Bill C-47

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.

(5) For the purposes of this Act, if a notice or other communication in respect of a person or partnership is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person or partnership and received by the person or partnership on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person or partnership to the Minister for the purposes of this subsection, informing the person or partnership that a notice or other communication requiring the person or partnership’s immediate attention is available in the person or partnership’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person or partnership’s secure electronic account and the person or partnership has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

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:

“shared-custody parent” has the meaning assigned by section 122.6 of the Income Tax Act.

(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,

(a) a benefit of $50, if the eligible individual is a shared-custody parent of the qualified dependant; and

(b) a benefit of $100 in any other case.

(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:

“food and animal waste” means organic waste that is disposed of in accordance with the laws of Canada or a province and that is

(a) generated during the preparation or processing of food for human or animal consumption;

(b) food that is no longer fit for human or animal consumption; or

(c) animal remains. (déchets alimentaires et animaux)

(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

(b) without reference to any amount in respect of a deposit accounting insurance policy.

(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

(c) without reference to any amount in respect of a deposit accounting insurance policy.

(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:

“deposit accounting insurance policy” has the meaning assigned by subsection 138(12) of the Act. (police d’assurance à comptabilité de dépôt)

“reinsurance recoverable amount” of an insurer means 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. (somme à recouvrer au titre de la réassurance)

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

(8) A reference in this Part to an amount or item reported as an asset or a liability of an insurer as at the end of a taxation year means

(a) if reporting by the insurer to the insurer’s relevant authority is required at the end of the year, an amount or item that is reported, as at the end of the year, as an asset or a liability in the insurer’s non-consolidated balance sheet accepted by the insurer’s relevant authority; and

(b) in any other case, an amount or item that is reported as an asset or a liability in a non-consolidated balance sheet that is prepared in a manner consistent with the requirements that would have applied had reporting to the insurer’s relevant authority been required at the end of the year.

(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

A – B

where

A      is the total of the insurer’s liabilities and reserves (other than liabilities and reserves in respect of a segregated fund) as at the end of the year in respect of

(a) life insurance policies in Canada,

(b) fire insurance policies issued or effected in respect of property situated in Canada, and

(c) insurance policies of any other class covering risks ordinarily within Canada at the time the policy was issued or effected; and

B      is the total of the reinsurance recoverable reported as a reinsurance asset by the insurer as at the end of the year relating to its liabilities and reserves in A. (passif de réserve canadienne)

“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

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

(B) the reinsurance recoverable reported by the insurer as at the end of the year relating to its liabilities described in subparagraph (i). (passif canadien pondéré)

(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

(B) the reinsurance recoverable reported by the insurer as at the end of the year relating to its liabilities described in subparagraph (i). (passif total pondéré)

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

(9) A computation that is required to be made under this Part in respect of an insurer’s taxation year that included December 31, 2010 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after that date shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation.

(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

REGISTERED CHARITIES

(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

A – B

where

A      is the total amount as at the end of the year of the insurer’s liabilities and reserves (other than liabilities and reserves in respect of a segregated fund within the meaning assigned by subsection 138(12) of the Act) in respect of all its insurance policies, as determined for the purposes of the Superintendent of Financial Institutions, if the insurer is required by law to report to the Superintendent of Financial Institutions, or, in any other case, the superintendent of insurance or other similar officer or authority of the province under the laws of which the insurer is incorporated, and

B      is the total of the reinsurance recoverable (within the meaning assigned by subsection 2400(1)) reported as a reinsurance asset by the insurer as at the end of the year relating to its liabilities and reserves in A. (passif total de réserve)

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

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

PART XCV

EMPLOYEE LIFE AND HEALTH TRUSTS

9500. For the purpose of subparagraph 144.1(2)(g)(iii) of the Act, prescribed payments are payments to General Motors of Canada Limited or Chrysler Canada Inc. by the employee life and health trust established for the benefit of retired automobile industry workers by the Canadian Auto Workers’ Union that

(a) are reasonable in the circumstances;

(b) are made as consideration for administrative services provided to or on behalf of the trust or its beneficiaries, or as reimbursement for employee benefit payments made on behalf of, or in contemplation of the establishment of, the trust; and

(c) the recipient acknowledges in writing shall be included in computing the recipient’s income in the year that they are receivable, to the extent that the recipient deducts in the year, or deducted in a prior year, in computing its income amounts in respect of the services or benefit payments described in paragraph (b).

(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

(b) equipment used for the purpose of effecting an interface between a cable or satellite distribution system (other than a satellite radio distribution system) and electronic products used by consumers of that system if the equipment

(i) is designed primarily

(A) to augment the channel capacity of a television receiver, or

(B) to decode pay television or other signals provided on a discretionary basis,

(ii) is acquired by the taxpayer after March 4, 2010, and

(iii) has not been used or acquired for use for any purpose by any taxpayer before March 5, 2010.

(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):

(xv) district energy equipment that

(A) is used by the taxpayer or by a lessee of the taxpayer,

(B) is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraph (i) or (iv) or would be described in subparagraph (i) or (iv) if owned by the taxpayer, and

(C) is not a building, and

(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:

“fiscal half-year” means a fiscal half-year as determined under subsection 16(2).

“fiscal year” of a designated air carrier means the same period that is the carrier’s fiscal year under Part IX of the Excise Tax Act.

“reporting period” means a reporting period as determined under section 16.1.

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

5.1 (1) For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

(2) For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

(3) For the purposes of this Act, a person is associated with

(a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

(b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

(4) For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.

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

15.1 No person, other than Her Majesty, may bring an action or proceeding against any person for acting in compliance or intended compliance with this Act by collecting an amount as or on account of the charge.

(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.

(2) The fiscal half-years of a designated air carrier shall be determined in accordance with the following rules:

(a) the period beginning on the first day of the first fiscal month in a fiscal year of the carrier and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the carrier; and

(b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the carrier is a fiscal half-year of the carrier.

Reporting Periods

16.1 (1) Subject to this section, the reporting period of a designated air carrier is a fiscal month.

(2) On application in the prescribed form and manner by a designated air carrier, the Minister may, in writing, authorize the reporting period of that carrier to be a fiscal half-year in a particular fiscal year if

(a) the carrier has been registered for a period exceeding twelve consecutive fiscal months;

(b) the total of all charges and amounts collected or required to be collected under this Act by the carrier and any person associated with the carrier in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

(c) the total of all charges and amounts collected or required to be collected under this Act by the carrier and any person associated with the carrier in the particular fiscal year does not exceed $120,000; and

(d) the carrier is in compliance with the Act.

(3) An authorization under subsection (2) is deemed to be revoked if the total of all charges and amounts collected or required to be collected under this Act by the carrier and any person associated with the carrier exceeds $120,000 in a fiscal year, which revocation is effective as of the first day after the end of the fiscal half-year in which the excess occurs.

(4) The Minister may revoke an authorization if

(a) the carrier requests in writing the Minister to do so;

(b) the carrier fails to comply with the Act; or

(c) the Minister considers that the authorization is no longer required.

(5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the carrier and shall specify in the notice the fiscal month for which the revocation becomes effective.

(6) If a revocation under subsection (4) becomes effective before the last day of a fiscal half-year of a carrier that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the carrier.

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.

(9.1) For the purposes of this Act, if a notice or other communication in respect of a person is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is deemed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

(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:

36.1 (1) The following are six-month periods of a licensed brewer:

(a) the period beginning on January 1 and ending on June 30, or the portion of that period, if any, that ends before the month on which a revocation under subsection (3) or (4) becomes effective; and

(b) the period beginning on July 1 and ending on December 31, or the portion of that period, if any, that ends before the month on which a revocation under subsection (3) or (4) becomes effective.

(2) On application by a licensed brewer in the form and manner specified by the Minister, the Minister may, in writing, authorize the brewer to make a return for each six-month period in a particular year if

(a) the brewer has been licensed for a period exceeding one year;

(b) the total of all duty imposed, levied and collected on beer and malt liquor brewed by the brewer and any person associated with the brewer in the year ending immediately before the particular year did not exceed $120,000;

(c) the total of all duty imposed, levied and collected on beer and malt liquor brewed by the brewer and any person associated with the brewer in the particular year does not exceed $120,000; and

(d) the brewer is in compliance with the Act.

(3) An authorization under subsection (2) is deemed to be revoked if the total of all duties imposed, levied and collected on beer and malt liquor by the brewer and any person associated with the brewer exceeds $120,000 in a year, which revocation is effective as of the first day after the end of the six-month period in which the excess occurs.

(4) The Minister may revoke an authorization if

(a) the brewer requests in writing the Minister to do so;

(b) the brewer fails to comply with the Act; or

(c) the Minister considers that the authorization is no longer required.

(5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the brewer and shall specify in the notice the month for which the revocation becomes effective.

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.

(2) Despite subsection (1), if a licensed brewer is authorized by the Minister to make a return for a six-month period under subsection 36.1(2), the return shall be made to the collector on or before the tenth working day of the month following the end of the six-month period.

Excise Act, 2001

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

“fiscal half-year” means a fiscal half-year as determined under subsection 159(1.1).

“fiscal year” of a person means the same period that is the person’s fiscal year under Part IX of the Excise Tax Act.

“reporting period” means a reporting period as determined under section 159.1.

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

(3) For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

(4) For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

(5) For the purposes of this Act, a person is associated with

(a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

(b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

(6) For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.

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):

(1.1) The fiscal half-years of a person shall be determined in accordance with the following rules:

(a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and

(b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.

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

Reporting Periods

159.1 (1) Subject to this section, the reporting period of a person is a fiscal month.

(2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if

(a) the person is a licensee in one or more of the following categories:

(i) an excise warehouse licensee who does not hold in their excise warehouse manufactured tobacco or cigars,

(ii) a spirits licensee,

(iii) a wine licensee, or

(iv) a licensed user;

(b) the person has been licensed for a period exceeding twelve consecutive fiscal months;

(c) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

(d) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the particular fiscal year does not exceed $120,000;

(e) in the case where the person is an excise warehouse licensee, the liability of the person and any excise warehouse licensee associated with the person with respect to duty on alcohol entered into an excise warehouse

(i) did not exceed $120,000 in the fiscal year ending immediately before the partic- ular fiscal year, and

(ii) does not exceed $120,000 in the particular fiscal year;

(f) in the case where the person is a licensed user, the liability of the person and any licensed user associated with the person with respect to duty on alcohol entered into their specified premises

(i) did not exceed $120,000 in the fiscal year ending immediately before the partic- ular fiscal year, and

(ii) does not exceed $120,000 in the particular fiscal year;

(g) the volume of absolute ethyl alcohol added to the bulk spirits inventory of the person that is a spirits licensee and any spirits licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

A / B

where

A      is $120,000, and

B      is the rate of duty on spirits set out in section 1 of Schedule 4;

(h) the volume of wine added to the bulk wine inventory of the person that is a wine licensee and any wine licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

A / B

where

A      is $120,000, and

B      is the rate of duty on wine set out in paragraph (c) of Schedule 6; and

(i) the person is in compliance with the Act.

(3) An authorization under subsection (2) is deemed to be revoked if

(a) any of the conditions described in paragraphs (2)(d) to (h) is no longer met in respect of the person, which revocation is effective as of the first day after the end of the fiscal half-year in which the condition is no longer met; or

(b) an excise warehouse licensee holds in their excise warehouse manufactured tobacco or cigars, which revocation is effective as of the first day of the fiscal month in which the licensee begins to hold the tobacco or cigars.

(4) The Minister may revoke an authorization if

(a) the person requests in writing the Minister to do so;

(b) the person fails to comply with the Act; or

(c) the Minister considers that the authorization is no longer required.

(5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.

(6) If a revocation under paragraph (3)(b) or subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.

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.

(9.1) For the purposes of this Act, if a notice or other communication in respect of a person is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is deemed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

(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):

(2.3) For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

(2.4) For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

(2.5) For the purposes of this Act, a person is associated with

(a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

(b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

(2.6) For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.

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

“fiscal half-year” means a fiscal half-year as determined under subsection 78(1.1).

“fiscal year” of a person means the same period that is the person’s fiscal year under Part IX.

“reporting period” means a reporting period as determined under section 78.1.

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

(1.1) The fiscal half-years of a person shall be determined in accordance with the following rules:

(a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and

(b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.

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

78.1 (1) Subject to this section, the reporting period of a person is a fiscal month.

(2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if

(a) the person has been required to pay tax under Part III, or has been holding a licence granted under or in respect of that Part, for a period exceeding twelve consecutive fiscal months;

(b) the total of all taxes payable under Part III by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

(c) the total of all taxes payable under Part III by the person and any person associated with the person in the particular fiscal year does not exceed $120,000; and

(d) the person is in compliance with this Act.

(3) An authorization under subsection (2) is deemed to be revoked if the total of all taxes payable under Part III by the person and any person associated with the person exceeds $120,000 in a fiscal year, which revocation is effective as of the first day after the end of the fiscal half-year in which the excess occurs.

(4) The Minister may revoke an authorization if

(a) the person requests in writing the Minister to do so;

(b) the person fails to comply with this Act; or

(c) the Minister considers that the authorization is no longer required.

(5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.

(6) If a revocation under subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.

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):

(3.1) For the purposes of this Act, if a notice or other communication in respect of a person is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is deemed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

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

224.1 No person, other than Her Majesty in right of Canada, may bring an action or proceeding against any person for acting in compliance or intended compliance with this Part by collecting an amount as or on account of tax.

(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.

(10.1) For the purposes of this Part, if a notice or other communication in respect of a person is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

(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.