Bill C-47

3rd Session, 40th Parliament,

59 Elizabeth II, 2010

house of commons of canada

BILL C-47

A second Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and 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

1. This Act may be cited as the Sustaining Canada's Economic Recovery Act.

PART 1

AMENDMENTS TO THE INCOME TAX ACT AND RELATED ACTS AND REGULATIONS

Income Tax Act

2. (1) Subparagraph 6(1)(a)(i) of the Income Tax Act is replaced by the following:

(i) derived from the contributions of the taxpayer’s employer to or under a deferred profit sharing plan, an employee life and health trust, a group sickness or accident insurance plan, a group term life insurance policy, a private health services plan, a registered pension plan or a supplementary unemployment benefit plan,

(2) Paragraph 6(1)(f) of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

(3) Paragraph 6(1)(g) of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

(4) Subsections (1) to (3) apply after 2009.

3. (1) The portion of subsection 7(1) of the Act before paragraph (a) is replaced by the following:

7. (1) Subject to subsection (1.1), where a particular qualifying person has agreed to sell or issue securities of the particular qualifying person (or of a qualifying person with which the particular qualifying person does not deal at arm’s length) to an employee of the particular qualifying person (or of a qualifying person with which the particular qualifying person does not deal at arm’s length),

(2) Subsection 7(1) of the Act is amended by adding the following after paragraph (b):

(3) Subsection 7(1) of the Act is amended by adding the following after paragraph (d):

(4) Subsection 7(1.3) of the Act is replaced by the following:

(1.3) For the purposes of this subsection, subsection (1.1), subdivision c, paragraph 110(1)(d.01), subparagraph 110(1)(d.1)(ii) and subsections 110(2.1) and 147(10.4), and subject to subsection (1.31), a taxpayer is deemed to dispose of securities that are identical properties in the order in which the taxpayer acquired them and, for this purpose,

(a) if a taxpayer acquires a particular security (other than under circumstances to which subsection (1.1) or 147(10.1) applies) at a time when the taxpayer also acquires or holds one or more other securities that are identical to the particular security and are, or were, acquired under circumstances to which subsection (1.1) or 147(10.1) applied, the taxpayer is deemed to have acquired the particular security at the time immediately preceding the earliest of the times at which the taxpayer acquired those other securities; and

(b) if a taxpayer acquires, at the same time, two or more identical securities under circumstances to which subsection (1.1) applied, the taxpayer is deemed to have acquired the securities in the order in which the agreements under which the taxpayer acquired the rights to acquire the securities were made.

(5) Paragraph 7(1.5)(a) of the Act is replaced by the following:

(a) a taxpayer disposes of or exchanges securities of a particular qualifying person that were acquired by the taxpayer under circumstances to which subsection (1.1) applied (in this subsection referred to as the “exchanged securities”),

(6) Subsection 7(1.7) of the Act is replaced by the following:

(1.7) For the purposes of subsections (1) and 110(1), if a taxpayer receives at a particular time one or more particular amounts in respect of rights of the taxpayer to acquire securities under an agreement referred to in subsection (1) ceasing to be exercisable in accordance with the terms of the agreement, and the cessation would not, if this Act were read without reference to this subsection, constitute a transfer or disposition of those rights by the taxpayer,

(a) the taxpayer is deemed to have disposed of those rights at the particular time to a person with whom the taxpayer was dealing at arm’s length and to have received the particular amounts as consideration for the disposition; and

(b) for the purpose of determining the amount, if any, of the benefit that is deemed to have been received as a consequence of the disposition referred to in paragraph (a), the taxpayer is deemed to have paid an amount to acquire those rights equal to the amount, if any, by which

(i) the amount paid by the taxpayer to acquire those rights (determined without reference to this subsection)

exceeds

(ii) the total of all amounts each of which is an amount received by the taxpayer before the particular time in respect of the cessation.

(7) The portion of subsection 7(7) of the Act before the definition “qualifying person” is replaced by the following:

(7) The following definitions apply in this section and in subsection 47(3), paragraphs 53(1)(j) and 110(1)(d) and (d.01) and subsections 110(1.1), (1.2), (1.5), (1.6) and (2.1).

(8) Subsections 7(8) and (9) of the Act are repealed.

(9) Section 7 of the Act is amended by adding the following after subsection (9):

(10) Subsection 7(9.1) of the Act, as enacted by subsection (9), and subsections (10) to (15) of the Act are repealed.

(11) Subsections (1), (4) to (8) and (10) apply in respect of rights exercised after 4:00 p.m. Eastern Standard Time, March 4, 2010.

(12) Subsections (2) and (3) apply to dispositions of rights occurring after 4:00 p.m. Eastern Standard Time, March 4, 2010.

(13) Subsection (9) applies after 1999 and before 4:00 p.m. Eastern Standard Time, March 4, 2010, except that, for the period before December 14, 2007, the reference in subsection 7(9.1) of the Act, as enacted by subsection (9), to “designated stock exchange” shall be read as a reference to “prescribed stock exchange”.

4. (1) Paragraph 12(1)(z.5) of the Act is replaced by the following:

(z.5) any amount required by subsection 146.2(9) or section 207.061 to be included in computing the taxpayer’s income for the year; and

(2) Subsection (1) applies after October 16, 2009.

5. (1) Subsection 18(1) of the Act is amended by adding the following after paragraph (l):

(2) Subsection 18(1) of the Act is amended by adding the following after paragraph (o.2):

(3) Paragraph 18(9)(a) of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

(4) Subsection (1) applies in respect of transfers or dispositions of rights occurring after 4:00 p.m. Eastern Standard Time, March 4, 2010.

(5) Subsections (2) and (3) apply after 2009.

6. (1) Subsection 20(1) of the Act is amended by adding the following after paragraph (r):

(2) Subsection (1) applies after 2009.

7. Subsection 33.1(6) of the Act is replaced by the following:

(6) For the purposes of subsections (4) and (5), where a taxpayer so elects in the taxpayer’s return of income for a taxation year or in a prescribed form filed with the Minister within 90 days after the day of sending of a notice of assessment for the year or a notification that no tax is payable for the year, an eligible deposit recorded in the books of account of an international banking centre business of the taxpayer at the end of a day in the year is deemed not to have been recorded at any time in the day in the books of account of that business and is deemed to have been recorded throughout that day in the books of account of another international banking centre business of the taxpayer designated by the taxpayer in the election.

8. (1) Section 40 of the Act is amended by adding the following after subsection (3.2):

(2) Subsection (1) is deemed to have come into force on March 4, 2010.

9. (1) Subsection 56(1) of the Act is amended by striking-out “and” at the end of paragraph (z), by renumbering paragraph (aa) as paragraph (z.1), by adding “and” at the end of paragraph (z.1) and by adding the following after paragraph (z.1):

(2) Subsection (1) applies after 2009.

10. (1) Paragraph 60(m) of the Act is replaced by the following:

(2) Subsection (1) applies after March 3, 2010.

11. (1) Section 60.02 of the Act is replaced by the following:

(2) Subsection (1) applies after March 3, 2010.

12. (1) Paragraphs (h) and (i) of the definition “principal-business corporation” in subsection 66(15) of the Act are replaced by the following:

(h) the generation or distribution of energy, or the production of fuel, using property described in Class 43.1 or 43.2 of Schedule II to the Income Tax Regulations, and

(i) the development of projects for which it is reasonable to expect that at least 50% of the capital cost of the depreciable property to be used in each project would be the capital cost of property described in Class 43.1 or 43.2 of Schedule II to the Income Tax Regulations,

(2) Subsection (1) applies to 2004 and subsequent taxation years.

13. The portion of subsection 70(2) of the Act before paragraph (a) is replaced by the following:

(2) If a taxpayer who has died had at the time of death rights or things (other than any capital property or any amount included in computing the taxpayer’s income by virtue of subsection (1)), the amount of which when realized or disposed of would have been included in computing the taxpayer’s income, the value of the rights or things at the time of death shall be included in computing the taxpayer’s income for the taxation year in which the taxpayer died, unless the taxpayer’s legal representative has, not later than the later of the day that is one year after the date of death of the taxpayer and the day that is 90 days after the sending of any notice of assessment in respect of the tax of the taxpayer for the year of death, elected otherwise, in which case the legal representative shall file a separate return of income for the year under this Part and pay the tax for the year under this Part as if

14. (1) Paragraph 75(3)(b) of the Act is replaced by the following:

(b) by an employee life and health trust, an employee trust, a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), a trust described in paragraph (a.1) of the definition “trust” in subsection 108(1), or a trust described in paragraph 149(1)(y);

(2) Subsection (1) applies after 2009.

15. (1) Paragraph 87(2)(j.3) of the Act is replaced by the following:

(j.3) for the purposes of paragraphs 12(1)(n.1) to (n.3) and 20(1)(r), (s), (oo) and (pp), section 32.1, paragraph 104(13)(b), subsections 144.1(4) to (7) and Part X1.3, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

(2) Subsection (1) applies after 2009.

16. (1) Subsection 104(6) of the Act is amended by striking out “and” at the end of paragraph (a.3) and by adding the following after that paragraph:

(2) Subsection (1) applies after 2009.

17. (1) The portion of section 107.1 of the Act before subparagraph (a)(i) is replaced by the following:

107.1 If at any time any property of an employee life and health trust, an employee trust, a trust governed by an employee benefit plan or a trust described in paragraph (a.1) of the definition “trust” in subsection 108(1) has been distributed by the trust to a taxpayer who was a beneficiary under the trust in satisfaction of all or any part of the taxpayer’s interest in the trust, the following rules apply:

(a) in the case of an employee life and health trust, an employee trust or a trust described in paragraph (a.1) of the definition “trust” in subsection 108(1),

(2) Subsection (1) applies after 2009.

18. (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 life and health 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 (within the meaning assigned by paragraph 138.1(1)(a)), 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.

(2) Subsection (1) applies after 2009.

19. (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 life and health 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 after 2009.

20. (1) Subparagraph 110(1)(d)(i) of the Act is replaced by the following:

(i.1) the security

(A) is a prescribed share at the time of its sale or issue, as the case may be,

(B) would have been a prescribed share if it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement,

(C) would have been a unit of a mutual fund trust at the time of its sale or issue if those units issued by the trust that were not identical to the security had not been issued, or

(D) would have been a unit of a mutual fund trust if

(I) it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement, and

(II) those units issued by the trust that were not identical to the security had not been issued,

(2) Section 110 of the Act is amended by adding the following after subsection (1):

(3) Subsections (1) and (2) apply in respect of acquisitions of securities and transfers or dispositions of rights occurring after 4:00 p.m. Eastern Standard Time, March 4, 2010.

21. (1) The portion of paragraph 111(4)(e) of the Act before subparagraph (i) is replaced by the following:

(e) each capital property owned by the corporation immediately before that time (other than a property in respect of which an amount would, but for this paragraph, be required by paragraph (c) to be deducted in computing its adjusted cost base to the corporation or a depreciable property of a prescribed class to which, but for this paragraph, subsection (5.1) would apply) as is designated by the corporation in its return of income under this Part for the taxation year that ended immediately before that time or in a prescribed form filed with the Minister on or before the day that is 90 days after the day on which a notice of assessment of tax payable for the year or notification that no tax is payable for the year is sent to the corporation, is deemed to have been disposed of by the corporation immediately before the time that is immediately before that time for proceeds of disposition equal to the lesser of

(2) Section 111 of the Act is amended by adding the following after subsection (7.2):

(3) The description of E in the definition “non-capital loss” in subsection 111(8) of the Act is amended by adding the following after paragraph (a):

(4) Subsections (2) and (3) apply after 2009.

22. (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:

117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amounts of $925 and $1,680 referred to in the description of A, and the amounts of $10,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $462.50 referred to in the description of C, and the amounts of $16,667 and $25,700 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

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

23. (1) The definition “adjusted income” in subsection 122.5(1) of the Act is replaced by the following:

“adjusted income”, of an individual for a taxation year in relation to a month specified for the taxation year, means the total of the individual’s income for the taxation year and the income for the taxation year of the individual’s qualified relation, if any, in relation to the specified month, both calculated as if in computing that income no amount were

(a) included

(i) under paragraph 56(1)(q.1) or subsection 56(6),

(ii) in respect of any gain from a disposition of property to which section 79 applies, or

(b) deductible under paragraph 60(y) or (z).

(2) Section 122.5 of the Act is amended by adding the following after subsection (3):

(3.01) Notwithstanding subsection (3), if an eligible individual is a shared-custody parent (within the meaning assigned by section 122.6, but with the words “qualified dependant” in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3) to have been paid during a specified month is equal to the amount determined by the following formula:

(3) Paragraph 122.5(6)(b) of the Act is replaced by the following:

(b) in the absence of an agreement referred to in paragraph (a), the person is deemed to be, in relation to that month, a qualified depend- ant of the individuals, if any, who are, at the beginning of that month, eligible individuals (within the meaning assigned by section 122.6, but with the words “qualified depend- ant” in that section having the meaning assigned by subsection (1)) in respect of that person; and

(4) Subsection (1) applies to the 2000 and subsequent taxation years.

(5) Subsections (2) and (3) apply for amounts that are deemed to be paid during months after June 2011.

24. (1) The definition “adjusted income” in section 122.6 of the Act is replaced by the following:

“adjusted income”, of an individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year if in computing that income no amount were

(a) included

(i) under paragraph 56(1)(q.1) or subsection 56(6),

(ii) in respect of any gain from a disposition of property to which section 79 applies, or

(iii) in respect of a gain described in subsection 40(3.21), or

(b) deductible under paragraph 60(y) or (z);

(2) Paragraph (b) of the definition “eligible individual” in section 122.6 of the Act is replaced by the following:

(b) is a parent of the qualified dependant who

(3) Section 122.6 of the Act is amended by adding the following in alphabetical order:

(4) Subsection (1) applies to the 2000 and subsequent taxation years.

(5) Subsections (2) and (3) apply for overpayments that are deemed to arise after June 2011.

25. (1) Section 122.61 of the Act is amended by adding the following after subsection (1):

(2) Subsection (1) applies for overpayments that are deemed to arise after June 2011.

26. (1) Paragraph (b) of the definition “adjusted net income” in subsection 122.7(1) of the Act is replaced by the following:

(b) in computing that income, no amount were included under paragraph 56(1)(q.1) or subsection 56(6), in respect of any gain from a disposition of property to which section 79 applies or in respect of a gain described in subsection 40(3.21); and

(2) Subsection (1) applies to the 2000 and subsequent taxation years.

27. (1) Paragraph 127.55(f) of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

(2) Subsection (1) applies after 2009.

28. (1) Paragraph 128.1(4)(c) of the Act is replaced by the following:

(c) the taxpayer is deemed to have reacquired, at the particular time, each property deemed by paragraph (b) or (b.1) to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property;

(2) 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 (vi):

(3) Subsections (1) and (2) apply after 2009.

29. (1) The portion of paragraph 129(1)(a) of the Act before subparagraph (i) is replaced by the following:

(a) may, on sending the notice of assessment for the year, refund without application an amount (in this Act referred to as its “dividend refund” for the year) equal to the lesser of

(2) Paragraph 129(1)(b) of the Act is replaced by the following:

(b) shall, with all due dispatch, make the dividend refund after sending the notice of assessment if an application for it has been made in writing by the corporation within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable under this Part by the corporation for the year if that subsection were read without reference to paragraph 152(4)(a).

30. Paragraph 131(2)(b) of the Act is replaced by the following:

(b) shall, with all due dispatch, make that capital gains refund after sending the notice of assessment if an application for it has been made in writing by the corporation within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable under this Part by the corporation for the year if that subsection were read without reference to paragraph 152(4)(a).

31. Paragraph 132(1)(b) of the Act is replaced by the following:

(b) shall, with all due dispatch, make that capital gains refund after sending the notice of assessment if an application for it has been made in writing by the trust within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable under this Part by the trust for the year if that subsection were read without reference to paragraph 152(4)(a).

32. Paragraphs 133(6)(a) and (b) of the Act are replaced by the following:

(a) may, on sending the notice of assessment for the year, refund without application its allowable refund for the year; and

(b) shall, with all due dispatch, make that allowable refund after sending the notice of assessment if an application for it has been made in writing by the corporation within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable by the corporation for the year if that subsection were read without reference to paragraph 152(4)(a).

33. (1) The definition “transition year” in subsection 138(12) of the Act is replaced by the following:

“transition year” of a life insurer means

(a) in respect of the accounting standards adopted by the Accounting Standards Board and effective as of October 1, 2006, the life insurer’s first taxation year that begins after September 2006; and

(2) Subsection 138(12) of the Act is amended by adding the following in alphabetical order:

(3) Section 138 of the Act is amended by adding the following after subsection (17):

(4) Subsections (1) to (3) apply to taxation years that begin after 2010.

34. (1) The Act is amended by adding the following after section 144:

(2) Subsection (1) applies to trusts established after 2009.

35. (1) Subsection 146.2(6) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(2) Subsection (1) applies to the 2010 and subsequent taxation years.

36. (1) The definition “contribution” in subsection 146.4(1) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):

(2) Subsection (1) applies after June 2011.

37. (1) The definitions “capital gains pool”, “enduring property” and “specified gift” in subsection 149.1(1) of the Act are repealed.

(2) The definition “disbursement quota” in subsection 149.1(1) of the Act is replaced by the following:

“disbursement quota”, for a taxation year of a registered charity, means the amount determined by the formula

(3) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:

(4) Paragraph 149.1(1.1)(a) of the Act is replaced by the following:

(a) a designated gift;

(5) The portion of subsection 149.1(1.2) of the Act before paragraph (b) is replaced by the following:

(1.2) For the purposes of the determination of B in the definition “disbursement quota” in subsection 149.1(1), the Minister may

(a) authorize a change in the number of periods chosen by a registered charity in determining the prescribed amount; and

(6) Paragraphs 149.1(4.1)(a) and (b) of the Act are replaced by the following:

(a) of a registered charity, if it has entered into a transaction (including a gift to another registered charity) and it may reasonably be considered that a purpose of the transaction was to avoid or unduly delay the expenditure of amounts on charitable activities;

(b) of a registered charity, if it may reasonably be considered that a purpose of entering into a transaction (including the acceptance of a gift) with another registered charity to which paragraph (a) applies was to assist the other registered charity in avoiding or unduly delaying the expenditure of amounts on charitable activities;

(7) Subsection 149.1(4.1) of the Act is amended by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

(8) Subsections 149.1(8) and (9) of the Act are replaced by the following:

(8) A registered charity may, with the approval in writing of the Minister, accumulate property for a particular purpose, on terms and conditions and over any period of time that the Minister specifies in the approval. Any property accumulated after receipt of and in accordance with the approval, including any income earned in respect of the accumulated property, is not to be included in calculating the prescribed amount in paragraph (a) of the description of B in the definition “disbursement quota” in subsection (1) for the portion of any taxation year in the period, except to the extent that the registered charity is not in compliance with the terms and conditions of the approval.

(9) Subparagraph 149.1(12)(b)(i) of the Act is replaced by the following:

(i) a designated gift,

(10) Subsections (1) to (9) apply to taxation years that end on or after March 4, 2010.

38. (1) Paragraphs 152(3.1)(a) and (b) of the Act are replaced by the following:

(a) if at the end of the year the taxpayer is a mutual fund trust or a corporation other than a Canadian-controlled private corporation, the period that ends four years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year; and

(b) in any other case, the period that ends three years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year.

(2) Subparagraph 152(4)(d)(ii) of the Act is replaced by the following:

(ii) the day that is 90 days after the day of sending of a notice of the provincial reassessment.

39. (1) Paragraph 153(1)(s) of the Act is replaced by the following:

(s) an amount described in paragraph 56(1)(r) or (z.2), or

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

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

(4) Subsection (1) applies after 2009.

(5) Subsection (2) applies after 2010, except that it does not apply with respect to benefits arising from rights granted before 2011 to a taxpayer under an agreement to sell or issue securities that was entered into in writing before 4:00 p.m. Eastern Standard Time, March 4, 2010 and that included, at that time, a written condition prohibiting the taxpayer from disposing of the securities acquired under the agreement for a period of time after exercise.

(6) Subsection (3) applies after 2010.

40. Paragraph 161(11)(c) of the Act is replaced by the following:

(c) in the case of a penalty payable by reason of any other provision of this Act, from the day of sending of the notice of original assessment of the penalty to the day of payment.

41. Subparagraphs 161.1(3)(c)(i) to (v) of the Act are replaced by the following:

(i) the day of sending of the first notice of assessment giving rise to any portion of the corporation’s overpayment amount to which the application relates,

(ii) the day of sending of the first notice of assessment giving rise to any portion of the corporation’s underpayment amount to which the application relates,

(iii) if the corporation has served a notice of objection to an assessment referred to in subparagraph (i) or (ii), the day of sending of the notification under subsection 165(3) by the Minister in respect of the notice of objection,

(iv) if the corporation has appealed, or applied for leave to appeal, from an assessment referred to in subparagraph (i) or (ii) to a court of competent jurisdiction, the day on which the court dismisses the application, the application or appeal is discontinued or final judgment is pronounced in the appeal, and

(v) the day of sending of the first notice to the corporation indicating that the Minister has determined any portion of the corporation’s overpayment amount to which the application relates, if the overpayment amount has not been determined as a result of a notice of assessment sent before that day.

42. (1) Paragraphs 164(1)(a) and (b) of the Act are replaced by the following:

(a) may,

(i) before sending the notice of assessment for the year, where the taxpayer is, for any purpose of the definition “refundable investment tax credit” (as defined in subsection 127.1(2)), a qualifying corporation (as defined in that subsection) and claims in its return of income for the year to have paid an amount on account of its tax payable under this Part for the year because of subsection 127.1(1) in respect of its refundable investment tax credit (as defined in subsection 127.1(2)), refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount by which the total determined under paragraph (f) of the definition “refundable investment tax credit” in subsection 127.1(2) in respect of the taxpayer for the year exceeds the total determined under paragraph (g) of that definition in respect of the taxpayer for the year,

(ii) before sending the notice of assessment for the year, where the taxpayer is a qualified corporation (as defined in subsection 125.4(1)) or an eligible production corporation (as defined in subsection 125.5(1)) and an amount is deemed under subsection 125.4(3) or 125.5(3) to have been paid on account of its tax payable under this Part for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the total of those amounts so deemed to have been paid, and

(iii) on or after sending the notice of assessment for the year, refund any overpayment for the year, to the extent that the overpayment was not refunded pursuant to subparagraph (i) or (ii); and

(b) shall, with all due dispatch, make the refund referred to in subparagraph (a)(iii) after sending the notice of assessment if application for it is made in writing by the taxpayer within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable under this Part by the taxpayer for the year if that subsection were read without reference to paragraph 152(4)(a).

(2) The portion of subsection 164(1.5) of the Act before paragraph (a) is replaced by the following:

(1.5) Notwithstanding subsection (1), the Minister may, on or after sending a notice of assessment for a taxation year, refund all or any portion of any overpayment of a taxpayer for the year

(3) Subsection 164(2.3) of the Act is replaced by the following:

(2.3) For the purpose of subsection (1), where a taxpayer files the form referred to in paragraph (b) of the definition “return of income” in section 122.6 for a taxation year, the form is deemed to be a return of the taxpayer’s income for that year and a notice of assessment in respect of that return is deemed to have been sent by the Minister.

43. (1) Subparagraph 165(1)(a)(ii) of the Act is replaced by the following:

(ii) the day that is 90 days after the day of sending of the notice of assessment; and

(2) Paragraph 165(1)(b) of the Act is replaced by the following:

(b) in any other case, on or before the day that is 90 days after the day of sending of the notice of assessment.

(3) The portion of subsection 165(1.1) of the Act after paragraph (c) and before paragraph (d) is replaced by the following:

the taxpayer may object to the assessment or determination within 90 days after the day of sending of the notice of assessment or determination, but only to the extent that the reasons for the objection can reasonably be regarded

44. Subsection 166.1(6) of the Act is replaced by the following:

(6) If an application made under subsection (1) is granted, the notice of objection or the request, as the case may be, is deemed to have been served or made on the day on which the decision of the Minister is sent to the taxpayer.

45. The portion of subsection 169(1) of the Act after paragraph (b) is replaced by the following:

but no appeal under this section may be instituted after the expiration of 90 days from the day notice has been sent to the taxpayer under section 165 that the Minister has confirmed the assessment or reassessed.

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

(2) Subsection (1) is deemed to have come into force on March 4, 2010.

47. (1) The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following:

“adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if in computing that income no amount were

(a) included

(i) under paragraph 56(1)(q.1) or subsection 56(6),

(ii) in respect of a gain from a disposition of property to which section 79 applies, or

(iii) in respect of a gain described in subsection 40(3.21), or

(b) deductible under paragraph 60(w), (y) or (z);

(2) Subsection (1) applies to the 2000 and subsequent taxation years.

48. The portion of subsection 184(3) of the Act before paragraph (a) is replaced by the following:

(3) If, in respect of a dividend payable at a particular time after 1971, a corporation would, but for this subsection, be required to pay a tax under this Part equal to all or a portion of an excess referred to in subsection (2) of this section or subsection 184(1) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, it may elect in prescribed manner on or before a day that is not later than 90 days after the day of sending of the notice of assessment in respect of the tax that would otherwise be payable under this Part, and on such an election being made, subject to subsection (4), the following rules apply:

49. The portion of subsection 185.1(2) of the Act before paragraph (a) is replaced by the following:

(2) If, in respect of an excessive eligible dividend designation that is not described in paragraph (1)(b) and that is made by a corporation in respect of an eligible dividend (in this subsection and subsection (3) referred to as the “original dividend”) paid by it at a particular time, the corporation would, if this Act were read without reference to this subsection, be required to pay a tax under subsection (1), and it elects in prescribed manner on or before the day that is 90 days after the day of sending the notice of assessment in respect of that tax that would otherwise be payable under subsection (1), the following rules apply:

50. (1) Subsection 188(3.1) of the Act is replaced by the following:

(3.1) Subsection (3) does not apply to a transfer that is a gift to which subsection 188.1(11) or (12) applies.

(2) Subsection (1) applies to taxation years that end on or after March 4, 2010.

51. (1) Subsection 188.1(11) of the Act is replaced by the following:

(11) If, in a taxation year, a registered charity has entered into a transaction (including a gift to another registered charity) and it may reasonably be considered that a purpose of the transaction was to avoid or unduly delay the expenditure of amounts on charitable activities, the registered charity is liable to a penalty under this Act for its taxation year equal to 110% of the amount of expenditure avoided or delayed, and in the case of a gift to another registered charity, both charities are jointly and severally, or solidarily, liable to the penalty.

(2) Subsection (1) applies to taxation years that end on or after March 4, 2010.

52. Subparagraph 189(6.2)(a)(i) of the Act is replaced by the following:

(i) the total of all amounts, each of which is an expenditure made by the charity, on charitable activities carried on by it, before the particular time and during the period (referred to in this subsection as the “post-assessment period”) that begins immediately after a notice of the latest such assessment was sent and ends at the end of the one-year period

53. Subparagraphs 191.2(1)(b)(i) and (ii) of the Act are replaced by the following:

(i) the day of sending of any notice of assessment of tax payable under this Part or Part I by the corporation for that year,

(ii) where the corporation has served a notice of objection to an assessment described in subparagraph (i), the day of sending of a notice that the Minister has confirmed or varied the assessment,

54. Paragraph 191.3(2)(b) of the Act is replaced by the following:

(b) it is filed on or before the day on or before which the transferor corporation’s return for the year in respect of which the agreement is filed is required to be filed under this Part or within the 90-day period beginning on the day of sending of a notice of assessment of tax payable under this Part or Part I by the transferor corporation for the year or by the transferee corporation for its taxation year ending in the calendar year in which the taxation year of the transferor corporation ends or the sending of a notification that no tax is payable under this Part or Part I for that taxation year;

55. (1) The portion of clause 204.81(1)(c)(v)(A) of the Act before subclause (I) is replaced by the following:

(A) if the share is held by the specified individual in respect of the share, a spouse or common-law partner or former spouse or common-law partner of that individual or a trust governed by a registered retirement savings plan, TFSA or registered retirement income fund under which that individual, spouse or common-law partner is the annuitant,

(2) Subclause 204.81(1)(c)(v)(D)(II) of the Act is replaced by the following:

(II) an annuitant under a trust governed by a registered retirement savings plan, TFSA or registered retirement income fund that was a holder of the share,

(3) The portion of subparagraph 204.81(1)(c)(vii) of the Act before clause (A) is replaced by the following:

(vii) the corporation shall not register a transfer of a Class A share by the specified individual in respect of the share, a spouse or common-law partner of the specified individual or a trust governed by a registered retirement savings plan, TFSA or registered retirement income fund under which the specified individual or spouse or common-law partner is the annuitant, unless

(4) Clause 204.81(1)(c)(vii)(C) of the Act is replaced by the following:

(C) the transfer is to the specified individual, a spouse or common-law partner or former spouse or common-law partner of the specified individual or a trust governed by a registered retirement savings plan, TFSA or registered retirement income fund under which the specified individual or the spouse or common-law partner or former spouse or common-law partner of the specified individual is the annuitant,

(5) Subsections (1) to (4) apply to the 2009 and subsequent taxation years.

56. Paragraphs 207(2)(a) and (b) of the Act are replaced by the following:

(a) may, on sending 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 sending the notice of assessment if an application for it has been made in writing by the person within three years after the sending of an original notice of assessment for the year.

57. (1) Paragraph (b) of the definition “advantage” in subsection 207.01(1) of the Act is amended by striking out “or” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

(2) Paragraph (c) of the definition “advantage” in subsection 207.01(1) of the Act is replaced by the following:

(c) a benefit that is income (including a capital gain) that is reasonably attributable, directly or indirectly, to

(i) a deliberate over-contribution, or

(ii) a prohibited investment in respect of the TFSA or any other TFSA of the holder; and

(d) a prescribed benefit.

(3) Paragraph (b) of the description of C in the definition “excess TFSA amount” in subsection 207.01(1) of the Act is replaced by the following:

(b) a specified distribution;

(4) Paragraph (a) of the description of E in the definition “excess TFSA amount” in subsection 207.01(1) of the Act is replaced by the following:

(a) nil, if the distribution is a qualifying transfer or a specified distribution, and

(5) The definition “unused TFSA contribution room” in subsection 207.01(1) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph:

(6) Subparagraph (ii) of the description of B in the definition “unused TFSA contribution room” in subsection 207.01(1) of the Act is replaced by the following:

(ii) a specified distribution,

(7) Subsection 207.01(1) of the Act is amended by adding the following in alphabetical order:

(8) Subsections (1) to (6) apply after October 16, 2009, except that subparagraph (c)(ii) of the definition “advantage” in subsection 207.01(1) of the Act, as enacted by subsection (2), does not apply in respect of income (including a capital gain) earned before October 17, 2009.

(9) The definition “deliberate over-contribution” in subsection 207.01(1) of the Act, as enacted by subsection (7), applies to contributions made after October 16, 2009.

(10) The definition “specified distribution” in subsection 207.01(1) of the Act, as enacted by subsection (7), applies to distributions that occur after October 16, 2009, other than the portion of a distribution that is, or is reasonably attributable to, an advantage that was extended, or income earned, before October 17, 2009.

(11) The definition “specified non-qualified investment income” in subsection 207.01(1) of the Act, as enacted by subsection (7), applies to the 2010 and subsequent taxation years.

(12) The definition “swap transaction” in subsection 207.01(1) of the Act, as enacted by subsection (7), applies to transfers of property that occur after October 16, 2009.

58. (1) Subsections 207.04(6) and (7) of the Act are repealed.

(2) Subsection (1) applies after October 16, 2009.

59. (1) Subsection 207.05(1) of the Act is replaced by the following:

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

(2) Subsection (1) applies after October 16, 2009.

60. (1) Paragraph 207.06(1)(b) of the Act is replaced by the following:

(b) one or more distributions are made without delay under a TFSA of which the individual is the holder, the total amount of which is not less than the total of

(i) the amount in respect of which the individual would otherwise be liable to pay the tax, and

(2) Section 207.06 of the Act is amended by adding the following after subsection (2):

(3) Subsections (1) and (2) apply after October 16, 2009.

61. (1) The Act is amended by adding the following after section 207.06:

(2) Subsection (1) applies after October 16, 2009.

62. Paragraphs 207.07(2)(a) and (b) of the Act are replaced by the following:

(a) may, on sending 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 sending the notice of assessment if an application for it has been made in writing by the person within three years after the sending of an original notice of assessment for the year.

63. Paragraphs 207.7(2)(a) and (b) of the Act are replaced by the following:

(a) may, on sending the notice of assessment for the year or a notification that no tax is payable for the year, refund without application an amount equal to the amount, if any, by which the refundable tax of the arrangement at the end of the immediately preceding year exceeds the refundable tax of the arrangement at the end of the year; and

(b) shall, with all due dispatch, make such a refund after sending the notice of assessment if application for it has been made in writing by the custodian within three years after the day of sending of a notice of an original assessment for the year or of a notification that no tax is payable for the year.

64. (1) Subsection 212(1) of the Act is amended by striking out “or” at the end of paragraph (u), by adding “or” at the end of paragraph (v) and by adding the following after paragraph (v):

(2) Subsection (1) applies after 2009.

65. Subparagraph 222(4)(a)(i) of the Act is replaced by the following:

(i) if a notice of assessment, or a notice referred to in subsection 226(1), in respect of the tax debt is sent to or served on the taxpayer, after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is sent or served, and

66. (1) Paragraphs 225.1(1.1)(b) and (c) of the Act are replaced by the following:

(b) in the case of an amount assessed under section 188.1, one year after the day on which the notice of assessment was sent; and

(c) in any other case, 90 days after the day on which the notice of assessment was sent.

(2) Subsection 225.1(2) of the Act is replaced by the following:

(2) If a taxpayer has served a notice of objection under this Act to an assessment of an amount payable under this Act, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in paragraphs (1)(a) to (g) until after the day that is 90 days after the day on which notice is sent to the taxpayer that the Minister has confirmed or varied the assessment.

(3) Paragraph 225.1(7)(a) of the Act is replaced by the following:

(a) at any time on or before the particular day that is 90 days after the day of the sending of the notice of assessment, 1/2 of the amount so assessed; and

67. Subsections 244(14) and (15) of the Act are replaced by the following:

(14) For the purposes of this Act, where any notice or notification described in subsection 149.1(6.3), 152(3.1), 165(3) or 166.1(5) or any notice of assessment or determination is mailed, or sent electronically, it shall be presumed to be mailed or sent, as the case may be, on the date of that notice or notification.

(15) If any notice of assessment or determination has been sent by the Minister as required by this Act, the assessment or determination is deemed to have been made on the day of sending of the notice of the assessment or determination.

68. The portion of subsection 245(6) of the Act after paragraph (b) is replaced by the following:

any person (other than a person referred to in paragraph (a) or (b)) shall be entitled, within 180 days after the day of sending of the notice, to request in writing that the Minister make an assessment, reassessment or additional assessment applying subsection (2) or make a determination applying subsection 152(1.11) with respect to that transaction.

69. (1) The definition “employee benefit plan” in subsection 248(1) of the Act is replaced by the following:

“employee benefit plan” means an arrangement under which contributions are made by an employer or by any person with whom the employer does not deal at arm’s length to another person (in this Act referred to as the “custodian” of an employee benefit plan) and under which one or more payments are to be made to or for the benefit of employees or former employees of the employer or persons who do not deal at arm’s length with any such employee or former employee (other than a payment that, if section 6 were read without reference to subparagraph 6(1)(a)(ii) and paragraph 6(1)(g), would not be required to be included in computing the income of the recipient), but does not include any portion of the arrangement that is

(a) a fund, plan or trust referred to in subparagraph 6(1)(a)(i) or paragraph 6(1)(d) or (f),

(b) a trust described in paragraph 149(1)(y),

(c) an employee trust,

(c.1) a salary deferral arrangement, in respect of a taxpayer, under which deferred amounts are required to be included as benefits under paragraph 6(1)(a) in computing the taxpayer’s income,

(c.2) a retirement compensation arrangement,

(d) an arrangement the sole purpose of which is to provide education or training for employees of the employer to improve their work or work-related skills and abilities, or

(e) a prescribed arrangement;

(2) The definition “retirement compensation arrangement” in subsection 248(1) of the Act is amended by adding the following after paragraph (f):

(3) The definition “salary deferral arrangement” in subsection 248(1) of the Act is amended by adding the following after paragraph (e):

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

(5) Subsections (1) to (4) apply after 2009.

Canada Pension Plan

70. Paragraphs 38(4)(a) and (b) of the Canada Pension Plan are replaced by the following:

(a) may refund that part of the amount so paid in excess of the contribution on sending the notice of assessment of the contribution, without any application having been made for the refund; and

(b) shall make such a refund after sending 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.

Employment Insurance Act

71. Subsection 85(4) of the Employment Insurance Act is replaced by the following:

(4) The day of mailing or sending, as the case may be, of a notice of assessment described in subsection (2) is, in the absence of any evidence to the contrary, deemed to be the day appearing from the notice to be the date of the notice unless called into question by the Minister or by a person acting for the Minister or for Her Majesty.

72. Subsection 102(14) of the Act is replaced by the following:

(14) If a notice of assessment has been sent by the Minister as required by this Part, the assessment is deemed to have been made on the day on which the notice is sent.

73. Paragraphs 152.3(1)(a) and (b) of the Act are replaced by the following:

(a) may refund that part of the amount so paid in excess of the premium on sending the notice of assessment of the premium, without any application having been made for the refund; and

(b) shall make the refund after sending the notice of assessment, if an application for the refund is made in writing by the self-employed person not later than three years after the end of the year.

Universal Child Care Benefit Act

74. (1) Section 2 of the Universal Child Care Benefit Act is amended by adding the following in alphabetical order:

(2) Subsection (1) applies after June 2011.

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

4. (1) The Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who is a qualified dependant of the eligible individual at the beginning of that month,

(2) Subsection (1) applies to payments in respect of months after June 2011.

Income Tax Regulations

76. (1) The definition “food waste” in subsection 1104(13) of the Income Tax Regulations is repealed.

(2) The definitions “biogas”, “district energy system” and “eligible waste fuel” in subsection 1104(13) of the Regulations are replaced by the following:

“biogas” means the gas produced by the anaerobic digestion of organic waste that is sludge from an eligible sewage treatment facility, food and animal waste, manure, plant residue or wood waste. (biogaz)

“district energy system” means a system that is used primarily to provide heating or cooling by continuously circulating, from a central generation unit to one or more buildings through a system of interconnected pipes, an energy transfer medium that is heated or cooled using thermal energy. (réseau énergétique de quartier)

“eligible waste fuel” means biogas, bio-oil, digester gas, landfill gas, municipal waste, pulp and paper waste and wood waste. (combustible résiduaire admissible)

(3) Subsection 1104(13) of the Regulations is amended by adding the following in alphabetical order:

(4) Subsections (1) to (3) apply to property acquired after February 25, 2008, except that the definition “district energy system” in subsection 1104(13) of Regulations, as enacted by subsection (2), applies to property acquired after March 3, 2010.

77. (1) Paragraph 1219(1)(f) of the Regulations is replaced by the following:

(f) for the drilling or completion of a well for the project, other than a well that is, or can reasonably be expected to be, used for the installation of underground piping that is included in paragraph (d) of Class 43.1 or paragraph (b) of Class 43.2 in Schedule II; or

(2) Subsection (1) applies to expenses incurred after May 2, 2010.

78. (1) Section 1402 of the Regulations is replaced by the following:

1402. Any amount determined under section 1400 or 1401 shall be determined

(a) net of relevant reinsurance recoverable amounts; and

(2) Subsection (1) applies to taxation years that begin after 2010.

79. (1) Section 1406 of the Regulations is replaced by the following:

1406. Any amount determined under section 1404 or 1405 shall be determined

(a) net of relevant reinsurance recoverable amounts;

(b) without reference to any liability in respect of a segregated fund (other than a liability in respect of a guarantee in respect of a segregated fund policy); and

(2) Subsection (1) applies to taxation years that begin after 2010.

80. (1) Subsection 1408(1) of the Regulations is amended by adding the following in alphabetical order:

(2) Section 1408 of the Regulations is amended by adding the following after subsection (7):

(3) Subsections (1) and (2) apply to taxation years that begin after 2010.

81. (1) The definitions “Canadian reserve liabilities” and “reinsurance recoverable” in subsection 2400(1) of the Regulations are replaced by the following:

“Canadian reserve liabilities” of an insurer as at the end of a taxation year means the amount determined by the formula

“reinsurance recoverable” of an insurer means the total of all amounts each of which is an amount reported as a reinsurance asset of the insurer as at the end of a taxation year in respect of an amount recoverable from a reinsurer. (montant à recouvrer au titre de la réassurance)

(2) The description of B in subparagraph (a)(i) of the definition “Canadian investment fund” in subsection 2400(1) of the Regulations is replaced by the following:

B      is the amount of the insurer’s Canadian outstanding premiums and policy loans as at the end of the year (to the extent that the amount of the premiums and loans are in respect of policies referred to in paragraphs (a) to (c) of the description of A in the definition “Canadian reserve liabilities” and were not otherwise deducted in computing the amount of the insurer’s Canadian reserve liabilities as at the end of the year), and

(3) Clause (b)(i)(A) of the definition “Canadian investment fund” in subsection 2400(1) of the Regulations is replaced by the following:

(A) the amount of the insurer’s Canadian outstanding premiums and policy loans (to the extent that the amount of the premiums or loans are in respect of policies referred to in paragraphs (a) to (c) of the description of A in the definition “Canadian reserve liabilities” and were not otherwise deducted in computing the amount of the insurer’s Canadian reserve liabilities as at the end of the year), and

(4) Subparagraph (b)(i) of the definition “equity limit” in subsection 2400(1) of the Regulations is replaced by the following:

(i) the amount, if any, by which the insurer’s mean Canadian reserve liabilities for the year exceeds 50% of the total of its premiums receivable and deferred acquisition expenses as at the end of the year and its premiums receivable and deferred acquisition expenses as at the end of its preceding taxation year to the extent that those amounts were included in the insurer’s Canadian reserve liabilities for the year or the preceding taxation year, as the case may be, in respect of the insurer’s business in Canada, and

(5) Subparagraph (a)(ii) of the definition “weighted Canadian liabilities” in subsection 2400(1) of the Regulations is replaced by the following:

(ii) the total of

(A) the insurer’s policy loans (other than policy loans in respect of annuities) as at the end of the year, and

(6) Subparagraph (b)(ii) of the definition “weighted Canadian liabilities” in subsection 2400(1) of the Regulations is replaced by the following:

(ii) the total of

(A) the insurer’s policy loans in respect of annuities as at the end of the year, and

(7) Subparagraph (a)(ii) of the definition “weighted total liabilities” in subsection 2400(1) of the Regulations is replaced by the following:

(ii) the total of

(A) the insurer’s policy loans and foreign policy loans (other than policy loans and foreign policy loans in respect of annuities) as at the end of the year, and

(B) the reinsurance recoverable reported by the insurer as at the end of the year relating to its liabilities described in subparagraph (i), and

(8) Subparagraph (b)(ii) of the definition “weighted total liabilities” in subsection 2400(1) of the Regulations is replaced by the following:

(ii) the total of

(A) the insurer’s policy loans and foreign policy loans in respect of annuities as at the end of the year, and

(9) Section 2400 of the Regulations is amended by adding the following after subsection (8):

(10) Subsections (1) to (9) apply to taxation years that begin after 2010.

82. (1) Paragraphs 2401(2)(b) and (c) of the Regulations are replaced by the following:

(b) shall designate for a taxation year investment property of the insurer for the year with a total value for the year equal to the amount, if any, by which the insurer’s mean Canadian reserve liabilities for the year in respect of its accident and sickness insurance business in Canada exceeds the insurer’s mean Canadian outstanding premiums for the year in respect of that business;

(c) shall designate for a taxation year in respect of the insurer’s insurance business in Canada (other than a life insurance business or an accident and sickness insurance business) investment property of the insurer for the year with a total value for the year equal to the amount, if any, by which the insurer’s mean Canadian reserve liabilities for the year in respect of that business exceeds 50% of the total of all amounts each of which is the amount, as at the end of the year or as at the end of its preceding taxation year, of a premium receivable or a deferred acquisition expense (to the extent that it is included in the insurer’s Canadian reserve liabilities as at the end of the year or preceding taxation year, as the case may be) of the insurer in respect of that business;

(2) Subsection (1) applies to taxation years that begin after 2010.

83. (1) Section 3700 of the Regulations and the headings before it are replaced by the following:

PART XXXVII

(2) Subsection (1) applies for taxation years that end on or after March 4, 2010.

84. (1) The portion of subsection 3701(1) of the Regulations before paragraph (a) is replaced by the following:

3701. (1) For the purposes of the description of B in the definition “disbursement quota” in subsection 149.1(1) of the Act, the prescribed amount for a taxation year of a registered charity is determined as follows:

(2) Paragraph 3701(1)(b) of the Regulations is replaced by the following:

(b) aggregate for each period chosen under paragraph (a) all amounts, each of which is the value, determined in accordance with section 3702, of a property, or a portion of a property, owned by the registered charity, and not used directly in charitable activities or administration, on the last day of the period;

(3) Subsections 3701(2) and (3) of the Regulations are replaced by the following:

(2) For the purposes of subsection (1) and subject to subsection (3),

(a) the number of periods chosen by a registered charity under paragraph (1)(a) shall, unless otherwise authorized by the Minister, be used for the taxation year and for all subsequent taxation years; and

(b) a registered charity is deemed to have existed on the last day of each of the periods chosen by it.

(3) The number of periods chosen under paragraph (1)(a) may be changed by the registered charity for its first taxation year commencing after 1986 and the new number shall, unless otherwise authorized by the Minister, be used for that taxation year and all subsequent taxation years.

(4) Subsections (1) to (3) apply to taxation years that end on or after March 4, 2010.

85. (1) Subsection 3702(1) of the Regulations is replaced by the following:

3702. (1) For the purposes of subsection 3701(1), the value of a property, or a portion of a property, owned by a registered charity, and not used directly in charitable activities or administration, on the last day of a period is determined as of that day to be

(a) in the case of a non-qualified investment of a private foundation, the greater of its fair market value on that day and its cost amount to the private foundation;

(b) subject to paragraph (c), in the case of property other than a non-qualified investment that is

(i) a share of a corporation that is listed on a designated stock exchange, the closing price or the average of the bid and asked prices of that share on that day or, if there is no closing price or bid and asked prices on that day, on the last preceding day for which there was a closing price or bid and asked prices,

(ii) a share of a corporation that is not listed on a designated stock exchange, the fair market value of that share on that day,

(iii) an interest in real property or a real right in an immovable, the fair market value on that day of the interest or right less the amount of any debt of the registered charity incurred in respect of the acquisition of the interest or right and secured by the interest or right, where the debt bears a reasonable rate of interest,

(iv) a contribution that is the subject of a pledge, nil,

(v) an interest, or for civil law a right, in property where the registered charity does not have the present use or enjoyment of the interest or right, nil,

(vi) a life insurance policy, other than an annuity contract, that has not matured, nil, and

(vii) a property not described in any of subparagraphs (i) to (vi), the fair market value of the property on that day; and

(c) in the case of any property described in paragraph (b) that is owned in connection with the charitable activities of the registered charity and is a share of a limited-dividend housing company referred to in paragraph 149(1)(n) of the Act or a loan, that has ceased to be used for charitable purposes and is being held pending disposition or for use in charitable activities, or that has been acquired for use in charitable activities, the lesser of the fair market value of the property on that day and an amount determined by the formula

(A / 0.035) x (12 / B)

where

A      is the income earned on the property in the period, and

B      is the number of months in the period.

(2) Subsection (1) applies for taxation years that end on or after March 4, 2010.

86. (1) The definition “total reserve liabilities” in section 8600 of the Regulations is replaced by the following:

“total reserve liabilities” of an insurer as at the end of a taxation year means the amount determined by the formula

(2) Subsection (1) applies to taxation years that begin after 2010.

87. (1) The Regulations are amended by adding the following after section 9400:

(2) Subsection (1) applies after 2009.

88. (1) The portion of paragraph (v) of Class 10 in Schedule II to the Regulations before subparagraph (i) is replaced by the following:

(v) property acquired after August 31, 1984 (other than property that is included in Class 30) that is equipment used for the purpose of effecting an interface between a cable distribution system and electronic products used by consumers of that system and that is designed primarily

(2) Subsection (1) applies in respect of taxation years that end after March 4, 2010.

89. (1) Class 30 in Schedule II to the Regulations is replaced by the following:

Class 30

Property of a taxpayer that is

(a) an unmanned telecommunication spacecraft that was designed to orbit above the earth and that was acquired by the taxpayer

(i) before 1988, or

(ii) before 1990

(A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, or

(B) that was under construction by or on behalf of the taxpayer on June 18, 1987; or

(2) Subsection (1) applies in respect of taxation years that end after March 4, 2010.

90. (1) Subparagraphs (a)(iii) and (iii.1) of Class 43.1 in Schedule II to the Regulations are replaced by the following:

(iii) heat recovery equipment used prima- rily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated by equipment referred to in subparagraph (i) or (ii),

(iii.1) district energy equipment that is part of a district energy system that uses thermal energy that is primarily supplied by electrical cogeneration equipment that would be property described in paragraphs (a) to (c) if read without reference to this subparagraph,

(2) Subclause (d)(i)(A)(II) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(II) equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trench- ing, for the purpose of installing that piping), energy conversion equipment, energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, and

(3) Clause (d)(i)(B) of Class 43.1 in Sched- ule II to the Regulations is replaced by the following:

(B) it is not a building, part of a building (other than a solar collector that is not a window and that is integrated into a building), equipment used to heat water for use in a swimming pool, energy equipment that backs up equipment described in subclause (A)(I) or (II) nor equipment that distributes heated or cooled air or water in a building,

(4) Subparagraph (d)(iv) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(iv) heat recovery equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated directly in an industrial process (other than an industrial process that generates or processes electrical energy), including such equipment that consists of heat exchange equipment, compressors used to upgrade low pressure steam, vapour or gas, waste heat boilers and other ancillary equipment such as control panels, fans, instruments or pumps, but not including property that is employed in re-using the recovered heat (such as property that is part of the internal heating or cooling system of a building or electrical generating equipment), is a building or is equipment that recovers heat primarily for use for heating water in a swimming pool.

(5) Subparagraphs (d)(vii) to (ix) of Class 43.1 in Schedule II to the Regulations are replaced by the following:

(vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, transmission equipment, distribution equipment, equipment designed to store electrical energy, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),

(viii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), fans, compressors, storage tanks, heat exchang- ers and other ancillary equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including property otherwise included in Class 10 or 17,

(ix) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating heat energy from the consumption of eligible waste fuel, and not using any fuel other than eligible waste fuel or fossil fuel, if the heat energy is used directly in an industrial process, or in a greenhouse, including such equipment that consists of fuel handling equipment used to upgrade the combustible portion of the fuel and control, feedwater and condensate systems, and other ancillary equipment, but not including buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), fuel storage facilities, other fuel handling equipment and electrical generating equipment, and property otherwise included in Class 10 or 17,

(6) Subparagraph (d)(xi) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(xi) equipment used by the taxpayer, or by a lessee of the taxpayer, in a system that converts wood waste or plant residue into bio-oil, if that bio-oil is used primarily for the purpose of generating heat that is used directly in an industrial process or a greenhouse, generating electricity or generating electricity and heat, other than equipment used for the collection, storage or transportation of wood waste or plant residue, buildings or other structures and property otherwise included in Class 10 or 17,

(7) Subparagraph (d)(xiii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(xiii) property that is part of a system that is used by the taxpayer, or by a lessee of the taxpayer, primarily to produce and store biogas, which property includes equipment that is an anaerobic digester reactor, a buffer tank, a pre-treatment tank, biogas piping, a biogas storage tank and a biogas scrubbing equipment, but not including

(A) property (other than a buffer tank) that is used to collect, move or store organic waste,

(B) equipment used to process the residue after digestion or to treat recovered liquids,

(C) buildings or other structures, and

(D) property otherwise included in Class 10 or 17, or

(8) Paragraph (d) of Class 43.1 in Sched- ule II to the Regulations is amended by deleting “or” at the end of subparagraph (xiii), by replacing “and” at the end of subparagraph (xiv) with “or” and by adding the following after subparagraph (xiv):

(9) Subsections (1), (4) and (8) apply to property acquired after March 3, 2010.

(10) Subsections (2), (3) and (5) to (7) apply to property acquired after February 25, 2008, except that in its application to property acquired before May 3, 2010,

(a) subclause (d)(i)(A)(II) of Class 43.1 in Schedule II to the Regulations, as enacted by subsection (2), shall be read as follows:

(II) equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of underground piping, energy conversion equipment, energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, and

(b) subparagraphs (d)(vii) and (viii) of Class 43.1 in Schedule II to the Regulations, as enacted by subsection (5), shall be read as follows:

(vii) above-ground equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy solely from geothermal energy, including such equipment that consists of pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, transmission equipment, distribution equipment, equipment designed to store electrical energy, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),

(viii) above-ground equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of fans, compressors, storage tanks, heat exchangers and other ancillary equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including property otherwise included in Class 10 or 17,

PART 2

AMENDMENTS IN RESPECT OF EXCISE DUTIES AND SALES AND EXCISE TAXES

Air Travellers Security Charge Act

91. (1) The definition “fiscal month” in section 2 of the Air Travellers Security Charge Act is replaced by the following:

“fiscal month” means a fiscal month as determined under subsection 16(1).

(2) Section 2 of the Act is amended by adding the following in alphabetical order:

92. The Act is amended by adding the following after section 5:

93. (1) The Act is amended by adding the following after section 15:

(2) Subsection (1) applies to any action or proceeding that has not, on or before July 13, 2010, been finally determined by the tribunals or courts of competent jurisdiction.

94. The heading “Fiscal Month” before section 16 and section 16 of the Act are replaced by the following:

Fiscal Periods

16. (1) The fiscal months of a designated air carrier shall be determined in accordance with the following rules:

(a) if fiscal months of the carrier have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, each of those fiscal months is a fiscal month of the carrier for the purposes of this Act;

(b) if fiscal months of the carrier have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, the carrier may choose, at the time of registration under section 17, as their fiscal months for the purposes of this Act, fiscal months that meet the requirements set out in subsection 243(2) of the Excise Tax Act; and

(c) if paragraph (a) does not apply and the carrier has not chosen their fiscal months under paragraph (b), each calendar month is a fiscal month of the carrier for the purposes of this Act.

95. Subsection 17(2) of the Act is replaced by the following:

(2) Every designated air carrier that is registered or is required to register shall, not later than the last day of the first month after each reporting period of the carrier,

(a) file a return with the Minister, in the prescribed form and manner containing all prescribed information, for that reporting period;

(b) calculate, in the return, the total of

(i) all charges required to be collected by the carrier during that reporting period other than such a charge that was collected by the carrier before that reporting period,

(ii) all amounts each of which is a charge collected by the carrier during that reporting period at a time before the charge became payable under subsection 11(2) if the time at which the charge becomes so payable is after the end of that reporting period, and

(iii) all other amounts collected as or on account of charges by the carrier during that reporting period that were not included in a calculation under subparagraph (i) or (ii) for a previous reporting period; and

(c) pay an amount equal to that total to the Receiver General.

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

30. (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or reduce any interest payable by the person under this Act on an amount that is required to be paid by the person under this Act in respect of the reporting period.

97. Subsection 32(4) of the Act is replaced by the following:

(4) A designated air carrier that has refunded or credited an amount under subsection (1) or (2) within two years after the day the amount was collected and that has issued to a person a document in accordance with subsection (3) may deduct the amount of the refund or credit from the amount payable by the carrier under subsection 17(2) for the reporting period of the carrier in which the document is issued to the person, to the extent that the amount of the charge has been included by the carrier in determining the amount payable by the carrier under subsection 17(2) for the reporting period or a preceding reporting period of the carrier.

98. Paragraph 33(3)(a) of the Act is replaced by the following:

(a) the amount was taken into account as an amount required to be paid by the person in respect of one of their reporting periods and the Minister has assessed the person for the period under section 39; or

99. Section 35 of the Act is replaced by the following:

35. If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for reporting periods of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those reporting periods have been paid.

100. Subsection 39(4) of the Act is replaced by the following:

(4) If a person has paid an amount assessed under this section in respect of a reporting period and the amount paid exceeds the amount determined on reassessment to have been payable by the person in respect of that reporting period, the Minister shall refund to the person the amount of the excess and, for the purpose of section 28, the refund is deemed to have been required to be paid on the day on which the amount was paid to the Minister.

101. The portion of section 53 of the Act before paragraph (b) is replaced by the following:

53. Every person who fails to file a return for a reporting period as and when required under this Act shall pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid on the day on which the return was required to be filed, and

102. Subsection 55(1) of the Act is replaced by the following:

55. (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel any penalty payable by the person under section 53 in respect of the reporting period.

103. Subparagraphs 72(2.2)(a)(i) and (ii) of the Act are replaced by the following:

(i) if a notice of assessment in respect of the charge debt, or a notice referred to in subsection 80(1) in respect of the charge debt, is sent to or served on the person, after March 3, 2004, on the last day on which one of those notices is sent or served,

(ii) if no notice referred to in subparagraph (i) in respect of the charge debt was sent or served and the earliest day on which the Minister can commence an action to collect that charge debt is after March 3, 2004, on that earliest day, and

104. Subsections 83(9) and (10) of the Act are replaced by the following:

(9) If a notice or demand that the Minister is required or authorized under this Act to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, is deemed to be the date of the notice or demand.

(10) If a notice of assessment has been sent by the Minister as required under this Act, the assessment is deemed to have been made on the day of sending of the notice of assessment.

Excise Act

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

106. Section 37 of the Act is replaced by the following:

37. (1) Every return with respect to quantities, required to be made by this Act, shall be made to the collector on or before the tenth working day of each month for the month last preceding that day.

Excise Act, 2001

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

108. Section 6 of the Act is amended by adding the following after subsection (2):

109. The heading “Fiscal Month” before section 159 of the Act is replaced by the following:

Fiscal Periods

110. Section 159 of the Act is amended by adding the following after subsection (1):

111. The Act is amended by adding the following after section 159:

112. Section 160 of the Act is replaced by the following:

160. Every person who is licensed under this Act shall, not later than the last day of the first month after each reporting period of the person,

(a) file a return with the Minister, in the prescribed form and manner, for that reporting period;

(b) calculate, in the return, the total amount of the duty payable, if any, by the person for that reporting period; and

(c) pay that amount to the Receiver General.

113. Subsection 170(4) of the Act is replaced by the following:

(4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty payable under section 251.1, owing at that time to Her Majesty under this Act for a reporting period of the person and the total amount of interest and the penalty payable by the person under this Act for that period is not more than $25.00, the Minister may waive the total amount.

114. Paragraph 176(2)(a) of the Act is replaced by the following:

(a) the amount was taken into account as duty for a reporting period of the person and the Minister has assessed the person for the period under section 188; or

115. Section 178 of the Act is replaced by the following:

178. If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund or any other payment under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for reporting periods of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those reporting periods have been paid.

116. (1) Paragraph 188(1)(a) of the Act is replaced by the following:

(a) the duty payable by a person for a reporting period of the person; and

(2) The portion of subsection 188(3) of the Act before subparagraph (a)(ii) is replaced by the following:

(3) If, in assessing the duty, interest or other amount payable by a person for a reporting period of the person or other amount payable by a person under this Act, the Minister determines that

(a) a refund would have been payable to the person if it had been claimed in an application under this Act filed on the particular day that is

(i) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or

(3) The portion of subsection 188(4) of the Act before clause (b)(i)(C) is replaced by the following:

(4) If, in assessing the duty payable by a person for a reporting period of the person, the Minister determines that there is an overpayment of duty payable for the period, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

(a) apply

(i) all or part of the overpayment

against

(ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day on which the person was required to file a return for the period, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

as if the person had, on the particular day, paid the amount so applied on account of the outstanding amount;

(b) apply

(i) all or part of the overpayment that was not applied under paragraph (a) together with interest on the overpayment at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of

(A) the particular day,

(B) the day on which the return for the reporting period was filed, and

(4) Subparagraph 188(4)(c)(ii) of the Act is replaced by the following:

(ii) the day on which the return for the reporting period was filed, and

(5) The portion of subsection 188(5) of the Act before clause (a)(ii)(B) is replaced by the following:

(5) If, in assessing the duty payable by a person for a reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

(a) apply

(i) all or part of the refund that was not applied under subsection (3)

against

(ii) any other amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day that is

(A) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or

(6) Clause 188(5)(b)(i)(B) of the Act is replaced by the following:

(B) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,

(7) Subparagraph 188(5)(c)(ii) of the Act is replaced by the following:

(ii) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,

(8) The portion of subsection 188(6) of the Act before paragraph (a) is replaced by the following:

(6) An overpayment of duty payable for a reporting period of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with

(9) The portion of subsection 188(9) of the Act before subparagraph (a)(iii) is replaced by the following:

(9) If a person has paid an amount on account of any duty, interest or other amount assessed under this section in respect of a reporting period and the amount paid exceeds the amount determined on reassessment to have been payable by the person, the Minister may refund to the person the amount of the excess, together with interest on the excess amount at the prescribed rate for the period that

(a) begins on the day that is 30 days after the latest of

(i) the day on which the person was required to file a return for the reporting period,

(ii) the day on which the person filed a return for the reporting period, and

(10) Subsection 188(10) of the Act is replaced by the following:

(10) In this section, “overpayment of duty payable” of a person for a reporting period of the person means the amount, if any, by which the total of all amounts paid by the person on account of duty payable for the period exceeds the total of

(a) the duty payable for the period, and

(b) all amounts paid to the person under this Act as a refund for the period.

117. (1) Paragraph 191(1)(a) of the Act is replaced by the following:

(a) in the case of an assessment of the duty payable for a reporting period, more than four years after the later of the day on which the return for the period was required to be filed and the day on which the return was filed;

(2) Subsections 191(5) and (6) of the Act are replaced by the following:

(5) If, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount as or on account of duty payable for a reporting period of the person that was payable for another reporting period of the person, the Minister may at any time make an assessment for that other period in respect of that matter.

(6) If the result of a reassessment on an objection to, or a decision on an appeal from, an assessment is to reduce the amount of duty payable by a person and, by reason of the reduction, any refund or other payment claimed by the person for a reporting period, or in an application for a refund or other payment, should be decreased, the Minister may at any time assess or reassess that reporting period or that application only for the purpose of taking the reduction of duty into account in respect of the refund or other payment.

118. Subsection 193(2) of the Act is replaced by the following:

(2) A notice of assessment may include assessments in respect of any number or combination of reporting periods, refunds or amounts payable under this Act.

119. (1) Subparagraph 212(2)(a)(i) of the Act is replaced by the following:

(i) the trustee is liable for the payment of any duty, interest or other amount that became payable by the person after the particular day in respect of reporting periods that ended on or before the particular day, or of any duty, interest or other amount that became payable by the person after the particular day, only to the extent of the property of the person in possession of the trustee available to satisfy the liability,

(2) Paragraphs 212(2)(c) to (e) of the Act are replaced by the following:

(c) the reporting period of the person begins and ends on the day on which it would have begun and ended if the bankruptcy had not occurred, except that

(i) the reporting period of the person during which the person becomes a bankrupt shall end on the particular day and a new reporting period of the person in relation to the activities of the person to which the bankruptcy relates shall begin on the day immediately after the particular day, and

(ii) the reporting period of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act shall end on the day on which the discharge is granted;

(d) subject to paragraph (f), the trustee in bankruptcy shall file with the Minister in the prescribed form and manner all returns in respect of the activities of the person to which the bankruptcy relates for the reporting periods of the person ending in the period beginning on the day immediately after the particular day and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Act to be filed by the person, as if those activities were the only activities of the person;

(e) subject to paragraph (f), if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the trustee in bankruptcy shall, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in the prescribed form and manner a return for that reporting period of the person; and

(3) Paragraphs 212(3)(c) to (e) of the Act are replaced by the following:

(c) the reporting period of the person begins and ends on the day on which it would have begun and ended if the vesting had not occurred, except that

(i) the reporting period of the person, in relation to the relevant assets of the receiver, during which the receiver begins to act as receiver of the person, shall end on the particular day and a new reporting period of the person in relation to the relevant assets shall begin on the day immediately after the particular day, and

(ii) the reporting period of the person, in relation to the relevant assets, during which the receiver ceases to act as receiver of the person, shall end on the day on which the receiver ceases to act as receiver of the person;

(d) the receiver shall file with the Minister in the prescribed form and manner all returns in respect of the relevant assets of the receiver for reporting periods ending in the period during which the receiver is acting as receiver and that are required under this Act to be made by the person, as if the relevant assets were the only businesses, properties, affairs and assets of the person; and

(e) if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the receiver shall, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in the prescribed form and manner a return for that reporting period that relates to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that reporting period.

(4) Paragraphs 212(4)(a) and (b) of the Act are replaced by the following:

(a) all duty, interest and other amounts that are payable by the other person under this Act in respect of the reporting period during which the distribution is made, or any previous reporting period; and

(b) all duty, interest and other amounts that are, or can reasonably be expected to become, payable under this Act by the representative or receiver in that capacity in respect of the reporting period during which the distribution is made, or any previous reporting period.

120. The portion of section 251.1 of the Act before paragraph (b) is replaced by the following:

251.1 Every person who fails to file a return for a reporting period as and when required under this Act shall pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid before the end of the day on which the return was required to be filed, and

121. The portion of section 253 of the Act before paragraph (a) is replaced by the following:

253. Every person who knowingly, or under circumstances amounting to gross negligence, makes, or participates in, assents to or acquiesces in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this section referred to as a “return”) made in respect of a reporting period or activity is liable to a penalty equal to the greater of $250 and 25% of the total of

122. Section 255.1 of the Act is replaced by the following:

255.1 The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or reduce any penalty payable by the person under section 251.1 in respect of a return for the reporting period.

123. Subparagraphs 284(2.2)(a)(i) and (ii) of the Act are replaced by the following:

(i) if a notice of assessment in respect of the tax debt, or a notice referred to in subsection 254(1) or 294(1) in respect of the tax debt, is sent to or served on the person, after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is sent or served,

(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and

124. Subparagraph 297(1)(e)(i) of the Act is replaced by the following:

(i) an amount that the transferor is liable to pay under this Act in respect of the reporting period in which the property was transferred or any preceding reporting period, or

125. Subsections 301(9) and (10) of the Act are replaced by the following:

(9) If a notice or demand that the Minister is required or authorized under this Act to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, is deemed to be the date of the notice or demand.

(10) If a notice of assessment has been sent by the Minister as required under this Act, the assessment is deemed to have been made on the day of sending of the notice of assessment.

Excise Tax Act

126. Section 2 of the Excise Tax Act is amended by adding the following after subsection (2.2):

127. Subsection 58.1(1) of the Act is amended by adding the following in alphabetical order:

128. Section 78 of the Act is amended by adding the following after subsection (1):

129. The Act is amended by adding the following after section 78:

130. Subsections 79(1) to (3) of the Act are replaced by the following:

79. (1) Every person who is required to pay tax under Part III and every person who holds a licence granted under or in respect of that Part shall, not later than the last day of the first month after each reporting period of the person,

(a) file a return with the Minister, in the prescribed form and manner, for that reporting period;

(b) calculate, in the return, the total amount of the tax payable, if any, by the person for that reporting period, and

(c) pay that amount to the Receiver General.

131. Subparagraphs 82(2.2)(a)(i) and (ii) of the Act are replaced by the following:

(i) if a notice of assessment in respect of the tax debt is sent to or served on the person after March 3, 2004, on the day that is 90 days after the day on which the notice is sent or served,

(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and

132. Section 95.1 of the Act before paragraph (b) is replaced by the following:

95.1 Every person who fails to file a return for a reporting period as and when required under subsection 79(1) shall pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid on the day on which the return was required to be filed, and

133. Subsection 104(1) of the Act is replaced by the following:

104. (1) Except as otherwise provided in this Act, if a notice or other document is to be served on a person, other than the Minister or the Commissioner or the Tribunal, the notice or document shall be sent by registered or certified mail addressed to that person at their latest known address or be served personally on that person.

134. (1) Subsection 106.1(2) of the Act is replaced by the following:

(2) For the purposes of this Act, a notice referred to in subsection 72(6), 81.13(1), 81.15(5) or 81.17(5) that is sent to a person is, in the absence of any evidence to the contrary, deemed to have been sent on the day appearing from the notice to be the date thereof, unless called into question by the Minister or by some person acting for him or Her Majesty.

(2) Section 106.1 of the Act is amended by adding the following after subsection (3):

135. (1) The Act is amended by adding the following after section 224:

(2) Subsection (1) applies to any action or proceeding that has not, on or before July 13, 2010, been finally determined by the tribunals or courts of competent jurisdiction.

136. Subsection 274(6) of the Act is replaced by the following:

(6) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) is entitled, within 180 days after the day of sending of the notice, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (2) with respect to that transaction.

137. Subsection 274.2(4) of the Act is replaced by the following:

(4) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) is entitled, within 180 days after the day on which the notice was sent, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (2) with respect to that transaction.

138. Subparagraphs 313(2.2)(a)(i) and (ii) of the Act are replaced by the following:

(i) if a notice of assessment, or a notice referred to in subsection 322(1), in respect of the tax debt, is sent to or served on the person after March 3, 2004, on the last day on which one of those notices is sent or served,

(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and

139. Subsection 315(2) of the English version of the Act is replaced by the following:

(2) If the Minister sends a notice of assessment to a person, any amount assessed then remaining unpaid is payable forthwith by the person to the Receiver General.

140. Subsections 335(10) and (11) of the Act are replaced by the following:

(10) If any notice or demand that the Minister is required or authorized under this Part to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, shall be presumed to be the date of the notice or demand.

(11) If a notice of assessment has been sent by the Minister as required under this Part, the assessment is deemed to have been made on the day of sending of the notice of assessment.

Brewery Departmental Regulations

141. Section 7 of the Brewery Departmental Regulations is replaced by the following:

7. (1) The return required by section 175 of the Act shall be made

(2) The return shall set out the following particulars:

(a) the quantity of beer produced;

(b) the quantity of beer exported;

(c) the quantity of beer on which excise duty was paid that has been destroyed or returned to process stock; and

(d) the amount of excise duty paid on beer.

Brewery Regulations

142. Section 5 of the Brewery Regulations is replaced by the following:

5. (1) Subject to subsection (2), the duty imposed under the Act in respect of beer produced during a particular month shall be paid not later than the last day of the month following the particular month.

New Harmonized Value-added Tax System Regulations

143. Subsection 37(4) of the New Harmonized Value-added Tax System Regulations is replaced by the following:

(4) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) is entitled, within 180 days after the day on which the notice was sent, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (2) with respect to that transaction.

PART 3

AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT IN RESPECT OF INCOME TAX

Federal-Provincial Fiscal Arrangements Act

144. (1) The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 12.01:

(2) Part IV.01 of the Act, as enacted by subsection (1), is deemed to have come into force on on March 4, 2010.

145. (1) The Act is amended by adding the following after section 12.3:

(2) Part IV.2 of the Act, as enacted by subsection (1), applies in respect of the 1998 and subsequent taxation years.

PART 4

AMENDMENTS RELATING TO EXTERNAL COMPLAINTS BODIES

Bank Act

146. Section 2 of the Bank Act is amended by adding the following in alphabetical order:

147. The Act is amended by adding the following after section 455:

148. (1) Section 455.1 of the Act is amended by adding the following after subsection (1):

(2) Section 455.1 of the Act is amended by adding the following after subsection (3):

149. Paragraph 459.5(b) of the Act is replaced by the following:

(b) the persons who request or receive the product or service have access to complaint handling by an external complaints body.

150. Section 573.1 of the Act is replaced by the following:

573.1 An authorized foreign bank must be a member of one external complaints body.

151. Section 657 of the Act and the headings before it are replaced by the following:

PART XIV

REGULATION OF BANKS AND EXTERNAL COMPLAINTS BODIES — COMMISSIONER

657. A bank, authorized foreign bank or external complaints body must provide the Commissioner with the information at the times and in the form that he or she may require for the purposes of the administration of the Financial Consumer Agency of Canada Act and the consumer provisions.

152. Subsection 658(1) of the Act is replaced by the following:

658. (1) Subject to subsection (2), information regarding the business or affairs of a bank, authorized foreign bank or external complaints body or regarding persons dealing with any of them that is obtained by the Commissioner or by any person acting under the Commissioner’s direction, in the course of the exercise or performance of powers, duties and functions referred to in subsection 5(1) of the Financial Consumer Agency of Canada Act, and any information prepared from that information, is confidential and shall be treated accordingly.

153. (1) Subsection 659(1) of the French version of the Act is replaced by the following:

(2) Paragraph 659(2)(a) of the Act is replaced by the following:

(a) has a right of access to any records, including electronic records, of a bank, authorized foreign bank or external complaints body; and

(3) Paragraph 659(2)(b) of the English version of the Act is replaced by the following:

(b) may require the directors or officers of a bank, authorized foreign bank or external complaints body to provide information and explanations, to the extent that they are reasonably able to do so, in respect of any matter subject to examination or inquiry under subsection (1).

154. Section 661 of the Act is replaced by the following:

661. The Commissioner may enter into an agreement, called a “compliance agreement”, with a bank, authorized foreign bank or external complaints body for the purposes of implementing any measure that is designed so as to further compliance by it with the consumer provisions.

155. Section 974 of the Act is replaced by the following:

974. An instrument issued or made under this Act and directed to a single bank, bank holding company, authorized foreign bank or person, other than a regulation made under subsection 455.01(3) or 455.1(3.1) or an order referred to in section 499, is not a statutory instrument for the purposes of the Statutory Instruments Act.

Financial Consumer Agency of Canada Act

156. Section 2 of the Financial Consumer Agency of Canada Act is amended by adding the following in alphabetical order:

157. (1) Paragraphs 3(2)(a) and (b) of the Act are replaced by the following:

(a) supervise financial institutions and external complaints bodies to determine whether the institution or body is in compliance with

(i) the consumer provisions applicable to them, and

(ii) the terms and conditions or undertakings with respect to the protection of customers of financial institutions that the Minister imposes or requires, as the case may be, under an Act listed in Schedule 1 and the directions that the Minister imposes under this Act;

(b) promote the adoption by financial institutions and external complaints bodies of policies and procedures designed to implement the provisions, terms and conditions, undertakings or directions referred to in paragraph (a);

(i) voluntary codes of conduct that are designed to protect the interests of their customers, that are adopted by financial institutions and that are publicly available, and

(ii) any public commitments made by them that are designed to protect the interests of their customers;

(2) Paragraph 3(2)(d) of the Act is replaced by the following:

(d) promote consumer awareness about the obligations of financial institutions and of external complaints bodies under consumer provisions applicable to them and about all matters connected with the protection of consumers of financial products and services; and

158. Section 14 of the Act is replaced by the following:

14. No Commissioner, person appointed under subsection 4(4) or Deputy Commissioner shall beneficially own, directly or indirectly, any shares of any financial institution, bank holding company, insurance holding company, external complaints body or of any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or external complaints body.

159. Subsection 16(1) of the Act is replaced by the following:

16. (1) The Commissioner, a person appointed under subsection 4(4), a Deputy Commissioner and any person appointed under section 10 shall not accept or receive, directly or indirectly, any grant or gratuity from a financial institution, bank holding company, insurance holding company, external complaints body, or from a director, officer or employee of any of them, and no such financial institution, bank holding company, insurance holding company, external complaints body, director, officer or employee shall make or give any such grant or gratuity.

160. Subsection 17(1) of the Act is replaced by the following:

17. (1) Subject to subsection (2) and except as otherwise provided in this Act, information regarding the business or affairs of a financial institution or external complaints body or regarding persons dealing with one that is obtained by the Commissioner or by any person acting under the Commissioner’s direction, in the course of the exercise or performance of powers, duties and functions referred to in subsections 5(1) and (2) and 5.1(2), and any information prepared from that information, is confidential and shall be treated accordingly.

161. (1) Subsection 18(1) of the Act is replaced by the following:

18. (1) The Commissioner shall, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year for or in connection with the administration of this Act and the consumer provisions — excluding the expenses incurred in connection with the objects described in subsection 3(3) — and the amounts of any prescribed categories of those expenses in relation to any prescribed group of financial institutions and external complaints bodies.

(2) Subsection 18(3) of the Act is replaced by the following:

(3) As soon as possible after ascertaining the amounts under subsections (1) and (1.1), the Commissioner shall assess a portion of the total amount of expenses against each financial institution and external complaints body to the extent and in the manner that the Governor in Council may, by regulation, prescribe.

(3) Subsections 18(4) and (5) of the Act are replaced by the following:

(4) The Commissioner may, during each fiscal year, prepare an interim assessment against any financial institution or external complaints body.

(5) Every assessment and interim assessment is final and conclusive and binding on the financial institution or external complaints body against which it is made.

162. The portion of section 34 of the Act before paragraph (b) is replaced by the following:

34. The Minister shall cause to be laid before each House of Parliament, not later than the fifth sitting day of that House after September 30 next after the end of each fiscal year, a report showing the Agency’s operations for that year and describing

(a) in aggregate form, its conclusions on the compliance, in that year, of financial institutions and external complaints bodies with the consumer provisions applicable to them; and

Coordinating Amendments

163. On the first day on which both section 306 of the Canada Not-for-profit Corporations Act and section 146 of this Act are in force, subsection 455.01(1) of the Bank Act is replaced by the following:

455.01 (1) Subject to section 455.1, the Minister may, on the Commissioner’s recommendation and for the purposes of this section, approve a body corporate incorporated under the Canada Not-for-profit Corporations Act or under the Canada Business Corporations Act whose purpose, in the Minister’s view, under its letters patent is dealing with complaints, made by persons having requested or received products or services from its member financial institutions, that have not been resolved to the satisfaction of those persons under procedures established by those financial institutions under paragraph 455(1)(a).

164. (1) In this section, “other Act” means the Jobs and Economic Growth Act.

(2) If section 2116 of the other Act comes into force before section 158 of this Act, then that section 158 is replaced by the following:

158. Subsection 14(1) of the Act is replaced by the following:

14. (1) No Commissioner, person appointed under subsection 4(4) or Deputy Commissioner shall beneficially own, directly or indirectly, any shares of any financial institution, bank holding company, insurance holding company, external complaints body or of any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or external complaints body.

(3) If section 2116 of the other Act and section 158 of this Act come into force on the same day, then that section 158 is deemed to have come into force before that section 2116.

Coming into Force

165. This Part, other than sections 163 and 164, comes into force on a day to be fixed by order of the Governor in Council.

PART 5

CANADA DISABILITY SAVINGS ACT

Amendments to the Act

166. Paragraph 2(2)(b) of the Canada Disability Savings Act is replaced by the following:

(b) the expressions “contribution”, “designated provincial program”, “DTC-eligible individual”, “holder”, “issuer” and “registered disability savings plan” have the same meanings as in section 146.4 of that Act; and

167. (1) Section 6 of the Act is amended by adding the following after subsection (2):

(2) Section 6 of the Act is amended by adding the following after subsection (7):

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

7. (1) Subject to this Act and the regulations, on application, the Minister may pay a Canada Disability Savings Bond into a registered disability savings plan of a beneficiary

(1.1) A Canada Disability Savings Bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the issuer of the plan.

Transitional Provisions

169. For the purposes of calculating the amount of a Canada Disability Savings Grant that may be paid for 2008 under section 6 of the Canada Disability Savings Act, subparagraphs 6(2)(a)(i) and (ii) and subsection 6(6) of that Act are to be read as they did on December 31, 2008.

170. For the purposes of calculating the amount of a Canada Disability Savings Bond that may be paid for 2008 under section 7 of the Canada Disability Savings Act, subparagraphs 7(2)(a)(i) and (ii) and (b)(i) and (ii), the descriptions of B and C in subsection 7(4) and subsection 7(8) of that Act are to be read as they did on December 31, 2008.

Coming into Force

171. This Part comes into force, or is deemed to have come into force, on January 1, 2011.

PART 6

CUSTOMS ACT

172. Section 11.1 of the Customs Act is amended by adding the following after subsection (3):

PART 7

FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

173. (1) Subsections 6(1) to (6) of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:

(5) For the purposes of determining the non-natural resource revenue of a province for a fiscal year,

(a) subsection 3.9(2) applies, with any modifications that the circumstances require, in determining the revenue derived by the province for the fiscal year from personal income taxes, described in paragraph (a) of the definition “revenue source” in subsection 3.9(1), except that no deduction may be made in respect of the tax abatement units referred to in subsection 27(2);

(b) the province’s revenue for the fiscal year derived from personal income taxes, described in paragraph (a) of the definition “revenue source” in subsection 3.9(1), is deemed to be

(i) the total amount, determined in the prescribed manner, of the provincial personal income taxes assessed or reassessed, not later than 24 months after the end of the fiscal year, in respect of the taxation year ending in the fiscal year,

minus

(ii) the total amount, determined in the prescribed manner, of the tax credits and rebates claimed by taxpayers in the prov- ince against provincial personal income taxes for that taxation year that have been deducted from those assessed or reassessed provincial personal income taxes; and

(c) the province’s revenue for the fiscal year derived from that part of the revenue source described in paragraph (b) of the definition “revenue source” in subsection 3.9(1) that consists of corporation income taxes is deemed to be

(i) the total amount, determined in the prescribed manner, of the provincial corporation income taxes assessed or reassessed, not later than 24 months after the end of the fiscal year, in respect of the taxation year of corporations ending in the calendar year that ends in the fiscal year,

minus

(ii) the total amount, determined in the prescribed manner, of the tax credits and rebates claimed by taxpayers in the prov- ince against provincial corporation income taxes for that taxation year that have been deducted from those assessed or reassessed provincial corporation income taxes.

(2) Subsection 6(11) of the Act is repealed.

PART 8

OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT

Amendments to the Act

174. The heading before section 23 of the Office of the Superintendent of Financial Institutions Act is replaced by the following:

ASSESSMENT

175. (1) Subsection 23(2) of the Act is replaced by the following:

(2) Any amount ascertained or estimated by the Superintendent under subsection (1) or (1.1), as the case may be, is final and conclusive for the purposes of this section.

(2) Section 23 of the Act is amended by adding the following after subsection (4):

176. The portion of subsection 24(1) of the Act before the definition “entity” is replaced by the following:

24. (1) The following definitions apply in this section and in sections 25 to 37.2.

177. The Act is amended by adding the following after section 37:

Coming into Force

178. Sections 174 and 175 come into force on a day to be fixed by order of the Governor in Council.

PART 9

PENSION BENEFITS STANDARDS ACT, 1985

Amendments to the Act

179. (1) The definition “designated prov- ince” in subsection 2(1) of the Pension Benefits Standards Act, 1985 is replaced by the following:

“designated province” means a province prescribed as a province in which there is in force pension legislation applicable to private superannuation plans;

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

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

180. Subsection 5(2) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and’’ at the end of paragraph (c) and by adding the following after paragraph (c):

181. Section 6 of the Act and the heading before it are replaced by the following:

AGREEMENTS

6.1 (1) The Minister may, with the approval of the Governor in Council, enter into an agreement with two or more designated prov- inces respecting any matter relating to pension plans that are subject to the pension legislation of at least one designated province that is a party to the agreement.

(2) A multilateral agreement may, among other things,

(4) The Minister must cause to be published in the Canada Gazette

6.2 (1) The provisions of a multilateral agreement, other than those exempted from the application of this subsection by regulation, have the force of law during the period that the agreement is in effect with respect to pension plans and are enforceable during that period as if those provisions formed part of this Act.

6.3 (1) A decision of a pension supervisory authority of a designated province that is made under the authority of a multilateral agreement and that relates to the application of this Act or the regulations is deemed to be a decision of a federal board, commission or other tribunal, as defined in subsection 2(1) of the Federal Courts Act, and is subject to judicial review under that Act.

182. Subsection 7.4(3) of the Act is replaced by the following:

(3) The administrator of a pension plan shall, within 30 days after being constituted or becoming the administrator, inform the Superintendent, in the form and manner, if any, that the Superintendent directs, of

(a) the administrator’s name and address; or

(b) the names and addresses of the persons who together constitute the body that is the administrator.

The administrator shall inform the Superintend- ent, in the form and manner, if any, that the Superintendent directs, of any change to that information within 30 days after the change.

183. Section 8 of the Act is amended by adding the following after subsection (4.1):

184. Section 9.1 of the Act is replaced by the following:

9.1 (1) The administrator of a pension plan must notify in writing the trustee or custodian of the pension fund of all amounts that are to be remitted to the pension fund and the expected date of the remittance.

(2) If a payment to a pension fund is not remitted within 30 days after the date referred to in subsection (1),

(a) the administrator of the pension plan must immediately notify the Superintendent; and

(b) a trustee or custodian of the pension fund must, if the administrator is the employer, immediately notify the Superintendent.

185. (1) Subsection 9.2(4) of the Act is replaced by the following:

(4) Subject to subsection (5), if more than one half but fewer than two thirds of the persons in each of the categories referred to in subsection (3) consented to the proposal, the employer may, or if the whole of the pension plan is terminated shall, submit the proposal to arbitration. The employer shall notify the Superintendent, in the form and manner, if any, that the Superintendent directs, and the persons in those categories if the proposal is to be submitted to arbitration.

(2) The portion of subsection 9.2(5) of the Act after paragraph (b) is replaced by the following:

The employer shall notify the Superintendent, in the form and manner, if any, that the Superintendent directs, and the persons in the categories referred to in subsection (3) that the claim is to be submitted to arbitration.

186. (1) The portion of subsection 10(1) of the Act before paragraph (a) is replaced by the following:

10. (1) The administrator of a pension plan shall file with the Superintendent, within 60 days after the plan is established and in the form and manner, if any, that the Superintendent directs,

(2) Paragraph 10(1)(c) of the Act is replaced by the following:

(c) a declaration signed by the administrator that the plan complies with this Act and the regulations.

187. Subsection 10.1(1) of the Act is replaced by the following:

10.1 (1) The administrator of a pension plan must file with the Superintendent, within 60 days after an amendment is made to any document referred to in subsection 10(1), in the form and manner, if any, that the Superintendent directs, a copy of the amendment and a declaration, signed by the administrator that the plan as amended complies with this Act and the regulations.

188. Section 10.11 of the Act is replaced by the following:

10.11 The administrator of a negotiated contribution plan may, subject to section 10.1 and despite the terms of the pension plan, make an amendment to any document referred to in paragraph 10(1)(a) or (b) that has the effect of reducing pension benefits or pension benefit credits.

189. The Act is amended by adding the following after section 10.2:

190. (1) Subsection 12(1) of the Act is replaced by the following:

12. (1) The administrator of a pension plan shall file with the Superintendent — annually or at any other intervals or times that the Superintendent directs — an information return relating to that pension plan, containing the prescribed information.

(2) Subsection 12(4) of the Act is replaced by the following:

(4) Every document required to be filed under this section shall be filed in the form and manner, if any, that the Superintendent directs, and unless otherwise directed by the Superintendent, within six months after the end of the plan year to which the document relates.

191. Paragraph 18(2)(c) of the Act is replaced by the following:

(c) that, if the pension benefit credit is less than 20% of the Year’s Maximum Pensionable Earnings for the calendar year in which a member ceases to be a member of the plan or dies, or any other percentage that may be prescribed, the pension benefit credit may be paid to the member or survivor, as the case may be.

192. (1) Section 26 of the Act is amended by adding the following after subsection (2):

(2) Paragraph 26(3)(a) of the Act is repealed.

193. Subparagraph 28(1)(a)(i) of the Act is replaced by the following:

(i) a written explanation of the provisions of the plan and of any applicable amendments to the plan, within 60 days after the establishment of the plan or after the making of the amendment, as the case may be, and

194. (1) Subsection 29(4) of the Act is replaced by the following:

(4) If employer contributions to a negotiated contribution plan are suspended or cease as a result of the adoption of a new defined benefit plan, the original plan is deemed not to have been terminated, and the pension benefits and other benefits provided under the original plan are deemed to be benefits provided under the new plan in respect of any period of membership before the adoption of the new plan, whether or not the assets and liabilities of the original plan have been consolidated with those of the new plan.

(2) Subsection 29(4.2) of the Act is replaced by the following:

(4.2) Subject to subsections (1), (2) and (2.1), the whole of a pension plan is terminated only if the administrator or employer notifies the Superintendent, in writing or in the form and manner, if any, that the Superintendent directs, of their decision to terminate the pension plan and the date of the termination.

(3) Subsection 29(5) of the Act is replaced by the following:

(5) An administrator or employer who terminates or winds up a pension plan shall notify the Superintendent, in writing or in the form and manner, if any, that the Superintendent directs, not less than 60 and not more than 180 days before the date of the termination or winding-up.

(4) Subsection 29(9) of the Act is replaced by the following:

(9) On the termination of a pension plan or part of a plan, the administrator of the plan shall file with the Superintendent, in the form and manner, if any, that the Superintendent directs, a report, prepared by a person having the prescribed qualifications, setting out the nature of the pension benefits and other benefits to be provided under the plan and a description of the methods of allocating and distributing those benefits and deciding the priorities in respect of the payment of full or partial benefits to the members.

195. The Act is amended by adding the following after section 31:

196. (1) Paragraph 39(c) of the Act is replaced by the following:

(c) prescribing the conditions under which, on the cessation of a member’s membership in a pension plan or on the termination or winding-up of a pension plan, pension benefit credits may be held in trust by the administrator of the plan, or transferred to the administrator of another pension plan or to a registered retirement savings plan of the prescribed kind;

(2) Section 39 of the Act is amended by adding the following after paragraph (i.1):

(3) Section 39 of the Act is amended by adding the following before paragraph (o):

Transitional Provision

197. If, as a result of the adoption of a new plan, employer contributions to a pension plan are suspended or cease before the day on which subsection 29(4) of the Pension Benefits Standards Act, 1985, as enacted by subsection 194(1), comes into force, the original plan is deemed not to have been terminated, and the pension benefits and other benefits provided under the original plan are deemed to be benefits provided under the new plan in respect of any period of membership before the adoption of the new plan, regardless of whether the assets and liabilities of the original plan have been consolidated with those of the new plan.

Coordinating Amendments

198. (1) In this section, “other Act” means the Jobs and Economic Growth Act.

(2) On the first day on which both section 1804 of the other Act and this section are in force, the Pension Benefits Standards Act, 1985 is amended by adding the following before the heading before section 17:

16.5 Before a pension plan ceases to provide for the payment of a variable benefit referred to in subsection 16.2(1), an administrator must offer a former member or survivor who receives that variable benefit the options referred to in subsection 16.4(1).

(3) If subsection 194(1) of this Act comes into force before subsection 1816(2) of the other Act, then subsection 1816(2) and section 1826 of the other Act are repealed.

(4) If subsection 1816(2) of the other Act comes into force before subsection 194(1) of this Act, then section 197 of this Act is replaced by the following:

197. If, as a result of the adoption of a new defined benefit plan, employer contributions to a multi-employer pension plan that is a defined benefit plan are suspended or cease before the day on which subsection 29(4) of the Pension Benefits Standards Act, 1985, as enacted by subsection 194(1), comes into force, the original plan is deemed not to have been terminated, and the pension benefits and other benefits provided under the original plan are deemed to be benefits provided under the new plan in respect of any period of membership before the adoption of the new plan, regardless of whether the assets and liabilities of the original plan have been consolidated with those of the new plan.

(5) If subsection 194(1) of this Act and subsection 1816(2) of the other Act come into force on the same day, then that subsection 194(1) is deemed to have come into force before that subsection 1816(2) and subsection (3) applies as a consequence.

(6) On the first day on which both subsection 1816(5) of the other Act and this section are in force, the Pension Benefits Standards Act, 1985 is amended by replacing subsection 29(6.1) with the following:

(6.1) If the whole of a pension plan that is not a negotiated contribution plan is terminated, the employer shall pay into the pension fund, in accordance with the regulations, the amount — calculated periodically in accordance with the regulations — that is required to ensure that any obligation of the plan with respect to pension benefits, as they are determined on the date of the termination, is satisfied.

(7) On the first day on which both subsection 1816(7) of the other Act and subsection 194(4) of this Act are in force, the Pension Benefits Standards Act, 1985 is amended by replacing subsection 29(9) with the following:

(9) On the termination of the whole or part of a pension plan, the administrator of the plan shall file with the Superintendent, in the form and manner, if any, that the Superintendent directs, a termination report prepared by a person having the prescribed qualifications, setting out the nature of the pension benefits and other benefits to be provided under the plan and a description of the methods of allocating and distributing those benefits and deciding the priorities in respect of the payment of full or partial benefits to the members. The report must also give the amount referred to in subsection (6.1) — calculated as at the date of termination — and contain any prescribed information.

(8) If subsection 1820(12) of the other Act comes into force before this section, then the references to “39(c)” and “Section 39” in section 196 of this Act are replaced by “39(1)(c)” and “Subsection 39(1)”, respectively.

(9) If subsection 1820(12) of the other Act comes into force after this section comes into force but before subsection 196(3) of this Act comes into force, then, on the coming into force of that subsection 1820(12), that subsection 196(3) is amended by replacing “Section 39” with “Subsection 39(1)”.

Coming into Force

199. Subsection 179(1), section 183, subsection 192(1), section 195 and subsection 196(3) come into force on a day or days to be fixed by order of the Governor in Council.