Bill C-51

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2nd Session, 40th Parliament,

57-58 Elizabeth II, 2009

house of commons of canada

BILL C-51

An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures

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 Economic Recovery Act (stimulus).

PART 1

AMENDMENTS RELATED TO INCOME TAX

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

Income Tax Act

2. (1) The portion of subsection 80.3(4) of the Income Tax Act before the formula is replaced by the following:

Income deferral for regions of drought, flood or excessive moisture

(4) If in a taxation year a taxpayer carries on a farming business in a region that is at any time in the year a prescribed drought region or a prescribed region of flood or excessive moisture and the taxpayer’s breeding herd at the end of the year in respect of the business does not exceed 85% of the taxpayer’s breeding herd at the beginning of the year in respect of the business, there may be deducted in computing the taxpayer’s income from the business for the year the amount that the taxpayer claims, not exceeding the amount, if any, determined by the formula

(2) The portion of subsection 80.3(5) of the Act before paragraph (b) is replaced by the following:

Inclusion of deferred amount

(5) The amount deducted under subsection (4) in computing the income of a taxpayer for a particular taxation year from a farming business carried on in a region prescribed under that subsection may, to the extent that the taxpayer so elects, be included in computing the taxpayer’s income from the business for a taxation year ending after the particular taxation year, and is, except to the extent that the amount has been included under this subsection in computing the taxpayer’s income from the business for a preceding taxation year after the particular year, deemed to be income of the taxpayer from the business for the taxation year of the taxpayer that is the earliest of

(a) the first taxation year beginning after the end of the period or series of continuous periods, as the case may be, for which the region is prescribed under that subsection,

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

3. (1) Section 108 of the Act is amended by adding the following after subsection (1):

Home renovation tax credit

(1.1) For the purpose of the definition “testamentary trust” in subsection (1), a contribution to a trust does not include a qualifying expenditure (within the meaning of section 118.04) of a beneficiary under the trust.

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

4. (1) The Act is amended by adding the following after section 118.03:

Definitions

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

“eligible dwelling”
« logement admissible »

“eligible dwelling” of an individual, at any time, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of such land that exceeds the greater of 1/2 hectare and the portion of such land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if

(a) the individual (or a trust under which the individual is a beneficiary) owns, whether jointly with another person or otherwise, at that time, the housing unit or a share of the capital stock of a co-operative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and

(b) the housing unit is ordinarily inhabited at any time during the eligible period by the individual, by the individual’s spouse or common-law partner or former spouse or common-law partner or by a child of the individual.

“eligible period”
« période d’admissibilité »

“eligible period” means the period that begins on January 28, 2009 and that ends on January 31, 2010.

“individual”
« particulier »

“individual” does not include a trust.

“qualifying expenditure”
« dépense admissible »

“qualifying expenditure” of an individual means an outlay or expense that is made or incurred, by the individual or by a qualifying relation in respect of the individual during the eligible period, that is directly attributable to a qualifying renovation by the individual and that is the cost of goods acquired or services received during the eligible period and includes such an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include such an outlay or expense

(a) to acquire goods that have been used, or acquired for use or lease, by the individual or by a qualifying relation in respect of the individual, for any purpose whatever before they were acquired by the individual or the qualifying relation in respect of the individ- ual;

(b) made or incurred under the terms of an agreement entered into before the eligible period;

(d) that is the cost of annual, recurring or routine repair or maintenance;

(e) to acquire a household appliance;

(f) to acquire an electronic home-entertainment device;

(g) for financing costs in respect of the qualifying renovation;

(h) made or incurred for the purpose of gaining or producing income from a business or property; or

(i) in respect of goods or services provided by a person not dealing at arm’s length with the individual, unless the person is registered for the purposes of Part IX of the Excise Tax Act.

“qualifying relation”
« proche admissible »

“qualifying relation” in respect of an individual means a person who is the individual’s spouse or common-law partner, or a child of the individual who has not attained the age of 18 years before the end of 2009 (other than a child who was, at any time during the eligible period, a married person, a person who is in a common-law partnership or a person who has a child).

“qualifying renovation”
« travaux de rénovation admissibles »

“qualifying renovation” by an individual, at any time, means a renovation or alteration, of a property that is at that time an eligible dwelling of the individual or of a qualifying relation in respect of the individual, that is of an enduring nature and that is integral to the eligible dwelling.

Rules of application

(2) For the purposes of this section,

(a) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a co-operative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that corporation, and that includes an eligible dwelling of the individual, to the extent of the individual’s share of that outlay or expense, if

(i) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were a natural person and the property were an eligible dwelling of that natural person, and

(ii) the corporation has notified the individual, in writing, of the individual’s share of the outlay or expense; and

(b) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes an eligible dwelling of the individual, to the extent of the share of that outlay or expense that is reasonably attributable to the individual, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling of the individual (including, for this purpose, common areas relevant to more than one eligible dwelling), if

(i) the outlay or expense would be a qualifying expenditure of the trust if the trust were a natural person and the property were an eligible dwelling of that natural person, and

(ii) the trust has notified the individual, in writing, of the individual’s share of the outlay or expense.

Home renovation tax credit

(3) For the purposes of computing the tax payable under this Part by an individual for the individual’s 2009 taxation year, there may be deducted the amount determined by the formula

A × (B – $1,000)

where

A is the appropriate percentage for the taxation year; and

B is the lesser of $10,000 and the total of all amounts, each of which is a qualifying expenditure of the individual.

Interaction with medical expense credit

(4) Notwithstanding paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.

Apportionment of credit

(5) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying expenditure of an individual, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying expenditure, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

Definitions

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

“qualifying home”
« habitation admissible »

“qualifying home” in respect of an individual, means a “qualifying home” as defined in subsection 146.01(1) that is acquired, whether jointly or otherwise, after January 27, 2009 if

(a) the home is acquired by the individual, or by the individual’s spouse or common-law partner, and

(i) the individual intends to inhabit the home as a principal place of residence not later than one year after its acquisition,

(ii) the individual did not own, whether jointly or otherwise, a home that was occupied by the individual in the period

(A) that began at the beginning of the fourth preceding calendar year that ended before the acquisition, and

(B) that ended on the day before the acquisition, and

(iii) the individual’s spouse or common-law partner did not, in the period referred to in subparagraph (ii), own, whether jointly or otherwise, a home

(A) that was inhabited by the individual during the marriage to or common-law partnership with the individual, or

(B) that was a share of the capital stock of a cooperative housing corporation that relates to a housing unit inhabited by the individual during the marriage to or common-law partnership with the individual; or

(b) the home is acquired by the individual for the benefit of a specified person in respect of the individual, and

(i) the individual intends that the home be inhabited by the specified person as a principal place of residence not later than one year after its acquisition by the individual, and

(ii) the purpose of the acquisition of the home by the individual is to enable the specified person to live in

(A) a home that is more accessible by the specified person or in which the specified person is more mobile or functional, or

(B) an environment better suited to the specified person’s personal needs and care.

“specified person”
« personne déterminée »

“specified person” in respect of an individual, at any time, means a person who

(a) is the individual or is related at that time to the individual; and

(b) would be entitled to a deduction under subsection 118.3(1) in computing tax payable under this Part for the person’s taxation year that includes that time if that subsection were read without reference to paragraph (c) of that subsection.

Rules of application

(2) For the purposes of this section, an individual is considered to have acquired a qualifying home only if the individual’s interest (or for civil law, right) in it is registered in accordance with the land registration system or other similar system applicable where it is located.

First-time home buyers’ tax credit

(3) In computing the tax payable under this Part by an individual for a taxation year in which a qualifying home in respect of the individual is acquired, there may be deducted the amount determined by multiplying $5,000 by the appropriate percentage for the taxation year.

Apportionment of credit

(4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a particular qualifying home, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying home, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

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

5. (1) The portion of subsection 118.3(2) of the French version of the Act before paragraph (a) is replaced by the following:

Personne déficiente à charge

(2) L’excédent du montant déductible en application du paragraphe (1) dans le calcul de l’impôt payable en vertu de la présente partie pour une année d’imposition par une personne (sauf une personne à l’égard de laquelle l’époux ou le conjoint de fait déduit un montant pour l’année en application des articles 118 ou 118.8) qui réside au Canada à un moment donné de l’année et qui a le droit de déduire un montant pour l’année en application du paragraphe (1) sur l’impôt payable par cette personne en vertu de la présente partie pour l’année calculé avant toute déduction en application de la présente section — à l’exception des articles 118 à 118.05 et 118.7 — est déductible dans le calcul de l’impôt payable par un particulier en vertu de la présente partie pour l’année dans le cas où :

(2) Paragraph 118.3(2)(d) of the English version of the Act is replaced by the following:

(d) the amount of that person’s tax payable under this Part for the year computed before any deductions under this Division (other than under sections 118 to 118.05 and 118.7).

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

6. (1) The description of C in subsection 118.61(1) of the Act is replaced by the following:

C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.05, 118.3 and 118.7);

(2) Paragraph 118.61(2)(b) of the Act is replaced by the following:

(b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.05, 118.3 and 118.7).

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

7. (1) Paragraph (a) of the description of C in section 118.8 of the Act is replaced by the following:

(a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deduct- ible under subsection 118(1) because of paragraph (c) of the description of B in that subsection, under subsection 118(10) or under any of sections 118.01 to 118.05, 118.3, 118.61 and 118.7).

(2) Subparagraph (b)(ii) of the description of C in section 118.8 of the Act is replaced by the following:

(ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.05, 118.3, 118.61 and 118.7).

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

8. (1) The description of B in paragraph 118.81(a) of the Act is replaced by the following:

B is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.05, 118.3, 118.61 and 118.7), and

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

9. (1) Paragraph 118.91(b) of the Act is replaced by the following:

(b) the individual shall be allowed only

(i) such of the deductions permitted under subsections 118(3) and (10) and 118.6(2.1) and sections 118.01 to 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year, and

(ii) such part of the deductions permitted under sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year,

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

10. (1) Section 118.92 of the Act is replaced by the following:

Ordering of credits

118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.04, 118.05, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

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

11. (1) Section 118.94 of the Act is replaced by the following:

Tax payable by non-residents (credits restricted)

118.94 Sections 118 to 118.05 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all of the individual’s income for the year is included in computing the individ- ual’s taxable income earned in Canada for the year.

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

12. (1) Paragraphs 118.95(a) and (b) of the Act are replaced by the following:

(a) such of the deductions as the individual is entitled to under any of subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.6, 118.62 and 118.7, as can reasonably be considered wholly applicable to the taxation year, and

(b) such part of the deductions as the individual is entitled to under any of sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the taxation year,

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

13. (1) The descriptions of A and B in subsection 122.7(2) of the Act are replaced by the following:

A is

(a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $925 and 25% of the amount, if any, by which the individual’s working income for the taxation year exceeds $3,000, or

(b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $1,680 and 25% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $3,000; and

B is

(a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the adjusted net income of the individual for the taxation year exceeds $10,500, or

(b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applica- ble, of the eligible spouse, for the taxation year, exceeds $14,500.

(2) The descriptions of C and D in subsection 122.7(3) of the Act are replaced by the following:

C is the lesser of $462.50 and 25% of the amount, if any, by which the individual’s working income for the taxation year exceeds $1,150; and

D is

(a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $16,667,

(b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applica- ble, of the eligible spouse, for the taxation year, exceeds $25,700, or

(c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7.5% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $25,700.

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

14. (1) Paragraph 127.531(a) of the Act is replaced by the following:

(a) an amount deducted under subsection 118(1), (2) or (10) or 118.3(1) or any of sections 118.01 to 118.05 and 118.5 to 118.7 in computing the individual’s tax payable for the year under this Part; or

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

15. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:

(A) under any of sections 118 to 118.05, 118.2, 118.3, 118.5, 118.6, 118.8 and 118.9,

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

C.R.C., c. 945

Income Tax Regulations

16. Section 7305 of the Income Tax Regulations is amended by striking out “and” at the end of paragraph (i) and by adding the following after paragraph (j):

(k) the 2007 calendar year are

(i) in Ontario, the Cities of Hamilton, Kawartha Lakes and Toronto, the Counties of Brant, Bruce, Dufferin, Elgin, Essex, Frontenac, Grey, Haldimand, Hastings, Huron, Lambton, Lennox and Addington, Middlesex, Northumberland, Norfolk, Oxford, Perth, Peterborough, Prince Edward, Simcoe and Wellington, the Municipality of Chatham-Kent, the Regional Municipalities of Durham, Halton, Niagara, Peel, Waterloo and York, the Territorial Districts of Algoma, Manitoulin and Thunder Bay and the United Counties of Leeds and Grenville,

(ii) in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Okanagan-Similkameen,

(iii) in Saskatchewan, the Rural Municipalities of Arlington, Auvergne, Bengough, Big Stick, Bone Creek, Carmichael, Coulee, Excel, Excelsior, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gull Lake, Happy Valley, Hart Butte, Lac Pelletier, Lake of the Rivers, Lawtonia, Lone Tree, Mankota, Maple Creek, Miry Creek, Morse, Old Post, Piapot, Pinto Creek, Pittville, Poplar Valley, Reno, Riverside, Saskatchewan Landing, Stonehenge, Swift Current, Val Marie, Waverley, Webb, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, and

(iv) in Alberta, the Counties of Cardston, Cypress, Forty Mile, Lethbridge and Warn- er, the Municipal Districts of Pincher Creek, Ranchland, Taber and Willow Creek and the Municipality of Crowsnest Pass;

(l) the 2008 calendar year are

(i) in Manitoba, the Municipality of Killarney-Turtle Mountain and the Rural Municipalities of Albert, Arthur, Brenda, Cameron, Edward, Glenwood, Morton, Pipestone, Riverside, Sifton, Whitewater and Winchester,

(ii) in British Columbia, the Regional Districts of Central Kootenay, East Kootenay, Kootenay Boundary and Peace River,

(iii) in Saskatchewan, the Rural Municipalities of Argyle, Arlington, Auvergne, Baildon, Bengough, Benson, Bone Creek, Bratt’s Lake, Brokenshell, Browning, Caledonia, Cambria, Caron, Coalfields, Cymri, Elmsthorpe, Enniskillen, Estevan, Excel, Francis, Frontier, Glen Bain, Glen McPherson, Grassy Creek, Gravelbourg, Griffin, Hillsborough, Happy Valley, Hart Butte, Key West, Lac Pelletier, Lajord, Lake Alma, Lake Johnston, Lake of the Rivers, Laurier, Lomond, Lone Tree, Mankota, Marquis, Moose Creek, Moose Jaw, Mount Pleasant, Norton, Old Post, Pense, Pinto Creek, Poplar Valley, Redburn, Reciprocity, Rodgers, Scott, Shamrock, Sherwood, Souris Valley, Surprise Valley, Stonehenge, Storthoaks, Sutton, Tecumseh, Terrell, The Gap, Val Marie, Waverley, Wellington, Weyburn, Whiska Creek, White Valley, Willow Bunch, Wise Creek and Wood River, and

(iv) in Alberta, the Counties of Birch Hills, Clear Hills, Grande Prairie and Saddle Hills and the Municipal Districts of Fairview and Spirit River; and

(m) the 2009 calendar year are

(i) in British Columbia, the Census Subdivisions Cariboo D, E, G and K, Central Kootenay A to E, G, H, J and K, Central Okanagan, Central Okanagan J, Columbia-Shuswap C to F, Kootenay Boundary B to E, North Okanagan B and D to F, Okanagan-Similkameen A to H, Spallumcheen, Squamish-Lillooet A to C and Thompson-Nicola E (Bonaparte Plateau), I (Blue Sky Country), J (Copper Desert Country), L, M, N, O (Lower North Thompson) and P (Rivers and the Peaks), as these subdivisions were developed by Statistics Canada for the 2006 Census,

(ii) in Saskatchewan, the Rural Municipalities of Antelope Park, Auvergne, Battle River, Biggar, Bone Creek, Britannia, Buffalo, Canaan, Chaplin, Chesterfield, Clinworth, Coteau, Coulee, Cut Knife, Deer Forks, Eagle Creek, Eldon, Enfield, Excelsior, Eye Hill, Fertile Valley, Glen Bain, Glen McPherson, Glenside, Grandview, Grass Lake, Grassy Creek, Gravelbourg, Happyland, Harris, Heart’s Hill, Hillsdale, Kindersley, King George, Lacadena, Lac Pelletier, Lawtonia, Lone Tree, Loreburn, Manitou Lake, Mankota, Maple Bush, Mariposa, Marriott, Milden, Milton, Miry Creek, Monet, Montrose, Morse, Mountain View, Newcombe, Oakdale, Paynton, Perdue, Pinto Creek, Pittville, Pleasant Valley, Prairiedale, Progress, Reford, Riverside, Rosedale, Rosemount, Round Valley, Rudy, Saskatchewan Landing, Senlac, Shamrock, Snipe Lake, St. Andrews, Swift Current, Tramping Lake, Turtle River, Val Marie, Vanscoy, Victory, Waverley, Webb, Whiska Creek, Wilton, Winslow, Wise Creek and Wood River, and

(iii) in Alberta, the Cities of Calgary and Edmonton, the Counties of Athabasca, Barrhead, Beaver, Birch Hills, Brazeau, Camrose, Clear Hills, Clearwater, Flagstaff, Kneehill, Lac La Biche, Lacombe, Lac Ste. Anne, Lamont, Leduc, Minburn, Mountain View, Paintearth, Parkland, Ponoka, Red Deer, Rocky View, Smoky Lake, St. Paul, Starland, Stettler, Strathcona, Sturgeon, Thorhild, Two Hills, Vermilion River, Westlock, Wetaskiwin, Wheatland and Woodlands, Improvement District No. 13, the Municipal Districts of Acadia, Big Lakes, Bonnyville, Fairview, Greenview, Lesser Slave River, Northern Lights, Peace, Provost, Smoky River, Spirit River and Wainwright, Special Areas No. 2, 3 and 4 and the Town of Drumheller.

17. (1) The Regulations are amended by adding the following after section 7305.01:

7305.02 (1) For the purposes of subsection 80.3(4) of the Act, the following regions are prescribed regions of flood or excessive mois- ture:

(a) in respect of the 2008 calendar year, in Manitoba,

(i) the rural municipalities of Alonsa, Armstrong, Bifrost, Coldwell, Dauphin, Eriksdale, Ethelbert, Fisher, Gimli, Glenella, Grahamdale, Lakeview, Lawrence, McCreary, Mossey River, Mountain South, Ochre River, Rockwood, Siglunes, St. Andrews, St. Laurent, Ste. Rose and Woodlands, and

(ii) any reserve that is contiguous to a rural municipality referred to in subparagraph (i), or that is part of a series of contiguous reserves one of which is contiguous to a rural municipality referred to in subparagraph (i), of the bands designated as Dauphin River, Ebb and Flow, Fisher River, Kinonjeoshtegon First Nation, Lake Manitoba First Nation, Lake St. Martin, Little Saskatchewan, O-Chi-Chak-Ko-Sipi First Nation, Peguis, Pinaymootang First Nation, Sandy Bay and Skownan First Nation; and

(b) in respect of the 2009 calendar year, in Manitoba, the rural municipalities of Armstrong, Bifrost, Fisher and Gimli.

(2) For the purpose of this section, “band” and “reserve” have the same meaning as assigned by the Indian Act.

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

PART 2

MISCELLANEOUS

Payments

Multilateral Debt Relief

Maximum payment of $2,500,000,000

18. (1) For the purpose of Canada’s contribution to the Multilateral Debt Relief Initiative, or for making contributions towards multilateral debt relief, there may, in respect of fiscal years in the period that begins on April 1, 2009 and ends on March 31, 2054, be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, sums, not exceeding in the aggregate $200 million in each fiscal year, to international organizations in order to make debt payments on behalf of eligible countries. No more than a total of $2.5 billion may be paid out under this subsection.

Agreements

(2) The Minister of Finance may enter into arrangements or agreements with international organizations for the purpose of the payments referred to in subsection (1).

Payment to Nova Scotia — Offshore Petroleum Resources

Payment of $174,500,000

19. Before April 1, 2010, there may be paid to Nova Scotia out of the Consolidated Revenue Fund, on the requisition of the Minister of Natural Resources, $174,500,000.

R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3

Bretton Woods and Related Agreements Act

20. (1) Paragraph 12(h) of Article V of Schedule I to the Bretton Woods and Related Agreements Act is replaced by the following:

(h) Pending uses specified under (f) above, the Fund may use a member’s currency held in the Special Disbursement Account for investment as it may determine, in accordance with rules and regulations adopted by the Fund by a seventy percent majority of the total voting power. The income of investment and interest received under (f)(ii) above shall be placed in the Special Disbursement Account.

(2) Section 12 of Article V of Schedule I to the Act is amended by adding the following after paragraph (j):

(k) Whenever under (c) above the Fund sells gold acquired by it after the date of the second amendment of this Agreement, an amount of the proceeds equivalent to the acquisition price of the gold shall be placed in the General Resources Account, and any excess shall be placed in the Investment Account for use pursuant to the provisions of Article XII, Section 6(f). If any gold acquired by the Fund after the date of the second amendment of this Agreement is sold after April 7, 2008 but prior to the date of entry into force of this provision, then, upon the entry into force of this provision, and notwithstanding the limit set forth in Article XII, Section 6(f)(ii), the Fund shall transfer to the Investment Account from the General Resources Account an amount equal to the proceeds of such sale less

(i) the acquisition price of the gold sold, and

(ii) any amount of such proceeds in excess of the acquisition price that may have already been transferred to the Investment Account prior to the date of entry into force of this provision.

21. (1) Paragraph 3(e) of Article XII of Schedule I to the Act is replaced by the following:

(e) Each Executive Director shall appoint an Alternate with full power to act for him when he is not present, provided that the Board of Governors may adopt rules enabling an Executive Director elected by more than a specified number of members to appoint two Alternates. Such rules, if adopted, may only be modified in the context of the regular election of Executive Directors and shall require an Executive Director appointing two Alternates to designate:

(i) the Alternate who shall act for the Executive Director when he is not present and both Alternates are present, and

(ii) the Alternate who shall exercise the powers of the Executive Director under (f) below.

When the Executive Directors appointing them are present, Alternates may participate in meetings but may not vote.

(2) Paragraph 5(a) of Article XII of Schedule I to the Act is replaced by the following:

(a) The total votes of each member shall be equal to the sum of its basic votes and its quota-based votes.

(i) The basic votes of each member shall be the number of votes that results from the equal distribution among all the members of 5.502 percent of the aggregate sum of the total voting power of all the members, provided that there shall be no fractional basic votes.

(ii) The quota-based votes of each member shall be the number of votes that results from the allocation of one vote for each part of its quota equivalent to one hundred thousand special drawing rights.

(3) Subparagraph 6(f)(iii) of Article XII of Schedule I to the Act is replaced by the following:

(iii) The Fund may use a member’s currency held in the Investment Account for investment as it may determine, in accordance with rules and regulations adopted by the Fund by a seventy percent majority of the total voting power. The rules and regulations adopted pursuant to this provision shall be consistent with (vii), (viii), and (ix) below.

(4) Subparagraph 6(f)(vi) of Article XII of Schedule I to the Act is replaced by the following:

(vi) The Investment Account shall be terminated in the event of liquidation of the Fund and may be terminated, or the amount of the investment may be reduced, prior to liquidation of the Fund by a seventy percent majority of the total voting power.

1991, c. 21, s. 5

22. Section 2 of Schedule L of Schedule I to the Act is replaced by the following:

2. The number of votes allotted to the member shall not be cast in any organ of the Fund. They shall not be included in the calculation of the total voting power, except for purposes of:

(a) the acceptance of a proposed amendment pertaining exclusively to the Special Drawing Rights Department and

(b) the calculation of basic votes pursuant to Article XII, Section 5(a)(i).

1991, c. 11

Broadcasting Act

1994, c. 18, s. 18

23. Paragraph 46.1(3)(a) of the Broadcasting Act is replaced by the following:

(a) $220,000,000; or

2009, c. 2

Budget Implementation Act, 2009

24. (1) Section 309 of the Budget Implementation Act, 2009 is replaced by the following:

Maximum payment of $1,000,000,000

309. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one billion dollars for the construction, renovation, refurbishment or repair of buildings and facilities at post-secondary institutions.

Coming into force

(2) Subsection (1) is deemed to have come into force on March 12, 2009.

R.S., c. C-8

Canada Pension Plan

Amendments to the Act

1991, c. 44, s. 1

25. The portion of subsection 2(2) of the Canada Pension Plan before paragraph (a) is replaced by the following:

When specified age deemed to be reached

(2) For the purposes of any provision of this Act in which reference is made to the reaching by a person of a specified age — other than a reference in paragraph 13(1)(c) or (e) or (1.2)(c), 17(c), 19(c) or (d) or 44(3)(a), section 70 or paragraph 72(1)(c) — the person is deemed to have reached the specified age at the beginning of the month following the month in which the person actually reached that age, and in computing

26. (1) Subsection 12(1) of the Act is amended by striking out “or” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(i) a retirement pension is payable to them under this Act or under a provincial pension plan, and

(ii) subject to subsection (1.1), they make an election to exclude the income; or

(d) after they reach seventy years of age.

(2) Section 12 of the Act is amended by adding the following after subsection (1):

Election

(1.1) An election referred to in subparagraph (1)(c)(ii)

(a) shall be made or revoked in the prescribed form and manner;

(b) shall commence to have effect on the first day of the month following the month in which it is made;

(d) may be made only once in a year;

(e) may not be revoked in the year in which it is made;

(f) may not be made in a year in which an election is revoked; and

(g) is deemed to be an election in respect of the person’s income from all pensionable employment and in respect of their self-employed earnings.

Consequence of not revoking election in prescribed form and manner

(1.2) If a person does not revoke — in respect of an employer — an election in the prescribed form and manner, the contributory salary and wages referred to in paragraphs 8(1)(a) and 9(1)(a) do not, for the purposes of those paragraphs, include income from that employment. However, they may — in respect of that income — make an election under subsection 13(3) and pay the contribution required under section 10 within one year after their balance-due day.

R.S., c. 30 (2nd Supp.), s. 6

27. (1) Subsections 13(1) and (2) of the Act are replaced by the following:

Amount of contributory self-employed earnings

13. (1) The amount of the contributory self-employed earnings of a person for a year is the amount of the self-employed earnings except that,

(a) for a year in which the person reaches eighteen or seventy years of age, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year

(i) after

(A) they reach eighteen years of age, or

(B) the disability pension ceases to be payable, or

(ii) before

(A) they reach seventy years of age, or

(B) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

is of 12;

(b) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they make an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is deemed to be made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12;

(c) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they revoke an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is deemed to be revoked — minus the number of months after they reach seventy years of age — is of 12;

(d) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

(e) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is revoked — minus the number of months after they reach seventy years of age — is of 12.

Election

(1.1) An election referred to in paragraph (1)(b) or (c)

(a) shall be made or revoked in the prescribed form and manner;

(b) may be made only once for a year;

(d) may not be made for a year for which an election is revoked;

(e) is deemed to be made or revoked on the first day of the month referred to in the election or revocation, as the case may be; and

(f) may not be made for a year for which the person has income from pensionable employment.

Condition

(1.2) For the purposes of paragraph (1.1)(e), the month may not be

(a) before the one in which the person reaches sixty-five years of age;

(b) before the one in which the retirement pension becomes payable; or

Excluded earnings

(2) Subject to subsection (1), the contributory self-employed earnings of a person do not include earnings for

(a) any period described in paragraph 12(1)(a), (b), (c) or (d); or

(b) any year that

(i) follows a year for which the person makes an election to exclude self-employed earnings, and

(ii) is not a year for which they revoke the election.

1997, c. 40, s. 60

(2) The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following:

Election to include certain earnings

(3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of section 10 shall, if the person or their representative makes an election in the prescribed manner within one year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under section 38, from the day on which the Minister refunds the amount — include any amount by which

R.S., c. 30 (2nd Supp.), s. 9

28. Section 17 of the Act is replaced by the following:

Amount of maximum pensionable earnings

17. The amount of the maximum pensionable earnings of a person for a year is the amount of the Year’s Maximum Pensionable Earnings except that,

(a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year

(i) after

(A) they reach eighteen years of age, or

(B) the disability pension ceases to be payable, or

(ii) before

(A) they reach seventy years of age,

(B) they die, or

(C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

including, if they die, the month in which they die, is of 12;

(b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

(c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12.

R.S., c. 30 (2nd Supp.), s. 11

29. Section 19 of the Act is replaced by the following:

Amount of basic exemption

19. The amount of the basic exemption of a person for a year is the amount of the Year’s Basic Exemption except that,

(a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year

(i) after

(A) they reach eighteen years of age, or

(B) the disability pension ceases to be payable, or

(ii) before

(A) they reach seventy years of age,

(B) they die, or

(C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

including, if they die, the month in which they die, is of 12;

(b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12;

(c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12;

(d) despite paragraphs (a) to (c), for a year in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the retirement pension becomes payable — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12 unless the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the amount, adjusted by that proportion, of the Year’s Maximum Pensionable Earnings, in which case, the amount of the basic exemption is increased by the lesser of

(i) the product obtained by multiplying

(A) the Year’s Basic Exemption

(B) one-twelfth of the amount by which the number of months in the year for which a retirement pension is payable exceeds the greater of

(I) the number of months for which an election referred to in subparagraph 12(1)(c)(ii) or paragraph 13(1)(b) has effect, and

(II) the number of months after they reach seventy years of age or die, whichever is earlier, and

(ii) the amount by which the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the product obtained by multiplying

(A) the Year’s Maximum Pensionable Earnings

(B) one-twelfth of the amount by which the number of months in the year before the retirement pension becomes payable exceeds the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability.

30. (1) Subsection 38(1) of the Act is replaced by the following:

Refund of overpayment

38. (1) If an overpayment has been made by an employee on account of the employee’s contribution under this Act for a year, the Minister shall, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year, refund to the employee the amount of the overpayment.

2004, c. 22, s. 18(1)

(2) Subsection 38(3) of the Act is replaced by the following:

Refund of excess — employee

(3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contribution for the year required of the employee under subsection 8(1), the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.

(3) Paragraph 38(4)(b) of the Act is replaced by the following:

(b) shall make such a refund after mailing the notice of assessment, if application is made in writing by the contributor not later than four years — or, in the case of a contributor who is notified after the coming into force of this paragraph of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.

1992, c. 1, s. 23

31. Paragraph 42(2)(b) of the Act is replaced by the following:

(b) a person is deemed to have become or to have ceased to be disabled at the time that is determined in the prescribed manner to be the time when the person became or ceased to be, as the case may be, disabled, but in no case shall a person — including a contributor referred to in subparagraph 44(1)(b)(ii) — be deemed to have become disabled earlier than fifteen months before the time of the making of any application in respect of which the determination is made.

32. (1) Subsection 44(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and’’ at the end of paragraph (f) and by adding the following after paragraph (f):

(g) a post-retirement benefit shall be paid to a beneficiary of a retirement pension under this Act or under a provincial pension plan.

(2) Section 44 of the Act is amended by adding the following after subsection (2):

Proration — late applications for disability pensions

(2.1) For the purposes of determining the minimum qualifying period of a contributor referred to in subparagraph (1)(b)(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12.

R.S., c. 30 (2nd Supp.), s. 15; R.S., c. 18 (3rd Supp.), s. 29; 1991, c. 44, s. 5

33. Subsections 46(3) to (6) of the Act are replaced by the following:

Upward or downward adjustment factor — up to 2010

(3) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 1986 and before January 1, 2011 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed by the Minister, on the advice of the Chief Actuary of the Office of the Superintendent of Financial Institutions, to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years.

Upward or downward adjustment factor — after 2010

(3.1) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 2010 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed under subsection (7).

Exception if division of unadjusted pensionable earnings increases retirement pension

(4) Subject to subsection (5), if, as a result of a division of unadjusted pensionable earnings under section 55 or 55.1, a retirement pension that was payable increases, the adjustment factor applicable after the increase to the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, instead of the adjustment factor referred to in subsection (3) or (3.1), as the case may be, shall be determined by the formula

[(F1 × P1) + (F2 × E)] / P2

where

F1 is an amount equal to the adjustment factor referred to in subsection (3) or (3.1), as the case may be, at the time the retirement pension first became payable;

P1 is the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, before the division;

F2 is the lesser of

(a) an amount equal to what the adjustment factor referred to in subsection (3) or (3.1), as the case may be, would have been if the retirement pension had commenced in the month in which the increase commences to be payable, and

(b) 1;

E is equal to the excess of P2 over P1; and

P2 is the basic monthly amount of the retirement pension immediately following the division.

Exception if survivor’s pension reduced

(5) Unless otherwise provided by an agreement under section 80, if a person receives a retirement pension under this Act and a survivor’s pension under this Act and the survivor’s pension is at any time reduced from its full amount under subsection 58(2), any downward adjustment factor resulting from the application of subsection (3), (3.1) or (4) at that time shall not be applied to the whole of the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, but only to the amount remaining when that basic monthly amount is reduced by the product obtained by multiplying

(a) the amount by which the survivor’s pension has been reduced

(b) the ratio that the Pension Index for the year in which the retirement pension first commenced to be payable bears to the Pension Index for the year in which the survivor’s pension is reduced.

Exception if division after age 65 precedes commencement of retirement pension

(6) If, after a person has reached 65 years of age but before the person commences to receive a retirement pension, a division of unadjusted pensionable earnings takes place under section 55 or 55.1 in respect of that person, the upward adjustment factor referred to in subsection (3) or (3.1), as the case may be, to be applied to any increase in the retirement pension that is attributable to the division shall be based on the time interval between the taking place of the division and the commencement of the retirement pension, and shall not take into account the time interval between the month in which the person reaches 65 years of age and the month in which the division takes place.

Regulations

(7) For the purposes of subsection (3.1), the Governor in Council may make regulations fixing one or more adjustment factors or the methods of calculating them — including factors or methods that may apply on specified dates — to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years.

Condition

(8) The Governor in Council may only make regulations under subsection (7) or repeal them on the recommendation of the Minister of Finance and only if the lieutenant governor in council of each of at least two thirds of the included provinces, as defined in subsection 114(1), having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the making or repeal of the regulations.

Amendment

(9) Regulations made under subsection (7) may only be amended in accordance with subsection 113.1(14).

34. (1) Paragraph 48(4)(a) of the Act is replaced by the following:

(a) from the number of months remaining, a number of months equal to the lesser of

(i) subject to subsection (5), if the retirement pension or other benefit becomes payable commencing with a month before January 2012, fifteen per cent of the number remaining — and sixteen per cent commencing with a month after December 2011 and before January 2014 and seventeen per cent commencing with a month after December 2013 — and, if that per cent includes a fraction of a month, the fraction shall be taken to be a complete month, and

(ii) the number of months by which the number remaining exceeds one hundred and twenty; and

(2) Section 48 of the Act is amended by adding the following after subsection (4):

Exception — same percentage

(5) The percentage used in a calculation of the amount of average monthly pensionable earnings under subsection (4) is to be used in the calculation of other benefits based on that amount.

35. Section 53 of the Act is renumbered as subsection 53(1) and is amended by adding the following:

Year in which retirement pension commences

(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,

(a) the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12; and

(b) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12.

36. The Act is amended by adding the following after section 59:

Post-retirement Benefit

Amount of post-retirement benefit

59.1 (1) Subject to subsections (2) and (3), a post-retirement benefit payable to a contributor is a basic monthly amount determined by the formula

[(A × F/B) × C × D × E] / 12

where

A is the amount determined under subsection 53(1) for the year prior to the year in which the post-retirement benefit commences to be payable;

B is the Year’s Maximum Pensionable Earnings for the year prior to the year in which the post-retirement benefit commences to be payable;

C is 0.00625;

D is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;

E is the adjustment factor referred to in subsection 46(3) or (3.1), as the case may be, based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and

F is the amount determined by the formula

G / H

where

G is the amount of the earnings referred to in subparagraph 53(1)(b)(i), and

H is the aggregate of the earnings referred to in subparagraph 53(1)(b)(i) and those referred to in subparagraph 53(1)(b)(ii).

Unadjusted pensionable earnings for the year in which the retirement pension becomes payable

(2) For the purpose of the calculation under subsection (1), if the unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)(iii), the amount determined for A in subsection (1) is the greater of

(a) zero, and

(b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53(1).

Adjustment factor for contributors who are 70 years of age or older

(3) For the purpose of the calculation under subsection (1), if the contributor is seventy years of age or older, the amount determined for E in subsection (1) is the adjustment factor for a contributor who is seventy years of age.

37. Section 60 of the Act is amended by adding the following after subsection (1):

Application for post-retirement benefit deemed to be made

(1.1) An application for a post-retirement benefit under subsection (1) is deemed to be made on January 1 of the year following the year of the unadjusted pensionable earnings referred to in section 76.1 if

(a) the person is a beneficiary of a retirement pension on that day; and

(b) the Minister has the information necessary to determine whether a post-retirement benefit is payable to them.

38. Section 67 of the Act is amended by adding the following after subsection (3):

Commencement of retirement pension — on or after January 1, 2012

(3.1) For a retirement pension that commences to be payable on or after January 1, 2012 and if the applicant is not an estate, subject to section 62, if payment of the retirement pension is approved, the pension is payable for each month commencing with the latest of

(a) the month in which the applicant reached sixty years of age,

(b) the month following the month in which the application was received if they were under sixty-five years of age when they applied,

(c) the eleventh month preceding the month in which the application was received if they have reached sixty-five years of age when they applied, but in no case earlier than the month in which they reached sixty-five years of age, and

(d) the month chosen by the applicant in their application.

R.S., c. 30 (2nd Supp.), s. 37

39. Section 68.1 of the Act is repealed.

40. The Act is amended by adding the following after section 76:

Post-retirement Benefit

Commencement of benefit

76.1 Subject to section 62, a post-retirement benefit is payable to a beneficiary of a retirement pension for each month commencing with January 1 of the year following the year of a contributor’s earnings if

(a) a contribution has been made in respect of those earnings;

(b) those earnings exceed the contributor’s basic exemption; and

(i) begins after 2011 and after the contributory period ends under subparagraph 49(b)(iii), and

(ii) ends with the month preceding the month in which the contributor reaches seventy years of age.

Duration of payment

76.2 Subject to this Act, a post-retirement benefit shall continue to be paid during the lifetime of the beneficiary and shall cease with the payment for the month in which the beneficiary dies.

41. (1) Section 113.1 of the Act is amended by adding the following after subsection (1):

Review of adjustment factors

(2) When the Chief Actuary of the Office of the Superintendent of Financial Institutions specifies adjustment factors in his or her report according to subsection 115(1.11), the Minister of Finance and ministers of the Crown from the included provinces shall, as part of their review, also review the adjustment factors fixed under subsection 46(7) and may make recommendations as to whether they should be changed.

1997, c. 40, s. 94(3)

(2) Subsection 113.1(3) of the French version of the Act is replaced by the following:

Conclusion de l’examen

(3) Dans la mesure du possible, l’examen doit s’effectuer dans un délai qui permette au ministre des Finances de faire des recommandations au gouverneur en conseil avant la fin de la deuxième année de la période de trois ans.

R.S., c. 30 (2nd Supp.), s. 56

(3) Subsection 113.1(13) of the Act is replaced by the following:

Recommendation — adjustment factors

(13) On the completion of a review required by subsection (2), the Minister of Finance may recommend to the Governor in Council that the Governor in Council amend the regulations made under subsection 46(7) to give effect to any recommendations made under subsection (2). If the recommendations are that no changes be made to the adjustment factors, the Minister of Finance shall cause those recommendations to be published in the Canada Gazette.

Changes to adjustment factors — regulations

(14) The Governor in Council may, on the recommendation of the Minister of Finance made under subsection (13), amend the regulations to change one or more adjustment factors or the methods of calculating them.

Provincial consent

(15) The regulations may only be amended if the lieutenant governor in council of each of at least two thirds of the included provinces, having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the amendment.

Definition of “included province”

(16) In this section, “included province” has the same meaning as in subsection 114(1).

42. Section 115 of the Act is amended by adding the following after subsection (1.1):

Adjustment factors

(1.11) In the first report prepared after 2015 and in every third report that follows, the Chief Actuary shall specify, in reference to the adjustment factors fixed under subsection 46(7), the factors as calculated according to a methodology that he or she considers appropriate; the Chief Actuary may also, if he or she considers it necessary, specify the factors in any report prepared under subsection (1) after 2015.

Coming into Force

Subsection 114(2) of the Canada Pension Plan does not apply

43. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in sections 25 to 42.

Order in council

(2) Sections 25 to 42 come into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day or days to be fixed by order of the Governor in Council.

1997, c. 40

Canada Pension Plan Investment Board Act

Amendments to the Act

2003, c. 5, s. 15

44. Section 37 of the Canada Pension Plan Investment Board Act is repealed.

45. (1) Section 53 of the Act is amended by adding the following after subsection (2):

Approval of proposed regulation

(2.1) For the purpose of subsection (2), the approval of a proposed regulation published in the Canada Gazette is deemed to be the approval of the regulation if the regulation is the same or substantially the same as the proposed regulation.

(2) Section 53 of the Act is amended by adding the following after subsection (3):

Publication of coming into force date

(4) If the approvals necessary to give force and effect to a regulation are given only after the regulation is made, the Minister shall, as soon as feasible, cause to be published in the Canada Gazette the date that the regulation came into force.

Coming into Force

April 1, 1998

46. Subsection 45(1) is deemed to have come into force on April 1, 1998.

1988, c. 28

Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

47. (1) The definition “former Act” in subsection 246(1) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act is repealed.

(2) The definitions “deemed profit”, “fiscal incentive”, “offshore revenue threshold” and “threshold rate of return” in subsection 246(1) of the English version of the Act are repealed.

48. (1) Subsection 247(1) of the Act is replaced by the following:

Adjustment payment

247. (1) Subject to this section, the Federal Minister may, on behalf of Her Majesty in right of Canada, pay an amount to Her Majesty in right of the Province equal to seventy-five per cent of the profit realized on or after April 1, 2010, and determined in the manner prescribed, in respect of a project.

(2) Subsection 247(2) of the English version of the Act is replaced by the following:

Restriction

(2) No payment shall be made pursuant to subsection (1) in respect of a project unless the Provincial Minister demonstrates to the satisfaction of the Federal Minister that the rate of return in respect of that project that would have been obtained on behalf of Her Majesty in right of the Province, calculated in the manner prescribed, is equal to or greater than an annual rate of return on invested capital that is equal to the lesser of 20% and the aggregate of 7% and the average annual cost to the Province of borrowing money.

(3) Subsections 247(3) and (4) of the Act are replaced by the following:

Exception

(2.1) Subsection (2) does not apply in respect of the Sable Offshore Energy Project and the Deep Panuke Offshore Gas Development Project.

Reduction for fiscal incentives

(3) The aggregate amount of payments made pursuant to subsection (1) in respect of any project shall be reduced by the aggregate amount, determined in the manner prescribed, of all fiscal incentives and any other benefits that are

(a) established by or pursuant to an Act of Parliament;

(b) prescribed for the purposes of this Part or approved in the manner prescribed; and

Exception

(3.1) Subsection (3) does not apply in respect of fiscal incentives and other benefits generally prevailing in Canada.

Time of payments

(4) Subject to the regulations, a payment made pursuant to subsection (1) shall be made annually, not later than six months after the end of each fiscal year.

(4) Subsection 247(6) of the Act is repealed.

49. The heading before section 248 of the French version of the Act is replaced by the following:

Règlements

50. Section 248 of the Act is replaced by the following:

Regulations

248. Subject to section 6, the Governor in Council may make regulations, on the recommendation of the Minister,

(a) respecting, for the purpose of section 247, the information that must be provided to the Federal Minister in order for a profit to be determined in respect of a project;

(b) respecting the making of payments pursuant to subsection 247(1) if the Minister determines that the Minister has underpaid any amount payable under that subsection;

(d) prescribing anything that is, by this Part, to be prescribed.

1997, c. 36

Customs Tariff

Amendments to the Act

2009, c. 2, s. 122

51. Paragraph 133(c) of the Customs Tariff is replaced by the following:

(c) for the purposes of tariff item No. 9801.10.10, 9801.10.20, 9801.10.30, 9801.20.00, 9808.00.00 or 9810.00.00, prescribing conditions under which goods may be imported;

52. The Description of Goods of tariff item No. 9801.10.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “---Conveyances,” with a reference to “---Conveyances, not including trailers and semi-trailers of subheading 8716.31 or 8716.39,”.

53. The Description of Goods of tariff item No. 9801.10.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) the reference to “30 days” with a reference to “365 days”; and

(b) the reference to “The containers provided for in this tariff item may engage in the transportation of goods from one point in Canada to another point in Canada where: (a) that transportation is incidental to the international traffic of the goods; (b) the transportation does not occur outside the territorial limits of Canada; and (c) the container has not entered Canada for the purpose of an in-transit movement through Canada to a point outside of Canada” with a reference to “The containers provided for in this tariff item may engage in the transportation of goods from one point in Canada to another point in Canada where: (a) the transportation does not occur outside the territorial limits of Canada; and (b) the container has not entered Canada for the purpose of an in-transit movement through Canada to a point outside of Canada”.

54. The Description of Goods of tariff item No. 9897.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “9801.10.20” with a reference to “9801.10.20, 9801.10.30”.

55. Chapter 98 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provision set out in the schedule to this Act.

56. The Description of Goods of tariff item No. 9993.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “9801.10.20” with a reference to “9801.10.20, 9801.10.30”.

Coordinating Amendments

Bill C-23

57. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 2nd session of the 40th Parliament and entitled the Canada–Colombia Free Trade Agreement Implementation Act (referred to in this section as the “other Act”), receives royal assent.

(2) If subsection 48(1) of the other Act comes into force before section 55 of this Act, tariff item No. 9801.10.30 in the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

(a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT: Free”, a reference to “COLT: Free”; and

(b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT: Free (A)”, a reference to “COLT: Free (A)”.

(3) If subsection 48(1) of the other Act comes into force on the same day as section 55 of this Act, then that section 55 is deemed to have come into force before that subsection 48(1).

R.S., c. F-11

Financial Administration Act

Amendments to the Act

58. The Financial Administration Act is amended by adding the following after section 65:

Quarterly financial reports

65.1 (1) Every department shall cause to be prepared, in the form and manner provided for by the Treasury Board, a quarterly financial report for each of the first three fiscal quarters of each fiscal year.

Contents

(2) The report shall contain

(a) a financial statement for the fiscal quarter and the period from the start of the fiscal year to the end of that fiscal quarter;

(b) comparative financial information for the preceding fiscal year; and

Report to be made public

(3) The appropriate Minister shall cause the report to be made public within 60 days after the end of the fiscal quarter to which the report relates.

Regulations

(4) The Treasury Board may, by regulation, exempt a department from the requirement set out in subsection (1) or provide that any of the content referred to in subsection (2) be excluded from its report.

2006, c. 9, s. 262(1)

59. Subsection 85(1) of the Act is replaced by the following:

Exemption for Bank of Canada

85. (1) Divisions I to IV, except for sections 131.1 and 154.01, do not apply to the Bank of Canada.

60. The Act is amended by adding the following after section 131:

Quarterly financial reports

131.1 (1) Each parent Crown corporation shall, in respect of itself and its wholly-owned subsidiaries, if any, cause to be prepared, in the form and manner provided for by the Treasury Board, a quarterly financial report for each of the first three fiscal quarters of each fiscal year.

Contents

(2) The report shall contain

(a) a financial statement for the fiscal quarter and the period from the start of the fiscal year to the end of that fiscal quarter;

(b) comparative financial information for the preceding fiscal year; and

Report to be made public

(3) The parent Crown corporation shall cause the report to be made public within 60 days after the end of the fiscal quarter to which the report relates.

Regulations

(4) The Treasury Board may, by regulation, exempt a parent Crown corporation from the requirement set out in subsection (1) or provide that any of the content referred to in subsection (2) be excluded from its report.