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Bill C-50

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C-50

Second Session, Thirty-ninth Parliament,

56-57 Elizabeth II, 2007-2008

HOUSE OF COMMONS OF CANADA

BILL C-50

An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget

first reading, March 14, 2008

THE MINISTER OF FINANCE

90462

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 implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget”.

SUMMARY

Part 1 enacts a number of income tax measures proposed in the February 26, 2008 Budget. In particular, it

(a) introduces the new Tax-Free Savings Account, effective for the 2009 and subsequent taxation years;

(b) extends by 10 years the maximum number of years during which a Registered Education Savings Plan may be open and accept contributions and provides a six-month grace period for making educational assistance payments, generally effective for the 2008 and subsequent taxation years;

(d) extends the application of the Medical Expense Tax Credit to certain devices and expenses and better targets the requirement that eligible medications must require a prescription by an eligible medical practitioner, generally effective for the 2008 and subsequent taxation years;

(e) amends the provisions relating to Registered Disability Savings Plans so that the rule forcing the mandatory collapse of a plan be invoked only where the beneficiary’s condition has factually improved to the extent that the beneficiary no longer qualifies for the disability tax credit, effective for the 2008 and subsequent taxation years;

(f) extends by one year the Mineral Exploration Tax Credit;

(g) extends the capital gains tax exemption for certain gifts of listed securities to also apply in respect of certain exchangeable shares and partnership interests, effective for gifts made on or after February 26, 2008;

(h) adjusts the rate of the Dividend Tax Credit to reflect corporate income tax rate reductions, beginning in 2010;

(i) increases the benefits available under the Scientific Research and Experimental Development Program, generally effective for taxation years that end on or after February 26, 2008;

(j) amends the penalty for failures to remit source deductions when due in order to better reflect the degree to which the remittances are late, and excuses early remittances from the mandatory financial institution remittance rules, effective for remittances due on or after February 26, 2008;

(k) reduces the paper burden associated with dispositions by non-residents of certain treaty-protected property, effective for dispositions that occur after 2008;

(l) ensures that the enhanced tax incentive for Donations of Medicines is properly targeted, effective for gifts made after June, 2008; and

(m) modifies the provincial component of the SIFT tax to better reflect actual provincial tax rates, effective for the 2009 and subsequent taxation years.

Part 1 also implements income tax measures to preserve the fiscal plan as set out in the February 26, 2008 Budget.

Part 2 amends the Excise Act, the Excise Act, 2001 and the Customs Tariff to implement measures aimed at improving tobacco tax enforcement and compliance, adjusting excise duties on tobacco sticks and on tobacco for duty-free markets and equalizing the excise treatment of imitation spirits and other spirits.

Part 3 implements goods and services tax and harmonized sales tax (GST/HST) measures proposed or referenced in the February 26, 2008 Budget. It amends the Excise Tax Act to expand the list of zero-rated medical and assistive devices and to ensure that all supplies of drugs sold to final consumers under prescription are zero-rated. It also amends that Act to exempt all nursing services rendered within a nurse-patient relationship, prescribed health care services ordered by an authorized registered nurse and, if certain conditions are met, a service of training that is specially designed to assist individuals in coping with the effects of their disorder or disability. It further amends that Act to ensure that a variety of professional health services maintain their GST/HST exempt status if those services are rendered by a health professional through a corporation. Additional amendments to that Act clarify the GST/HST treatment of long-term residential care facilities. Those amendments are intended to ensure that the GST New Residential Rental Property Rebate is available, and the GST/HST exempt treatment for residential leases and sales of used residential rental buildings applies, to long-term residential care facilities on a prospective basis and on past transactions if certain circumstances exist. This Part also makes amendments to relieve the GST/HST on most lease payments for land on which wind or solar power equipment used to generate electricity is situated.

Part 4 dissolves the Canada Millennium Scholarship Foundation, provides for the Foundation to fulfill certain obligations and deposit its remaining assets in the Consolidated Revenue Fund, and repeals Part 1 of the Budget Implementation Act, 1998. It also makes consequential amendments to other Acts.

Part 5 amends the Canada Student Financial Assistance Act and the Canada Student Loans Act to implement measures concerning financial assistance for students, including the following:

(a) authorizing the establishment and operation, by regulation, of electronic systems to allow on-line services to be offered to students;

(b) providing for the establishment and operation, by regulation, of a program to provide for the repayment of student loans for classes of borrowers who are encountering financial difficulties;

(c) allowing part-time students to defer their student loan payments for as long as they continue to be students, and providing, by regulation, for other circumstances in which student loan payments may be deferred; and

(d) allowing the Minister of Human Resources and Skills Development to take remedial action if any error is made in the administration of the two Acts and in certain cases, to waive requirements imposed on students to avoid undue hardship to them.

Part 6 amends the Immigration and Refugee Protection Act to authorize the Minister of Citizenship and Immigration to give instructions with respect to the processing of certain applications and requests in order to support the attainment of the immigration goals established by the Government of Canada.

Part 7 enacts the Canada Employment Insurance Financing Board Act. The mandate of the Board is to set the Employment Insurance premium rate and to manage a financial reserve. That Part also amends the Employment Insurance Act and makes consequential amendments to other Acts.

Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the recruitment of front line police officers, capital investment in public transit infrastructure and carbon capture and storage. It also authorizes Canada Social Transfer transition protection payments.

Part 9 authorizes payments to be made out of the Consolidated Revenue Fund to Genome Canada, the Mental Health Commission of Canada, The Gairdner Foundation and the University of Calgary.

Part 10 amends various Acts.

Also available on the Parliament of Canada Web Site at the following address:
http://www.parl.gc.ca

TABLE OF PROVISIONS

AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON FEBRUARY 26, 2008 AND TO ENACT PROVISIONS TO PRESERVE THE FISCAL PLAN SET OUT IN THAT BUDGET

Preamble

SHORT TITLE

1. Budget Implementation Act, 2008

PART 1

AMENDMENTS RELATED TO INCOME TAX

Income Tax Act

2-37. Amendments

Canada Pension Plan

38. Amendments

Employment Insurance Act

39. Amendments

Coordinating Amendments

40-44. Bill C-10

Conditional Amendments

45-48. Bill C-253

PART 2

AMENDMENTS IN RESPECT OF EXCISE DUTY ON TOBACCO PRODUCTS AND ALCOHOL

Excise Act

49. Amendment

Excise Act, 2001

Amendments to the Act

50-68. Amendments

Application

69. Application

Related Amendments

70-71. Customs Tariff

PART 3

AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX (GST/HST)

Excise Tax Act

72-93. Amendments

PART 4

CANADA MILLENNIUM SCHOLARSHIP FOUNDATION

Dissolution of the Foundation

94. Liquidation

Amendments to the Budget Implementation Act, 1998

95-97. Amendments

Consequential Amendments

98. Access to Information Act

99. Privacy Act

Coming Into Force

100. January 5, 2010, or earlier

PART 5

FEDERAL FINANCIAL ASSISTANCE FOR STUDENTS

Amendments to the Canada Student Financial Assistance Act

101-110. Amendments

Amendments to the Canada Student Loans Act

111-114. Amendments

Coming into Force

115. Order in council

PART 6

IMMIGRATION AND REFUGEE PROTECTION ACT

Amendments to the Act

116-119. Amendments

Transitional Provision

120. Application

PART 7

EMPLOYMENT INSURANCE

Canada Employment Insurance Financing Board Act

121. Enactment of Act

AN ACT TO ESTABLISH THE CANADA EMPLOYMENT INSURANCE FINANCING BOARD

SHORT TITLE

1. Canada Employment Insurance Financing Board Act

INTERPRETATION

2. Definitions

ESTABLISHMENT OF THE BOARD

3. Board established

OBJECTS, POWERS AND DUTIES

4. Objects

5. Powers of Board

MANAGEMENT

Board of Directors

6. Board of directors

7. Specific duties

8. Power to delegate

Directors

9. Appointment of directors

10. Nominating committee

Chairperson of the Board of Directors

11. Designation

Officers

12. Directors not officers

Chief Executive Officer

13. Designation

Chief Actuary

14. Appointment

Diligence

15. Obligation

BY-LAWS

16. Statutory Instruments Act does not apply

COMMITTEES

Establishment

17. Committees

Audit Committee

18. Duties

19. Meeting of audit committee

20. Auditor’s right to attend meetings

Investment Committee

21. Duties

Human Resources Committee

22. Duties

INVESTMENTS

23. Investment policies, standards and procedures

24. Duty of investment managers

FINANCIAL MANAGEMENT

General

25. Financial year

26. Deposits and deposit receipts

Financial Statements

27. Books and systems

Auditor’s Report

28. Annual auditor’s report

Qualified Privilege

29. Qualified privilege

Special Examination

30. Special examination

31. Report

32. Examiner

REPORTING

Quarterly Statements

33. Statements to Minister

Annual Report

34. Annual report required

Premium Rate Setting Report

35. Report

REGULATIONS

36. Governor in Council

Transitional Provisions

122. Application

123. Application

Amendments to the Employment Insurance Act

124-131. Amendments

Consequential Amendments

132-133. Department of Human Resources and Skills Development Act

134. Financial Administration Act

Coming into Force

135. Order in council

PART 8

PAYMENTS TO PROVINCES AND TERRITORIES

Police Officers Recruitment Fund

136. Maximum payment of $400,000,000

Public Transit Capital Trust 2008

137. Maximum payment of $500,000,000

Payment to Saskatchewan for Carbon Capture and Storage

138. Maximum payment of $240,000,000

Payment to Nova Scotia for Carbon Storage

139. Maximum payment of $5,000,000

Canada Social Transfer Transition Protection Payment to Saskatchewan

140. Payment of $31,204,000

Canada Social Transfer Transition Protection Payment to Nunavut

141. Payment of $705,000

PART 9

PAYMENTS TO CERTAIN ENTITIES

Genome Canada

142. Maximum payment of $140,000,000

Mental Health Commission of Canada

143. Maximum payment of $110,000,000

The Gairdner Foundation

144. Maximum payment of $20,000,000

University of Calgary

145. Maximum payment of $5,000,000

PART 10

VARIOUS AMENDMENTS

146-147. Bank of Canada Act

148. Budget Implementation Act, 2006

149-150. Canadian Forces Superannuation Act

151. Cooperative Credit Associations Act

152. Donkin Coal Block Development Opportunity Act

153. Financial Administration Act

154. Insurance Companies Act

155. Interest Act

156. Old Age Security Act

157-160. Public Service Superannuation act

161-162. Royal Canadian Mounted Police Superannuation Act

163. Trust and Loan Companies Act

Coming into Force

164. Order in council

2nd Session, 39th Parliament,

56-57 Elizabeth II, 2007-2008

house of commons of canada

BILL C-50

An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget

Preamble

Whereas, when the Government of Canada tables a budget in Parliament, a fiscal plan is an integral part of that budget;

Whereas the Government of Canada is committed to meeting the challenge of global economic uncertainty with a responsible, prudent and effective fiscal plan as reflected in the Budget Plan tabled in Parliament on February 26, 2008;

Whereas it is imperative to preserve the fiscal integrity of that Budget Plan and the integrity of the budget process, and important not to risk the Government of Canada going into deficit;

And whereas it is expedient to implement certain provisions of that Budget Plan;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Budget Implementation Act, 2008.

PART 1

AMENDMENTS RELATED TO INCOME TAX

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

Income Tax Act

2. (1) Paragraph 18(1)(u) of the Income Tax Act is replaced by the following:

Fees — individual saving plans

(u) any amount paid or payable by the taxpayer for services in respect of a retirement savings plan, retirement income fund or TFSA under or of which the taxpayer is the annuitant or holder; and

(2) Subsection 18(11) of the Act is amended by striking out the word “or” at the end of paragraph (h), by adding the word “or” at the end of paragraph (i) and by adding the following after paragraph (i):

(j) making a contribution under a TFSA,

(3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

3. (1) Section 37 of the Act is amended by adding the following after subsection (1.3):

Salary or wages for SR&ED outside Canada

(1.4) For the purposes of this section, section 127 and Part XXIX of the Income Tax Regulations, the amount of a taxpayer’s expenditure for a taxation year determined under subsection (1.5) is deemed to be made in the taxation year in respect of scientific research and experimental development carried on in Canada by the taxpayer.

Salary or wages outside Canada — limit determined

(1.5) The amount of a taxpayer’s expenditure for a taxation year determined under this subsection is the lesser of

(a) the amount that is the total of all expenditures each of which is an expenditure made by the taxpayer, in the taxation year and after February 25, 2008, in respect of an expense incurred in the taxation year for salary or wages paid to the taxpayer’s employee who was resident in Canada at the time the expense was incurred in respect of scientific research and experimental development,

(i) that was carried on outside Canada,

(ii) that was directly undertaken by the taxpayer,

(iii) that related to a business of the taxpayer, and

(iv) that was solely in support of scientific research and experimental development carried on in Canada by the taxpayer, and

(b) the amount that is 10 per cent of the total of all expenditures, made by the taxpayer in the year, each of which would, if this Act were read without reference to subsection (1.4), be an expenditure made in respect of an expense incurred in the year for salary or wages paid to an employee in respect of scientific research and experimental development that was carried on in Canada, that was directly undertaken by the taxpayer and that related to a business of the taxpayer.

(2) Paragraph 37(2)(a) of the Act is replaced by the following:

(a) on scientific research and experimental development carried on outside Canada, directly undertaken by or on behalf of the taxpayer, and related to the business (except to the extent that subsection (1.4) deems the expenditures to have been made in Canada); or

(3) Subsection 37(9) of the Act is replaced by the following:

Salary or wages

(9) An expenditure of a taxpayer

(a) does not include, for the purposes of clauses (8)(a)(ii)(A) and (B), remuneration based on profits or a bonus, where the remuneration or bonus, as the case may be, is in respect of a specified employee of the taxpayer, and

(b) includes, for the purpose of paragraph (1.5)(a), an amount paid in respect of an expense incurred for salary or wages paid to an employee only if the taxpayer reasonably believes that the salary or wages is not subject to an income or profits tax imposed, because of the employee’s presence or activity in a country other than Canada, by a government of that other country.

(4) Subsections (1) to (3) apply in respect of taxation years that end on or after February 26, 2008, except that in respect of taxation years that include February 26, 2008, the reference in paragraph 37(1.5)(b) of the Act, as enacted by subsection (1), to “10 per cent” shall be read as a reference to the percentage determined by the formula

10% × A/B

where

A is the number of days in the taxation year that are after February 25, 2008; and

B is the number of days in the taxation year.

4. (1) Paragraph 38(a) of the Act is replaced by the following:

(a) subject to paragraphs (a.1) to (a.3), a taxpayer’s taxable capital gain for a taxation year from the disposition of any property is ½ of the taxpayer’s capital gain for the year from the disposition of the property;

(2) Paragraph 38(a.1) of the Act is amended by striking out the word “or” at the end of subparagraph (i), by adding the word “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

(iii) the disposition is the exchange, for a security described in subparagraph (i), of a share of the capital stock of a corporation, which share included, at the time it was issued and at the time of the disposition, a condition allowing the holder to exchange it for the security, and the taxpayer

(A) receives no consideration on the exchange other than the security, and

(B) makes a gift of the security to a qualified donee not more than 30 days after the exchange;

(3) Section 38 of the Act is amended by adding the following after paragraph (a.2):

(a.3) a taxpayer’s taxable capital gain for a taxation year, from the disposition of an interest in a partnership (other than a prescribed interest in a partnership) that would be an exchange described in subparagraph (a.1)(iii) if the interest were a share in the capital stock of a corporation, is equal to the lesser of

(i) that taxable capital gain determined without reference to this paragraph, and

(ii) ½ of the amount, if any, by which

(A) the total of

(I) the cost to the taxpayer of the partnership interest, and

(II) each amount required by subparagraph 53(1)(e)(iv) or (x) to be added in determining the taxpayer’s adjusted cost base of the partnership interest,

exceeds

(B) the adjusted cost base to the taxpayer of the partnership interest (determined without reference to subparagraphs 53(2)(c)(iv) and (v));

(4) Subsections (1) to (3) apply in respect of gifts made on or after February 26, 2008.

5. (1) Clause 40(2)(g)(iv)(A) of the Act is replaced by the following:

(A) a trust governed by a deferred profit sharing plan, an employees profit sharing plan, a registered disability savings plan, a registered retirement income fund or a TFSA under which the taxpayer is a beneficiary or immediately after the disposition becomes a beneficiary, or

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

6. (1) Subsection 74.5(12) of the Act is amended by striking out the word “or” at the end of paragraph (a.2), by adding the word “or” at the end of paragraph (b) and by adding the following after paragraph (b):

(i) while the property, or property substituted for it, is held under a TFSA of which the spouse or common-law partner is the holder, and

(ii) to the extent that the spouse or common-law partner does not, at the time of the contribution of the property under the TFSA, have an excess TFSA amount (as defined in subsection 207.01(1)).

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

7. (1) Paragraph 75(3)(a) of the Act is replaced by the following:

(a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan, a retirement compensation arrangement or a TFSA;

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

8. (1) Subparagraph 82(1)(b)(ii) of the Act is replaced by the following:

(ii) the product of the amount determined under paragraph (a.1) in respect of the taxpayer for the taxation year multiplied by

(A) for the 2009 taxation year, 45%,

(B) for the 2010 taxation year, 44%,

(D) for taxation years after 2011, 38%;

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

9. (1) The portion of subsection 87(10) of the Act after paragraph (f) is replaced by the following:

the new share is deemed, for the purposes of subsection 116(6), the definitions “qualified investment” in subsections 146(1), 146.1(1) and 146.3(1), in section 204 and in subsections 205(1) and 207.01(1), and the definition “taxable Canadian property” in subsection 248(1), to be listed on the exchange until the earliest time at which it is so redeemed, acquired or cancelled.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

10. (1) Paragraph 107.4(1)(j) of the 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, a registered supplementary unemployment benefit plan or a TFSA, the particular trust is the same type of trust; and

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

11. (1) Paragraph (a) of the definition “trust” in subsection 108(1) of the Act is replaced by the following:

(a) an amateur athlete trust, an employee trust, a trust described in paragraph 149(1)(o.4) or a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a foreign retirement arrangement, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan or a TFSA,

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

12. (1) Paragraphs 110.1(8)(b) and (c) of the Act are replaced by the following:

(b) the property that is the subject of the gift is a medicine that is available for the donee’s use at least six months prior to its expiration date, within the meaning of the Food and Drug Regulations;

(i) meets the requirements of that Act, or would meet those requirements if that Act were read without reference to its subsection 37(1), and

(ii) is not a food, cosmetic or device (as those terms are defined in that Act), a natural health product (as defined in the Natural Health Products Regulations) or a veterinary drug;

(2) Paragraph 110.1(8)(e) of the Act is replaced by the following:

(e) the donee is a registered charity that, in the opinion of the Minister of International Cooperation (or, if there is no such Minister, the Minister responsible for the Canadian International Development Agency) meets prescribed conditions.

(3) Subsections (1) and (2) apply in respect of gifts made on or after July 1, 2008.

13. (1) Clauses 110.7(1)(b)(ii)(A) and (B) of the Act are replaced by the following:

(A) $8.25 multiplied by the number of days in the year included in the qualifying period in which the taxpayer resided in the particular area, and

(B) $8.25 multiplied by the number of days in the year included in that portion of the qualifying period throughout which the taxpayer maintained and resided in a self-contained domestic establishment in the particular area (except any day included in computing a deduction claimed under this paragraph by another person who resided on that day in the establishment).

(2) Subsection (1) applies to the 2008 and subsequent taxation years.

14. (1) Subsection 116(5) of the Act is amended by striking out the word “or” at the end of paragraph (a) and by adding the following after that paragraph:

(a.1) subsection (5.01) applies to the acquisition, or

(2) Section 116 of the Act is amended by adding the following after subsection (5):

Treaty-protected property

(5.01) This subsection applies to the acquisition of a property by a person (referred to in this subsection as the “purchaser”) from a non-resident person if

(a) the purchaser concludes after reasonable inquiry that the non-resident person is, under a tax treaty that Canada has with a particular country, resident in the particular country;

(b) the property would be treaty-protected property of the non-resident person if the non-resident person were, under the tax treaty referred to in paragraph (a), resident in the particular country; and

Notice by purchaser in respect of an acquisition of property

(5.02) A person (referred to in this subsection as the “purchaser”) who acquires property from a non-resident person provides notice under this subsection in respect of the acquisition if the purchaser sends to the Minister, on or before the day that is 30 days after the date of the acquisition, a notice setting out

(a) the date of the acquisition;

(b) the name and address of the non-resident person;

(d) the amount paid or payable, as the case may be, by the purchaser for the property; and

(e) the name of the country with which Canada has concluded a tax treaty under which the property is a treaty-protected property for the purposes of subsection (5.01) or (6.1), as the case may be.

(3) The portion of paragraph 116(5.3)(a) of the Act before subparagraph (i) is replaced by the following:

(a) the taxpayer, unless subsection (5.01) applies to the acquisition or unless after reasonable inquiry the taxpayer had no reason to believe that the non-resident person was not resident in Canada, is liable to pay, as tax under this Part for the year on behalf of the non-resident person, 50% of the amount, if any, by which

(4) Subsection 116(6) of the Act is amended by striking out the word “and” at the end of paragraph (g), by adding the word “and” at the end of paragraph (h) and by adding the following after paragraph (h):

(i) a property that is, at the time of its disposition, a treaty-exempt property of the person.

(5) Section 116 of the Act is amended by adding the following after subsection (6):

Treaty-exempt property

(6.1) For the purpose of subsection (6), a property is a treaty-exempt property of a non-resident person, at the time of the non-resident person’s disposition of the property to another person (referred to in this subsection as the “purchaser”), if

(a) it is, at that time, a treaty-protected property of the non-resident person; and

(b) where the purchaser and the non-resident person are related at that time, the purchaser provides notice under subsection (5.02) in respect of the disposition.

(6) Subsections (1) to (5) apply in respect of dispositions of property that occur after 2008.

15. (1) Subsection 118.1(5.3) of the Act is replaced by the following:

Direct designation — RRSPs, RRIFs and TFSAs

(5.3) If as a consequence of an individual’s death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from an arrangement that is a registered retirement savings plan, registered retirement income fund or TFSA (other than an arrangement of which a licensed annuities provider is the issuer or carrier) to a qualified donee, solely because of the donee’s interest or, for civil law, a right as a beneficiary under the arrangement, the individ- ual was the annuitant under, or the holder of, the arrangement immediately before the individ- ual’s death and the transfer occurs within the 36-month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances),

(a) for the purposes of this section (other than this paragraph) and section 149.1, the transfer is deemed to be a gift made, immediately before the individual’s death, by the individual to the donee; and

(b) the fair market value of the gift is deemed to be the fair market value, at the time of the individual’s death, of the right to the transfer (determined without reference to any risk of default with regard to the obligations of the issuer or carrier of the arrangement).

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

16. (1) The portion of paragraph 118.2(2)(l) of the Act before subparagraph (i) is replaced by the following:

(l) on behalf of the patient who is blind or profoundly deaf or has severe autism, severe epilepsy or a severe and prolonged impairment that markedly restricts the use of the patient’s arms or legs,

(2) Paragraph 118.2(2)(n) of the Act is replaced by the following:

(n) for

(i) drugs, medicaments or other preparations or substances (other than those described in paragraph (k))

(A) that are manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function,

(B) that can lawfully be acquired for use by the patient only if prescribed by a medical practitioner or dentist, and

(ii) drugs, medicaments or other preparations or substances that are prescribed by regulation;

(3) Subsection (1) applies to the 2008 and subsequent taxation years.

(4) Subsection (2) applies to expenses incurred after February 26, 2008.

17. (1) Paragraph 121(b) of the Act is replaced by the following:

(b) the product of the amount, if any, that is required by subparagraph 82(1)(b)(ii) to be included in computing the individual’s income for the year multiplied by

(i) for the 2009 taxation year, 11/18,

(ii) for the 2010 taxation year, 10/17,

(iii) for the 2011 taxation year, 13/23, and

(iv) for taxation years after 2011, 6/11.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

18. (1) The description of D in subsection 122(1) of the Act is replaced by the following:

D is the provincial SIFT tax rate of the SIFT trust for the taxation year, and

(2) The description of C in the definition “taxable SIFT trust distributions” in subsection 122(3) of the Act is replaced by the following:

C is the provincial SIFT tax rate of the SIFT trust for the taxation year.

(3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years, except that those subsections also apply for a SIFT trust’s earlier taxation year if the definition “provincial SIFT tax rate” in subsection 248(1) of the Act, as enacted by subsection 34(3), applies to that earlier taxation year.

19. (1) Paragraph (a) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act is replaced by the following:

(a) that is a Canadian exploration expense incurred by a corporation after March 2008 and before 2010 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2010) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1),

(2) Paragraphs (c) and (d) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act are replaced by the following:

(c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2008 and before April 2009, and

(d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2008 and before April 2009;

(3) Subsection 127(10.2) of the Act is replaced by the following:

Expenditure limit determined

(10.2) For the purpose of subsection (10.1), a particular corporation’s expenditure limit for a particular taxation year is the amount determined by the formula

($7 million - 10A) × [($40 million - B)/$40 million]

where

A is the greater of

(a) $400,000, and

(b) the amount that is

(i) if the particular corporation is not associated with any other corporation in the particular taxation year, the particular corporation’s taxable income for its immediately preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding year), or

(ii) if the particular corporation is associated with one or more other corporations in the particular taxation year, the total of all amounts each of which is the taxable income of the particular corporation for its, or of one of the other corporations for its, last taxation year that ended in the last calendar year that ended before the end of the particular taxation year (determined before taking into consideration the specified future tax consequences for that last taxation year), and

B is

(a) nil, if the following amount is less than or equal to $10 million:

(i) if the particular corporation is not associated with any other corporation in the particular taxation year, the amount that is its taxable capital employed in Canada (within the meaning assigned by section 181.2) for its immediately preceding taxation year, or

(ii) if the particular corporation is associated with one or more other corporations in the particular taxation year, the amount that is the total of all amounts, each of which is the taxable capital employed in Canada (within the meaning assigned by section 181.2) of the particular corporation for its, or of one of the other corporations for its, last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or

(b) in any other case, the lesser of $40 million and the amount by which the amount determined under subparagraph (a)(i) or (ii), as the case may be, exceeds $10 million.

(4) Subsections (1) and (2) apply to expenses renounced under a flow through share agreement made after March 2008.

(5) Subsection (3) applies to taxation years that end on or after February 26, 2008, except that for taxation years that include February 26, 2008, the expenditure limit of a corporation shall be determined by the formula

A + [(B - A) × (C/D)]

where

A is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) as that subsection read in its application to a taxation year that ended immediately before February 26, 2008;

B is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2), as enacted by subsection (3);

C is the number of days in the taxation year that are after February 25, 2008; and

D is the number of days in the taxation year.

20. (1) Paragraph (a) of the definition “excluded right or interest” in subsection 128.1(10) of the Act is amended by adding the following after subparagraph (iii.1):

(iii.2) a TFSA,

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

21. (1) Paragraph 132.2(1)(k) of the Act is replaced by the following:

(k) if a share to which paragraph (j) applies would, but for 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) or 207.01(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 transfer time and the time at which it is disposed of in accordance with paragraph (j);

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

22. (1) Subsection 138.1(7) of the Act is replaced by the following:

Where ss. (1) to (6) do not apply

(7) Subsections (1) to (6) do not apply to the holder of a segregated fund policy with respect to such a policy that is issued or effected as a registered retirement savings plan, registered retirement income fund or TFSA or that is issued under a registered pension plan.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

23. (1) Paragraphs (b) and (c) of the definition “specified plan” in subsection 146.1(1) of the Act are replaced by the following:

(b) under which the beneficiary is an individual in respect of whom paragraphs 118.3(1)(a) to (b) apply for the beneficiary’s taxation year that ends in the 31st year following the year in which the plan was entered into, and

(c) that provides that, at all times after the end of the 35th year following the year in which the plan was entered into, no other individual may be designated as a beneficiary under the plan;

(2) Subparagraphs 146.1(2)(h)(i) and (ii) of the Act are replaced by the following:

(i) in the case of a specified plan, the 35th year following the year in which the plan was entered into, and

(ii) in any other case, the 31st year following the year in which the plan was entered into;

(3) Subparagraphs 146.1(2)(i)(i) and (ii) of the Act are replaced by the following:

(i) in the case of a specified plan, the 40th year following the year in which the plan was entered into, and

(ii) in any other case, the 35th year following the year in which the plan was entered into;

(4) Clause 146.1(2)(j)(ii)(A) of the Act is replaced by the following:

(A) the beneficiary had not attained 31 years of age before the time of the contribution, or

(5) Section 146.1 of the Act is amended by adding the following after subsection (2.2):

Extension for making educational assistance payments

(2.21) Notwithstanding paragraph (2)(g.1), an education savings plan may allow for the payment of an educational assistance payment to or for an individual at any time in the six-month period immediately following the partic- ular time at which the individual ceases to be enrolled as a student in a qualifying educational program or a specified educational program, as the case may be, if the payment would have complied with the requirements of paragraph (2)(g.1) had the payment been made immediately before the particular time.

Timing of payment

(2.22) An educational assistance payment that is made at any time in accordance with subsection (2.21) but not in accordance with paragraph (2)(g.1) is deemed, for the purposes of applying that paragraph at and after that time, to have been made immediately before the particular time referred to in subsection (2.21).

(6) Subsections (1) to (5) apply to the 2008 and subsequent taxation years, except that subsection (5) does not apply in respect of cessations of enrolment that occur before 2008.

24. (1) Section 146.2 of the Act and the heading before it are replaced by the following:

Tax-free Savings Accounts

Definitions

146.2 (1) The following definitions apply in this section and in Part XI.01.

“distribution”
« distribution »

“distribution” under an arrangement of which an individual is the holder means a payment out of or under the arrangement in satisfaction of all or part of the holder’s interest in the arrangement.

“holder”
« titulaire »

“holder” of an arrangement means

(a) until the death of the individual who entered into the arrangement with the issuer, the individual; and

(b) at and after the death of the individual, the individual’s survivor, if the survivor acquires

(i) all of the individual’s rights as the holder of the arrangement, and

(ii) to the extent it is not included in the rights described in subparagraph (i), the unconditional right to revoke any beneficiary designation made, or similar direction imposed, by the individual under the arrangement or relating to property held in connection with the arrangement.

“issuer”
« émetteur »

“issuer” of an arrangement means the person described as the issuer in the definition “qualifying arrangement”.

“qualifying arrangement”
« arrangement admissible »

“qualifying arrangement”, at a particular time, means an arrangement

(a) that is entered into after 2008 between a person (in this definition referred to as the “issuer”) and an individual (other than a trust) who is at least 18 years of age;

(b) that is

(i) an arrangement in trust with an issuer that is a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,

(ii) an annuity contract with an issuer that is a licensed annuities provider, other than a contract that is adjoined to another contract or arrangement, or

(iii) a deposit with an issuer that is

(A) a person who is, or is eligible to become, a member of the Canadian Payments Association, or

(B) a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of the Canadian Payments Act;

(c) that provides for contributions to be made under the arrangement to the issuer in consideration of, or to be used, invested or otherwise applied for the purpose of, the issuer making distributions under the arrangement to the holder;

(d) under which the issuer and the individual agree, at the time the arrangement is entered into, that the issuer will file with the Minister an election to register the arrangement as a TFSA; and

(e) that, at all times throughout the period that begins at the time the arrangement is entered into and that ends at the particular time, complies with the conditions in subsection (2).

“survivor”
« survivant »

“survivor” of an individual means another individual who is, immediately before the individual’s death, a spouse or common-law partner of the individual.

Qualifying arrangement conditions

(2) The conditions referred to in paragraph (e) of the definition “qualifying arrangement” in subsection (1) are as follows:

(a) the arrangement requires that it be maintained for the exclusive benefit of the holder (determined without regard to any right of a person to receive a payment out of or under the arrangement only on or after the death of the holder);

(b) the arrangement prohibits, while there is a holder of the arrangement, anyone that is neither the holder nor the issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds;

(d) the arrangement permits distributions to be made to reduce the amount of tax otherwise payable by the holder under section 207.02 or 207.03;

(e) the arrangement provides that, at the direction of the holder, the issuer shall transfer all or any part of the property held in connection with the arrangement (or an amount equal to its value) to another TFSA of the holder;

(f) if the arrangement is an arrangement in trust, it prohibits the trust from borrowing money or other property for the purposes of the arrangement; and

(g) the arrangement complies with prescribed conditions.

TFSA

(3) If the issuer of an arrangement that is, at the time it is entered into, a qualifying arrangement files with the Minister, on or before the day that is 60 days after the end of the calendar year in which the arrangement was entered into, an election in prescribed form and manner to register the arrangement as a TFSA under the Social Insurance Number of the individual with whom the arrangement was entered into, the arrangement becomes a TFSA at the time the arrangement was entered into and ceases to be a TFSA immediately before the earliest of the following events:

(a) the death of the last holder of the arrangement,

(b) the arrangement ceasing to be a qualifying arrangement, and

Trust not taxable

(4) No tax is payable under this Part by a trust that is governed by a TFSA on its taxable income for a taxation year, except that, if at any time in the taxation year, it carries on one or more businesses or holds one or more properties that are non-qualified investments (as defined in subsection 207.01(1)) for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or capital losses other than from dispositions of those properties, and for that purpose,

(a) “income” includes dividends described in section 83; and

(b) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition.

Amount credited to a deposit

(5) An amount that is credited or added to a deposit that is a TFSA as interest or other income in respect of the TFSA is deemed not to be received by the holder of the TFSA solely because of that crediting or adding.

Trust ceasing to be a TFSA

(6) If an arrangement that governs a trust ceases, at a particular time, to be a TFSA,

(a) the trust is deemed

(i) to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time, and

(ii) to have acquired, at the particular time, each such property at a cost equal to that fair market value;

(b) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time; and

Annuity contract ceasing to be a TFSA

(7) If an annuity contract ceases, at a particular time, to be a TFSA,

(a) the holder of the TFSA is deemed to have disposed of the contract immediately before the particular time for proceeds equal to its fair market value immediately before the particular time;

(b) the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a TFSA; and

(c) each person who has an interest or, for civil law, a right in the separate annuity contract at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.

Deposit ceasing to be a TFSA

(8) If a deposit ceases, at a particular time, to be a TFSA,

(a) the holder of the TFSA is deemed to have disposed of the deposit immediately before the particular time for proceeds equal to its fair market value immediately before the particular time; and

(b) each person who has an interest or, for civil law, a right in the deposit at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.

Arrangement is TFSA only

(9) An arrangement that is a qualifying arrangement at the time it is entered into is deemed not to be a retirement savings plan, an education savings plan, a retirement income fund or a disability savings plan.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

25. (1) Subparagraph 146.4(4)(p)(ii) of the Act is replaced by the following:

(ii) the first calendar year throughout which the beneficiary has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1).

(2) Paragraph 146.4(12)(d) of the Act is replaced by the following:

(d) if the failure consists of the plan not being terminated by the time set out in paragraph (4)(p) and the failure was due to the issuer being unaware of, or there being some uncertainty as to, the existence of circumstances requiring that the plan be terminated,

(i) the Minister may specify a later time by which the plan is to be terminated (but no later than is reasonably necessary for the plan to be terminated in an orderly manner), and

(ii) paragraph (4)(p) and the plan terms are, for the purposes of paragraphs (11)(a) and (b), to be read as though they required the plan to be terminated by the time so specified.

(3) Subsections (1) and (2) apply to the 2008 and subsequent taxation years.

26. (1) Subsection 148(1) of the Act is amended by adding the following after paragraph (b.1):

(b.2) a TFSA,

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

27. (1) Subsection 149(1) of the Act is amended by adding the following after paragraph (u.1):

TFSA trust

(u.2) a trust governed by a TFSA to the extent provided by section 146.2;

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

28. (1) Clauses 150(1)(a)(i)(C) and (D) of the Act are replaced by the following:

(D) disposes of a taxable Canadian property (otherwise than in an excluded disposition), or

(2) Subparagraph 150(1)(a)(ii) of the Act is replaced by the following:

(ii) tax under this Part

(A) is payable by the corporation for the year, or

(B) would be, but for a tax treaty, payable by the corporation for the year (otherwise than in respect of a disposition of taxable Canadian property that is treaty-protected property of the corporation);

(3) Subparagraph 150(1.1)(b)(iii) of the Act is replaced by the following:

(iii) where the individual is non-resident throughout the year, the individual has a taxable capital gain (otherwise than from an excluded disposition) or disposes of a taxable Canadian property (otherwise than in an excluded disposition) in the year, or

(4) Section 150 of the Act is amended by adding the following after subsection (4):

Excluded disposition

(5) For the purposes of this section, a disposition of a property by a taxpayer at any time in a taxation year is an excluded disposition if

(a) the taxpayer is non-resident at that time;

(b) no tax is payable under this Part by the taxpayer for the taxation year;

(c) the taxpayer is, at that time, not liable to pay any amount under this Act in respect of any previous taxation year (other than an amount for which the Minister has accepted, and holds, adequate security under section 116 or 220); and

(d) each taxable Canadian property disposed of by the taxpayer in the taxation year is

(i) excluded property within the meaning assigned by subsection 116(6), or

(ii) a property in respect of the disposition of which the Minister has issued to the taxpayer a certificate under subsection 116(2), (4) or (5.2).

(5) Subsections (1) to (4) apply in respect of dispositions of property that occur after 2008.

29. (1) Section 153 of the Act is amended by adding the following after subsection (1.3):

Exception — remittance to designated financial institution

(1.4) For the purpose of subsection (1), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at a designated financial institution if the prescribed person has remitted the amount to the Receiver General at least one day before the day upon which the amount is due.

(2) Subsection (1) applies in respect of remittances by a prescribed person that are first due after February 25, 2008.

30. (1) The description of C in subsection 197(2) of the Act is replaced by the following:

C is the provincial SIFT tax rate of the SIFT partnership for the taxation year.

(2) Subsection (1) applies to the 2009 and subsequent taxation years, except that that subsection also applies for a SIFT partnership’s earlier taxation year if the definition “provincial SIFT tax rate” in subsection 248(1) of the Act, as enacted by subsection 34(3), applies to that earlier taxation year.

31. (1) The Act is amended by adding the following after Part XI:

PART XI.01

TAXES IN RESPECT OF TFSAs

Definitions

207.01 (1) The definitions in subsection 146.2(1) and the following definitions apply in this Part.

“advantage”
« avantage »

“advantage”, in relation to a TFSA, means

(a) any benefit, loan or indebtedness that is conditional in any way on the existence of the TFSA, other than

(i) a benefit derived from the provision of administrative or investment services in respect of the TFSA, and

(ii) a loan or an indebtedness (including the use of the TFSA as security for a loan or an indebtedness) the terms and conditions of which are terms and conditions that persons dealing at arm’s length with each other would have entered into; and

(b) a prescribed benefit.

“allowable refund”
« remboursement admissible »

“allowable refund” of a person for a calendar year means the total of all amounts each of which is a refund, for the year, to which the person is entitled under subsection 207.04(4).

“excess TFSA amount”
« excédent CÉLI »

“excess TFSA amount” of an individual at a particular time in a calendar year means the amount, if any, determined by the formula

A - B - C - D - E

where

A is the total of all amounts each of which is a contribution made under a TFSA by the individual in the calendar year and at or before the particular time, other than a contribution that is

(a) a qualifying transfer, or

(b) an exempt contribution;

B is the individual’s unused TFSA contribution room at the end of the preceding calendar year;

C is the total of all amounts each of which was a distribution made in the preceding calendar year under a TFSA of which the individual was the holder at the time of the distribution, other than a distribution that is

(a) a qualifying transfer, or

(b) a prescribed distribution;

D is

(a) the TFSA dollar limit for the calendar year if, at any time in the calendar year, the individual is resident in Canada, and

(b) nil, in any other case; and

E is the total of all amounts each of which is a distribution made in the calendar year and at or before the particular time under a TFSA of which the individual was the holder at the time of the distribution, other than a distribution that is

(a) a qualifying transfer, or

(b) a prescribed distribution.

“non-qualified investment”
« placement non admissible »

“non-qualified investment” for a trust governed by a TFSA means property that is not a qualified investment for the trust.

“prohibited investment”
« placement interdit »

“prohibited investment”, at any time, for a trust governed by a TFSA means property (other than prescribed property in relation to the trust) that is at that time

(a) a debt of the holder of the TFSA;

(b) a share of the capital stock of, an interest in, or a debt of

(i) a corporation, partnership or trust in which the holder has a significant interest, or

(ii) a person or partnership that does not deal at arm’s length with the holder or with a person or partnership described in subparagraph (i);

(c) an interest (or, for civil law, a right) in, or a right to acquire, a share, interest or debt described in paragraph (a) or (b); or

(d) restricted property.

“qualified investment”
« placement admissible »

“qualified investment” for a trust governed by a TFSA 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 TFSA” 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 if

(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; and

“qualifying transfer”
« transfert admissible »

“qualifying transfer” means the transfer of an amount from a TFSA of which a particular individual is the holder if

(a) the amount is transferred directly to another TFSA, the holder of which is the particular individual; or

(b) the amount is transferred directly to another TFSA, the holder of which is a spouse or common-law partner or former spouse or common-law partner of the partic- ular individual, and the following conditions are satisfied:

(i) the individuals are living separate and apart at the time of the transfer, and

(ii) the transfer is made under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a division of property between the individuals in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership.

“restricted property”
« bien d’exception »

“restricted property” has the meaning assigned by regulation.

“TFSA dollar limit”
« plafond CÉLI »

“TFSA dollar limit” for a calendar year means,

(a) for 2009, $5,000; and

(b) for each year after 2009, the amount (rounded to the nearest multiple of $500, or if that amount is equidistant from two such consecutive multiples, to the higher multiple) that is equal to $5,000 adjusted for each year after 2009 in the manner set out in section 117.1.

“unused TFSA contribution room”
« droits inutilisés de cotisation à un CÉLI »

“unused TFSA contribution room” of an individual at the end of a calendar year means,

(a) if the year is before 2009, nil; and

(b) in any other case, the positive or negative amount determined by the formula

A + B + C - D

where

A is the individual’s unused TFSA contribution room at the end of the preceding calendar year,

B is the total of all amounts each of which was a distribution made in the preceding calendar year under a TFSA of which the individual was the holder at the time of the distribution, other than a distribution that is

(i) a qualifying transfer, or

(ii) a prescribed distribution,

C is

(i) the TFSA dollar limit for the calendar year, if at any time in the calendar year the individual is 18 years of age or older and resident in Canada, and

(ii) nil, in any other case, and

D is the total of all amounts each of which is a contribution made under a TFSA by the individual in the calendar year, other than a contribution that is

(i) a qualifying transfer, or

(ii) an exempt contribution.

Exempt contribution to survivor TFSA

(2) A contribution made in a taxation year under a TFSA by the survivor of an individual is an exempt contribution if

(a) the contribution is made during the period (in this subsection referred to as the “rollover period”) that begins when the individual dies and that ends on the second anniversary of the individual’s death (or on any later day that is acceptable to the Minister);

(b) a payment (in this subsection referred to as the “survivor payment”) was made to the survivor during the rollover period, as a consequence of the individual’s death, directly or indirectly out of or under an arrangement that ceased, because of the individual’s death, to be a TFSA;

(c) the survivor designates, in prescribed form filed with the survivor’s return of income for the taxation year, the contribution in relation to the survivor payment; and

(d) the amount of the contribution does not exceed the least of

(i) the amount, if any, by which

(A) the amount of the survivor payment

exceeds

(B) the total of all other contributions designated by the survivor in relation to the survivor payment,

(ii) the amount, if any, by which

(A) the total proceeds of disposition determined in respect of the arrangement under paragraph 146.2(6)(a), (7)(a) or (8)(a), as the case may be,

exceeds

(B) the total of all other exempt contributions in respect of the arrangement made by the survivor at or before the time of the contribution, and

(iii) if the individual had, immediately before the individual’s death, an excess TFSA amount or if payments described in paragraph (b) are made to more than one survivor of the individual, nil or the greater amount, if any, allowed by the Minister in respect of the contribution.

Survivor as successor holder

(3) If an individual’s survivor becomes the holder of a TFSA as a consequence of the individual’s death and, immediately before the individual’s death, the individual had an excess TFSA amount, the survivor is deemed (other than for the purposes of subsection (2)) to have made, at the beginning of the month following the individual’s death, a contribution under a TFSA equal to the amount, if any, by which

(a) that excess TFSA amount

exceeds

(b) the total fair market value immediately before the individual’s death of all property held in connection with arrangements that ceased, because of the individual’s death, to be TFSAs.

Significant interest

(4) An individual has a significant interest in a corporation, partnership or trust at any time if

(a) in the case of a corporation, the individ- ual is a specified shareholder of the corporation at that time;

(b) in the case of a partnership, the individ- ual, or the individual together with persons and partnerships with which the individual does not deal at arm’s length, holds at that time interests as a member of the partnership that have a fair market value of 10% or more of the fair market value of the interests of all members in the partnership; and

(c) in the case of a trust, the individual, or the individual together with persons and partnerships with which the individual does not deal at arm’s length, holds at that time interests as a beneficiary (in this paragraph, as defined in subsection 108(1)) under the trust that have a fair market value of 10% or more of the fair market value of the interests of all beneficiaries under the trust.

Obligation of issuer

(5) The issuer of a TFSA shall exercise the care, diligence and skill of a reasonably prudent person to minimize the possibility that a trust governed by the TFSA holds a non-qualified investment.

Tax payable on excess TFSA amount

207.02 If, at any time in a calendar month, an individual has an excess TFSA amount, the individual shall, in respect of that month, pay a tax under this Part equal to 1% of the highest such amount in that month.

Tax payable on non-resident contributions

207.03 If, at a particular time, a non-resident individual makes a contribution under a TFSA, the individual shall pay a tax under this Part equal to 1% of the amount of the contribution in respect of each month that ends after the particular time and before the earlier of

(a) the first time after the particular time at which the amount of the contribution is equalled or exceeded by the total of all amounts each of which is a distribution

(i) that is made after the particular time under a TFSA of which the individual is the holder, and

(ii) that the individual designates in prescribed manner to be a distribution in connection with the contribution and not in connection with any other contribution, and

(b) the time at which the individual becomes resident in Canada.

Tax payable on prohibited or non-qualified investment

207.04 (1) The holder of a TFSA that governs a trust shall pay a tax under this Part for a calendar year if, at any time in the year,

(a) the trust acquires property that is a prohibited investment, or a non-qualified investment, for the trust; or

(b) property held by the trust becomes a prohibited investment, or a non-qualified investment, for the trust.

Amount of tax payable

(2) The amount of tax payable in respect of each property described in subsection (1) is 50% of the fair market value of the property at the time referred to in that subsection.

Where both prohibited and non-qualified investment

(3) For the purposes of subsection 146.2(4) and this section, if a trust governed by a TFSA holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.

Refund of tax on disposition of investment

(4) If in a calendar year a trust governed by a TFSA disposes of a property in respect of which a tax is imposed under subsection (1) on the holder of the TFSA, the holder is entitled to a refund for the year of an amount equal to

(a) except where paragraph (b) applies, the amount of the tax so imposed; or

(b) nil,

(i) if it is reasonable to consider that the holder knew, or ought to have known, at the time the property was acquired by the trust, that it was, or would become, a property described in subsection (1), 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.

Deemed disposition and reacquisition

(5) For the purposes of this Act, if property held by a trust in respect of which a tax was imposed under subsection (1) ceases, at any particular time after the tax is imposed, to be a prohibited investment, or a non-qualified investment, for the trust, the trust is deemed to have disposed of the property immediately before the particular time for proceeds of disposition equal to its fair market value at the particular time and to have reacquired it immediately after the particular time at a cost equal to that fair market value.

Additional tax payable on prohibited investment

(6) The holder of a TFSA that governs a trust shall pay a tax under this Part for a calendar year, in addition to any tax imposed under subsection (1) for the year, if at any time in the year the trust holds one or more properties that are prohibited investments for the trust.

Amount of additional tax payable

(7) The amount of tax payable under subsection (6) for a calendar year is the amount of tax that would be payable under Part I by the trust for the taxation year that ends in the calendar year if

(a) the Act were read without reference to paragraph 82(1)(b), section 121 and subsection 146.2(4); and

(b) the trust had no incomes or losses from sources other than the properties referred to in subsection (6), and no capital gains or capital losses other than from dispositions of those properties, and for that purpose,

(i) “income” includes dividends described in section 83, and

(ii) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition.

Tax payable where advantage extended

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

Amount of tax payable

(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 or an indebtedness, the amount of the loan or indebtedness.

Liability for tax

(3) The holder of a TFSA in connection with which a tax is imposed under subsection (1) is liable to pay the tax except that, if the advantage is extended by the issuer of the TFSA or by a person with whom the issuer is not dealing at arm’s length, the issuer, and not the holder, is liable to pay the tax.

Waiver of tax payable

207.06 (1) If an individual would otherwise be liable to pay a tax under this Part because of section 207.02 or 207.03, the Minister may waive or cancel all or part of the liability if

(a) the individual establishes to the satisfaction of the Minister that the liability arose as a consequence of a reasonable error; and

(b) the individual acts without delay to cause one or more distributions to be made, under one or more TFSAs, the total amount of which is not less than the amount in respect of which the individual would otherwise be liable to pay the tax.

Waiver of tax payable

(2) If a person would otherwise be liable to pay a tax under this Part because of section 207.04 or 207.05, the Minister may waive or cancel all or part of the liability where the Minister considers it 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 that gave rise to the tax also gave rise to another tax under this Part.

Return and payment of tax

207.07 (1) A person who is liable to pay tax under this Part for all or any part of 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 subsection in prescribed form and containing prescribed information including

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

(ii) an estimate of the amount of the person’s allowable refund, if any, 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 in respect of the year exceeds the person’s allowable refund, if any, for the year.

Refund

(2) If 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.

Provisions applicable to Part

(3) 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.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

32. (1) Paragraph (a) of the definition “registered life insurance policy” in subsection 211(1) of the Act is replaced by the following:

(a) as a registered retirement savings plan or TFSA, or

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

33. (1) Paragraph 227(9)(a) of the Act is replaced by the following:

(a) subject to paragraph (b), if

(i) the Receiver General receives that amount on or before the day it was due, but that amount is not paid in the manner required, 3% of that amount,

(ii) the Receiver General receives that amount

(A) no more than three days after it was due, 3% of that amount,

(B) more than three days and no more than five days after it was due, 5% of that amount, or

(iii) that amount is not paid or remitted on or before the seventh day after it was due, 10% of that amount; or

(2) Subsection (1) applies in respect of payments and remittances that are required to be first made after February 25, 2008.

34. (1) The definition “provincial SIFT tax factor” in subsection 248(1) of the Act is repealed.

(2) 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, a registered supplementary unemployment benefit plan or a TFSA, the transferee is the same type of trust, and

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

“provincial SIFT tax rate”
« taux d’imposition provincial des EIPD »

“provincial SIFT tax rate” of a SIFT trust or a SIFT partnership for a taxation year means the prescribed amount determined in respect of the SIFT trust or SIFT partnership for the taxation year;

“TFSA”
« compte d’épargne libre d’impôt »

“TFSA”, being a tax-free savings account, has the meaning assigned by subsection 146.2(3);

(4) Subsection (1) and the definition “provincial SIFT tax rate” in subsection 248(1) of the Act, as enacted by subsection (3), apply to the 2009 and subsequent taxation years, except that that subsection and that definition also apply

(a) to the 2007 and 2008 taxation years of a SIFT trust if the SIFT trust so elects in its return of income for the 2007 taxation year;

(b) to the 2007 and 2008 taxation years of a SIFT partnership if the SIFT partnership so elects in its return for 2007 required under Part IX.1 of the Act;

(c) to the 2008 taxation year of a SIFT trust if the SIFT trust so elects in its return of income for the 2008 taxation year; and

(d) to the 2008 taxation year of a SIFT partnership if the SIFT partnership so elects in its return for 2008 required under Part IX.1 of the Act.

(5) Subsection (2) and the definition “TFSA” in subsection 248(1) of the Act, as enacted by subsection (3), apply to the 2009 and subsequent taxation years.

35. (1) Subsection 252(3) of the Act is replaced by the following:

Extended meaning of “spouse” and “former spouse”

(3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) and (j), section 60.1, subsections 70(6) and (6.1), 73(1) and (5) and 104(4), (5.1) and (5.4), the definition “pre-1972 spousal trust” in subsection 108(1), subsection 146(16), the definition “survivor” in subsection 146.2(1), subparagraph 146.3(2)(f)(iv), subsections 146.3(14), 147(19), 147.3(5) and (7) and 148(8.1) and (8.2), the definition “small business property” in subsection 206(1), the definition “qualifying transfer” in subsection 207.01(1), subparagraph 210(c)(ii) and subsections 248(22) and (23), “spouse” and “former spouse” of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

36. (1) Section 253.1 of the Act is replaced by the following:

Investments in limited partnerships

253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b) and 132(6)(b), subsection 146.2(4), paragraphs 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) Subsection (1) applies to the 2009 and subsequent taxation years.

37. (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following:

Proportional holdings in trust property

259. (1) For the purposes of subsections 146(6), (10) and (10.1), 146.2(4) and 146.3(7), (8) and (9) and Parts X, X.2 and XI to XI.1, if at any time a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,

(2) Subsection (1) applies to the 2009 and subsequent taxation years.

R.S., c. C-8

Canada Pension Plan

38. (1) Section 21 of the Canada Pension Plan is amended by adding the following after subsection (1):

Exception — remittance to financial institution

(1.1) For the purpose of subsection (1), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at a financial institution referred to in that subsection if the prescribed person has remitted the amount to the Receiver General at least one day before the day on which the amount is due.

R.S., c. 46 (4th Supp.), s. 1

(2) Paragraph 21(7)(a) of the Act is replaced by the following:

(a) subject to paragraph (b), if

(i) the Receiver General receives that amount on or before the day it was due, but that amount is not paid in the manner required, three per cent of that amount,

(ii) the Receiver General receives that amount

(A) no more than three days after it was due, three per cent of that amount,

(B) more than three days and no more than five days after it was due, five per cent of that amount, or

(iii) that amount is not paid or remitted on or before the seventh day after it was due, ten per cent of that amount; or

(3) Subsection (1) applies in respect of remittances by a prescribed person that are first due after February 25, 2008.

(4) Subsection (2) applies in respect of payments and remittances that are required to be first made after February 25, 2008.

1996, c. 23

Employment Insurance Act

39. (1) Section 82 of the Employment Insurance Act is amended by adding the following after subsection (3):

Exception — remittance to financial institution

(3.1) For the purpose of subsection (3), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at a financial institution referred to in that subsection if the prescribed person has remitted the amount to the Receiver General at least one day before the day on which the amount is due.

(2) Paragraph 82(9)(a) of the Act is replaced by the following:

(a) subject to paragraph (b), if

(i) the Receiver General receives that amount on or before the day it was due, but that amount is not paid in the manner required, 3% of that amount,

(ii) the Receiver General receives that amount

(A) no more than three days after it was due, 3% of that amount,

(B) more than three days and no more than five days after it was due, 5% of that amount, or

(iii) that amount is not paid or remitted on or before the seventh day after it was due, 10% of that amount; or

(3) Subsection (1) applies in respect of remittances by a prescribed person that are first due after February 25, 2008.

(4) Subsection (2) applies in respect of payments and remittances that are required to be first made after February 25, 2008.

Coordinating Amendments

Bill C-10

40. Sections 41 to 44 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.

41. (1) If the other Act is assented to before or on the same day as the day on which this Act is assented to, then

(a) section 21 of this Act is deemed never to have come into force and is repealed; and

(b) paragraph 132.2(3)(h) of the Income Tax Act, as enacted by subsection 130(1) of the other Act, is replaced by the following:

(h) if 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) or 207.01(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 this Act is assented to before the day on which the other Act is assented to, then paragraph 132.2(3)(h) of the Income Tax Act, as enacted by subsection 130(1) of the other Act, is replaced by the following:

(3) The replacement of paragraph 132.2(3)(h) of the Income Tax Act by the operation of paragraph (1)(b) or subsection (2) applies in respect of the 2009 and subsequent taxation years.

42. (1) On the first day on which both subsection 190(1) of the other Act and section 35 of this Act are in force, subsection 252(3) of the Income Tax Act is replaced by the following:

Extended meaning of “spouse” and “former spouse”

(3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) and (j), section 60.1, subsections 70(6) and (6.1), 73(1) and (5) and 104(4), (5.1) and (5.4), the definition “pre-1972 spousal trust” in subsection 108(1), subsection 146(16), the definition “survivor” in subsection 146.2(1), subparagraph 146.3(2)(f)(iv), subsections 146.3(14), 147(19), 147.3(5) and (7) and 148(8.1) and (8.2), the definition “small business property” in subsection 206(1), the definition “qualifying transfer” in subsection 207.01(1), and subsections 210(1) and 248(22) and (23), “spouse” and “former spouse” of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.

(2) The replacement of subsection 252(3) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2009 and subsequent taxation years.

43. (1) On the first day on which both subsection 191(1) of the other Act and section 36 of this Act are in force, section 253.1 of the Income Tax Act is replaced by the following:

Investments in limited partnerships

253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 146.1(2.1)(c), subsection 146.2(4), paragraphs 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 2009 and subsequent taxation years.

44. (1) On the first day on which both subsection 193(1) of the other Act and section 37 of this Act are in force, the portion of subsection 259(1) of the Income Tax Act before paragraph (a) is replaced by the following:

Proportional holdings in trust property

259. (1) For the purposes of subsections 146(6), (10) and (10.1), 146.1(2.1), 146.2(4) and 146.3(7), (8) and (9) and Parts X, X.2 and XI to XI.1, if at any time a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,

(2) The replacement of the portion of subsection 259(1) of the Income Tax Act before paragraph (a) by the operation of subsection (1) applies in respect of the 2009 and subsequent taxation years.

Conditional Amendments

Bill C-253

45. Sections 46 to 48 apply if Bill C-253, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the Income Tax Act (deductibility of RESP contributions) (referred to in those sections as the “other Act”), receives royal assent.

46. Paragraph 60(i) of the Income Tax Act, as enacted by section 1 of the other Act, is replaced by the following:

Premium or payment under RRSP or RRIF

(i) any amount that is deductible under section 146 or subsection 147.3(13.1) in computing the income of the taxpayer for the year;

47. (1) Subsection 146.1(2.01) of the Income Tax Act, as enacted by subsection 2(1) of the other Act, is repealed.

(2) Subsection 146.1(7.1) of the Income Tax Act, as amended by subsection 2(2) of the other Act, is amended by adding the word “and” at the end of paragraph (a), by striking out the word “and” at the end of paragraph (b) and by repealing paragraph (c).

(3) Section 146.1 of the Income Tax Act is amended by adding the following after subsection (7.1):

Excluded amount

(7.2) For the purpose of paragraph (7.1)(b), an excluded amount in respect of a registered education savings plan is

(a) any amount received under the plan;

(b) any amount received in satisfaction of a right to a refund of payments under the plan; or

(c) any amount received by a taxpayer under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the taxpayer and the taxpayer’s spouse or common-law partner or former spouse or common-law partner in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership.

48. Sections 46 and 47 come into force, or are deemed to have come into force, on the day on which the other Act receives royal assent.

PART 2

AMENDMENTS IN RESPECT OF EXCISE DUTY ON TOBACCO PRODUCTS AND ALCOHOL

R.S., c. E-14

Excise Act

2002, c. 22, s. 364

49. (1) The definition “beer” or “malt liquor” in section 4 of the Excise Act is replaced by the following:

“beer” or “malt liquor”
« bière » ou « liqueur de malt »

“beer” or “malt liquor” means all fermented liquor that is brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, but does not include wine as defined in section 2 of the Excise Act, 2001;

(2) With respect to fermented liquor that is brewed by a brewer in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength in excess of 11.9% absolute ethyl alcohol by volume, a valid licence held by the brewer under the Excise Act is deemed to be a valid spirits licence issued under section 14 of the Excise Act, 2001 until the day that is 30 days after the day on which this Act is assented to.

(3) For the purposes of applying the provisions of the Excise Act, 2001 and of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this section had come into force on February 27, 2008.

(4) Subsections (1) and (2) are deemed to have come into force on February 27, 2008.

2002, c. 22

Excise Act, 2001

Amendments to the Act

50. Section 2 of the Excise Act, 2001 is amended by adding the following in alphabetical order:

“tobacco manufacturing equipment”
« matériel de fabrication du tabac »

“tobacco manufacturing equipment” means any machinery or equipment designed or modified specifically for the manufacture of a tobacco product.

51. (1) Subsection 5(1) of the Act is replaced by the following:

Constructive possession

5. (1) For the purposes of subsections 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1) and sections 230 and 231, if one of two or more persons, with the knowledge and consent of the rest of them, has anything in the person’s possession, it is deemed to be in the custody and possession of each and all of them.

(2) The portion of subsection 5(2) of the Act before paragraph (a) is replaced by the following:

Meaning of “possession”

(2) In this section and in subsections 30(1), 32(1) and 32.1(1), section 61 and subsections 70(1) and 88(1), “possession” means not only having in one’s own personal possession but also knowingly

52. (1) Subsection 23(1) of the Act is replaced by the following:

Refusal to issue licence or registration

23. (1) The Minister may refuse to issue a licence or registration to a person if the Minister has reason to believe

(a) that access to the person’s premises will be denied or impeded by any person; or

(b) that the refusal is otherwise in the public interest.

(2) Section 23 of the Act is amended by adding the following after subsection (2):

Cancellation, etc. — access to premises

(2.1) The Minister may amend, suspend or cancel any licence or registration of a person if

(a) access to the premises of the licensee or registrant is denied or impeded by any person; or

(b) it is otherwise in the public interest.

53. The Act is amended by adding the following after section 32:

Prohibition — possession of tobacco manufacturing equipment

32.1 (1) No person shall possess tobacco manufacturing equipment with the intent of manufacturing a tobacco product unless

(a) the person is a tobacco licensee; or

(b) the person is an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3).

Prohibition — importation of tobacco manufacturing equipment

(2) No person shall import tobacco manufacturing equipment unless

(a) the person is a tobacco licensee;

(b) the equipment is designed for use by an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3) and is not designed for commercial manufacturing;

(c) the person provides evidence satisfactory to the Minister of Public Safety and Emergency Preparedness that the equipment is imported

(i) on a tobacco licensee’s behalf,

(ii) for the sole purpose of maintenance, alteration or repair in Canada, if the equipment is intended to be exported immediately after the maintenance, alteration or repair is completed,

(iii) by or on behalf of a person who carries on a business of supplying that equipment, or

(iv) for in-transit movement through Canada; or

(d) it is imported in prescribed circumstances or under prescribed terms and conditions.

2007, c. 18, s. 82(1)

54. (1) The portion of subsection 38(2) of the Act before paragraph (a) is replaced by the following:

No delivery of imported tobacco without markings

(2) Subject to subsections (2.1) and (3), no person shall deliver a container of imported manufactured tobacco or cigars that does not have printed on it or affixed to it tobacco markings and other prescribed information to

(2) Section 38 of the Act is amended by adding the following after subsection (2):

Delivery of imported stamped tobacco

(2.1) A container of imported manufactured tobacco that was manufactured outside Canada and is stamped may be delivered to

(a) a duty free shop for sale or offer for sale in accordance with the Customs Act; or

(b) a customs bonded warehouse.

(3) Subsections (1) and (2) are deemed to have come into force on February 27, 2008.

55. (1) Section 47 of the Act is renumbered as subsection 47(1) and is amended by adding the following:

Duty relieved — reimportation of stamped tobacco by individual

(2) The duty imposed under section 42 is relieved on manufactured tobacco imported by an individual for their personal use if it was manufactured outside Canada, was previously imported into Canada and is stamped.

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

56. (1) Subsection 53(1) of the Act is replaced by the following:

Special duty on imported manufactured tobacco delivered to duty free shop

53. (1) A special duty is imposed, at the rates set out in section 1 of Schedule 3, on imported manufactured tobacco that is delivered to a duty free shop and that is not stamped.

(2) Subsection (1) applies to imported manufactured tobacco that is delivered after February 26, 2008.

57. (1) Subsection 54(4) of the Act is replaced by the following:

Exception

(4) The special duty is not imposed on traveller’s tobacco imported by an individual for their personal use if duty under section 42 was previously imposed on the tobacco and the tobacco is stamped.

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

58. (1) The Act is amended by adding the following after section 180:

Refund — imported black stock tobacco

180.1 (1) The Minister may refund to a person who has imported manufactured tobacco an amount determined in accordance with subsection (2) in respect of the tobacco if

(a) the person provides evidence satisfactory to the Minister that

(i) duty was imposed on the tobacco under section 42 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1 and paid, and

(ii) the tobacco was black stock

(A) that was delivered to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations, or

(B) that was exported for delivery to a foreign duty free shop or as foreign ships’ stores; and

(b) the person applies to the Minister for the refund within two years after the tobacco was imported.

Determination of refund

(2) The amount of the refund is equal to the amount by which

(a) the duty referred to in subparagraph (1)(a)(i)

exceeds

(b) the duty that would have been imposed under section 42 on the tobacco if the applicable rate of duty had been the rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1.

(2) Subsection (1) applies to imported manufactured tobacco that is black stock and that is, after February 26, 2008,

(a) delivered to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations; or

(b) exported for delivery to a foreign duty free shop or as foreign ships’ stores.

59. Section 206 of the Act is amended by adding the following after subsection (2):

Keeping records — tobacco manufacturing equipment

(2.1) Every person who possesses tobacco manufacturing equipment (other than equipment that is designed for use by an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3) and that is not designed for commercial manufacturing) shall keep records that will enable the determination of the source, the type and the disposition of that equipment.

60. The portion of section 214 of the Act before paragraph (a) is replaced by the following:

Unlawful production, sale, etc., of tobacco or alcohol

214. Every person who contravenes section 25, 27 or 29, subsection 32.1(1) or section 60 or 62 is guilty of an offence and liable

2007, c. 35, s. 202(1)

61. (1) Subparagraph 216(2)(a)(ii) of the Act is replaced by the following:

(ii) $0.17 multiplied by the number of tobacco sticks to which the offence relates,

2007, c. 35, s. 202(2)

(2) Subparagraph 216(3)(a)(ii) of the Act is replaced by the following:

(ii) $0.255 multiplied by the number of tobacco sticks to which the offence relates,

2007, c. 35, s. 203(1)

62. Paragraph 240(b) of the Act is replaced by the following:

(b) $0.361448 per tobacco stick that was removed in contravention of that subsection, and

2003, c. 15, s. 48(1)

63. (1) The portion of paragraph 2(a) of Schedule 1 to the Act before subparagraph (i) is replaced by the following:

(a) $0.074975 per stick, if the tobacco sticks are black stock

2007, c. 35, s. 205(1)

(2) Paragraph 2(b) of Schedule 1 to the Act is replaced by the following:

(b) $0.085 per stick, in any other case.

(3) Subsections (1) and (2) are deemed to have come into force on February 27, 2008.

2003, c. 15, s. 49(1)

64. (1) The portion of paragraph 3(a) of Schedule 1 to the Act before subparagraph (i) is replaced by the following:

(a) $2.49915 per 50 grams or fraction of 50 grams contained in any package, if the manufactured tobacco is black stock

2007, c. 35, s. 206(1)

(2) Paragraph 3(b) of Schedule 1 to the Act is replaced by the following:

(b) $2.8925 per 50 grams or fraction of 50 grams contained in any package, in any other case.

(3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2008.

2003, c. 15, s. 51

65. (1) Paragraphs 1(b) and (c) of Sched- ule 3 to the Act are replaced by the following:

(b) $0.075 per stick, in the case of tobacco sticks; and

(c) $2.50 per 50 grams or fraction of 50 grams contained in any package, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

(2) Paragraph 1(b) of Schedule 3 to the Act, as enacted by subsection (1), is deemed to have come into force on February 27, 2008.

(3) Paragraph 1(c) of Schedule 3 to the Act, as enacted by subsection (1), comes into force, or is deemed to have come into force, on July 1, 2008.

2003, c. 15, s. 52

66. (1) Paragraphs 2(b) and (c) of Sched- ule 3 to the Act are replaced by the following:

(b) $0.075 per stick, in the case of tobacco sticks; and

(c) $2.50 per 50 grams or fraction of 50 grams contained in any package, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

(2) Paragraph 2(b) of Schedule 3 to the Act, as enacted by subsection (1), is deemed to have come into force on February 27, 2008.

(3) Paragraph 2(c) of Schedule 3 to the Act, as enacted by subsection (1), comes into force, or is deemed to have come into force, on July 1, 2008.

2003, c. 15, s. 53

67. (1) Paragraph 3(b) of Schedule 3 to the Act is replaced by the following:

(b) $0.075 per stick, in the case of tobacco sticks; and

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

2003, c. 15, s. 54

68. (1) Paragraphs 4(b) and (c) of Sched- ule 3 to the Act are replaced by the following:

(b) $0.095724 per stick, in the case of tobacco sticks; and

(c) $2.3001 per 50 grams or fraction of 50 grams contained in any package, in the case of tobacco products other than cigarettes or tobacco sticks.

(2) Paragraph 4(b) of Schedule 3 to the Act, as enacted by subsection (1), is deemed to have come into force on February 27, 2008.

(3) Paragraph 4(c) of Schedule 3 to the Act, as enacted by subsection (1), comes into force, or is deemed to have come into force, on July 1, 2008.

Application

69. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though

(a) section 63, paragraph 1(b) of Schedule 3 to the Act, as enacted by subsection 65(1), paragraph 2(b) of Schedule 3 to the Act, as enacted by subsection 66(1), section 67 and paragraph 4(b) of Schedule 3 to the Act, as enacted by subsection 68(1), had come into force on February 27, 2008; and

(b) section 64, paragraph 1(c) of Schedule 3 to the Act, as enacted by subsection 65(1), paragraph 2(c) of Schedule 3 to the Act, as enacted by subsection 66(1), and paragraph 4(c) of Schedule 3 to the Act, as enacted by subsection 68(1), had come into force on July 1, 2008.

Related Amendments

1997, c. 36

Customs Tariff

70. (1) The definition “spirits” in section 21 of the Customs Tariff is amended by striking out the word “or” at the end of paragraph (a) and by adding the following after that paragraph:

(a.1) of an alcoholic strength by volume exceeding 11.9%, of heading No. 22.03, that are classified under that heading or with the container in which they are imported; or

(2) For the purposes of applying the provisions of the Excise Act, 2001 and of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this section had come into force on February 27, 2008.

(3) Subsection (1) is deemed to have come into force on February 27, 2008.

2002, c. 22, s. 350

71. (1) Subsection 92(3) of the Act is replaced by the following:

Exception

(3) This section does not apply to any duty imposed under the Excise Act, 2001 in respect of manufactured tobacco that is manufactured in Canada and imported manufactured tobacco that is stamped in accordance with that Act.

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

PART 3

AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX (GST/HST)

R.S., c. E-15

Excise Tax Act

72. (1) Subsection 162(2) of the Excise Tax Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or’’ at the end of paragraph (c) and by adding the following after paragraph (c):

(d) a right to enter or use land to generate, or evaluate the feasibility of generating, electricity from the sun or wind,

2000, c. 30, s. 26(2)

(2) Subsection 162(3) of the Act is replaced by the following:

Exception

(3) Subsection (2) does not apply to a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, a right of entry or user relating thereto or a right referred to in paragraph (2)(d), if the supply is made to

(a) a consumer; or

(b) a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals, peat or electricity to consumers.

(3) Subsections (1) and (2) apply to

(a) any supply made on or after February 26, 2008; and

(b) any supply made before February 26, 2008, but only in respect of the portion of the consideration for the supply that becomes due, or is paid without having become due, on or after February 26, 2008.

1993, c. 27, s. 56(2)

73. (1) Subparagraph 191(1)(b)(i) of the Act is replaced by the following:

(i) gives possession or use of the complex to a particular person under a lease, licence or similar arrangement (other than an arrangement, under or arising as a consequence of an agreement of purchase and sale of the complex, for the possession or occupancy of the complex until ownership of the complex is transferred to the purchaser under the agreement) entered into for the purpose of its occupancy by an individual as a place of residence,

1993, c. 27, s. 56(2)

(2) The portion of subparagraph 191(1)(b)(ii) of the Act before clause (A) is replaced by the following:

(ii) gives possession or use of the complex to a particular person under an agreement for

1993, c. 27, s. 56(1)

(3) Paragraph 191(1)(c) of the Act is replaced by the following:

(c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of the complex with the particular person, is the first individual to occupy the complex as a place of residence after substantial completion of the construction or renovation,

1993, c. 27, s. 56(1)

(4) Paragraph 191(1)(d) of the Act is replaced by the following:

(d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the complex is so given to the particular person or the complex is so occupied by the builder, a taxable supply by way of sale of the complex, and

2000, c. 30, s. 40(1)

(5) Subparagraph 191(3)(b)(i) of the Act is replaced by the following:

(i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the complex under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

2000, c. 30, s. 40(1)

(6) The portion of subparagraph 191(3)(b)(i.1) of the Act before clause (A) is replaced by the following:

(i.1) gives possession or use of any residential unit in the complex to a particular person under an agreement for

1990, c. 45, s. 12(1); 2000, c. 30, s. 40(1)

(7) Paragraph 191(3)(c) of the Act is replaced by the following:

(c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the complex with the particular person, is the first individual to occupy a residential unit in the complex as a place of residence after substantial completion of the construction or renovation,

1993, c. 27, s. 56(4); 2000, c. 30, s. 40(1)

(8) Paragraph 191(3)(d) of the Act is replaced by the following:

(d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the complex, and

2000, c. 30, s. 40(2)

(9) Subparagraph 191(4)(b)(i) of the Act is replaced by the following:

(i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the addition under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

2000, c. 30, s. 40(2)

(10) The portion of subparagraph 191(4)(b)(i.1) of the Act before clause (A) is replaced by the following:

(i.1) gives possession or use of any residential unit in the addition to a particular person under an agreement for

1990, c. 45, s. 12(1); 2000, c. 30, s. 40(2)

(11) Paragraph 191(4)(c) of the Act is replaced by the following:

(c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the addition with the particular person, is the first individual to occupy a residential unit in the addition as a place of residence after substantial completion of the construction of the addition,

1993, c. 27, s. 56(5); 2000, c. 30, s. 40(2)

(12) Paragraph 191(4)(d) of the Act is replaced by the following:

(d) to have made and received, at the later of the time the construction of the addition is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the addition, and

1993, c. 27, s. 56(9)

(13) The portion of subsection 191(10) of the Act before paragraph (c) is replaced by the following:

Transfer of possession attributed to builder

(10) For the purposes of this section, if

(a) a builder of a residential complex or an addition to a multiple unit residential complex makes a supply of the complex or a residential unit in the complex or addition by way of lease, licence or similar arrangement and the supply is an exempt supply included in section 6.1 or 6.11 of Part I of Schedule V,

(b) the recipient of the supply is acquiring the complex or unit for use or supply in the course of making exempt supplies and, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the recipient under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging, and

(14) For the purposes of subsection (15), the particular time in respect of a residential complex or an addition to a residential complex is the later of

(a) the time the construction or substantial renovation of the residential complex or addition is substantially completed, and

(b) the earlier of the time the builder of the complex or addition first gives possession or use of the complex, or of a residential unit in the complex or addition, to a person for the purpose of the occupancy of the complex or unit by an individual as a place of residence and the time the complex or a residential unit in the complex or addition is occupied by the builder as a place of residence.

(15) Subsections (1) to (12) apply in respect of a residential complex or an addition to a residential complex if the particular time is

(a) after February 26, 2008; or

(b) on or before February 26, 2008 and the builder of the complex or addition, as the case may be,

(i) would have been deemed under section 191 of the Act to have made, at the particular time, a taxable supply by way of sale of the complex or addition if that section, as amended by subsections (1) to (13), had applied at that time, and

(ii) has reported an amount as or on account of tax, as a result of the builder applying section 191 of the Act in respect of the complex or addition, in the builder’s return under Division V of Part IX of the Act for any reporting period the return for which is filed on or before February 26, 2008 or is required under that Division to be filed on or before a day that is on or before February 26, 2008.

(16) For the purposes of subsection (17), the particular time in respect of a residential complex or an addition to a residential complex is the later of

(a) the time the construction or substantial renovation of the complex or addition is substantially completed, and

(b) the time possession of the complex or of a residential unit in the complex or addition is first given by a builder of the complex or addition to a person who is acquiring the complex or unit for use or supply in the course of making exempt supplies if, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the person under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging.

(17) Subsection (13) applies in respect of a residential complex or an addition to a residential complex if the particular time is

(a) after February 26, 2008; or

(b) on or before February 26, 2008 and the builder of the complex or addition, as the case may be,

(18) For the purposes of the Act, if a person

(a) is the builder of a residential complex or of an addition to a multiple unit residential complex,

(b) is deemed under subsection 191(1), (3) or (4) of the Act to have made and received, at a particular time that is after February 26, 2008, a taxable supply by way of sale of the residential complex or addition and to have paid as a recipient and to have collected as a supplier a particular amount of tax in respect of that supply, and

(c) has not claimed or deducted an amount (in this subsection referred to as an “unclaimed credit”) in respect of property or a service in determining the net tax for any reporting period of the person the return for which is filed on or before February 26, 2008 or is required under Division V of Part IX of the Act to be filed on or before a day that is on or before February 26, 2008 and

(i) the property or service, in a partic- ular reporting period that ends on or before February 26, 2008,

(A) was acquired, imported or brought into a participating province for consumption or use in making the taxable supply, or

(B) was, in relation to the complex or addition, acquired, imported or brought into a participating province and would have been acquired, imported or brought into the participating province for consumption or use in making the taxable supply if section 191 of the Act were read as that section is amended by this Act, and

(ii) the unclaimed credit is, or would be if section 191 of the Act were read as that section is amended by this Act, an input tax credit of the person,

the unclaimed credit of the person is deemed to be an input tax credit of the person for the reporting period of the person that includes February 26, 2008 and not to be an input tax credit of the person for any other reporting period.

(19) For the purposes of this section,

(a) subsection 191(9) of the Act applies in determining the time the construction or substantial renovation of a residential complex or an addition to a residential complex is substantially completed; and

(b) subsection 191(10) of the Act, as amended by subsection (13), applies in determining the time possession of a residential complex or a residential unit in a residential complex or addition to a residential complex is given to a person.

1997, c. 10, s. 38(1)

74. (1) The portion of paragraph 191.1(2)(b) of the Act before subparagraph (i) is replaced by the following:

(b) possession or use of at least 10% of the residential units in the complex is intended to be given for the purpose of their occupancy as a place of residence or lodging by

1997, c. 10, s. 38(1)

(2) Subparagraphs 191.1(2)(b)(vi) and (vii) of the Act are replaced by the following:

(vi) individuals whose eligibility for occupancy of the units as a place of residence or lodging, or for reduced payments in respect of their occupancy as a place of residence or lodging, is dependent on a means or income test,

(vii) individuals for whose benefit no other persons (other than public sector bodies) pay consideration for supplies that include giving possession or use of the units for occupancy by the individuals as a place of residence or lodging and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, or

(3) For the purposes of subsection (4), the particular time in respect of a residential complex or an addition to a residential complex is the later of

(a) the time the construction or substantial renovation of the residential complex or addition is substantially completed, and

(b) the earlier of the time the builder of the complex or addition first gives possession or use of the complex or of a residential unit in the complex or addition to a person for the purpose of the occupancy of the complex or unit by an individual as a place of residence and the time the complex or a residential unit in the complex or addition is occupied by the builder as a place of residence.

(4) Subsections (1) and (2) apply in respect of a residential complex or an addition to a residential complex if the particular time is

(a) after February 26, 2008; or

(b) on or before February 26, 2008 and the builder of the complex or addition, as the case may be,

(5) For the purposes of this section,

(b) subsection 191(10) of the Act, as amended by subsection 73(13), applies in determining the time possession of a residential complex or a residential unit in a residential complex or addition to a residential complex is given to a person.

75. (1) The Act is amended by adding the following after section 236.3:

Election for residential complex

236.4 (1) A person may make an election in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a particular reporting period of the person if

(a) the person is the builder of the residential complex or addition;

(b) the person is deemed under subsection 191(1), (3) or (4) to have made and received, at a particular time that is on or before February 26, 2008, a taxable supply by way of sale of the residential complex or addition and to have paid as a recipient and to have collected as a supplier a particular amount of tax in respect of that supply;

(c) the person has not reported an amount as or on account of tax in respect of the taxable supply in the person’s return under this Division for any reporting period the return for which is filed on or before February 26, 2008 or is required under this Division to be filed on or before a day that is on or before February 26, 2008;

(d) the person would be entitled to claim a rebate under subsection 256.2(3) in respect of the residential complex or addition that is determined based on the particular amount of tax if

(i) section 256.2 were read without reference to subsection (7), and

(ii) the amount determined for B in the first formula in subsection 256.2(3) for a qualifying residential unit, as defined in subsection 256.2(1), that forms part of the residential complex or addition were less than $450,000;

(e) the person did not supply to another person by way of sale the residential complex or addition on or before February 26, 2008;

(f) the particular reporting period ends on or before February 26, 2010;

(g) the election is filed in prescribed form containing prescribed information not later than the day on or before which the return under this Division is required to be filed for the particular reporting period; and

(h) the person has not made another election under this subsection in respect of the residential complex or addition.

Adjustment to net tax

(2) If a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a reporting period of the person, the person shall, in determining the net tax for that period, add the positive amount or deduct the negative amount determined by the formula

(A - B) - C

where

A is the particular amount of tax referred to in paragraph (1)(b);

B is the amount of the rebate that the person would be entitled, if section 256.2 were read without reference to subsection (7), to claim under subsection 256.2(3) in respect of the residential complex or addition that is determined based on the particular amount of tax; and

C is the amount determined by the formula

C₁ - C₂

where

C1 is the total of all amounts each of which is an input tax credit of the person

(i) that is in respect of property or a service acquired, imported or brought into a participating province before the particular time referred to in paragraph (1)(b) for consumption or use for the purpose of making the supply referred to in that paragraph, and

(ii) in respect of which the person satisfies the requirements of subsection 169(4) at the time the election under subsection (1) is filed, and

C2 is the total of all amounts each of which is an amount included in the determination of C₁, but only to the extent that the amount can reasonably be regarded as an amount that

(i) was claimed or included as an input tax credit or deduction in determining the net tax for the reporting period or a preceding reporting period of the person,

(ii) has previously been rebated, refunded or remitted to the person, or that the person is entitled to obtain as a rebate, refund or remission, under this or any other Act of Parliament, or

(iii) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person.

Consequences of election

(3) For the purposes of this Part, if a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a reporting period of the person, the person is deemed

(a) to have been deemed to have made and received, at the particular time referred to in paragraph (1)(b), a taxable supply of the residential complex or addition by way of sale and to have paid as a recipient and to have collected as a supplier tax in respect of the supply equal to the particular amount of tax referred to in that paragraph under

(i) in the case of a single unit residential complex or a residential condominium unit, subsection 191(1),

(ii) in the case of a multiple unit residential complex, subsection 191(3), and

(iii) in the case of an addition, subsection 191(4);

(b) to have claimed each amount that is included in the determination of C₁ in the second formula in subsection (2) as an input tax credit in determining the net tax for the reporting period, but only to the extent that the amount is not included in the determination of C₂ in the same formula;

(c) to have claimed and received a rebate under subsection 256.2(3), in respect of the complex or addition, equal to the amount determined for B in the first formula in subsection (2); and

(d) not to be required to include the partic- ular amount of tax deemed to have been collected under paragraph (a) for the purpose of determining the net tax of the person for the reporting period that includes the partic- ular time, other than for the purpose of including the particular amount in the determination of A in the first formula in subsection (2).

Input tax credit

(4) For the purposes of subsection 225(4), if a person makes an election under subsection (1), any input tax credit of the person in respect of the complex or addition that the person is deemed to have received under paragraph (3)(a) is deemed to be an input tax credit of the person for the reporting period of the person that includes February 26, 2008 and not an input tax credit of the person for any other period.

Limitation period if election

(5) If a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, section 298 applies to any assessment, reassessment or additional assessment of an amount added to, or deducted from, net tax by the person in respect of the residential complex or addition, but the Minister has until the day that is four years after the day on or before which the election under subsection (1) is required to be filed with the Minister to make any assessment, reassessment or additional assessment for the purpose of taking into account any amount that is, or is required to be, added or subtracted in determining the amount determined under the first formula in subsection (2).

Residential complex separate from addition

(6) For the purposes of this section, if a person is the builder of an addition to a residential complex and is eligible to make an election under subsection (1) in respect of the addition or the remainder of the residential complex, the addition and the remainder of the residential complex are each deemed to be a separate property.

(2) Subsection (1) applies to any reporting period that ends on or after February 26, 2008.

(3) Despite any other provision of this Act, sections 191, 191.1 and 256.2 of the Act shall be read as those sections are amended by this Act in applying section 236.4 of the Act, as enacted by subsection (1).

1993, c. 27, s. 113(1); 2000, c. 30, s. 74(1)

76. (1) The portion of subsection 256.1(1) of the Act before the formula is replaced by the following:

Rebate to owner of land leased for residential purposes

256.1 (1) If an exempt supply of land described by section 6.1 or 6.11 of Part I of Schedule V is made to a particular lessee who is acquiring the land for the purpose of making a particular supply of property or a service that includes the land or a particular supply of a lease, licence or similar arrangement in respect of property that includes the land, and the particular supply

(a) is an exempt supply of property or a service, other than a supply that is exempt only by virtue of paragraph 6(b) of Part I of Schedule V, that

(i) includes giving possession or use of a residential complex, or of a residential unit forming part of a residential complex, to another person under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence or lodging, or

(ii) is described by section 7 of Part I of Schedule V, other than an exempt supply described by paragraph 7(a) of that Part made to a person described in subparagraph 7(a)(ii) of that Part, and

(b) will result in the particular lessee being deemed under any of subsections 190(3) to (5) and section 191 to have made a supply of property that includes the land at a particular time,

the Minister shall, subject to subsection (2), pay a rebate, to each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee, equal to the amount determined by the formula

(2) Subsection (1) applies in respect of

(a) a supply of land made to a particular lessee that is deemed under any of subsections 190(3) to (5) and section 191 of the Act to have made, after February 26, 2008, another supply of property that includes the land; and

(b) a supply of land made by a person to a particular lessee if

(i) the particular lessee was deemed under any of subsections 190(3) to (5) and section 191 of the Act to have made, on or before February 26, 2008, another supply of property that includes the land,

(ii) the supply would be included in section 6.11 of Part I of Schedule V to the Act if that section were read as that section is enacted by this Act, and

(iii) the person did not, on or before February 26, 2008, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or any other supply of the land made by the person that would be included in section 6.1 or 6.11 of Part I of Schedule V to the Act if that section were read as that section is enacted by this Act.

(3) If paragraph (2)(b) applies,

(a) each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee may, despite subsection 256.1(2) of the Act, file an application for a rebate under subsection 256.1(1) of the Act on or before February 26, 2010;

(b) the application may, despite subsection 262(2) of the Act, be the second application of the landlord for the rebate if the landlord has filed, on or before February 26, 2008, another application for the rebate and the other application has been assessed before the landlord files the application;

(c) for the purposes of Part IX of the Act in respect of the application, sections 6.1 and 6.11 of Part I of Schedule V to the Act shall be read as those sections are enacted by this Act; and

(d) a rebate is not payable under subsection 256.1(1) of the Act, as amended by subsection (1), to a person who is not a landlord of the land at the time the application for the rebate is filed.

2001, c. 15, s. 16(1)

77. (1) Clause (a)(ii)(A) of the definition “qualifying residential unit” in subsection 256.2(1) of the Act is replaced by the following:

(A) for the purpose of making exempt supplies of the unit that are included in section 5.1, 6.1, 6.11 or 7 of Part I of Schedule V,

(A.1) for the purpose of making exempt supplies of property or a service that includes giving possession or use of the unit to a person under a lease to be entered into for the purpose of its occupancy by an individual as a place of residence, or

2001, c. 15, s. 16(1)

(2) Subparagraph 256.2(3)(a)(ii) of the Act is replaced by the following:

(ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, that gives possession or use of a residential unit in the complex or addition to another person under a lease entered into for the purpose of its occupancy by an individual as a place of residence that results in the particular person being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the “deemed purchase”) of the complex or addition,

(3) Section 256.2 of the Act is amended by adding the following after subsection (6):

Adjustment for transitional rebate

(6.1) For the purposes of determining the amount of a particular rebate in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex payable to a person under any of subsections (3) to (5), the amount of the total tax under subsection 165(1) included in the calculation made under the formulae in subsections (3) to (5) shall be reduced by the total of all rebates payable to the person under any of sections 256.3 to 256.77 in respect of the residential complex, interest or addition, as the case may be, if the person

(a) was not entitled to the particular rebate under this section as it read immediately after it was last amended by an Act of Parliament that was assented to before February 26, 2008; and

(b) is entitled to the particular rebate under this section as it reads immediately after the Budget Implementation Act, 2008 has been assented to.

(4) Subsections (1) and (2) apply in respect of

(a) a taxable supply by way of sale

(i) of a residential complex, or of an addition to a multiple unit residential complex, that is deemed to have been made under section 191 of the Act, if tax in respect of the supply is deemed under that section to have been paid after February 26, 2008, or

(ii) of a residential complex, or of an interest in a residential complex, to a person from another person, if tax under Part IX of the Act in respect of the supply first becomes payable after February 26, 2008; and

(b) a taxable supply by way of sale

(i) of a residential complex, or of an addition to a multiple unit residential complex, that is deemed to have been made under section 191 of the Act, if

(A) tax in respect of the supply is deemed under that section to have been paid by a person on a particular day that is on or before February 26, 2008,

(B) the person has reported the tax in the person’s return under Division V of Part IX of the Act for the reporting period of the person that includes the particular day, and

(ii) of a residential complex, or of an interest in a residential complex, to a person that is not a builder of the complex from another person, if tax under Part IX of the Act in respect of the supply first becomes payable on or before February 26, 2008 and the person has paid all of the tax.

(5) Subsection (3) is deemed to have come into force on July 1, 2006.

(6) If paragraph (4)(b) applies,

(a) the person referred to in that paragraph may, despite paragraph 256.2(7)(a) of the Act, file, on or before February 26, 2010, an application for a rebate in respect of the tax under subsection 256.2(3) of the Act; and

(b) the application may, despite subsection 262(2) of the Act, be the second application of the person for the rebate if the person has filed, on or before February 26, 2008, another application for the rebate and the other application has been assessed before the person files the application.

2000, c. 30, s. 109(2)

78. (1) Section 6.1 of Part I of Schedule V to the Act is replaced by the following:

6.1 A supply of property that is

(a) land, or

(b) a building, or that part of a building, that consists solely of residential units

made by way of lease, licence or similar arrangement to a recipient (in this section referred to as a “lessee”) for a lease interval (within the meaning assigned by subsection 136.1(1) of the Act) throughout which the lessee or any sublessee makes, or holds the property for the purpose of making, one or more supplies of the property, parts of the property or leases, licences or similar arrangements in respect of the property or parts of it and all or substantially all of those supplies

(d) are supplies that are made, or are reasonably expected to be made, to other lessees or sublessees described in this section.

(2) Subsection (1) applies to any supply for which consideration becomes due after February 26, 2008, without having been paid on or before that day, or is paid after that day without having become due.

79. (1) Part I of Schedule V to the Act is amended by adding the following after section 6.1:

6.11 A supply made by way of lease, licence or similar arrangement of property that is a residential complex or that is land, a building or that part of a building, that forms or is reasonably expected to form part of a residential complex if the supply is made to a recipient (in this section referred to as the “lessee”) for a lease interval (within the meaning assigned by subsection 136.1(1) of the Act) throughout which all or substantially all of the property is

(a) supplied, or is held for the purpose of being supplied, in one or more supplies, by the lessee or any sublessee for the purpose of the occupancy of the property or parts of the property by individuals as a place of residence or lodging and all or substantially all of the supplies of the property or parts of the property are exempt supplies included in section 6, or

(b) used, or held for the purpose of being used, by the lessee or any sublessee in the course of making exempt supplies and, as part of one or more exempt supplies, possession or use of all or substantially all of the residential units situated in the property is given under a lease, licence or similar arrangement for the purpose of their occupancy by an individual as a place of residence.

(2) Subsection (1) applies to any supply of property made by a supplier for which

(a) consideration becomes due after February 26, 2008 without having been paid on or before that day, or is paid after that day without having become due; or

(b) all of the consideration became due or was paid on or before February 26, 2008 if the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or any other supply of the property made by the supplier that would be included in section 6.1 or 6.11 of Part I of Schedule V to the Act, if that section were read as that section is enacted by this Act.

(3) If, as a result of the enactment of section 6.11 of Part I of Schedule V to the Act by subsection (1),

(a) a person ceases to use land of the person, or reduces the extent to which land is used, in commercial activities of the person,

(b) the person is deemed under subsection 206(4) or (5) or 207(1) or (2) of the Act to have made a supply of the land, or a portion of it,

(c) the person would have become entitled, at a particular time that is on or before February 26, 2008, to a rebate under subsection 256.1(1) of the Act in respect of the land equal to an amount, if that subsection, as amended by this Act, and sections 6.1 and 6.11 of Part I of Schedule V to the Act, as enacted by this Act, had applied at the particular time, and

(d) in determining the basic tax content (as defined in subsection 123(1) of the Act) of the land of the person on or after the particular time, the amount would have been included in determining the total for B in paragraph (a) of that definition if the person had been entitled to the rebate at the particular time,

for the purpose of determining, on or after the particular time, the basic tax content of the land of the person, the amount shall be included in determining the total for B in paragraph (a) of that definition.

(4) If, as a result of the enactment of section 6.11 of Part I of Schedule V to the Act by subsection (1),

(a) a person ceases to use a residential complex of the person, or reduces the extent to which the residential complex is used, in commercial activities of the person,

(b) the person is deemed under subsection 206(4) or (5) or 207(1) or (2) of the Act to have made a supply of the residential complex, or a portion of it,

(c) the person would have become entitled, at a particular time that is on or before February 26, 2008, to a rebate under subsection 256.2(3) of the Act in respect of the residential complex equal to an amount, if section 256.2 of the Act, as amended by this Act, and sections 6.1 and 6.11 of Part I of Schedule V to the Act, as enacted by this Act, had applied at the particular time, and

(d) in determining the basic tax content (as defined in subsection 123(1) of the Act) of the residential complex of the person on or after the particular time, the amount would have been included in determining the total for B in paragraph (a) of that definition if the person had been entitled to the rebate at the particular time,

for the purpose of determining, on or after the particular time, the basic tax content of the residential complex of the person, the amount shall be included in determining the total for B in paragraph (a) of that definition.

1990, c. 45, s. 18; 1997, c. 10, s. 93.1(1)

80. (1) Sections 5 and 6 of Part II of Schedule V to the Act are replaced by the following:

5. A supply of a consultative, diagnostic, treatment or other health care service (other than a surgical or dental service that is performed for cosmetic purposes and not for medical or reconstructive purposes) that is rendered by a medical practitioner to an individual.

6. A supply of a nursing service rendered to an individual by a registered nurse, a registered nursing assistant, a licensed or registered practical nurse or a registered psychiatric nurse, if the service is rendered within a nurse-patient relationship.

(2) Subsection (1) applies to any supply made after February 26, 2008.

1990, c. 45, s. 18

81. (1) The portion of section 7 of Part II of Schedule V to the Act before paragraph (a) is replaced by the following:

7. A supply of any of the following services if the service is rendered to an individual by a practitioner of the service:

(2) Subsection (1) applies to any supply made after February 26, 2008.

1997, c. 10, s. 95(1); 2007, c. 18, s. 54(1)

82. (1) Sections 7.1 and 7.2 of Part II of Schedule V to the Act are replaced by the following:

7.1 A supply of a dietetic service rendered by a practitioner of the service, if the service is rendered to an individual or the supply is made to a public sector body or to the operator of a health care facility.

7.2 A supply of a service rendered in the practice of the profession of social work where

(a) the service is rendered to an individual within a professional-client relationship between the particular individual who renders the service and the individual and is provided for the prevention, assessment or remediation of, or to assist the individual in coping with, a physical, emotional, behavioural or mental disorder or disability of the individual or of another individual to whom the individual is related or to whom the individual provides care or supervision otherwise than in a professional capacity; and

(b) either

(i) if the particular individual is required to be licensed or otherwise certified to practise the profession of social work in the province in which the service is supplied, the particular individual is so licensed or certified, or

(ii) if the particular individual is not required to be licensed or otherwise certified to practise that profession in that province, the particular individual has the qualifications equivalent to those necessary to be licensed or certified to practise that profession in a province in which such a requirement exists.

(2) Subsection (1) applies to any supply made after February 26, 2008.

1990, c. 45, s. 18

83. (1) Section 10 of Part II of Schedule V to the Act is replaced by the following:

10. A supply of a prescribed diagnostic, treatment or other health care service rendered to an individual if made on the order of

(a) a medical practitioner or practitioner; or

(b) a registered nurse authorized under the laws of a province to order such a service if the order is made within a nurse-patient relationship.

(2) Subsection (1) applies to any supply made after February 26, 2008.

84. (1) Part II of Schedule V to the Act is amended by adding the following after section 13:

14. A supply (other than a zero-rated supply or a prescribed supply) of a training service if

(a) the training is specially designed to assist individuals with a disorder or disability in coping with the effects of the disorder or disability or to alleviate or eliminate those effects and is given to a particular individual with the disorder or disability or to another individual who provides personal care or supervision to the particular individual otherwise than in a professional capacity; and

(b) one of the following circumstances exists:

(i) a person acting in the capacity of a practitioner, medical practitioner, social worker or registered nurse, and in the course of a professional-client relationship between the person and the particular individual, has certified in writing that the training is an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects,

(ii) a prescribed person, or a member of a prescribed class of persons, has, subject to prescribed circumstances or conditions, certified in writing that the training is an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects, or

(iii) the supplier

(A) is a government,

(B) is paid an amount to make the supply by a government or organization administering a government program targeted at assisting individuals with a disorder or disability, or

(C) receives evidence satisfactory to the Minister that, for the purpose of the acquisition of the service, an amount has been paid or is payable to a person by a government or organization administering a government program targeted at assisting individuals with a disorder or disability.

15. For the purposes of section 14, a training service does not include training that is similar to the training ordinarily given to individuals who

(a) do not have a disorder or disability; and

(b) do not provide personal care or supervision to an individual with a disorder or disability.

(2) Subsection (1) applies to any supply made after February 26, 2008.

1997, c. 10, s. 118(2)

85. (1) The definition “prescription” in section 1 of Part I of Schedule VI to the Act is replaced by the following:

“prescription” means a written or verbal order, given to a pharmacist by a medical practitioner or authorized individual, directing that a stated amount of any drug or mixture of drugs specified in the order be dispensed for the individual named in the order.

(2) Section 1 of Part I of Schedule VI to the Act is amended by adding the following in alphabetical order:

“authorized individual” means an individual, other than a medical practitioner, who is authorized under the laws of a province to make an order directing that a stated amount of a drug or mixture of drugs specified in the order be dispensed for the individual named in the order;

(3) Subsections (1) and (2) apply to any supply made

(a) after February 26, 2008; or

(b) on or before February 26, 2008 if no amount was charged, collected or remitted on or before that day as or on account of tax under Part IX of the Act in respect of the supply.

1993, c. 27, s. 179(1)

86. (1) Paragraph 2(b) of Part I of Sched- ule VI to the Act is replaced by the following:

(b) a drug included in Schedule F to the Food and Drug Regulations, other than a drug or mixture of drugs that may, pursuant to the Food and Drugs Act or those Regulations, be sold to a consumer with neither a prescription nor a written order signed by the Director (as defined in those Regulations),

2000, c. 30, s. 123(1)

(2) Paragraph 2(d) of Part I of Schedule VI to the Act is replaced by the following:

(d) a drug that contains a substance included in the schedule to the Narcotic Control Regulations, other than a drug or mixture of drugs that may, pursuant to the Controlled Drugs and Substances Act or regulations made under that Act, be sold to a consumer with neither a prescription nor an exemption by the Minister of Health in respect of the sale,

(3) Subsections (1) and (2) apply to any supply made after February 26, 2008.

1997, c. 10, s. 119(1)

87. (1) Paragraph 3(b) of Part I of Sched- ule VI to the Act is replaced by the following:

(b) on the prescription of a medical practitioner or authorized individual for the person- al consumption or use of the individual named in the prescription.

(2) Subsection (1) applies to any supply made

(a) after February 26, 2008; or

(b) on or before February 26, 2008 if no amount was charged, collected or remitted on or before that day as or on account of tax under Part IX of the Act in respect of the supply.

88. (1) Part II of Schedule VI to the Act is amended by adding the following after section 1:

1.1 For the purposes of this Part, other than section 33, a supply of property that is not designed for human use or for assisting an individual with a disability or impairment is deemed not to be included in this Part.

(2) Subsection (1) applies to any supply made after February 26, 2008.

1990, c. 45, s. 18

89. (1) Section 6 of Part II of Schedule VI to the Act is replaced by the following:

6. A supply of a mechanical percussor for postural drainage treatment or a chest wall oscillation system for airway clearance therapy.

(2) Subsection (1) applies to any supply made after February 26, 2008.

1997, c. 10, s. 127

90. (1) Section 14 of Part II of Schedule VI to the Act is replaced by the following:

14. A supply of a chair, walker, wheelchair lift or similar aid to locomotion, with or without wheels, including motive power and wheel assemblies therefor, that is specially designed to be operated by an individual with a disability for locomotion of the individual.

14.1 A supply of a chair that is specially designed for use by an individual with a disability if the chair is supplied on the written order of a medical practitioner for use by a consumer named in the order.

(2) Subsection (1) applies to any supply made after February 26, 2008.

1997, c. 10, s. 128(1)

91. (1) Section 20 of Part II of Schedule VI to the Act is replaced by the following:

20. A supply of a toilet seat, bath seat, shower seat or commode chair that is specially designed for use by an individual with a disability.

(2) Subsection (1) applies to any supply made after February 26, 2008.

1993, c. 27, s. 185(1); 1997, c. 10, s. 135(F); 2000, c. 30, s. 125(1)

92. (1) Sections 33 to 34 of Part II of Schedule VI to the Act are replaced by the following:

33. A supply of an animal that is or is to be specially trained to assist an individual with a disability or impairment with a problem arising from the disability or impairment, or a supply of a service of training an individual to use the animal, if the supply is made to or by an organization that is operated for the purpose of supplying such specially trained animals to individuals with the disability or impairment.

34. A supply of a service (other than a service the supply of which is included in any provision of Part II of Schedule V except section 9 of that Part and a service related to the provision of a surgical or dental service that is performed for cosmetic purposes and not for medical or reconstructive purposes) of installing, maintaining, restoring, repairing or modifying a property the supply of which is included in any of sections 2 to 32 and 37 to 41 of this Part, or any part for such a property if the part is supplied in conjunction with the service.

(2) Subsection (1) applies to any supply made after February 26, 2008.

93. (1) Part II of Schedule VI to the Act is amended by adding the following after section 40:

41. A supply of a device that is specially designed for neuromuscular stimulation therapy or standing therapy, if supplied on the written order of a medical practitioner for use by a consumer with paralysis or a severe mobility impairment who is named in the order.

(2) Subsection (1) applies to any supply made after February 26, 2008.

PART 4

CANADA MILLENNIUM SCHOLARSHIP FOUNDATION

Dissolution of the Foundation

Liquidation

94. (1) Within six months after the day on which this subsection comes into force, or any longer time that the Governor in Council determines on the recommendation of the Minister of Human Resources and Skills Development, the Canada Millennium Schol- arship Foundation, established by section 3 of the Budget Implementation Act, 1998 and referred to in this Part as “the Foundation”, shall sell or otherwise dispose of all of its property other than property referred to in subsection (3) and discharge all of its liabilities, on terms and conditions that are approved by the Governor in Council.

Donations of money

(2) Despite subsection (1), money that was donated to the Foundation under section 21 of the Budget Implementation Act, 1998 — including any income arising from the investment of the money — and that was not used for carrying out the objects and purposes of the Foundation shall be paid to the donor.

Transfer to department

(3) Within the period referred to in subsection (1), the Foundation shall transfer to the Department of Human Resources and Skills Development the following things, including any electronic versions of them:

(a) the books of account and other records referred to in section 35 of the Budget Implementation Act, 1998, as well as any information that the Foundation collected in order to produce them;

(b) all other information that the Foundation has under its control concerning persons who have received scholarships or any other financial assistance from it;

(c) any studies that the Foundation has under its control, and any other information that it has collected through research; and

(d) any database containing information related to any of those books of account and other records, that other information and those studies, as well as any information necessary in order to use the database.

Remaining money

(4) After satisfying the obligations set out in subsections (1) to (3), the Foundation shall deposit all of its remaining money in the Consolidated Revenue Fund to the credit of the Receiver General.

Dissolution

(5) The Foundation is dissolved.

1998, c. 21

Amendments to the Budget Implementation Act, 1998

2003, c. 22, par. 224(g)(E); 2005, c. 30, s. 82, c. 34, par. 80(a)

95. The headings before section 2 and sections 2 to 42 of the Budget Implementation Act, 1998 are repealed.

2003, c. 15, s. 32

96. Section 43 of the Act and the heading before it are repealed.

97. The heading before section 44 and sections 44 to 46 of the Act are repealed.

Consequential Amendments

R.S., c. A-1

Access to Information Act

2006, c. 9, s. 166

98. Schedule I to the Access to Information Act is amended by striking out the following under the heading “Other Government Institutions”:

Canada Millennium Scholarship Foundation

Fondation canadienne des bourses d’études du millénaire

R.S., c. P-21

Privacy Act

2006, c. 9, s. 191

99. The schedule to the Privacy Act is amended by striking out the following under the heading “Other Government Institutions”:

Canada Millennium Scholarship Foundation

Fondation canadienne des bourses d’études du millénaire

Coming Into Force

January 5, 2010, or earlier

100. (1) Subsections 94(1) to (4) and section 96 come into force on January 5, 2010, or on an earlier day that is fixed by order of the Governor in Council.

Order in council

(2) Subsection 94(5) and sections 95 and 97 to 99 come into force on a day to be fixed by order of the Governor in Council.

PART 5

FEDERAL FINANCIAL ASSISTANCE FOR STUDENTS

1994, c. 28

Amendments to the Canada Student Financial Assistance Act

101. (1) Subsection 2(2) of the Canada Student Financial Assistance Act is replaced by the following:

Other definitions

(2) In this Act, the words and expressions “borrower”, “consolidated student loan agreement”, “course”, “family income”, “financial assistance”, “full-time student”, “loan year”, “part-time student”, “period of studies”, “post-secondary school level”, “program of studies”, “severe permanent disability”, “student loan” and “student loan agreement” have the meanings assigned by the regulations.

(2) Section 2 of the Act is amended by adding the following after subsection (3):

Electronic documents and communication

(4) A document or other communication under this Act or the regulations may be in electronic form, and a reference in this Act or the regulations to a document includes a document in electronic form.

102. Paragraph 5(e) of the Act is replaced by the following:

(e) the repayment of student loans by borrowers or classes of borrowers on an income-contingent basis;

2000, c. 14, s. 17

103. Subsection 6.2(2) of the Act is replaced by the following:

Receipt and Deposit of Public Money Regulations, 1997

(2) Despite section 3 of the Receipt and Deposit of Public Money Regulations, 1997, the portion of the following money that is public money and is collected or received electronically by a service provider that has entered into an agreement under subsection (1) shall be paid to the credit of the Receiver General by depositing it, within two business days after the day of collection or receipt, in an account established under subsection 17(2) of the Financial Administration Act:

(a) money collected or received as repayment of financial assistance, as repayment of a guaranteed student loan as defined in subsection 2(1) of the Canada Student Loans Act or as payment of interest owing on that assistance or loan; and

(b) interest received by the service provider on the money referred to in paragraph (a).

Meaning of “business day”

(3) In this section, “business day” means a day other than a Saturday or a holiday.

104. Section 8 of the Act is renumbered as subsection 8(1) and is amended by adding the following:

Payment deferred for part-time students

(2) Subject to the regulations, no amount on account of principal or interest in respect of a student loan that is made to a part-time student is required to be paid by the borrower until the last day of the seventh month after the month in which the borrower ceases to be a student, whether a part-time or full-time student.

105. Section 10 of the Act is replaced by the following:

Death of borrower

10. All rights of the lender against a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the borrower dies, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

2005, c. 30, s. 111

106. Sections 11 and 11.1 of the Act are replaced by the following:

Severe permanent disability

11. All rights of the lender against a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided by or on behalf of the borrower, that the borrower, by reason of the borrower’s severe permanent disability, is unable to repay the student loan and will never be able to repay it, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

Severe permanent disability — section 6.1 loan

11.1 All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided by or on behalf of the borrower, that the borrower, by reason of the borrower’s severe permanent disability, is unable to repay the loan and will never be able to repay it.

107. The portion of subsection 12(1) of the Act before paragraph (a) is replaced by the following:

Issue of certificates

12. (1) Subject to the regulations, the appropriate authority for a province designated under paragraph 3(1)(a) may, on application of a qualifying student, issue or cause to be issued a certificate of eligibility in the prescribed form, for a period of studies at a designated educational institution in or outside Canada, to or in respect of the student if that authority considers the student

108. (1) Paragraph 15(e) of the Act is replaced by the following:

(d.1) respecting the issuance of certificates of eligibility and providing for their subsequent submission by the issuees;

(e) providing for the conditions to be met before a disbursement in respect of a student loan may be made;

(2) Section 15 of the Act is amended by adding the following after paragraph (f):

(f.1) respecting the circumstances in which no amount on account of principal or interest is required to be paid in respect of student loans;

(3) Paragraphs 15(n) to (p) of the Act are replaced by the following:

(n) providing for the establishment and operation of a program to provide special interest-free or interest-reduced periods to borrowers or classes of borrowers, including the terms and conditions of the granting or termination of the periods, the making, continuation or alteration of agreements between borrowers and lenders when the periods are granted or terminated and the authorization of lenders to grant or terminate the periods and otherwise administer the program;

(o) providing, in respect of any province, for repayment of student loans by borrowers or classes of borrowers on an income-contingent basis, or for the establishment and operation of a student loan program that is financed by Her Majesty in right of Canada or any agent of Her Majesty in right of Canada and that may provide for the repayment of student loans by borrowers or classes of borrowers on an income-contingent basis;

(p) providing for the establishment and operation of grant programs, and additional grant programs for qualifying students whose financial needs are greater than the maximum amount of the financial assistance that may be given to the student, for the classes of persons who are eligible for grants and for the circumstances in which all or part of a grant is to be repaid or converted into a loan;

(4) Section 15 of the Act is renumbered as subsection 15(1) and is amended by adding the following:

Electronic systems

(2) The Governor in Council may make regulations providing for the establishment and operation of electronic systems that provide information about financial aid available to qualifying students and borrowers and that can receive information from them, and providing for the transactions that may be carried out with regard to that financial aid by means of those systems.

109. The Act is amended by adding the following after section 16:

Right of recovery by Minister

16.01 A student loan that is made to a borrower who is not of full age under an agreement entered into under section 6.1, and interest on the loan, is recoverable by the Minister from the borrower as though the borrower had been of full age at the time the agreement was entered into.

Waiver

16.02 On application by a qualifying student or a borrower, the Minister may, to avoid undue hardship to the student or borrower, waive

(a) a requirement of the regulations with respect to the times within which the student or borrower’s confirmation of enrolment or certificate of eligibility is to be submitted; or

(b) a requirement of the regulations, or a requirement determined or approved by the Minister, with respect to the form or manner in which information in respect of the student or borrower is to be provided.

Financial assistance denied due to error

16.03 If the Minister is satisfied that a person was denied financial assistance to which the person would have been entitled as a result of an error made in the administration of this Act or the regulations, the Minister may take remedial action to place the person in the position that he or she would have been in under this Act had the error not been made.

110. The Act is amended by replacing every reference to section 15 of the Act with a reference to subsection 15(1) wherever it occurs in the following provisions:

(a) subparagraphs 5(a)(ii) and (iv);

(b) subsection 7(1);

(d) the portion of subsection 12(4) before paragraph (a); and

(e) subsections 14(6) and (7).

R.S., c. S-23

Amendments to the Canada Student Loans Act

1994, c. 28, s. 25

111. Section 11 of the Canada Student Loans Act is replaced by the following:

Regulations

11. The Governor in Council may make regulations providing for the establishment and operation of a program to provide special interest-free or interest-reduced periods to borrowers or classes of borrowers, including the terms and conditions of the granting or termination of the periods, the making, continuation or alteration of agreements between borrowers and lenders when the periods are granted or terminated and the authorization of lenders to grant or terminate the periods and otherwise administer the program.

112. Section 13 of the Act is replaced by the following:

Severe permanent disability

13. (1) If the Minister is satisfied, on the basis of prescribed information provided by or on behalf of a borrower, that the borrower, by reason of severe permanent disability, is unable to repay a guaranteed student loan and will never be able to repay it, all rights of any lender against the borrower in respect of that guaranteed student loan terminate, and the Minister shall pay to any lender whose rights against a borrower are terminated under this section the amount of principal and interest determined in the prescribed manner to have been payable by the borrower at the time the borrower provided the Minister with the information required under this section.

Meaning of “severe permanent disability”

(2) The Governor in Council may make regulations defining the expression “severe permanent disability” for the purposes of subsection (1).

113. (1) Section 17 of the Act is amended by adding the following after paragraph (k):

(k.1) respecting the circumstances in which no amount on account of principal or interest is required to be paid in respect of guaranteed student loans;

(2) Paragraph 17(m) of the Act is replaced by the following:

(m) prescribing circumstances, related to the conduct of a student in obtaining or repaying a guaranteed student loan, under which a new loan may be denied to a student or a borrower’s right to an interest-free period under section 4 or to a special interest-free period under section 10 may be revoked by the Minister;

(3) Paragraph 17(q) of the Act is replaced by the following:

(q) providing for the repayment of guaranteed student loans by borrowers or classes of borrowers on an income-contingent basis;

114. The Act is amended by adding the following after section 19:

Waiver

19.01 On application by a qualifying student or a borrower, the Minister may, to avoid undue hardship to the student or borrower, waive

(a) a requirement of the regulations with respect to the times within which the student or borrower’s confirmation of enrolment or certificate of eligibility is to be submitted; or

(b) a requirement of the regulations, or a requirement prescribed by the Minister, with respect to the form or manner in which information in respect of the student or borrower is to be provided.

Financial assistance denied due to error

19.02 If the Minister is satisfied that a person was denied financial assistance under this Act to which the person would have been entitled as a result of an error made in the administration of this Act or the regulations, the Minister may take remedial action to place the person in the position that he or she would have been in under this Act had the error not been made.

Coming into Force

Order in council

115. Subsection 101(1) and sections 104 to 106 and 112 come into force on a day or days to be fixed by order of the Governor in Council.

PART 6

2001, c. 27

IMMIGRATION AND REFUGEE PROTECTION ACT

Amendments to the Act

116. Subsection 11(1) of the Immigration and Refugee Protection Act is replaced by the following:

Application before entering Canada

11. (1) A foreign national must, before entering Canada, apply to an officer for a visa or for any other document required by the regulations. The visa or document may be issued if, following an examination, the officer is satisfied that the foreign national is not inadmissible and meets the requirements of this Act.

117. Subsection 25(1) of the Act is replaced by the following:

Humanitarian and compassionate considerations

25. (1) The Minister shall, upon request of a foreign national in Canada who is inadmissible or who does not meet the requirements of this Act, and may, on the Minister’s own initiative or on request of a foreign national outside Canada, examine the circumstances concerning the foreign national and may grant the foreign national permanent resident status or an exemption from any applicable criteria or obligation of this Act if the Minister is of the opinion that it is justified by humanitarian and compassionate considerations relating to them, taking into account the best interests of a child directly affected, or by public policy considerations.

118. The Act is amended by adding the following before the heading “Loans” before section 88:

Instructions on Processing Applications and Requests

Application

87.3 (1) This section applies to applications for visas or other documents made under subsection 11(1), other than those made by persons referred to in subsection 99(2), sponsorship applications made by persons referred to in subsection 13(1), applications for permanent resident status under subsection 21(1) or temporary resident status under subsection 22(1) made by foreign nationals in Canada and to requests under subsection 25(1) made by foreign nationals outside Canada.

Attainment of immigration goals

(2) The processing of applications and requests is to be conducted in a manner that, in the opinion of the Minister, will best support the attainment of the immigration goals established by the Government of Canada.

Instructions

(3) For the purposes of subsection (2), the Minister may give instructions with respect to the processing of applications and requests, including instructions

(a) establishing categories of applications or requests to which the instructions apply;

(b) establishing an order, by category or otherwise, for the processing of applications or requests;

(d) providing for the disposition of applications and requests, including those made subsequent to the first application or request.

Compliance with instructions

(4) Officers and persons authorized to exercise the powers of the Minister under section 25 shall comply with any instructions before processing an application or request or when processing one. If an application or request is not processed, it may be retained, returned or otherwise disposed of in accordance with the instructions of the Minister.

Clarification

(5) The fact that an application or request is retained, returned or otherwise disposed of does not constitute a decision not to issue the visa or other document, or grant the status or exemption, in relation to which the application or request is made.

Publication

(6) Instructions shall be published in the Canada Gazette.

Clarification

(7) Nothing in this section in any way limits the power of the Minister to otherwise determine the most efficient manner in which to administer this Act.

119. Paragraph 94(2)(a) of the Act is replaced by the following:

(a) the instructions given under section 87.3 and other activities and initiatives taken concerning the selection of foreign nationals, including measures taken in cooperation with the provinces;

Transitional Provision

Application

120. Section 87.3 of the Immigration and Refugee Protection Act applies only to applications and requests made on or after February 27, 2008.

PART 7

EMPLOYMENT INSURANCE

Canada Employment Insurance Financing Board Act

Enactment of Act

121. The Canada Employment Insurance Financing Board Act is enacted as follows:

An Act to establish the Canada Employment Insurance Financing Board

SHORT TITLE

Short title

1. This Act may be cited as the Canada Employment Insurance Financing Board Act.

INTERPRETATION

Definitions

2. The following definitions apply in this Act.

“Auditor General”
« vérificateur général »

“Auditor General” means the Auditor General of Canada appointed under subsection 3(1) of the Auditor General Act.

“Board”
« Office »

“Board” means the Canada Employment Insurance Financing Board established by subsection 3(1).

“by-law”
Version anglaise seulement

“by-law” means a by-law of the Board.

“Minister”
« ministre »

“Minister” means the Minister of Human Resources and Skills Development.

ESTABLISHMENT OF THE BOARD

Board established

3. (1) There is established a corporation to be known as the Canada Employment Insurance Financing Board.

Not agent of Her Majesty

(2) The Board is not an agent of Her Majesty in right of Canada.

Not part of federal public administration

(3) Directors, officers, employees, agents and mandataries of the Board are not part of the federal public administration.

Head office

(4) The head office and principal place of business of the Board shall be in the National Capital Region as described in the schedule to the National Capital Act.

Canada Corporations Act

(5) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, does not apply to the Board.

Inconsistency with Financial Administration Act

(6) In the event of any inconsistency between the provisions of this Act and the provisions of Part X of the Financial Administration Act, the provisions of this Act prevail.

Non-application

(7) Sections 105, 121, 128 to 132, 138 to 142, 148 and 150 of the Financial Administration Act do not apply to the Board.

OBJECTS, POWERS AND DUTIES

Objects

4. The objects of the Board are

(a) to set the premium rate under section 66 of the Employment Insurance Act;

(b) to maintain a reserve in accordance with that section;

(d) to invest its financial assets with a view to meeting its financial obligations.

Powers of Board

5. (1) The Board has the capacity and, subject to this Act, the rights, powers and privileges of a natural person.

No inconsistent business or activity

(2) The Board shall not, directly or indi- rectly, carry on any business or activity or exercise any power that is inconsistent with the Board’s objects, including any power in relation to benefits or other payments made under subsection 77(1) of the Employment Insurance Act or to the employment insurance program design or delivery, or that the Board is restricted by this Act from carrying on or exercising, and shall not, directly or indirectly, exercise any of its powers, or perform any of its duties, in a manner contrary to this Act.

Borrowing

(3) The Board shall not borrow money otherwise than from Her Majesty in right of Canada.

No subsidiaries

(4) The Board shall not incorporate or acquire any subsidiaries.

No invalidity

(5) No act of the Board, including a transfer of property, is invalid by reason only that the Board was without the capacity or power to so act.

MANAGEMENT

Board of Directors

Board of directors

6. The Board shall be managed by a board of directors of seven directors, including the chairperson.

Specific duties

7. The board of directors shall, among other things,

(a) on an annual basis, establish written investment policies, standards and procedures in accordance with section 23;

(b) monitor the officers and employees of the Board to ensure compliance with those investment policies, standards and procedures;

(c) establish procedures for the identification of real or potential conflicts of interest and procedures to resolve those conflicts;

(d) establish a code of conduct for officers and employees of the Board; and

(e) designate a committee of the board of directors to monitor the application of the conflict of interest procedures and the code of conduct.

Power to delegate

8. (1) Subject to subsection (2) and the by-laws, the board of directors may delegate to the chairperson of the board of directors, to a committee of the board of directors or to any officer of the Board any of the powers or duties of the board of directors.

Limits on power

(2) The board of directors may not delegate the power to

(a) set the premium rate under section 66 of the Employment Insurance Act;

(b) adopt, amend or repeal by-laws;

(d) fill a vacancy in a committee of directors or in the office of auditor of the Board;

(e) appoint officers or fix their remuneration; or

(f) approve the annual financial statements of the Board or any other financial statements issued by the Board.

Directors

Appointment of directors

9. (1) Each director shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during good behaviour for a term, not exceeding four years, that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.

Reappointment

(2) A director is eligible for reappointment for one or more additional terms.

Removal

(3) The Governor in Council may remove a director for cause.

Vacancy

(4) If a person ceases to be a director during the term for which the person was appointed, the Minister shall appoint a candidate from the list established under section 10 to hold office as a director for the remainder of the term.

No available candidates on list

(5) However, if no candidate on the list is available, the Minister shall, after taking into account the factors referred to in subsection 10(6), appoint any qualified person to hold office as a director for the remainder of the term.

Disqualified persons

(6) The following persons are disqualified from being directors:

(a) a person who is less than 18 years of age;

(b) a person who is of unsound mind and has been so found by a court in Canada or elsewhere;

(d) a person who is not a natural person;

(e) a member of the nominating committee established under subsection 10(1);

(f) a person who is an agent, mandatary or employee of Her Majesty in right of Canada or in right of a province;

(g) a person who is a member of the Senate or House of Commons of Canada or a member of a provincial legislature;

(h) a person who is an agent, mandatary or employee of the government of a foreign country or any political subdivision of a foreign country; and

(i) a person who is not a resident of Canada.

Nominating committee

10. (1) The Minister shall establish a nominating committee to establish a list of candidates for proposed appointment as directors. The committee shall consist of a chairperson appointed by the Minister and of the commissioners referred to in paragraphs 20(2)(c) and (d) of the Department of Human Resources and Skills Development Act.

Qualifications of chairperson

(2) The chairperson of the nominating committee shall be appointed on the basis of merit taking into account any relevant experience in the functioning of a board of directors and in the financial or insurance sector as a senior executive.

Term of office

(3) The chairperson of the nominating committee holds office for a maximum term of five years and is eligible for reappointment for one or more additional terms.

Removal

(4) The Minister may remove the chairperson of the nominating committee at any time.

Remuneration of chairperson

(5) The Minister shall fix the remuneration and expenses of the chairperson of the nominating committee, which shall be paid by the Board.

Factors for consideration

(6) When the nominating committee is establishing a list of qualified candidates for proposed appointment as directors, it shall consult the board of directors and shall have regard to the desirability of having on the board of directors a sufficient number of directors with proven financial ability or relevant work experience such that the Board will be able to effectively achieve its objects.

Maintenance of list

(7) The nominating committee shall maintain the list with a sufficient number of candidates to fill any vacancies on the board of directors that may arise.

Recommendations from list of nominating committee

(8) The recommendation of the Minister under subsection 9(1) shall be made from the list of candidates proposed by the nominating committee.

Chairperson of the Board of Directors

Designation

11. (1) The Governor in Council shall, on the recommendation of the Minister made after the Minister has consulted with the board of directors, designate one of the directors as chairperson of the board of directors.

Term of office

(2) The chairperson shall hold office during good behaviour for the term that the Governor in Council deems appropriate and is eligible for reappointment for one or more additional terms.

Removal

(3) The Governor in Council may remove the chairperson for cause.

Presiding at meetings

(4) The chairperson shall preside at all meetings of the board of directors and may exercise the powers and perform the duties and functions that are specified by the board of directors.

Absence of chairperson

(5) If the chairperson is absent at any meeting of the board of directors, one of the directors present who is chosen to so act by the directors present shall preside and have all the powers, duties and functions of the chairperson.

Incapacity of chairperson

(6) If the chairperson is incapable of performing his or her duties or there is a vacancy in the office of chairperson, the Minister may, after consulting with the board of directors, designate another director to exercise the powers and perform the duties and functions of the chairperson.

Officers

Directors not officers

12. (1) A director is not eligible to be appointed as an officer of the Board.

Two or more offices

(2) A person may hold two or more offices of the Board.

Chief Executive Officer

Designation

13. (1) The board of directors shall, after consulting with the Minister, appoint the chief executive officer of the Board on the basis of merit taking into account any relevant experience in the financial or insurance sector as a senior executive.

Term of office

(2) The chief executive officer shall hold office for the term that the board of directors deems appropriate.

Removal

(3) The board of directors may remove the chief executive officer for cause.

Duties

(4) The chief executive officer is responsible for the direction and management of the business and day-to-day operations of the Board.

Not a board member

(5) The chief executive officer is not a member of the board of directors.

Absence, incapacity or vacancy

(6) If the chief executive officer is absent or incapacitated or if the office of chief executive officer is vacant, the chairperson of the board of directors may designate any qualified person to exercise the powers and perform the duties and functions of the chief executive officer during the absence, incapacity or vacancy, but no person may be so designated for a period exceeding 90 days without the approval of the board of directors.

Chief Actuary

Appointment

14. (1) The board of directors shall appoint a Fellow of the Canadian Institute of Actuaries to be the chief actuary of the Board.

Officer

(2) The chief actuary is an officer of the Board under the direction of the chief executive officer.

Duties

(3) The chief actuary shall prepare actuarial forecasts and estimates for the purposes of section 66 of the Employment Insurance Act and shall, on or before October 31 in each year, provide the board of directors with

(a) the forecast premium rate for the following year and a detailed analysis in support of the forecast;

(b) the forecast fair market value of the Board’s reserve at the end of the following year;

(c) a determination and analysis of any difference between the premium rate set for the year that is two years before the current year and what that rate should have been for that year in order to meet the objective of subsection 66(1) of the Employment Insurance Act; and

(d) the source of the data, the actuarial and economic assumptions and the actuarial methodology used.

Diligence

Obligation

15. (1) Every director and officer of the Board in exercising any of the powers of a director or an officer and in performing any of the duties of a director or an officer shall

(a) act honestly and in good faith with a view to the best interests of the Board; and

(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

Special knowledge or skill

(2) A director or officer of the Board who in fact possesses, or by reason of profession or business ought to possess, a particular level of knowledge or skill relevant to the director’s or officer’s powers or duties shall employ that particular level of knowledge or skill in the exercise of those powers or the performance of those duties.

Reliance on statements

(3) A director or an officer of the Board is deemed to comply with subsections (1) and (2) if they rely in good faith on

(a) financial statements of the Board represented by an officer of the Board, or represented in a written report of the Board’s auditor, to be a fair reflection of the financial condition of the Board; or

(b) a report of an accountant, actuary, lawyer, notary or other person whose profession lends credibility to a statement made by the person.

BY-LAWS

Statutory Instruments Act does not apply

16. The Statutory Instruments Act does not apply in respect of by-laws.

COMMITTEES

Establishment

Committees

17. (1) The board of directors shall establish an audit committee, an investment committee and a human resources committee.

Other committees

(2) The board of directors may establish other committees as it deems necessary and assign to them the duties that it considers appropriate.

Audit Committee

Duties

18. The audit committee shall

(a) require the Board’s management to implement and maintain appropriate internal control procedures;

(b) review, evaluate and approve those internal control procedures;

(c) review and approve the Board’s annual financial statements and report to the board of directors before those statements are approved by the board of directors;

(d) meet with the Board’s auditor to discuss the Board’s annual financial statements and the auditor’s report;

(e) review all investments and transactions that could adversely affect the return on the Board’s investments that are brought to the committee’s attention by the Board’s auditor or officers; and

(f) meet with the internal auditor of the Board, or with the person acting in any similar capacity, and with the Board’s management, to discuss the effectiveness of the internal control procedures.

Meeting of audit committee

19. (1) The Board’s auditor or any member of the audit committee may call a meeting of the committee.

Meeting of directors

(2) The audit committee may call a meeting of the board of directors to consider any matter of concern to the committee.

Auditor’s right to attend meetings

20. (1) The Board’s auditor is entitled to receive notice of and to attend meetings of the board of directors and meetings of the audit committee, at the Board’s expense, and to be heard at those meetings on matters relating to the auditor’s duties.

Rights if no meeting

(2) If the board of directors or the audit committee proposes to make a decision with respect to matters referred to in subsection (1) without holding a meeting, the auditor is entitled to notice of a proposed decision to be made by the board or the committee and the proposed decision shall not be made until the auditor has been given the opportunity to make submissions on the matter in writing, in accordance with the by-laws.

Requiring auditor’s attendance

(3) The Board’s auditor shall attend meetings of the audit committee, if requested to do so by a member of the audit committee — and shall attend meetings of the board of directors, if requested to do so by a director — at the Board’s expense.

Investment Committee

Duties

21. The investment committee shall

(a) perform the duties that are assigned to it by the board of directors;

(b) approve the engagement of investment managers empowered with discretionary authority to invest the assets of the Board;

(c) meet with the officers and employees of the Board to discuss the effectiveness of the Board’s investment policies and the achievement of the Board’s objects;

(d) require the Board’s management to implement and maintain appropriate procedures to

(i) monitor the application of the Board’s investment policies, standards and procedures, and

(ii) ensure that the Board’s agents and mandataries comply with this Act and the Board’s investment policies, standards and procedures; and

(e) review, evaluate and approve the procedures referred to in paragraph (d).

Human Resources Committee

Duties

22. The human resources committee shall

(a) establish human resources policies and procedures, including those related to the review and assessment of employee perform- ance and to the resolution of personnel grievances;

(b) fix the remuneration of employees;

(d) develop, and recommend to the board of directors for approval, the selection criteria for the position of chief actuary.

INVESTMENTS

Investment policies, standards and procedures

23. Subject to the regulations, the board of directors shall establish, and the Board shall adhere to, investment policies, standards and procedures that a person of ordinary prudence would implement in dealing with the property of others.

Duty of investment managers

24. Every investment manager who invests the assets of the Board shall do so in accordance with this Act and the Board’s investment policies, standards and procedures.

FINANCIAL MANAGEMENT

General

Financial year

25. The financial year of the Board is the period beginning on April 1 in one calendar year and ending on March 31 in the next calendar year.

Deposits and deposit receipts

26. (1) The Board may only have accounts with banks listed in Schedule I to the Bank Act.

Regulations

(2) Despite subsection (1), the Governor in Council may, on the recommendation of the Minister of Finance, make regulations prescribing the types of account that the Board may have and the financial institutions with which it may have those accounts.

Financial Statements

Books and systems

27. (1) The Board shall cause

(a) books of account and records to be kept;

(b) financial and management control and information systems and management practices to be maintained; and

(i) the book value of each investment,

(ii) the market value of each investment and the information that will permit the verification of that value, and

(iii) the information that will permit the determination of whether the requirements of this Act and the investment policies, standards and procedures have been met.

Manner in which books, etc., to be kept

(2) The books, records, systems and practices required by subsection (1) shall be kept and maintained in the manner that will provide reasonable assurance that

(a) the Board’s assets are safeguarded and controlled;

(b) the Board’s transactions are in accord- ance with this Act and the by-laws; and

(c) the Board’s financial, human and physical resources are managed economically and efficiently and that the Board’s operations are carried out effectively.

Internal audit

(3) The Board shall cause internal audits to be conducted to assess compliance with subsections (1) and (2).

Annual financial statements

(4) The Board shall cause financial statements to be prepared annually, including, with respect to the financial year to which it relates,

(a) a balance sheet as at the end of the financial year;

(b) a statement of income for the financial year;

(d) a statement of investment portfolio.

Contents of statements

(5) The annual financial statements shall show the information and particulars that in the opinion of the board of directors are necessary to present fairly, in accordance with generally accepted accounting principles, the Board’s financial position as at the end of the financial year to which the statements relate.

Quarterly financial statements

(6) During each financial year, the Board shall cause quarterly financial statements to be prepared for each three-month period of the year. The quarterly statements shall

(a) show the same information for the most recent three-month period as is required to be shown in the Board’s annual financial statements, except that a balance sheet is not required; and

(b) show the same information in respect of the part of the year up to the date of the statements in relation to the corresponding period in the preceding financial year.

Approval by board of directors

(7) The board of directors shall approve the Board’s annual financial statements and that approval shall be evidenced by the signature of at least one director of the Board.

Auditor’s Report

Annual auditor’s report

28. (1) The Board shall cause an annual auditor’s report to be prepared on

(a) the annual financial statements referred to in subsection 27(4);

(b) the record of investments referred to in paragraph 27(1)(c); and

Contents

(2) The report shall be addressed to the Board and shall

(a) include separate statements indicating whether, in the auditor’s opinion,

(i) the financial statements are presented fairly in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year,

(ii) the Board’s transactions that have come to the auditor’s notice in the course of the auditor’s examination for the report were in accordance with this Act and the by-laws, and

(iii) the record of investments referred to in paragraph 27(1)(c) fairly presents the information required by that paragraph; and

(b) call attention to any other matter falling within the scope of the auditor’s examination for the report that, in the auditor’s opinion, should be brought to the attention of the Board.

Examination

(3) The auditor shall carry out the examination that the auditor considers necessary to prepare the report.

Auditing standards

(4) The auditor’s examination shall be carried out in accordance with generally accepted auditing standards.

Reliance on internal audit

(5) In conducting an audit under this Act, the auditor shall rely on any internal audit conducted under subsection 27(3), to the extent that the auditor considers that reliance to be practi- cable.

Qualified Privilege

Qualified privilege

29. Any oral or written statement or report made under this Act by the Board’s auditor or a former auditor of the Board has qualified privilege.

Special Examination

Special examination

30. (1) The Minister shall cause a special examination to be carried out at least once every five years to determine if the systems and practices referred to in paragraph 27(1)(b) were, in the period under examination, maintained in a manner that provided reasonable assurance that they met the requirements of paragraphs 27(2)(a) and (c).

Plan

(2) Before beginning a special examination, the examiner shall survey the systems and practices of the Board and submit a plan to the audit committee for the examination, including a statement of the criteria to be applied in the examination.

Resolution of disagreements

(3) Disagreements, if any, between the examiner and the audit committee with respect to the plan may be resolved by the Minister.

Reliance on internal audit

(4) An examiner shall rely on any internal audit conducted under subsection 27(3), to the extent that the examiner considers that reliance to be practicable.

Report

31. (1) An examiner shall, on completion of the special examination, submit a report on the examiner’s findings to the Minister.

Contents

(2) The report of an examiner shall include

(a) a statement indicating whether, in the examiner’s opinion, with respect to the criteria established under subsection 30(2), there is reasonable assurance that there are no significant deficiencies in the systems and practices examined; and

(b) a statement of the extent to which the examiner relied on internal audits.

Tabling in Parliament

(3) After receiving the report, the Minister shall cause it to be laid before each House of Parliament on any of the next 15 days during which that House is sitting.

Copy to board and Auditor General

(4) Within 10 days after the day on which the Minister receives the report, the Minister shall provide the board of directors and the Auditor General with a copy of the report.

Examiner

32. (1) Subject to subsection (2), a special examination referred to in section 30 shall be carried out by the Board’s auditor.

Examiner

(2) If, in the opinion of the Governor in Council, a person other than the Board’s auditor should carry out a special examination, the Governor in Council may, after the Minister has consulted the board of directors, appoint an auditor who is qualified for the purpose to carry out the examination in lieu of the Board’s auditor and may, after the Minister has consulted the board of directors, remove that qualified auditor at any time.

Applicable provisions

(3) Subject to subsection (4), section 29 and sections 135 and 137 of the Financial Administration Act apply in respect of an examiner as though the references in those sections to an auditor were references to an examiner.

Auditor General eligible

(4) The Auditor General is eligible to be appointed as an examiner and section 135 of the Financial Administration Act does not apply to the Auditor General in respect of such an appointment.

REPORTING

Quarterly Statements

Statements to Minister

33. (1) The Board shall send copies of the financial statements for the first, second and third quarters of the financial year, prepared in accordance with subsection 27(6), to the Minister within 45 days after the end of the three-month period to which they relate.

Statements to be made public

(2) Within seven days after the financial statements are sent, the Board shall make the statements available to the public.

Annual Report

Annual report required

34. (1) The Board shall as soon as possible, but in any case within 90 days, after the end of each financial year provide the Minister and the President of the Treasury Board with an annual report on the operations of the Board in that year and the Board shall make the report available to the public.

Tabling in Parliament

(2) After receiving the annual report, the Minister shall cause it to be laid before each House of Parliament on any of the next 15 days during which that House is sitting.

Reference to committee

(3) The annual report laid before Parliament stands permanently referred to any parliamentary committee that may be designated or established to review matters relating to the activities of the Board.

Contents

(4) The annual report shall contain

(a) the financial statements for the financial year prepared as required under section 27;

(b) the annual auditor’s report referred to in section 28;

(c) a certificate, signed by a director on behalf of the board of directors, stating that the investments of the Board held during the financial year were in accordance with this Act and the Board’s investment policies, standards and procedures;

(d) a statement of the Board’s objectives for the financial year and a statement of the extent to which the Board met those objectives;

(e) a statement of the Board’s objectives for the next financial year and for the foreseeable future;

(f) a statement of the corporate governance practices of the Board;

(g) a summary of the Board’s investment policies, standards and procedures established under paragraph 7(a) and a comparison of its investment policies with investments actually held by it;

(h) a summary of the code of conduct established under paragraph 7(d);

(i) a special examiner’s report submitted under section 31; and

(j) any information that the Minister may require.

Premium Rate Setting Report

Report

35. On the day on which the Board sets the premium rate under section 66 of the Employment Insurance Act, it shall make public a report that sets out

(a) the premium rate;

(b) a detailed analysis in support of that rate;

(d) information provided to the Board by the Minister under subsection 66.1(1) of the Employment Insurance Act; and

(e) any other information that the Board took into account in setting the rate.

REGULATIONS

Governor in Council

36. The Governor in Council, on the joint recommendation of the Minister and the Minister of Finance, may make regulations

(a) respecting the investments that the Board may make;

(b) respecting the limitations to which the Board is subject when it makes investments; and

Transitional Provisions

Application

122. For the purposes of paragraph 4(a) of the Canada Employment Insurance Financing Board Act, the Board sets the premium rate under section 66 of the Employment Insurance Act, as enacted by section 127.

Application

123. For the purposes of subsection 10(6) of the Canada Employment Insurance Financing Board Act, the nominating committee does not have to consult the board of directors until the first seven directors have been appointed by the Governor in Council.

1996, c. 23

Amendments to the Employment Insurance Act

2001, c. 5, s. 2

124. Subsections 3(1) and (2) of the Employment Insurance Act are replaced by the following:

Commission to assess adjustment

3. (1) The Commission shall monitor and assess the impact and effectiveness, for individ- uals, communities and the economy, of the benefits and other assistance provided under this Act, including

(a) how the benefits and assistance are utilized by employees and employers, and

(b) the effect of the benefits and assistance on the obligation of claimants to be available for and to seek employment and on the efforts of employers to maintain a stable workforce.

Report

(2) The Commission shall report to the Minister on its assessment annually no later than March 31 following the end of a year. The Commission shall make any additional reports at any other times, as the Minister may request.

125. The Act is amended by adding the following before the heading “Premiums” before section 65.3:

Interpretation

Definition of “Board”

65.21 In this Part, “Board” means the Canada Employment Insurance Financing Board established by subsection 3(1) of the Canada Employment Insurance Financing Board Act.

2005, c. 30, s. 126 and par. 129(2)(c)

126. Section 65.3 of the Act is repealed.

2005, c. 30, s. 126

127. Sections 66 to 66.5 of the Act are replaced by the following:

Annual premium rate setting

66. (1) Subject to subsection (7) and section 66.3, the Board shall set the premium rate for each year in order to generate just enough premium revenue during that year to cover the payments to be made under subsection 77(1) during that year and the repayment of any advances that must be made in accordance with subsection 80(2) during that year, and to ensure that the forecast fair market value of the Board’s reserve at the end of that year is equal to the amount determined under subsection (5).

Factors

(2) Subject to subsection (3) and any regulations made under subsections 66.1(2) and 66.2(2), the Board shall set the premium rate based on

(a) the information provided under sections 66.1 and 66.2;

(b) any difference, accumulated after December 31, 2008, between

(i) the amount credited to the Employment Insurance Account under sections 73 to 75, and

(ii) the amount charged to that Account under subsections 77(1) and 80(3);

(d) the Board’s obligation to manage a reserve, the amount of which is referred to in subsection (5);

(e) any regulations made under section 69;

(f) any changes, announced by the Minister on or before September 30 in a year, to payments to be made under paragraph 77(1)(a), (b) or (c) during the following year; and

(g) any other information that the Board considers relevant.

Restriction

(3) In exercising its powers and performing its functions and duties, the Board shall not take into account the balance in the Employment Insurance Account.

Reserve

(4) The Board’s reserve is equal to its financial assets less its financial liabilities.

Indexation

(5) The amount referred to in subsection (1) is equal to the amount paid under section 70.1, indexed annually, beginning in 2009, on a compound basis, in accordance with the regulations.

Regulations — indexation

(6) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may make regulations respecting the method for indexing, for the purposes of subsection (5).

Difference year to year

(7) The premium rate may not be increased or decreased by more than fifteen one-hundredths of one per cent (0.15%) from one year to the next.

Governor in Council — maximum change in premium rate

(8) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may change the maximum percentage referred to in subsection (7) by which the premium rate may be increased or decreased from one year to the next, if the Governor in Council considers it to be in the public interest.

Time limit

(9) On or before November 14 in a year, the Board shall set the premium rate for the following year.

Information provided

66.1 (1) The Minister shall, on or before September 30 in a year, provide the Board with the following information:

(a) the amount of the payments made under subsection 77(1) during the two previous years;

(b) the amount of the payments made under that subsection during the year;

(c) if the Minister has made an announcement referred to in paragraph 66(2)(f), the forecast change in the amount of the payments to be made during the following year under paragraph 77(1)(a), (b) or (c), as the case may be;

(d) the forecast costs to be paid under paragraphs 77(1)(d) and (f) during the following year, including any forecast change in those costs resulting from any change to the payments referred to in paragraph (c); and

(e) any prescribed information.

Regulations

(2) On the recommendation of the Minister, the Governor in Council may make regulations

(a) prescribing information referred to in paragraph (1)(e); and

(b) specifying which of the information referred to in subsection (1) is binding on the Board.

Information provided

66.2 (1) The Minister of Finance shall, on or before September 30 in a year, provide the Board with the following information:

(a) the most current forecast values of the economic variables that are relevant to the determination under section 66 of a premium rate for the following year;

(b) the amount credited to the Employment Insurance Account under sections 73 to 75 during the year that is two years before the current year;

(d) the amounts forecasted under subsection 77.1(1);

(e) the amount of any interim payment to be made under subsection 77.1(2) or (3) during the year; and

(f) any prescribed information.

Regulations

(2) On the recommendation of the Minister of Finance, the Governor in Council may make regulations

(a) prescribing information referred to in paragraph (1)(f); and

(b) specifying which of the information referred to in subsection (1) is binding on the Board.

Governor in Council

66.3 (1) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before November 30 in a year,

(a) if the Governor in Council considers it to be in the public interest, substitute a premium rate for the following year that is different from the one set by the Board under section 66; or

(b) if the Board has not set a premium rate under that section by November 14 in the year, set one for the following year.

Non-application of subsection 66(7)

(2) Subsection 66(7) does not apply to the setting of the premium rate under subsection (1).

Rounding percentage rates

66.4 If the calculation of a premium rate under section 66 or 66.3 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one-hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.

Statutory Instruments Act

66.5 The Statutory Instruments Act does not apply in respect of a premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68. However, the premium rates must, as soon as possible, be published by the Board in Part I of the Canada Gazette.

128. The Act is amended by adding the following after section 70:

Payment of $2,000,000,000

70.1 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, an amount of two billion dollars to the Board.

129. Subsection 77(1) of the Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after paragraph (d):

(e) the costs to the Board of administering the Canada Employment Insurance Financing Board Act; and

(f) the costs to Her Majesty in right of Canada of administering that Act.

130. The Act is amended by adding the following after section 77:

Forecast — premium revenue and payments

77.1 (1) On or before September 30 in a year, the Minister of Finance shall forecast

(a) the amount to be credited to the Employment Insurance Account under sections 73 to 75 during the year; and

(b) the amount to be charged, during the year, to that Account under subsection 77(1) — based on, among other things, information provided by the Minister — and under subsection 80(3).

Interim payment to Board

(2) If the amount referred to in paragraph (1)(a) is greater than the amount referred to in paragraph (1)(b), an interim payment equal to the amount of the difference shall be made, on or before October 31 in the year, to the Board out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, and charged to the Employment Insurance Account.

Interim payment by Board

(3) If the amount referred to in paragraph (1)(a) is less than the amount referred to in paragraph (1)(b), an interim payment equal to the amount of the difference shall be made, on or before October 31 in the year, by the Board to the Consolidated Revenue Fund and credited to the Employment Insurance Account.

Calculation

(4) On or before March 31 in the second year following the year referred to in subsection (1), the Minister of Finance shall determine the difference between

(a) the actual amount credited to the Employment Insurance Account under sections 73 to 75 during the year, and

(b) the actual amount charged to that Account under subsections 77(1) and 80(3) during the year.

Final payment

(5) A final payment required to reconcile the amount of the interim payment made under subsection (2) or (3) with the amount of the difference determined under subsection (4) shall be determined in accordance with the regulations.

Final payment to Board

(6) If a final payment is owed to the Board, it shall be made, on or before the March 31 referred to in subsection (4), to the Board out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, and charged to the Employment Insurance Account.

Final payment by Board

(7) If a final payment is owed by the Board, it shall be made, on or before the March 31 referred to in subsection (4), by the Board to the Consolidated Revenue Fund and credited to the Employment Insurance Account.

Regulations — final payment

(8) On the recommendation of the Minister of Finance, the Governor in Council may make regulations respecting

(a) the method for determining the final payment referred to in subsection (5);

(b) the interest on it, if any;

(d) the time from which that interest is payable.

Terms and conditions

(9) Any interim or final payment shall be made in the manner and on the terms and conditions that the Minister of Finance may establish after consulting with the Minister and the Board.

131. Subsections 80(1) and (2) of the Act are replaced by the following:

Advances

80. (1) If amounts credited to the Employment Insurance Account after December 31, 2008, and the amount of the Board’s reserve referred to in subsection 66(4), are not sufficient for the payment of amounts authorized to be charged to that Account after that day, the Minister of Finance, when requested by the Minister, may authorize the advance to the Account from the Consolidated Revenue Fund of an amount sufficient to make the payment.

Advances repayable

(2) The advance shall be credited to the Employment Insurance Account and shall be repaid in the time and manner and on the terms and conditions that the Minister of Finance may establish.

Consequential Amendments

2005, c. 34

Department of Human Resources and Skills Development Act

2005, c. 30, par. 129(2)(a)

132. (1) Subsection 28(1.1) of the Department of Human Resources and Skills Development Act is repealed.

(2) Section 28 of the Act is amended by adding the following after subsection (3):

Calculations

(4) The Commission may request the Canada Employment Insurance Financing Board established under subsection 3(1) of the Canada Employment Insurance Financing Board Act to perform calculations for the purposes of sections 4 and 69 of the Employment Insurance Act in accordance with an agreement between the Commission and that Board.

2005, c. 30, par. 129(2)(b)

133. Section 28.1 of the Act is repealed.

R.S., c. F-11

Financial Administration Act

134. Part I of Schedule III to the Financial Administration Act is amended by adding the following in alphabetical order:

Canada Employment Insurance Financing Board

Office de financement de l’assurance-emploi du Canada

Coming into Force

Order in council

135. The provisions of this Part or those of the Canada Employment Insurance Financing Board Act, as enacted by section 121, come into force on a day or days to be fixed by order of the Governor in Council.

PART 8

PAYMENTS TO PROVINCES AND TERRITORIES

Police Officers Recruitment Fund

Maximum payment of $400,000,000

136. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding four hundred million dollars, to a trust established to provide provinces and territories with funding to support the recruitment of 2,500 new front-line police officers over the next five years.

Provincial or territorial share

(2) The amount that may be provided to a province or territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust.

Payments out of C.R.F.

(3) Any amount payable under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, at the times and in the manner that the Minister of Finance considers appropriate.

Public Transit Capital Trust 2008

Maximum payment of $500,000,000

137. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding five hundred million dollars, to a trust established to support capital investment in public transit infrastructure in the provinces and territories.

Beneficiaries’ share

(2) The beneficiaries of the trust and the amount that may be provided to each beneficiary under this section are to be determined in accordance with the terms of the trust indenture establishing the trust.

Payments out of C.R.F.

Payment to Saskatchewan for Carbon Capture and Storage

Maximum payment of $240,000,000

138. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding two hundred and forty million dollars, to a trust established to provide Saskatchewan with funding to support a full scale commercial demonstration of carbon capture and storage in the coal-fired electricity sector.

Determination of amount

(2) The amount that may be provided to Saskatchewan under this section is to be determined in accordance with the terms of the trust indenture establishing the trust.

Payments out of C.R.F.

Payment to Nova Scotia for Carbon Storage

Maximum payment of $5,000,000

139. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, a sum not exceeding five million dollars to Nova Scotia to support geological research examining the potential for carbon storage in the province.

Canada Social Transfer Transition Protection Payment to Saskatchewan

Payment of $31,204,000

140. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of thirty-one million, two hundred and four thousand dollars to Saskatchewan.

Canada Social Transfer Transition Protection Payment to Nunavut

Payment of $705,000

141. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of seven hundred and five thousand dollars to Nunavut.

PART 9

PAYMENTS TO CERTAIN ENTITIES

Genome Canada

Maximum payment of $140,000,000

142. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding one hundred and forty million dollars to Genome Canada for its use.

Mental Health Commission of Canada

Maximum payment of $110,000,000

143. (1) There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding one hundred and ten million dollars to the Mental Health Commission of Canada for its use.

Terms and conditions

(2) The Minister of Health may, before or after this section comes into force, enter into an agreement with the Mental Health Commission of Canada respecting the terms and conditions applicable to the making of the payment and its use.

The Gairdner Foundation

Maximum payment of $20,000,000

144. (1) There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding twenty million dollars to The Gairdner Foundation for its use.

Terms and conditions

(2) The Minister of Health may, before or after this section comes into force, enter into an agreement with The Gairdner Foundation respecting the terms and conditions applica- ble to the making of the payment and its use.

University of Calgary

Maximum payment of $5,000,000

145. (1) There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Natural Resources, a sum not exceeding five million dollars to the University of Calgary for the purpose of examining regulatory, economic and technological barriers in order to accelerate the deployment of carbon capture and storage technologies.

Terms and conditions

(2) The Minister of Natural Resources may, before or after this section comes into force, enter into an agreement with the University of Calgary respecting the terms and conditions applicable to the making of the payment and its use.

PART 10

VARIOUS AMENDMENTS

R.S., c. B-2

Bank of Canada Act

1999, c. 28, s. 95(1); 2001, c. 9, s. 194(2)

146. (1) Paragraphs 18(g) and (g.1) of the Bank of Canada Act are replaced by the following:

(g) for the purposes of conducting monetary policy or promoting the stability of the Canadian financial system,

(i) buy and sell from or to any person securities and any other financial instruments — other than instruments that evidence an ownership interest or right in or to an entity — that comply with the policy established by the Governor under subsection 18.1(1), and

(ii) if the Governor is of the opinion that there is a severe and unusual stress on a financial market or the financial system, buy and sell from or to any person any securities and any other financial instruments, to the extent determined necessary by the Governor;

(2) Paragraph 18(k) of the Act is repealed.

2001, c. 9, s. 195

147. Section 19 of the Act is replaced by the following:

Policy established by Governor

18.1 (1) The Governor shall establish a policy for the purposes of subparagraph 18(g)(i).

Publication

(2) The Bank shall publish the policy and any amendment to it in the Canada Gazette and the policy or the amendment comes into force seven days after the day on which the Bank publishes it or on any later day specified by the Governor.

Publication

19. If the Bank takes any action under subparagraph 18(g)(ii), the Bank shall cause a notice to be published in the Canada Gazette that the Governor has formed an opinion that there is a severe and unusual stress on a financial market or the financial system. The notice is to be published as soon as the Governor is of the opinion that its publication will not materially contribute to the stress to which the notice relates.

2006, c. 4

Budget Implementation Act, 2006

148. Subsection 193(4) of the Budget Implementation Act, 2006 is replaced by the following:

Limitation

(4) The aggregate outstanding principal amount of all mortgages or hypothecs to which insurance policies that are subject to such agreements apply shall not at any time exceed $250,000,000,000 or any other amount that may be authorized for the purposes of this subsection under an appropriation Act.

R.S., c. C-17

Canadian Forces Superannuation Act

149. The Canadian Forces Superannuation Act is amended by adding the following after section 93:

Power of Minister

94. The Minister may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act.

Regulations — electronic means

95. (1) The Governor in Council may make regulations

(a) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Act, including

(i) the technology or process, and the format, to be used,

(ii) the place where an electronic document is to be made or sent,

(iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received,

(iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and

(v) the circumstances in which an elec- tronic document must be signed with an electronic signature or a secure electronic signature; and

(b) providing that a requirement under a provision of this Act to provide a document or information by non-electronic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with.

Personal Information Protection and Electronic Documents Act

(2) In subsection (1), “electronic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act.

150. The Act is amended by adding the following after section 95:

Interest on overpayment

96. If there is an overpayment by a contributor, a participant or a former participant in respect of amounts required to be paid under this Act, interest shall be paid on the overpayment in accordance with the regulations.

Regulations — payment of interest

97. The Governor in Council may make regulations respecting

(a) the circumstances in which interest is to be paid;

(b) the rate of interest, the manner of calculating the rate and the period in respect of which interest is to be paid;

(d) any other matters that the Governor in Council deems necessary for the purposes of section 96.

1991, c. 48

Cooperative Credit Associations Act

2001, c. 9, s. 314

151. Subparagraphs (a)(iv) and (v) of the definition “commercial loan” in subsection 386(1) of the Cooperative Credit Associations Act are replaced by the following:

(iv) a loan that is secured by a mortgage on real property, if

(A) the mortgage is on residential property and the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, does not exceed 80% of the value of the property at the time the loan is made or acquired, or

(B) the mortgage is on real property other than residential property and

(I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, does not exceed 80% of the value of the property at the time the loan is made or acquired, and

(II) at the time the loan is made or acquired the property provides an annual income sufficient to pay all annual expenses related to the property, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the property,

(v) a loan that is secured by a mortgage on real property, if

(A) the mortgage is on residential property and

(I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, exceeds 80% of the value of the property at the time the loan is made or acquired, and

(II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintend- ent, or

(B) the mortgage is on real property other than residential property and

(II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintend- ent, and

(III) at the time the loan is made or acquired, the property provides an annual income sufficient to pay all annual expenses related to the property, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the property,

2007, c. 33

Donkin Coal Block Development Opportunity Act

152. Section 10 of the Donkin Coal Block Development Opportunity Act is amended by adding the following after subsection (2):

Payment out of Consolidated Revenue Fund

(3) There may be paid out of the Consolidated Revenue Fund to Her Majesty in right of the Province, on the requisition of the Minister, any amount to be remitted during a fiscal year under subsection (2).

R.S., c. F-11

Financial Administration Act

153. The Financial Administration Act is amended by adding the following after section 15:

Advisory and other committees

15.1 (1) The Minister may establish advisory and other committees and provide for their membership, duties, functions and operation.

Remuneration and expenses

(2) Members of a committee may be paid for their services the remuneration and expenses that the Governor in Council may determine.

1991, c. 47

Insurance Companies Act

2001, c. 9, s. 426

154. Subparagraphs (a)(iv) and (v) of the definition “commercial loan” in subsection 490(1) of the Insurance Companies Act are replaced by the following:

(iv) a loan that is secured by a mortgage on real property, if

(B) the mortgage is on real property other than residential property and

(II) at the time the loan is made or acquired, the property provides an annual income sufficient to pay all annual expenses related to the property, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the property,

(v) a loan that is secured by a mortgage on real property, if

(A) the mortgage is on residential property and

(II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintend- ent,

(B) the mortgage is on real property other than residential property and

(II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintend- ent, and

R.S., c. I-15

Interest Act

2001, c. 4, s. 95

155. Subsection 10(2) of the Interest Act is replaced by the following:

Exception

(2) Subsection (1) does not apply

(a) to any mortgage on real property or hypothec on immovables given by a joint stock company or any other corporation, nor to any debenture issued by them, for the payment of which security has been given by way of mortgage on real property or hypothec on immovables; or

(b) to any prescribed mortgage on real property or prescribed hypothec on immovables given by a prescribed entity, nor to any prescribed debenture issued by it, for the payment of which security has been given by way of mortgage on real property or hypothec on immovables.

Regulations

(3) For the purposes of paragraph (2)(b), the Governor in Council may, by regulation,

(a) prescribe entities; and

(b) prescribe classes of mortgages and hypothecs given by those entities and classes of debentures issued by them.

R.S., c. O-9

Old Age Security Act

1999, c. 22, s. 87(1)

156. Subparagraph (a)(i) of the definition “income” in section 2 of the Old Age Security Act is replaced by the following:

(i) a single amount in respect of all offices and employments of that person equal to

(A) for the purpose of determining benefits payable in respect of any month before July 2008, the lesser of $500 and one fifth of the person’s income from office or employment for the year, or

(B) for the purpose of determining benefits payable in respect of any month after June 2008, the lesser of $3,500 and the person’s income from office or employment for the year,

R.S., c. P-36

Public Service Superannuation act

157. Section 40.1 of the Public Service Superannuation Act is amended by adding the following after subsection (2):

Deemed coming into force

(3) Subsection (1), as enacted by section 79 of chapter 34 of the Statutes of Canada, 2001, is deemed to have come into force on December 1, 1996.

158. Paragraph 42(1)(v) of the Act is replaced by the following:

(v) respecting, for the purposes of paragraph 13(1)(d) and subsection 13(6), the method by which the amount of any annuity or annual allowance payable to a contributor described in paragraph 13(1)(a), (c) or (d) shall be adjusted;

159. The Act is amended by adding the following after section 72:

Power of Minister

73. The Minister may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act.

Regulations — electronic means

74. (1) The Governor in Council may make regulations

(a) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Act, including

(i) the technology or process, and the format, to be used,

(ii) the place where an electronic document is to be made or sent,

(iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received,

(iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and

(v) the circumstances in which an elec- tronic document must be signed with an electronic signature or a secure electronic signature; and

Personal Information Protection and Electronic Documents Act

160. The Act is amended by adding the following after section 74:

Interest on overpayment

75. If there is an overpayment by a contributor in respect of amounts required to be paid under this Act, interest shall be paid on the overpayment in accordance with the regulations.

Regulations — payment of interest

76. The Governor in Council may make regulations respecting

(a) the circumstances in which interest is to be paid;

(b) the rate of interest, the manner of calculating the rate and the period in respect of which interest is to be paid;

(d) any other matters that the Governor in Council deems necessary for the purposes of section 75.

R.S., c. R-11

Royal Canadian Mounted Police Superannuation Act

161. The Royal Canadian Mounted Police Superannuation Act is amended by adding the following after section 42:

Power of Minister

43. The Minister may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act.

Regulations — electronic means

44. (1) The Governor in Council may make regulations

(a) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Act, including

(i) the technology or process, and the format, to be used,

(ii) the place where an electronic document is to be made or sent,

(iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received,

(iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and

(v) the circumstances in which an elec- tronic document must be signed with an electronic signature or a secure electronic signature; and

Personal Information Protection and Electronic Documents Act

Powers of Treasury Board

(3) The Treasury Board may, in addition to the powers conferred on it by paragraph 7(2)(d) of the Financial Administration Act, exercise the powers of the Governor in Council under subsection (1).

162. The Act is amended by adding the following after section 44:

Interest on overpayment

45. If there is an overpayment by a contributor in respect of amounts required to be paid under this Act, interest shall be paid on the overpayment in accordance with the regulations.

Regulations — payment of interest

46. (1) The Governor in Council may make regulations respecting

(a) the circumstances in which interest is to be paid;

(b) the rate of interest, the manner of calculating the rate and the period in respect of which interest is to be paid;

(d) any other matters that the Governor in Council deems necessary for the purposes of section 45.

Powers of Treasury Board

(2) The Treasury Board may, in addition to the powers conferred on it by paragraph 7(2)(d) of the Financial Administration Act, exercise the powers of the Governor in Council under subsection (1).

1991, c. 45

Trust and Loan Companies Act

2001, c. 9, s. 550

163. Subparagraphs (a)(iv) and (v) of the definition “commercial loan” in subsection 449(1) of the Trust and Loan Companies Act are replaced by the following:

(iv) a loan that is secured by a mortgage on real property, if

(B) the mortgage is on real property other than residential property and

(v) a loan that is secured by a mortgage on real property, if

(A) the mortgage is on residential property and

(II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintend- ent,

(B) the mortgage is on real property other than residential property and

(II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintendent, and

Coming into Force

Order in council

164. (1) Subject to subsection (2), the provisions of this Part, other than sections 148, 149, 151 to 155, 157 to 159, 161 and 163, come into force on a day or days to be fixed by order of the Governor in Council.

Deemed coming into force

(2) Section 156 comes into force or is deemed to have come into force on July 1, 2008.

Published under authority of the Speaker of the House of Commons

Available from:
Publishing and Depository Services
Public Works and Government Services Canada

Table of Contents

AMENDMENTS RELATED TO INCOME TAX

Income Tax Act