registered party that is suspended during the election period does not commit an offence under paragraph 496(1)(a) or (2)(a) if the party, during the portion of the election period before the suspension, has spent more than the spending limit set out in section 350.

(2) Subsection 503(3) reads as follows:

(3) If subsection (1) or (2) applies, election advertising expenses incurred before the suspension or before the day referred to in subsection (2), as the case may be, shall be applied against the spending limit set out in section 350 and, if the limit has been exceeded, the party shall not incur any additional election advertising expenses.

Clause 60: Section 504 reads as follows:

504. In the case of judicial proceedings or a compliance agreement involving an eligible party, a registered party or a suspended party,

    (a) the eligible party, registered party or suspended party is deemed to be a person; and

    (b) any act or thing done or omitted to be done by an officer, a chief agent or other registered agent of the eligible party, registered party or suspended party, within the scope of their authority to act, is deemed to be an act or thing done or omitted to be done by the eligible party, registered party or suspended party, as the case may be.

Clause 61: Sections 506 and 507 read as follows:

506. A suspended party whose chief agent commits an offence under any of paragraphs 497(1)(e), (f) and (g) and (3)(c), (d) and (e) is guilty of an offence and liable on summary conviction to a fine of not more than $25,000.

507. A registered party whose chief agent commits an offence under any of paragraphs 497(1)(l), (m), (n), (o) and (q) and (3)(g), (i), (j) and (m) is guilty of an offence and liable on summary conviction to a fine of not more than $25,000.

Clause 62: Section 511 reads as follows:

511. If the Commissioner believes on reasonable grounds that an offence under this Act has been committed and is of the view that the public interest justifies it, the Commissioner may institute or cause to be instituted a prosecution for the offence

    (a) after an inquiry under section 510; or

    (b) where no inquiry has been held, on the Commissioner's own initiative, or after the receipt, within six months after its commission, of a written complaint alleging the commission of the offence.

Clause 63: Subsection 514(1) reads as follows:

514. (1) A prosecution for an offence under this Act must be instituted within eighteen months after the day on which the offence was committed.

Clause 64: Subsection 541(1) reads as follows:

541. (1) All documents referred to in subsections 424(1), 429(1), 451(1) and 455(1), all other reports or statements, other than election documents received from election officers, all instructions issued by the Chief Electoral Officer under this Act, all decisions or rulings by him or her on points arising under this Act and all correspondence with election officers or others in relation to an election are public records and may be inspected by any person on request during business hours.

Income Tax Act

Clause 73: Subsections 127(3) to (4.1) read as follows:

(3) There may be deducted from the tax otherwise payable by a taxpayer under this Part for a taxation year in respect of the total of all amounts each of which is a monetary contribution made by the taxpayer in the year to a registered party or to a candidate whose nomination has been confirmed in an election of a member or members to serve in the House of Commons of Canada (in this section referred to as ``the total''),

    (a) 75% of the total, if the total does not exceed $200,

    (b) $150 plus 50% of the amount by which the total exceeds $200, if the total exceeds $200 and does not exceed $550, or

    (c) the lesser of

      (i) $325 plus 33 1/3% of the amount by which the total exceeds $550, and

      (ii) $500,

if payment of each monetary contribution that is included in the total is proven by filing a receipt with the Minister, signed by a registered agent of the registered party or by the official agent of the candidate whose nomination has been confirmed, as the case may be, that contains prescribed information.

(3.1) A receipt referred to in subsection (3) shall not be issued

    (a) by a registered agent of a registered party, or

    (b) by an official agent of a candidate whose nomination has been confirmed

otherwise than in respect of a monetary contribution and to the contributor who made it.

(3.2) An official agent of a candidate whose nomination has been confirmed - other than in an electoral district referred to in Schedule 3 to the Canada Elections Act - who receives a monetary contribution, shall without delay deposit it in an account in the name of the official agent, in his or her capacity as such, in a branch or other office in Canada of a Canadian financial institution as defined in section 2 of the Bank Act, or in an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

(4) In subsections (3), (3.1), (3.2) and (4.1), the terms ``official agent'', ``registered agent'' and ``registered party'' have the meanings assigned to them by subsection 2(1) of the Canada Elections Act and the expression ``candidate whose nomination has been confirmed'' means a person whom the returning officer has, under subsection 71(1) of that Act, confirmed as a candidate in an election.

(4.1) In subsections (3), (3.1), (3.2) and (4.2), ``monetary contribution'' made by a taxpayer means a contribution made by the taxpayer to a registered party or to a candidate whose nomination has been confirmed in the form of cash or in the form of a negotiable instrument issued by the taxpayer, but does not include

    (a) a monetary contribution made by an official agent of a candidate whose nomination has been confirmed or a registered agent of a registered party (in the agent's capacity as official agent or registered agent, as the case may be) to another such official agent or registered agent, as the case may be; or

    (b) a monetary contribution in respect of which the taxpayer has received or is entitled to receive a financial benefit of any kind (other than a prescribed financial benefit or a deduction under subsection (3)) from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan or deduction from tax or an allowance or otherwise.

Clause 74: Section 230.1 reads as follows:

230.1 (1) Every registered agent of a registered party and the official agent of each candidate at an election of a member or members to serve in the House of Commons of Canada shall keep records and books of account sufficient to enable the amounts contributed that are received by the agent and expenditures that are made by the agent to be verified (including duplicates of all receipts for amounts contributed, containing prescribed information and signed by the agent) at

    (a) in the case of a registered agent, the agent's address recorded in the registry maintained by the Chief Electoral Officer pursuant to subsection 33(1) of the Canada Elections Act; and

    (b) in the case of an official agent, an address in Canada recorded with or designated by the Minister.

(2) Each person to whom subsection 230.1(1) applies shall,

    (a) in the case of a registered agent, at such times, not more frequently than annually, as are prescribed by the Minister, and

    (b) in the case of an official agent, within the time within which a return is required to be submitted by the agent to a returning officer under section 228 of the Canada Elections Act,

file with the Minister a return of information in prescribed form and containing prescribed information.

(3) Subsections 230(3) to 230(8) apply, with such modifications as the circumstances require, in respect of the records and books of account required by subsection 230.1(1) to be kept and in respect of the persons thereby required to keep them.

(4) and (5) [Repealed.]

(6) In this section, the terms ``candidate'','' official agent'', ``registered agent'' and ``registered party'' have the meanings assigned to them by section 2 of the Canada Elections Act.

(7) In this section,'' amount contributed'' by a taxpayer has the meaning assigned by subsection 127(4.1).

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