Bill C-28

TAXES IN RESPECT OF REGISTERED DISABILITY SAVINGS PLANS

205. (1) The following definitions apply in this Part.

“advantage”, in relation to a registered disability savings plan, means any benefit or loan that is conditional in any way on the existence of the plan other than

(a) a disability assistance payment;

(b) a contribution made by, or with the written consent of, a holder of the plan;

(c) a transfer in accordance with subsection 146.4(8);

(d) an amount paid under the Canada Disability Savings Act;

(e) a benefit derived from the provision of administrative or investment services in respect of the plan; or

(f) a loan

(i) made in the ordinary course of the lender’s ordinary business of lending money if, at the time the loan was made, bona fide arrangements were made for repayment of the loan within a reasonable time, and

(ii) whose sole purpose was to enable a person to make a contribution to the plan.

“allowable refund” of a person for a calendar year means the total of all amounts each of which is a refund to which the person is entitled under subsection 206.1(4) for the year.

“benefit”, in relation to a registered disability savings plan, includes any payment or allocation of an amount to the plan that is represented to be a return on investment in respect of property held by the plan trust, but which cannot reasonably be considered, having regard to all the circumstances, to be on terms and conditions that would apply to a similar transaction in an open market between parties dealing with each other at arm’s length and acting prudently, knowledgeably and willingly.

“qualified investment” for a trust governed by a registered disability savings plan means

(a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition “qualified investment” in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a registered disability savings plan” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”;

(b) a contract for an annuity issued by a licensed annuities provider where

(i) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, and

(ii) the holder of the contract has a right to surrender the contract at any time for an amount that would, if reasonable sales and administration charges were ignored, approximate the value of funds that could otherwise be applied to fund future periodic payments under the contract;

(c) a contract for an annuity issued by a licensed annuities provider where

(i) annual or more frequent periodic payments are or may be made under the contract to the holder of the contract,

(ii) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract,

(iii) neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the beneficiary under the plan,

(iv) the day on which the periodic payments began or are to begin is not later than the end of the later of

(A) the year in which the beneficiary under the plan attains the age of 60 years, and

(B) the year following the year in which the contract was acquired by the trust,

(v) the periodic payments are payable for the life of the beneficiary under the plan and either there is no guaranteed period under the contract or there is a guaranteed period that does not exceed 15 years,

(vi) the periodic payments

(A) are equal, or

(B) are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and

(vii) the contract requires that, in the event the plan must be terminated in accordance with paragraph 146.4(4)(p), any amounts that would otherwise be payable after the termination be commuted into a single payment; and

(d) a prescribed investment.

(2) The definitions in subsection 146.4(1) apply in this Part.

206. (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year, a trust governed by the plan

(a) disposes of property for consideration less than the fair market value of the property at the time of the disposition, or for no consideration; or

(b) acquires property for consideration greater than the fair market value of the property at the time of the acquisition.

(2) The amount of tax payable in respect of each disposition or acquisition described in subsection (1) is

(a) the amount by which the fair market value differs from the consideration; or

(b) if there is no consideration, the amount of the fair market value.

(3) Each person who is a holder of a registered disability savings plan at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax.

(4) Where a tax has been imposed under subsection (1) in connection with a registered disability savings plan of a beneficiary, the Minister may pay all or part of any amount collected in respect of the tax to a trust governed by a registered disability savings plan of the beneficiary (referred to in this subsection as the “current plan”) if

(a) it is just and equitable to do so having regard to all circumstances; and

(b) the Minister is satisfied that neither the beneficiary nor any existing holder of the current plan was involved in the transaction that gave rise to the tax.

(5) A payment under subsection (4) is deemed not to be a contribution to a registered disability savings plan for the purposes of section 146.4.

206.1 (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year,

(a) the trust governed by the plan acquires property that is not a qualified investment for the trust; or

(b) property held by the trust governed by the plan ceases to be a qualified investment for the trust.

(2) The amount of tax payable,

(a) in respect of each property described in paragraph (1)(a), is 50% of the fair market value of the property at the time it was acquired by the trust; and

(b) in respect of each property described in paragraph (1)(b), is 50% of the fair market value of the property at the time immediately before the time it ceased to be a qualified investment for the trust.

(3) Each person who is a holder of a registered disability savings plan at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax.

(4) Where in a calendar year a trust governed by a registered disability savings plan disposes of a property in respect of which a tax is imposed under subsection (1), the person or persons who are liable to pay the tax are entitled to a refund for the year of an amount equal to

(a) except where paragraph (b) applies, the lesser of

(i) the amount of the tax so imposed, and

(ii) the proceeds of disposition of the property; and

(b) nil,

(i) if it is reasonable to expect that any of those persons knew or ought to have known at the time the property was acquired by the trust that it was not, or would cease to be, a qualified investment for the trust, or

(ii) if the property is not disposed of by the trust before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.

(5) Where more than one person is entitled to a refund under subsection (4) for a calendar year in respect of the disposition of a property, the total of all amounts so refundable shall not exceed the amount that would be so refundable for the year to any one of those persons in respect of that disposition if that person were the only person entitled to a refund for the year under that subsection in respect of the disposition. If the persons cannot agree as to what portion of the refund each can so claim, the Minister may fix the portions.

(6) For the purposes of this Act, where at any time property held by a plan trust in respect of which a tax was imposed under subsection (1) subsequently becomes a qualified investment for the trust, the trust is deemed to have disposed of the property at that time for proceeds of disposition equal to its fair market value at that time and to have reacquired it immediately after that time at a cost equal to that fair market value.

206.2 (1) A tax is payable under this Part for a calendar year in connection with a registered disability savings plan if, in the year, an advantage in relation to the plan is extended to a person who is, or who does not deal at arm’s length with, a beneficiary under, or a holder of, the plan.

(2) The amount of tax payable in respect of an advantage described in subsection (1) is

(a) in the case of a benefit, the fair market value of the benefit; and

(b) in the case of a loan, the amount of the loan.

(3) Each person who is a holder of a registered disability savings plan at the time that a tax is imposed under subsection (1) in connection with the plan is jointly and severally, or solidarily, liable to pay the tax. If, however, the advantage is extended by the issuer of the plan or by a person not dealing at arm’s length with the issuer, the issuer is liable to pay the tax and not the holders.

206.3 (1) Every issuer of a registered disability savings plan shall pay a tax under this Part for a calendar year if, in the year, with the consent or knowledge of the issuer, a trust governed by the plan uses or permits to be used any property held by the trust as security for indebtedness of any kind.

(2) The amount of tax payable in respect of each property described in subsection (1) is equal to the fair market value of the property at the time the property commenced to be used as security.

206.4 If a person would otherwise be liable to pay a tax under this Part for a calendar year, the Minister may waive or cancel all or part of the liability where it is just and equitable to do so having regard to all the circumstances, including

(a) whether the tax arose as a consequence of reasonable error; and

(b) the extent to which the transaction which gave rise to the tax also gave rise to another tax under this Part.

207. (1) Every person who is liable to pay tax under this Part for a calendar year shall within 90 days after the end of the year

(a) file with the Minister a return for the year under this Part in prescribed form and containing prescribed information including

(i) an estimate of the amount of tax payable under this Part by the person for the year, and

(ii) an estimate of the amount of any refund to which the person is entitled under this Part for the year; and

(b) pay to the Receiver General the amount, if any, by which the amount of the person’s tax payable under this Part for the year exceeds the person’s allowable refund for the year.

(2) Where a person has filed a return under this Part for a calendar year within three years after the end of the year, the Minister

(a) may, on mailing the notice of assessment for the year, refund without application any allowable refund of the person for the year, to the extent that it was not applied against the person’s tax payable under paragraph (1)(b); and

(b) shall, with all due dispatch, make the refund referred to in paragraph (a) after mailing the notice of assessment if an application for it has been made in writing by the person within three years after the mailing of an original notice of assessment for the year.

(3) Where two or more holders of a registered disability savings plan are jointly and severally, or solidarily, liable with each other to pay a tax under this Part for a calendar year in connection with the plan,

(a) a payment by any of the holders on account of that tax liability shall to the extent of the payment discharge the joint liability; and

(b) a return filed by one of the holders as required by this Part for the year is deemed to have been filed by each other holder in respect of the joint liability to which the return relates.

(4) Subsections 150(2) and (3), sections 152 and 158 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.

121. Subsection 212(1) of the Act is amended by adding the following after paragraph (r):

(r.1) an amount that would, if the non-resident person had been resident in Canada throughout the taxation year in which the amount was paid, be required by paragraph 56(1)(q.1) to be included in computing the non-resident person’s income for the taxation year;

122. Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.4):

(vii.5) to an official solely for the purposes of the administration and enforcement of the Canada Disability Savings Act,

123. (1) Subparagraph (f)(vi) of the definition “disposition” in subsection 248(1) of the Act is replaced by the following:

(vi) if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, an inter vivos trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the transferee is the same type of trust, and

(2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

“registered disability savings plan” has the same meaning as in subsection 146.4(1);

124. Section 253.1 of the Act is replaced by the following:

253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b), 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

Income Tax Regulations

125. Subsection 221(2) of the Income Tax Regulations is replaced by the following:

(2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 204 or 205 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form.

126. (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following:

4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act, paragraph (h) of the definition “qualified investment” in section 204 of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is

(2) Paragraph 4900(1)(c) of the Regulations is replaced by the following:

(c) a share of the capital stock of a mortgage investment corporation that does not hold as part of its property at any time during the calendar year in which the particular time occurs any indebtedness, whether by way of mortgage or otherwise, of a person who is a connected person under the governing plan of the plan trust;

(3) Subparagraph 4900(1)(e)(ii) of the Regulations is replaced by the following:

(ii) the issuer is not a connected person under the governing plan of the plan trust;

(4) The portion of paragraph 4900(1)(g) of the Regulations before subparagraph (i) is replaced by the following:

(g) a bond, debenture, note or similar obligation (in this paragraph referred to as the “obligation”) issued by, or a deposit with, a credit union that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by

(5) The portion of subparagraph 4900(1)(h)(iii) of the Regulations before clause (A) is replaced by the following:

(iii) that, except where the plan trust is governed by a registered education savings plan, has not at any time during the calendar year in which the particular time occurs granted any benefit or privilege to a person who is a connected person under the governing plan of the plan trust, as a result of the ownership by

(6) Paragraph 4900(1)(i.2) of the Regulations is replaced by the following:

(i.2) indebtedness of a Canadian corporation (other than a corporation that is a connected person under the governing plan of the plan trust) represented by a bankers’ acceptance;

(7) Subparagraph 4900(1)(j)(ii) of the Regulations is replaced by the following:

(ii) the debtor (and any partnership that does not deal at arm’s length with the debtor) is not a connected person under the governing plan of the plan trust;

(8) The portion of paragraph 4900(1)(q) of the Regulations before subparagraph (i) is replaced by the following:

(q) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) where

(9) The portion of paragraph 4900(1)(r) of the Regulations before subparagraph (i) is replaced by the following:

(r) a debt issued by a Canadian corporation (other than a corporation with share capital or a corporation that is a connected person under the governing plan of the plan trust) if

(10) Subsection 4900(5) of the Regulations is replaced by the following:

(5) For the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act and paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered education savings plan or a trust governed by a registered disability savings plan at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year.

127. (1) The definition “governing plan” in subsection 4901(2) of the Regulations is replaced by the following:

“governing plan” means a registered retirement savings plan, a registered education savings plan, a registered retirement income fund, a registered disability savings plan, a deferred profit sharing plan or a revoked plan; (régime d’encadrement)

(2) Subsection 4901(2) of the Regulations is amended by adding the following in alphabetical order:

“connected person”, in relation to a governing plan of a plan trust, means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arms’s length with that person; (personne rattachée)

Consequential Amendments

Employment Insurance Act

128. The definition “income” in section 144 of the Employment Insurance Act is replaced by the following:

“income” of a person for a period means the amount that would be their income for the period determined under the Income Tax Act if no amount were

(a) deductible under paragraphs 60(v.1), (w), (y) and (z) of that Act,

(b) included in respect of a gain from a disposition of property to which section 79 of that Act applies, or

(c) included under paragraph 56(1)(q.1) or subsection 56(6) of that Act;

Old Age Security Act

129. Paragraph (e) of the definition “income” in section 2 of the Old Age Security Act is replaced by the following:

(e) there shall be deducted from the person’s income for the year any amount included under paragraph 56(1)(q.1) or subsection 56(6) of the Income Tax Act and there shall be included in the person’s income for the year any amount that may be deducted under paragraph 60(y) or (z) of that Act;

Coordinating Amendments

130. Sections 131 to 134 apply if Bill C-10, introduced in the 2nd session of the 39th Parliament and entitled the Income Tax Amendments Act, 2006 (referred to in those sections as the “other Act”), receives royal assent.

131. (1) If section 101 of this Act comes into force before section 47 of the other Act, then paragraph 4(3)(a) of the Income Tax Act is replaced by the following:

(a) subject to paragraph (b), all deductions permitted in computing a taxpayer’s income for a taxation year for the purposes of this Part, except any deduction permitted by any of paragraphs 60(b) to (o), (p), (r) and (v) to (z), shall apply either wholly or in part to a particular source or to sources in a particular place; and

(2) If section 101 of this Act comes into force on the same day as section 47 of the other Act, then that section 47 is deemed to have come into force before that section 101.

(3) The replacement of paragraph 4(3)(a) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2007 and subsequent taxation years.

132. (1) If subsection 25 of the other Act comes into force before section 109 of this Act, then paragraph 107.4(1)(j) of the Income Tax Act is replaced by the following:

(j) if the contributor is an amateur athlete trust, a cemetery care trust, an employee trust, an inter vivos trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (as defined by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the particular trust is the same type of trust; and

(2) If section 25 of the other Act comes into force on the same day as section 109 of this Act, then that section 109 is deemed to have come into force before that section 25.

(3) The replacement of paragraph 107.4(1)(j) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2008 and subsequent taxation years.

133. (1) If subsection 130(1) of the other Act comes into force before section 114 of this Act, then

(a) that section 114 is deemed never to have come into force and is repealed; and

(b) paragraph 132.2(3)(h) of the Income Tax Act is replaced by the following:

(h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g);

(2) If section 114 of this Act comes into force before subsection 130(1) of the other Act, then paragraph 132.2(3)(h) of the Income Tax Act is replaced by the following:

(h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g);

(3) If subsection 130(1) of the other Act comes into force on the same day as section 114 of this Act, then that subsection 130(1) is deemed to have come into force before that section 114 and subsection (1) applies as a consequence.

(4) The replacement of paragraph 132.2(3)(h) of the Income Tax Act by the operation of paragraph (1)(b) or subsection (2) or (3) applies in respect of the 2008 and subsequent taxation years.

134. (1) On the first day on which both subsection 191(1) of the other Act and section 124 of this Act are in force, section 253.1 of the Income Tax Act is replaced by the following:

253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b), 146.1(2.1)(c), 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

(2) The replacement of section 253.1 of the Income Tax Act by the operation of subsection (1) applies in respect of the 2008 and subsequent taxation years.

Application

135. Sections 101 to 129 apply to the 2008 and subsequent taxation years, except that section 101 also applies to the 2007 taxation year.

Canada Disability Savings Act

Enactment of Act

136. The Canada Disability Savings Act is enacted as follows:

An Act to encourage savings for persons with disabilities

SHORT TITLE

1. This Act may be cited as the Canada Disability Savings Act.

INTERPRETATION

2. (1) The following definitions apply in this Act.

“Canada Disability Savings Bond” means the bond payable or paid under section 7.

“Canada Disability Savings Grant” means the grant payable or paid under section 6.

“child tax benefit” means a deemed overpayment under Subdivision a.1 of Division E of Part 1 of the Income Tax Act.

“contribution” means any amount paid into the registered disability savings plan of a beneficiary in accordance with section 146.4 of the Income Tax Act but does not include

(a) an amount transferred under subsection 146.4(8) of that Act;

(b) any prescribed payment referred to in the definition “contribution” in subsection 146.4(1) of that Act; or

(c) an amount paid into the plan under this Act.

“family income” means the income determined by the Minister in accordance with the definition “adjusted income” in section 122.6 of the Income Tax Act by using the information provided by the Minister of National Revenue for that purpose.

(2) Unless a contrary intention appears, in this Act

(a) the expressions “adjusted income”, “eligible individual” and “qualified dependant” have the same meanings as in section 122.6 of the Income Tax Act;

(b) the expressions “holder”, “issuer” and “registered disability savings plan” have the same meanings as in section 146.4 of that Act; and

(c) any other expression has the same meaning as in that Act.

PURPOSE

3. The purpose of this Act is to encourage long term savings through registered disability savings plans to provide for the financial security of persons with severe and prolonged impairments in physical or mental functions.

MINISTER

4. The Governor in Council may, by order, designate a minister of the Crown to be “the Minister” for the purposes of this Act.

5. The Minister may take any measures that the Minister considers appropriate to make known to Canadians the existence of Canada Disability Savings Grants and Canada Disability Savings Bonds.

PAYMENTS

6. (1) Subject to this Act and the regulations, on application, the Minister may, in respect of any contribution made to a registered disability savings plan of a beneficiary, pay a Canada Disability Savings Grant into the plan. The grant is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.

(2) The amount of a Canada Disability Savings Grant that may be paid for a particular year is equal to

(a) 300% of the part of the total contributions made in the particular year that is less than or equal to $500, and 200% of the part of those contributions that is more than $500 but less than or equal to $1,500, if the beneficiary is

(i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to $74,357,

(ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to $74,357, or

(iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or

(b) 100% of the total contributions made in the particular year, up to a maximum of $1,000, in any other case.

(3) For the purposes of subparagraph (2)(a)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.

(4) If there has been no determination of eligibility for a child tax benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraph (2)(a)(ii) is the adjusted income used to determine the amount of a child tax benefit for the first month in the particular year in respect of which eligibility has been established.

(5) In applying subsection (4) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.

(6) The amount of $74,357 referred to in paragraph (2)(a) is to be adjusted, as set out in section 117.1 of the Income Tax Act, for each year after 2007.

(7) Not more than $70,000 in Canada Disability Savings Grants may be paid in respect of a beneficiary during their lifetime.

7. (1) Subject to this Act and the regulations, on application, the Minister may pay a Canada Disability Savings Bond into a registered disability savings plan of a beneficiary. The bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.

(2) The amount of a Canada Disability Savings Bond that may be paid for a particular year is

(a) $1,000, if the beneficiary is

(i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is less than or equal to $20,883,

(ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is less than or equal to $20,883, or

(iii) a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year; or

(b) the amount determined by the formula set out in subsection (4), if the beneficiary is

(i) an individual who is at least 18 years of age on December 31 of the year preceding the particular year and whose family income for the particular year is more than $20,883 but less than $37,178, or

(ii) a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a child tax benefit in respect of January in the particular year is more than $20,883 but less than $37,178.

(3) For the purposes of subparagraphs (2)(a)(i) and (b)(i), the family income for a particular year is that income determined for the year that ended on December 31 of the second preceding year.

(4) For the purposes of paragraph (2)(b), the formula is as follows:

$1,000 - [$1,000 × (A - B) / (C - B)]

where

A      is, as the case may be, the family income referred to in subparagraph (2)(b)(i) or the adjusted income referred to in subparagraph (2)(b)(ii);

B      is $20,883; and

C      is $37,178.

(5) If an amount calculated under subsection (4) contains a fraction of a cent, the amount is to be rounded to the nearest whole cent or, if the amount is equidistant from two whole cents, to the higher of them.

(6) If there has been no determination of eligibility for a child tax benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subparagraphs (2)(a)(ii) and (b)(ii) is the adjusted income used to determine the amount of a child tax benefit for the first month in the particular year in respect of which eligibility has been established.

(7) In applying subsection (6) in respect of a beneficiary born in December, the reference to “the first month in the particular year in respect of which eligibility has been established” in that subsection is to be read as a reference to “January of the next year”.

(8) The amounts of $20,883 and $37,178 referred to in subsections (2) and (4) are to be adjusted, as set out in section 117.1 of the Income Tax Act, for each year after 2007.

(9) Not more than $20,000 in Canada Disability Savings Bonds may be paid in respect of a beneficiary during their lifetime.

8. Neither a Canada Disability Savings Grant nor a Canada Disability Savings Bond may be paid unless

(a) the Minister is provided with, as the case may be,

(i) the Social Insurance Number of the beneficiary,

(ii) the Social Insurance Number of the eligible individual referred to in subparagraph 6(2)(a)(ii) or 7(2)(a)(ii) or (b)(ii), and

(iii) the business number of the department, agency or institution that maintains the beneficiary in respect of whom a special allowance is payable under the Children’s Special Allowances Act for a month in the particular year; and

(b) the beneficiary is resident in Canada, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made.

9. The Minister may, in prescribed circumstances, pay interest, calculated as prescribed, in respect of Canada Disability Savings Grants or Canada Disability Savings Bonds.

10. All amounts payable by the Minister under this Act shall be paid out of the Consolidated Revenue Fund.

11. On application made by the holder or the beneficiary, to avoid undue hardship, the Minister may, in prescribed circumstances, waive any of the prescribed requirements of this Act or the regulations that relate to the payment of any amount or the repayment of any amount or earnings generated by that amount. The application must be in the form and manner approved by the Minister.

GENERAL

12. (1) An amount required to be repaid under this Act, the regulations or an agreement entered into under this Act constitutes a debt due to Her Majesty in right of Canada as of the date on which the Minister issues a written notice to the person responsible for the debt indicating the amount that is due.

(2) Debts due to Her Majesty in right of Canada under this Act are recoverable, including in the Federal Court or any other court of competent jurisdiction, by the Minister of National Revenue.

(3) Despite subsection 14(1), debts due to Her Majesty in right of Canada under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable by Her Majesty in right of Canada to the person responsible for the debt, other than an amount payable under section 122.61 of the Income Tax Act.

13. Despite subsections 12(2) and 14(1), an amount required to be repaid by a person under this Act, the regulations or an agreement entered into under this Act may be recovered by the Minister at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money that may be due or payable under this Act to the person.

14. (1) Subject to this section, no action or proceedings shall be taken to recover debts due to Her Majesty in right of Canada under this Act after the expiry of the six-year limitation or prescription period that begins on the day on which the Minister issues the notice referred to in subsection 12(1).

(2) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4), the time during which the limitation or prescription period has run before the acknowledgement does not count in the calculation of that period.

(3) If a person’s liability for debts due to Her Majesty in right of Canada under this Act is acknowledged in accordance with subsection (4) after the expiry of the limitation or prescription period, an action or proceedings to recover the money may, subject to subsections (2) and (5), be brought within six years after the date of the acknowledgement.

(4) An acknowledgement of liability means

(a) a written promise to pay the money owing, signed by the person or his or her agent or other representative;

(b) a written acknowledgement of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

(c) a part payment by the person or his or her agent or other representative of any money owing; or

(d) any acknowledgement of the money owing made by the person, his or her agent or other representative or the trustee or director in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

(5) The running of a limitation or prescription period is suspended during

(a) the period beginning on the day on which the Minister receives an application under section 11 and ending on the day on which the Minister issues a decision;

(b) the period beginning on the day on which the Minister of National Revenue receives an application concerning subsection 146.4(12) of the Income Tax Act and ending on the day on which that Minister makes a decision;

(c) the period beginning on the day on which an application for judicial review, with respect to a decision of the Minister to issue a notice under subsection 12(1), is filed and ending on the day on which the final decision is rendered; and

(d) any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover debts due to Her Majesty in right of Canada under this Act.

(6) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

15. If the Minister considers it advisable, the Minister may, subject to conditions agreed on by the Minister and the Minister of National Revenue, collect any prescribed information for the administration of section 146.4 and Part XI of the Income Tax Act.

16. When the Minister of National Revenue considers that a registered disability savings plan is no longer registered by virtue of the application of paragraph 146.4(10)(a) of the Income Tax Act, the Minister of National Revenue shall as soon as possible notify the Minister in writing.

17. The Governor in Council may make regulations for carrying out the purpose and provisions of this Act and, without limiting the generality of the foregoing, may make regulations

(a) establishing requirements that must be met by a registered disability savings plan and by persons in respect of the plan before a Canada Disability Savings Grant or a Canada Disability Savings Bond may be paid in respect of the plan;

(b) establishing the manner of determining the amount of a Canada Disability Savings Grant that may be paid in respect of contributions made to registered disability savings plans or the amount of a Canada Disability Savings Bond that may be paid into those plans;

(c) specifying terms and conditions to be included in agreements entered into between an issuer of a registered disability savings plan and the Minister;

(d) governing the repayment of any amount paid under this Act or earnings generated by those amounts including providing for the circumstances under which an amount or earnings must be repaid and the manner of calculating such an amount or earnings;

(e) specifying the circumstances in which the Minister may pay interest on Canada Disability Savings Grants or Canada Disability Savings Bonds as well as the manner of calculating interest;

(f) specifying the requirements of this Act or the regulations relating to the payment of any amount or the repayment of any amount or earnings generated by that amount that may be waived by the Minister to avoid undue hardship;

(g) specifying the circumstances in which the Minister may waive the requirements provided under paragraph (f);

(h) specifying information that the Minister may collect under section 15; and

(i) requiring issuers to keep any record, book or other document containing any information relevant to the administration or enforcement of this Act or the regulations, and respecting where, how and how long it is to be kept.

Consequential Amendment to the Children’s Special Allowances Act

137. Subsection 10(2) of the Children’s Special Allowances Act is replaced by the following:

(2) Any information obtained by or on behalf of the Minister in the course of the administration or enforcement of this Act or the regulations or the carrying out of an agreement entered into under section 11 may be communicated to any person if it can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, the Income Tax Act, the Canada Disability Savings Act or the Canada Education Savings Act or a program administered under an agreement entered into under section 12 of the Canada Education Savings Act.

Coming into Force

138. The provisions of the Canada Disability Savings Act, as enacted by section 136, and section 137 come into force on a day or days to be fixed by order of the Governor in Council.

PART 5

INCENTIVE FOR PROVINCES TO ELIMINATE TAXES ON CAPITAL

Federal-Provincial Fiscal Arrangements Act

139. The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 8.7:

PART IV

TRANSFER PAYMENTS WITH RESPECT TO THE ELIMINATION OF PROVINCIAL CAPITAL TAXES

9. In this Part, “capital tax” means a tax that is imposed on one or more of the following:

(a) an element of shareholders’ equity in a corporation such as share capital or retained earnings;

(b) a form of long-term indebtedness owed by a corporation; or

(c) any other element of capital that the Minister considers appropriate.

It does not include

(d) a tax imposed under Part VI.1 of the Taxation Act, R.S.Q., c. I-3;

(e) a tax imposed under section 74.1 of the Corporations Tax Act, R.S.O. 1990, c. C-40; or

(f) any tax that the Minister does not consider to be sufficiently similar to a tax imposed under Part I.3 or VI of the Income Tax Act.

10. (1) As an incentive for a province to eliminate capital taxes imposed by the province, the province is eligible to receive a payment under this Part if

(a) before January 2, 2011, it eliminates a capital tax that is imposed under a law of the province that was in force on March 18, 2007; and

(b) any legislation that is required to give effect to the elimination is enacted after March 18, 2007 and before January 2, 2011.

(2) For the purposes of this Part, a capital tax is considered to be eliminated if

(a) under the law of the province, the tax ceases before January 2, 2011 to be imposed on all corporations, except that the tax may continue to be imposed on any corporation that is exempt from tax under any of paragraphs 149(1)(d) to (d.4) of the Income Tax Act on all of its taxable income; or

(b) in the case where the tax is imposed only on financial institutions, the law under which the tax is imposed is amended, before January 2, 2011, to replace the tax with a new capital tax imposed only on financial institutions that meets the following criteria:

(i) no financial institution becomes subject to the new capital tax that was not subject to the replaced tax,

(ii) every financial institution on which the new capital tax is imposed must be permitted to reduce the amount of the new capital tax payable by it for a taxation year by the amount of income tax payable by it to the province for the year and, if the amount of income tax so payable exceeds the amount of the new capital tax so payable, the financial institution must be permitted to apply the amount of the excess to reduce capital tax payable by it in other taxation years in a manner satisfactory to the Minister, and

(iii) the Minister is satisfied that the total amount of revenue that would be raised by the new capital tax from financial institutions if there were no reduction for income tax payable is intended to be broadly commensurate with the total amount of revenue raised from those financial institutions by the province’s income tax.

(3) If a province imposes a capital tax that applies to financial institutions as well as corporations that are not financial institutions, the capital tax is deemed to be two separate capital taxes for the purposes of this Part.

11. (1) The amount that a province may be eligible to receive, in respect of a period fixed by the Minister, is equal to 17% of the estimated foregone revenue for that period.

(2) A province is eligible to receive a preliminary payment for a period if the province has provided information in accordance with section 12.01 such that the Minister is able to make a preliminary determination of the estimated foregone revenue for that period. The Minister shall try to make a preliminary payment to the province on or before the last day of the period if the Minister receives the information in a timely manner.

(3) After finalized information that is consistent with a province’s public accounts becomes available so as to enable the Minister to make a final determination of the amount under subsection (1) in respect of a period, the Minister shall do so and reconcile the final determination with any preliminary payment paid to the province. If the amount of the final determination is greater than the preliminary payment, the Minister shall, without delay, pay the difference to the province. However, if the amount of the final determination is less than the preliminary payment, the difference may be deducted from any amount payable to the province under this Act or be recovered from the province as a debt due to Her Majesty in right of Canada.

(4) For the purposes of determining the amount of a payment under this Part, a period shall not include a day that is before March 19, 2007 or after January 1, 2011.

(5) The Minister may pay to a province, out of the Consolidated Revenue Fund, any amount that the province is eligible to receive under this Part.

12. (1) Except where subsection (2) applies, the estimated foregone revenue for a province in respect of a period is the amount, as determined by the Minister, by which

(a) the estimated base revenue, determined as the estimated amount of revenue in respect of a specific capital tax that the province would have received in respect of the period from corporations that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date,

exceeds

(b) the estimated actual revenue, determined as the estimated amount of revenue in respect of the capital tax that the province receives in respect of the period from corporations that are subject to tax under Part I of the Income Tax Act.

(2) In the case of a capital tax that has been eliminated as described in paragraph 10(2)(b), the estimated foregone revenue for a province in respect of a period is the amount determined by the Minister to be the estimated amount of revenue in respect of the capital tax that the province would have received in respect of the period from financial institutions that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date.

12.01 (1) No payment may be made to a province under this Part unless the province provides to the Minister all of the information that the Minister considers necessary for the determination of the amount of that payment in accordance with this Part.

(2) All information provided by a province shall be of the best quality that is available at the time it is provided and shall be certified as such by an appropriate minister of the provincial government.

PART 6

BANK FOR INTERNATIONAL SETTLEMENTS (IMMUNITY) ACT

140. The Bank for International Settlements (Immunity) Act is enacted as follows:

An Act to provide immunity to the Bank for International Settlements from government measures and from civil judicial process

1. This Act may be cited as the Bank for International Settlements (Immunity) Act.

2. The Bank for International Settlements, its property and any property entrusted to it are exempt from the measures referred to in Article 1 of the Protocol regarding the immunities of the Bank for International Settlements that was ratified by Canada on January 20, 1938.

3. (1) The Bank is immune from the juris-diction of any court in respect of a civil proceeding.

(2) The Bank’s property and any property entrusted to it are immune, in respect of any civil proceeding, from attachment and execution.

(3) Subsections (1) and (2) are binding on Her Majesty in right of Canada.

4. For reasons of national security or for the purposes of the conduct of Canada’s international affairs or the implementation of Canada’s international obligations, the Governor in Council may determine that, to the extent specified by the Governor in Council,

(a) the Bank, its property and any property entrusted to it are not exempt under section 2;

(b) the Bank is not immune under subsection 3(1); and

(c) the Bank’s property and any property entrusted to it are not immune under subsection 3(2).

PART 7

PHASED RETIREMENT — AMENDMENTS OTHER THAN THOSE CONCERNING INCOME TAX

Pension Benefits Standards Act, 1985

141. The Pension Benefits Standards Act, 1985 is amended by adding the following after section 16:

Phased Retirement Benefit

16.1 (1) The following definitions apply in this section.

“phased retirement benefit” means a pension benefit that is equal to a portion of the immediate pension benefit to which a person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2).

“phased retirement period” means the period in respect of which the phased retirement benefit is to be paid.

(2) A pension plan may provide for the payment of a phased retirement benefit.

(3) A phased retirement benefit is only to be paid to a person if

(a) the person enters into a written agreement with an employer who contributes to the pension plan from which the phased retirement benefit is to be paid, or with a prescribed administrator, that evidences their consent to its payment;

(b) in the case of a person who was receiving a joint and survivor pension benefit prior to the phased retirement period, the person’s spouse or common-law partner who would receive that joint and survivor pension benefit on the death of the person consents in writing to the cessation of the payment of the joint and survivor pension benefit;

(c) the employer provides a copy of the agreement referred to in paragraph (a) to the administrator of the pension plan from which the phased retirement benefit is to be paid;

(d) the person accrues a pension benefit during the phased retirement period under circumstances to which subsection 8503(19) of the Income Tax Regulations applies; and

(e) the pension plan from which the phased retirement benefit is to be paid has not been terminated.

(4) During a phased retirement period

(a) the person is deemed to be a member;

(b) subsection 2(3) does not apply and the person is deemed not to be receiving an immediate pension benefit;

(c) the administrator of the pension plan from which the phased retirement benefit is to be paid shall not pay the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2);

(d) paragraph 18(1)(b) and subsections 36(1) and (4) do not apply to an agreement or arrangement that may be entered into for the payment of the phased retirement benefit;

(e) section 21 does not apply to the calculation of the phased retirement benefit;

(f) section 22 does not apply to the phased retirement benefit; and

(g) in the case of a person who, prior to the phased retirement period, was receiving an immediate pension benefit from the pension plan from which the phased retirement benefit is to be paid, the administrator of that pension plan shall not pay the immediate pension benefit and an election that was made under subsection 22(5) is void unless it was made under provincial property law within the meaning of subsection 25(1).

(5) At the end of a phased retirement period

(a) the pension benefit accrued during the phased retirement period is to be treated as vested without regard to conditions as to age, period of membership in the pension plan or period of employment;

(b) the immediate pension benefit to which the person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2) is, unless otherwise prescribed, to be calculated without regard to the amount of the phased retirement benefit received;

(c) an election under subsection 22(5) that is void under paragraph (4)(g) remains void;

(d) subsection 26(2) applies as if it contained no reference to “but before the commencement of payment of a pension benefit”; and

(e) in the case of a phased retirement period that ends as a result of the death of a person,

(i) the person is deemed to have retired for purposes of the survivor benefit,

(ii) the person is deemed to have been entitled to the joint and survivor pension benefit payable pursuant to section 22, without regard to subsection 22(5), in respect of the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2), and

(iii) subsections 23(5) to (7) apply.

142. Section 39 of the Act is amended by adding the following after paragraph (k):

(k.1) respecting phased retirement benefits;

Coming into Force

143. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 8

ADVANCE MARKET COMMITMENT

144. (1) In respect of fiscal years beginning on or after April 1, 2008 and for the purpose of Canada’s contribution to the Advance Market Commitment, payments not exceeding in the aggregate the Canadian dollar equivalent of US$200 million — less the C$115 million that was paid under the authority of paragraph (b) of Order in Council P.C. 2007-368, which order was dated March 22, 2007 and made under section 3 of An Act to authorize the Minister of Finance to make certain payments, being chapter 36 of the Statutes of Canada, 2005 — may, on the requisition of the Minister for International Cooperation, be made out of the Consolidated Revenue Fund to international organizations in order to increase the availability of a vaccine for pneumococcal disease.

(2) The Minister for International Cooperation may, subject to any terms or conditions that are established by the Governor in Council on the recommendation of the Minister for International Cooperation and the Minister of Finance, enter into agreements with international organizations for the purpose of the contribution referred to in subsection (1).

(3) The rate of exchange that is to be used in order to determine the Canadian dollar equivalent of a payment that is made under subsection (1) is the rate that is determined, by the entity providing foreign banking services to the Receiver General, on the day on which the payment is made.

PART 9

OIL AND GAS OPERATIONS IN CANADA

Canada Oil and Gas Operations Act

145. The definition “pipeline” in section 2 of the Canada Oil and Gas Operations Act is replaced by the following:

“pipeline” means any pipe or any system or arrangement of pipes by which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas is conveyed from any well-head or other place at which it is produced to any other place, or from any place where it is stored, processed or treated to any other place, and includes all property of any kind used for the purpose of, or in connection with or incidental to, the operation of a pipeline in the gathering, transporting, handling and delivery of the oil, gas or substance and, without restricting the generality of the foregoing, includes offshore installations or vessels, tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes that constitutes a distribution system for the distribution of gas to ultimate consumers;

146. Section 2.1 of the Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d):

(e) economically efficient infrastructures.

147. The Act is amended by adding the following after section 4:

4.01 (1) A holder of an authorization under paragraph 5(1)(b) to construct or operate a pipeline shall not, without the leave of the National Energy Board,

(a) sell, transfer or lease to any person its pipeline, in whole or in part;

(b) purchase or lease any pipeline from any person;

(c) enter into an agreement for amalgamation with any person; or

(d) abandon the operation of a pipeline.

(2) For the purposes of paragraph (1)(b), “pipeline” includes a pipeline as defined in section 2 or any other pipeline.

(3) Despite paragraph (1)(a), leave shall only be required if the holder sells, transfers or leases any part of its pipeline that is capable of being operated for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.

148. Subsection 5.3(1) of the Act is replaced by the following:

5.3 (1) The National Energy Board may issue and publish, in any manner the Board considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 5, 5.1 or 13.02 or any regulations made under section 13.17 or 14.

149. The Act is amended by adding the following after section 5.3:

Jurisdiction and Powers of the National Energy Board

5.31 (1) The National Energy Board has full and exclusive jurisdiction to inquire into, hear and determine any matter

(a) if it appears to the National Energy Board that any person failed to do any act, matter or thing required to be done by this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5, or that any person has done or is doing any act, matter or thing contrary to or in contravention of this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5; or

(b) if it appears to the National Energy Board that the circumstances may require the Board, in the public interest, to make any order or give any direction, leave, sanction or approval that by law it is authorized to make or give, or with respect to any act, matter or thing that is prohibited, sanctioned or required to be done by this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5.

(2) The National Energy Board may, of its own motion, inquire into, hear and determine any matter or thing that under this Act it may inquire into, hear and determine.

(3) For the purposes of this Act, the National Energy Board has full jurisdiction to hear and determine all matters, whether of law or of fact.

5.32 The National Energy Board may

(a) order and require any person to do, without delay, or within or at any specified time and in any manner set by the Board, any act, matter or thing that the person is or may be required to do under this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 5; and

(b) prohibit the doing or continuing of any act, matter or thing that is contrary to this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 5.

5.33 Sections 5.31 and 5.32 do not apply to any act, matter or thing required by or contrary to any decision or order of the Committee.

5.34 In any proceedings with respect to Part 0.1, the National Energy Board may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed in the proceedings if the Board is satisfied that

(a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the proceedings, or could reasonably be expected to prejudice the person’s competitive position; or

(b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the National Energy Board and

(i) the information has been consistently treated as confidential information by a person directly affected by the proceedings, and

(ii) the Board considers that the person’s interest in confidentiality outweighs the public interest in disclosure of the proceedings.

5.35 In respect of any order, or in any proceedings, of the National Energy Board with respect to Part 0.1, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of information that is contained in the order or is likely to be disclosed in the proceedings if the Board is satisfied that

(a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, buildings, structures or systems, including computer or communication systems, or methods employed to protect them; and

(b) the need to prevent disclosure of the information outweighs the public interest in disclosure of orders and proceedings of the National Energy Board.

5.36 (1) Without limiting the generality of any provision of this Act that authorizes the National Energy Board to impose terms and conditions in respect of any operating licence or authorization issued under section 5 or any of its orders, the Board may direct in any operating licence, authorization or order that it or any portion or provision of it shall come into force at a future time or on the happening of any contingency, event or condition specified in the operating licence, authorization or order or on the performance to the satisfaction of the Board of any conditions or requirements that the Board may impose in the operating licence, authorization or order, and the Board may direct that the whole or any portion of the operating licence, authorization or order shall have force for a limited time or until the happening of a specified event.

(2) The National Energy Board may, instead of making an order final in the first instance, make an interim order, and may reserve its decision pending further proceedings in connection with any matter.

Documents

5.37 (1) A holder of an authorization to construct or operate a pipeline issued under paragraph 5(1)(b) shall keep, in a form and manner determined by the National Energy Board, any documents, including any records or books of account, that the Board requires and that contain information that is determined by the Board to be necessary for the administration of this Act and any regulations made under it.

(2) The holder shall produce those documents to the National Energy Board, or make them available to the Board or its designated representative, for inspection or copying at a time and under conditions set by the Board.

150. The Act is amended by adding the following after section 13:

PART 0.1

TRAFFIC, TOLLS AND TARIFFS

Interpretation

13.01 The following definitions apply in this Part.

“holder” means a holder of an authorization to construct or operate a pipeline issued under paragraph 5(1)(b).

“tariff” means a schedule of tolls, terms and conditions, classifications, practices or rules and regulations applicable to the provision of a service by a holder and includes rules respecting the calculation of tolls.

“toll” includes any rate, charge or allowance charged or made

(a) for the shipment, transportation, transmission, care, handling or delivery of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas that is transmitted through a pipeline, or for storage or demurrage or the like;

(b) for the provision of a pipeline when the pipeline is available and ready to provide for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and

(c) in respect of the purchase and sale of gas that is the property of a holder and that is transmitted by the holder through its pipeline, from which is subtracted the cost to the holder of the gas at the point where it enters the pipeline.

Powers of Board

13.02 The National Energy Board may make orders with respect to all matters relating to traffic, tolls or tariffs.

Filing of Tariff

13.03 (1) A holder shall not charge any tolls except tolls that are

(a) specified in a tariff that has been filed with the National Energy Board and is in effect; or

(b) approved by an order of the Board.

(2) If gas transmitted by a holder through its pipeline is the property of the holder, the holder shall file with the National Energy Board true copies of all the contracts it makes for the sale of the gas, at the time they are made, and any amendments to those contracts made from time to time, and the true copies constitute, for the purposes of this Part, a tariff under subsection (1).

13.04 If a holder files a tariff with the National Energy Board and the holder proposes to charge a toll referred to in paragraph (b) of the definition “toll” in section 13.01, the Board may establish the day on which the tariff is to come into effect and the holder shall not begin charging the toll before that day.

Just and Reasonable Tolls

13.05 All tolls shall be just and reasonable and shall always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.

13.06 The National Energy Board may determine, as questions of fact, whether or not traffic is or has been carried out under substantially similar circumstances and conditions referred to in section 13.05, whether in any case a holder has or has not complied with the provisions of that section, and whether there has, in any case, been unjust discrimination as set out in section 13.1.

13.07 If the National Energy Board has made an interim order authorizing a holder to charge tolls until a specified time or the happening of a specified event, the Board may, in any subsequent order, direct the holder

(a) to refund, in a manner satisfactory to the Board, any part of the tolls charged by the holder under the interim order that is in excess of the tolls determined by the Board to be just and reasonable, together with interest on the amount so refunded; or

(b) to recover in its tolls, in a manner satisfactory to the Board, the amount by which the tolls determined by the Board to be just and reasonable exceed the tolls charged by the holder under the interim order, together with interest on the amount so recovered.

Disallowance of Tariff

13.08 The National Energy Board may disallow any tariff or any portion of any tariff that it considers to be contrary to any of the provisions of this Act or any order of the Board and may require a holder, within a time fixed by the Board, to substitute for it a tariff satisfactory to the Board or may establish other tariffs in lieu of the tariff or the portion so disallowed.

13.09 The National Energy Board may suspend any tariff or any portion of any tariff before or after the tariff goes into effect.

Discrimination

13.1 A holder shall not make any unjust discrimination in tolls, service or facilities against any person or locality.

13.11 If it is shown that a holder makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the holder.

13.12 (1) No holder or shipper or an officer or employee, or an agent or mandatary, of a holder or shipper shall

(a) offer, grant, give, solicit, accept or receive a rebate, concession or discrimination whereby a person obtains transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by a holder at a rate less than that named in the tariffs then in force; or

(b) knowingly be party or privy to a false billing, false classification, false report or other device resulting in a rate being charged that is less than that named in the tariffs then in force.

(2) No prosecution shall be instituted for an offence under this section without leave of the National Energy Board.

Contracts Limiting Liabilities

13.13 (1) Except as provided in this section, no contract, condition or notice made or given by a holder impairing, restricting or limiting its liability in respect of the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas relieves the holder from its liability, unless that class of contract, condition or notice is included as a term or condition of its tariffs as filed or has been first authorized or approved by order of the National Energy Board.

(2) The National Energy Board may determine the extent to which the liability of a holder may be impaired, restricted or limited as provided in this section.

(3) The National Energy Board may establish the terms and conditions under which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas may be transmitted by a holder.