Bill C-60

1st Session, 41st Parliament,

60-61-62 Elizabeth II, 2011-2012-2013

house of commons of canada

BILL C-60

An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 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 Economic Action Plan 2013 Act, No. 1.

PART 1

AMENDMENTS TO THE INCOME TAX ACT, THE TAX COURT OF CANADA ACT AND THE INCOME TAX REGULATIONS

Income Tax Act

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

(l.1) an amount paid or payable in respect of the use of a safety deposit box of a financial institution;

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

3. (1) Subsection 20(7) 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):

(d) as a reserve in respect of a reclamation obligation.

(2) Subsection (1) applies in respect of amounts received after March 20, 2013. However, that subsection does not apply in respect of an amount received that is directly attributable to a reclamation obligation, that was authorized by a government or regulatory authority before March 21, 2013 and that is received

(a) under a written agreement between the taxpayer and another party (other than a government or regulatory authority) that was entered into before March 21, 2013 and not extended or renewed on or after that day; or

(b) before 2018.

4. (1) Section 33.1 of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

5. (1) Subparagraph 82(1)(b)(i) of the Act is replaced by the following:

(i) 18% of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year, and

(2) Subsection (1) applies to dividends paid after 2013.

6. (1) Paragraph 87(2)(j.8) of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

7. (1) Clause 110(1)(f)(v)(A) of the Act is replaced by the following:

(A) the employment income earned by the taxpayer as a member of the Canadian Forces, or as a police officer, while serving on a deployed operational mission (as determined by the Department of National Defence) that is

(I) assessed for risk allowance at level 3 or higher (as determined by the Department of National Defence), or

(II) assessed at a risk score greater than 1.99 and less than 2.50 (as determined by the Department of National Defence) and designated by the Minister of Finance, and

(2) Section 110 of the Act is amended by adding the following after subsection (1.2):

(1.3) The Minister of Finance may, on the recommendation of the Minister of National Defence (in respect of members of the Canadian Forces) or the Minister of Public Safety (in respect of police officers), designate a deployed operational mission for the purposes of subclause (1)(f)(v)(A)(II). The designation shall specify the day on which it comes into effect, which may precede the day on which the designation is made.

(3) Subsections (1) and (2) apply in respect of missions initiated after September 2012 and in respect of missions initiated before October 2012 that were not prescribed under Part LXXV of the Income Tax Regulations as that Part read on February 28, 2013.

8. (1) Section 115 of the Act is amended by adding the following after subsection (2.3):

(3) For the purpose of applying subparagraph (1)(a)(i) to a non-resident person employed as an aircraft pilot, income of the non-resident person that is attributable to a flight (including a leg of a flight) and paid directly or indirectly by a person resident in Canada is attributable to duties performed in Canada in the following proportions:

(a) all of the income attributable to the flight if the flight departs from a location in Canada and arrives at a location in Canada;

(b) one-half of the income attributable to the flight if the flight departs from a location in Canada and arrives at a location outside Canada;

(c) one-half of the income attributable to the flight if the flight departs from a location outside Canada and arrives at a location in Canada; and

(d) none of the income attributable to the flight if the flight departs from a location outside Canada and arrives at a location outside Canada.

(2) Subsection (1) applies to the 2013 and subsequent taxation years.

9. (1) Paragraph (a) of the definition “adoption period” in subsection 118.01(1) of the Act is replaced by the following:

(a) begins at the earlier of the time that an application is made for registration with a provincial ministry responsible for adoption (or with an adoption agency licensed by a provincial government) and the time, if any, that an application related to the adoption is made to a Canadian court; and

(2) Subsection (1) applies to the 2013 and subsequent taxation years.

10. (1) Subsection 118.1(1) of the Act is amended by adding the following in alphabetical order:

“first-time donor”, for a taxation year, means an individual (other than a trust)

(a) who has not deducted an amount under subsection (3) for a preceding taxation year that ends after 2007, and

(b) who is not, at the end of the year, married to a person (other than a person who was at that time separated from the individual by reason of a breakdown of their marriage), or in a common-law partnership with a person, who has deducted an amount under subsection (3) for a preceding taxation year that ends after 2007;

(2) The definition “first-time donor” in subsection 118.1(1) of the Act, as enacted by subsection (1), is repealed.

(3) Section 118.1 of the Act is amended by adding the following after subsection (3):

(3.1) For the purpose of computing the tax payable under this Part by a first-time donor for a taxation year that begins after 2012 and ends before 2018, the first-time donor may deduct an amount not exceeding the lesser of $250 and the amount that is 25% of the total of all amounts, each of which is an eligible amount of a gift of money in the year or in any of the four preceding taxation years and in respect of which the first-time donor — or a person who is, at the end of the year, the first-time donor’s spouse (other than a person who was at that time separated from the first-time donor by reason of a breakdown of their marriage) or common-law partner — has deducted an amount for the year under subsection (3).

(3.2) If, at the end of a taxation year, both an individual and a person with whom the individual is married (other than a person who was at that time separated from the individual by reason of a breakdown of their marriage) or is in a common-law partnership may deduct an amount under subsection (3.1) for the year, the total of all amounts so deductible by the individual and the other person shall not exceed the maximum amount that would be deductible for the year by either person if the individual were the only one entitled to deduct an amount under subsection (3.1), and where the individual and the other person cannot agree as to what portion of the amount each can deduct, the Minister may fix the portions.

(4) Subsections 118.1(3.1) and (3.2) of the Act, as enacted by subsection (3), are repealed.

(5) Subsections (1) and (3) apply in respect of gifts made after March 20, 2013.

(6) Subsections (2) and (4) apply to the 2018 and subsequent taxation years.

11. (1) Paragraph 121(a) of the Act is replaced by the following:

(a) 13/18 of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be included in computing the individual’s income for the year; and

(2) Subsection (1) applies to dividends paid after 2013.

12. (1) Subparagraph (a)(iv) of the definition “full rate taxable income” in subsection 123.4(1) of the Act is replaced by the following:

(iv) if the corporation is a credit union throughout the year and the corporation deducted an amount for the year under subsection 125(1) (because of the application of subsections 137(3) and (4)), the amount, if any, determined for B in subsection 137(3) in respect of the corporation for the year;

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

13. (1) The definition “non-business-income tax” in subsection 126(7) of the Act is amended by adding “or” at the end of paragraph (g) and by repealing paragraph (h).

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

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

(a) that is a Canadian exploration expense incurred by a corporation after March 2013 and before 2015 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2015) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1),

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

(c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2013 and before April 2014, and

(d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2013 and before April 2014;

(3) Subsections (1) and (2) apply to expenses renounced under a flow-through share agreement entered into after March 2013.

15. (1) Subsection 137(3) of the Act is replaced by the following:

(3) There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation that was, throughout the year, a credit union, an amount equal to the amount determined by the formula

A × B × C

where

A      is the rate that would, if subsection 125(1.1) applied to the corporation for the year, be its small business deduction rate for the year within the meaning assigned by that subsection,

B      is the amount, if any, determined by the formula

D – E

where

D      is the lesser of

(a) the corporation’s taxable income for the year, and

(b) the amount, if any, by which 4/3 of the corporation’s maximum cumulative reserve at the end of the year exceeds the corporation’s preferred-rate amount at the end of the immediately preceding taxation year, and

E      is the least of the amounts determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year, and

C      is the percentage that is the total of

(a) the proportion of 100% that the number of days in the year that are before March 21, 2013 is of the number of days in the year,

(b) the proportion of 80% that the number of days in the year that are after March 20, 2013 and before 2014 is of the number of days in the year,

(c) the proportion of 60% that the number of days in the year that are in 2014 is of the number of days in the year,

(d) the proportion of 40% that the number of days in the year in 2015 is of the number of days in the year,

(e) the proportion of 20% that the number of days in the year in 2016 is of the number of days in the year, and

(f) if one or more days in the year are after 2016, 0%.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

16. (1) The portion of subsection 146.4(1.5) of the Act before paragraph (a) is replaced by the following:

(1.5) Any holder of a disability savings plan who was a qualifying person in relation to the beneficiary under the plan at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1) ceases to be a holder of the plan and the beneficiary becomes the holder of the plan if

(2) The portion of subsection 146.4(1.6) of the Act before paragraph (a) is replaced by the following:

(1.6) If an entity described in subparagraph (a)(ii) or (iii) of the definition “qualifying person” in subsection (1) is appointed in respect of a beneficiary of a disability savings plan and a holder of the plan was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of that definition,

(3) Subsection 146.4(1.7) of the Act is replaced by the following:

(1.7) If a dispute arises as a result of an issuer’s acceptance of a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1) as a holder of a disability savings plan, from the time the dispute arises until the time that the dispute is resolved or an entity becomes the holder of the plan under subsection (1.5) or (1.6), the holder of the plan shall use their best efforts to avoid any reduction in the fair market value of the property held by the plan trust, having regard to the reasonable needs of the beneficiary under the plan.

(4) Paragraph 146.4(4)(c) of the Act is replaced by the following:

(c) the plan provides that, where an entity (other than a qualifying family member in relation to the beneficiary) that is a holder of the plan ceases to be a qualifying person in relation to the beneficiary at any time, the entity ceases at that time to be a holder of the plan;

(5) The portion of paragraph 146.4(13)(e) of the Act before subparagraph (i) is replaced by the following:

(e) if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1),

(6) Subsection 146.4(14) of the Act is replaced by the following:

(14) If, after reasonable inquiry, an issuer of a disability savings plan is of the opinion that an individual’s contractual competence to enter into a disability savings plan is in doubt, no action lies against the issuer for entering into a plan, under which the individual is the beneficiary, with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition “qualifying person” in subsection (1).

(7) Subsections (1) to (6) are deemed to have come into force on June 29, 2012.

17. (1) Subparagraph 164(1.1)(d)(ii) of the Act is replaced by the following:

(ii) 1/2 of the amount so assessed that is in controversy if

(A) the taxpayer is a large corporation (within the meaning assigned by subsection 225.1(8)), or

(B) the amount is in respect of a particular amount claimed under section 110.1 or 118.1 and the particular amount was claimed in respect of a tax shelter.

(2) Subsection (1) applies in respect of amounts assessed for taxation years that end after 2012.

18. (1) Section 171 of the Act is amended by adding the following after subsection (1.1):

(2) If an appeal raises more than one issue, the Tax Court of Canada may, with the consent in writing of the parties to the appeal, dispose of a particular issue by

(a) dismissing the appeal with respect to the particular issue; or

(b) allowing the appeal with respect to the particular issue and

(i) varying the assessment, or

(ii) referring the assessment back to the Minister for reconsideration and reassessment.

(3) If a particular issue has been disposed of under subsection (2), the appeal with respect to the remaining issues may continue.

(4) If the Tax Court of Canada has disposed of a particular issue under subsection (2), the parties to the appeal may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada, appeal the disposition to the Federal Court of Appeal as if it were a final judgment of the Tax Court of Canada.

(2) Subsection (1) applies with respect to issues disposed of by the Tax Court of Canada after the day on which this Act receives royal assent.

19. (1) Subsections 174(1) to (4.1) of the Act are replaced by the following:

174. (1) The Minister may apply to the Tax Court of Canada for a determination of a question if the Minister is of the opinion that the question is common to assessments or proposed assessments in respect of two or more taxpayers and is a question of law, fact or mixed law and fact arising out of

(a) one and the same transaction or occurrence or series of transactions or occurrences; or

(b) substantially similar transactions or occurrences or series of transactions or occurrences.

(2) An application under subsection (1)

(a) shall set out

(i) the question in respect of which the Minister requests a determination,

(ii) the names of the taxpayers that the Minister seeks to have bound by the determination of the question, and

(iii) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of tax payable by each of the taxpayers named in the application; and

(b) shall be served by the Minister on each of the taxpayers named in the application and on any other persons who, in the opinion of the Tax Court of Canada, are likely to be affected by the determination of the question,

(i) by sending a copy to each taxpayer so named and each other person so likely to be affected, or

(ii) on ex parte application by the Minister, in accordance with the directions of the Court.

(3) If the Tax Court of Canada is satisfied that a question set out in an application under this section is common to assessments or proposed assessments in respect of two or more taxpayers who have been served with a copy of the application, the Tax Court of Canada may

(a) make an order naming the taxpayers in respect of whom the question will be determined;

(b) if one or more of the taxpayers so served has or have appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, make an order joining a party or parties to that or those appeals as it considers appropriate; and

(c) proceed to determine the question in such manner as it considers appropriate.

(4) Subject to subsection (4.1), if a question set out in an application under this section is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of tax payable by the taxpayers named in the order made under paragraph (3)(a).

(4.1) If a question set out in an application under this section is determined by the Tax Court of Canada, an appeal from the determination may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada to the Federal Court of Appeal, be made by

(a) the Minister; or

(b) any taxpayer named in an order of the Court made under paragraph (3)(a) if

(i) the question arises out of one and the same transaction or occurrence or series of transactions or occurrences,

(ii) the taxpayer has appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, or

(iii) the taxpayer has been granted leave by a judge of the Federal Court of Appeal.

(4.2) Any taxpayer named in an order made under paragraph (3)(a) in respect of a question is bound by any determination in respect of the question under an appeal made to the Federal Court of Appeal or the Supreme Court of Canada.

(2) Subsection (1) applies in respect of applications made after the day on which this Act receives royal assent.

20. (1) The portion of subsection 225.1(7) of the Act before paragraph (a) is replaced by the following:

(7) If an amount has been assessed under this Act in respect of a corporation for a taxation year in which it was a large corporation, or in respect of a particular amount claimed under section 110.1 or 118.1 where the particular amount was claimed in respect of a tax shelter, then subsections (1) to (4) do not limit any action of the Minister to collect

(2) Subsection (1) applies in respect of amounts assessed for taxation years that end after 2012.

21. (1) The portion of subsection 231.2(3) of the Act before paragraph (a) is replaced by the following:

(3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this section referred to as the “group”) if the judge is satisfied by information on oath that

(2) Subsections 231.2(4) to (6) of the Act are repealed.

(3) Subsections (1) and (2) apply to applications made by the Minister of National Revenue after the day on which this Act receives royal assent.

Tax Court of Canada Act

22. (1) Subparagraph 2.2(2)(c)(ii) of the Tax Court of Canada Act is replaced by the following:

(ii) any penalty under that Part that is in issue in the appeal, and

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

23. (1) Section 17.3 of the Act is replaced by the following:

17.3 (1) If the aggregate of all amounts in issue in an appeal under the Income Tax Act is $50,000 or less, or if the amount of the loss that is determined under subsection 152(1.1) of that Act and that is in issue is $100,000 or less, an oral examination for discovery is not to be held unless the parties consent to it or unless one of the parties applies for it and the Court is of the opinion that the case could not properly be conducted without that examination for discovery.

(2) If the amount in dispute in an appeal under Part IX of the Excise Tax Act is $50,000 or less, an oral examination for discovery is not to be held unless the parties consent to it or unless one of the parties applies for it and the Court is of the opinion that the case could not properly be conducted without that examination for discovery.

(3) In considering an application under subsection (1) or (2), the Court may consider the extent to which the appeal is likely to affect any other appeal of the party who instituted the appeal or relates to an issue that is common to a group or class of persons.

(4) The Court shall order an oral examination for discovery in an appeal referred to in subsection (1) or (2), on the request of one of the parties, if the party making the request agrees to submit to an oral examination for discovery by the other party and to pay the costs in respect of that examination for discovery of that other party in accordance with the tariff of costs set out in the rules of Court.

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

24. (1) Paragraphs 18(1)(a) and (b) of the Act are replaced by the following:

(a) the aggregate of all amounts in issue is equal to or less than $25,000; or

(b) the amount of the loss that is determined under subsection 152(1.1) of that Act and that is in issue is equal to or less than $50,000.

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

25. (1) Section 18.1 of the Act is replaced by the following:

18.1 Every judgment that allows an appeal referred to in subsection 18(1) is deemed to include a statement that the aggregate of all amounts in issue not be reduced by more than $25,000 or that the amount of the loss in issue not be increased by more than $50,000, as the case may be.

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

26. (1) The portion of paragraph 18.11(2)(b) of the Act after subparagraph (iii) is replaced by the following:

exceeds $25,000.

(2) Subsection 18.11(3) of the Act is replaced by the following:

(3) The Court shall grant an application under subsection (1) if the amount of interest that is in issue in an appeal exceeds $25,000.

(3) Subsections (1) and (2) apply with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

27. (1) Sections 18.12 and 18.13 of the Act are replaced by the following:

18.12 (1) The Court shall order that sections 17.1 to 17.8 apply in respect of an appeal referred to in subsection 18(1) if, before the start of the hearing of the appeal, it appears to the Court that

(a) the aggregate of all amounts in issue exceeds $25,000; or

(b) the amount of the loss in issue exceeds $50,000.

(2) Subsection (1) does not apply if the appellant elects to limit the aggregate of all amounts in issue to $25,000 or the amount of the loss in issue to $50,000, as the case may be.

18.13 (1) The Court shall, on motion of either party or of its own motion, order that sections 17.1 to 17.8 apply with respect to an appeal referred to in subsection 18(1) if, after the hearing of the appeal has started but before a judgment is rendered on the appeal, it appears to the Court that

(a) the aggregate of all amounts in issue exceeds $25,000; or

(b) the amount of loss in issue exceeds $50,000.

(2) Subsection (1) does not apply if

(a) the appellant elects to limit the aggregate of all amounts in issue to $25,000 or the amount of the loss in issue to $50,000, as the case may be; or

(b) the amount of the excess is too small to justify a re-hearing in accordance with the general procedure, taking into account the inconvenience and expense that would result to the parties and the interests of justice and fairness.

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

28. Section 18.27 of the Act is replaced by the following:

18.27 The Governor in Council may make regulations

(a) increasing the amount of $25,000 referred to in paragraph 18(1)(a), section 18.1, paragraph 18.11(2)(b), subsection 18.11(3), and sections 18.12 and 18.13 to any amount that does not exceed $50,000;

(b) increasing the amount of $50,000 referred to in paragraph 18(1)(b), and sections 18.1, 18.12 and 18.13 to any amount that does not exceed $100,000; and

(c) increasing the amount in dispute referred to in paragraphs 18.3002(3)(c) and 18.3008(c) and subparagraph 18.3009(1)(c)(i) to any amount that does not exceed $12,000.

29. (1) Section 18.3001 of the Act is replaced by the following:

18.3001 Subject to section 18.3002, this section and sections 18.3003, 18.3005 and 18.3008 to 18.302 apply, with any modifications that the circumstances require, to an appeal under

(a) the Excise Act, 2001 if

(i) a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court, and

(ii) the amount in dispute does not exceed $25,000;

(b) Part V.1 of the Customs Act if a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court; and

(c) Part IX of the Excise Tax Act if

(i) a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court, and

(ii) the amount in dispute does not exceed $50,000.

18.30011 Every judgment that allows an appeal referred to in paragraph 18.3001(a) is deemed to include a statement that the amount in dispute not be reduced by more than $25,000.

18.30012 Every judgment that allows an appeal referred to in paragraph 18.3001(c) is deemed to include a statement that the amount in dispute not be reduced by more than $50,000.

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

30. (1) Subsection 18.3002(1) of the Act is replaced by the following:

18.3002 (1) If the Attorney General of Canada so requests, the Court shall order that

(a) in the case of an appeal referred to in paragraph 18.3001(a) or (b), sections 17.1, 17.2 and 17.4 to 17.8 apply to an appeal in respect of which sections 18.3003, 18.3005 and 18.3008 to 18.302 would otherwise apply; and

(b) in the case of an appeal referred to in paragraph 18.3001(c), sections 17.1 to 17.8 apply to an appeal in respect of which sections 18.3003, 18.3005 and 18.3008 to 18.302 would otherwise apply.

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

31. (1) The Act is amended by adding the following after section 18.3002:

18.30021 If, before the start of the hearing of an appeal referred to in paragraph 18.3001(a), it appears to the Court that the amount in dispute exceeds $25,000, the Court shall order that sections 17.1, 17.2 and 17.4 to 17.8 apply in respect of the appeal unless the appellant elects to limit the appeal to $25,000.

18.30022 If, before the start of the hearing of an appeal referred to in paragraph 18.3001(c), it appears to the Court that the amount in dispute exceeds $50,000, the Court shall order that sections 17.1 to 17.8 apply in respect of the appeal unless the appellant elects to limit the appeal to $50,000.

18.30023 If, after the hearing of an appeal referred to in paragraph 18.3001(a) has started but before a judgment is rendered on the appeal, it appears to the Court that the amount in dispute exceeds $25,000, the Court shall, on motion of either party or of its own motion, order that sections 17.1, 17.2 and 17.4 to 17.8 apply with respect to the appeal unless

(a) the appellant elects to limit the appeal to $25,000; or

(b) the amount of the excess is too small to justify a re-hearing in accordance with the general procedure, taking into account the inconvenience and expense that would result to the parties and the interests of justice and fairness.

18.30024 If, after the hearing of an appeal referred to in paragraph 18.3001(c) has started but before a judgment is rendered on the appeal, it appears to the Court that the amount in dispute exceeds $50,000, the Court shall, on motion of either party or of its own motion, order that sections 17.1 to 17.8 apply with respect to the appeal unless

(a) the appellant elects to limit the appeal to $50,000; or

(b) the amount of the excess is too small to justify a re-hearing in accordance with the general procedure, taking into account the inconvenience and expense that would result to the parties and the interests of justice and fairness.

(2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

Income Tax Regulations

32. (1) Subsection 400(1.1) of the Income Tax Regulations is repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

33. (1) Subsection 413(1) of the Regulations is replaced by the following:

413. (1) In this Part, if a corporation is not resident in Canada

(a) “salaries and wages paid in the year” by the corporation does not include salaries and wages paid to employees of a permanent establishment outside Canada; and

(b) “taxable income” of the corporation is deemed to refer to the corporation’s taxable income earned in Canada.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

34. (1) Section 413.1 of the Regulations and the heading before it are repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

35. (1) The portion of subsection 1102(16.1) of the Regulations before paragraph (a) is replaced by the following:

(16.1) A taxpayer who acquires a property after March 18, 2007 and before 2016 that is manufacturing or processing machinery or equipment may (by letter attached to the return of income of the taxpayer filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property is acquired) elect to include the property in Class 29 in Schedule II if

(2) Subsection (1) is deemed to have come into force on January 1, 2012.

36. (1) Part LXXV of the Regulations is repealed.

(2) Subsection (1) applies in respect of missions initiated after September 2012.

37. (1) Section 7900 of the Regulations is replaced by the following:

7900. For the purposes of the definitions “excluded income” and “excluded revenue” and “specified deposit” in subsection 95(2.5) of the Act, each of the following is a prescribed financial institution:

(a) a member of the Canadian Payments Association; and

(b) a credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of the Canadian Payments Act.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

38. (1) The portion of the definition “Canadian assets” in section 8600 of the Regulations after paragraph (a) is replaced by the following:

exceeds

(b) the investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act; (actif canadien)

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

39. (1) Paragraph 8603(a) of the English version of the Regulations is replaced by the following:

(a) “Canadian assets” of a corporation that is a financial institution (as defined in subsection 190(1) of the Act) at any time in a taxation year means, in respect of that year, the amount that would be determined under the definition “Canadian assets” in section 8600 in respect of the corporation for the year if the reference in that definition to “subsection 181(1)” were read as a reference to “subsection 190(1)” and paragraph (b) of that definition were read as follows:

“(b) the total determined under section 190.14 of the Act in respect of the corporation’s investments for the year in financial institutions related to it;”;

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

40. (1) The portion of subparagraph (c)(iii) of Class 29 in Schedule II to the Regulations before clause (A) is replaced by the following:

(iii) after March 18, 2007 and before 2016 if the property is machinery, or equipment,

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

Coordinating Amendments

41. (1) Subsections (2) to (4) apply if Bill C-48, introduced in the 1st session of the 41st Parliament and entitled the Technical Tax Amendments Act, 2012 (in this section referred to as the “other Act”), receives royal assent.

(2) If this Act receives royal assent before the other Act, then on the day on which the other Act receives royal assent, subparagraph 82(1)(b)(i) of the Income Tax Act, as enacted by subsection 218(2) of the other Act, is replaced by the following:

(i) 18% of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year, and

(3) If this Act receives royal assent on the same day as the other Act, then the other Act is deemed to have received royal assent before this Act.

(4) Subsection (2) comes into force or is deemed to have come into force on January 1, 2014 and applies to dividends paid after 2013.

PART 2

MEASURES RELATING TO SALES AND EXCISE TAXES AND EXCISE DUTIES

Excise Tax Act

42. (1) The portion of subsection 102.1(2) of the Excise Tax Act before paragraph (a) is replaced by the following:

(2) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to serve a notice under subsection 99(1) with respect to an unnamed person or a group of unnamed persons if the judge is satisfied by information on oath that

(2) Subsections 102.1(3) to (6) of the Act are repealed.

(3) Subsections (1) and (2) apply to applications made by the Minister of National Revenue after the day on which this Act receives royal assent.

43. (1) The Act is amended by adding the following after section 156:

157. (1) For the purposes of this section, “selected qualifying employer” has the meaning assigned by subsection 172.1(9).

(2) For the purposes of this Part, if a participating employer of a pension plan elects jointly with a pension entity of the pension plan, every taxable supply made by the participating employer to the pension entity at a time when the election is in effect is deemed to have been made for no consideration.

(3) Subsection (2) does not apply to

(a) a supply deemed under section 172.1 to have been made;

(b) a supply of property or a service that is not acquired by a pension entity of a pension plan for consumption, use or supply by the pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan;

(c) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the participating employer is a selected qualifying employer of the pension plan;

(d) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the participating employer is a selected qualifying employer of the pension plan; or

(e) a supply made in prescribed circumstances or made by a prescribed person.

(4) The persons that have jointly made an election under subsection (2) may jointly revoke the election.

(5) An election under subsection (2) and a revocation of an election under subsection (4) must

(a) be made in prescribed form containing prescribed information;

(b) specify the day on which the election or the revocation is to become effective, which must be the first day of a fiscal year of the participating employer; and

(c) be filed by the participating employer with the Minister in prescribed manner on or before the day that is the day on which the election or the revocation is to become effective or any later day that the Minister may allow.

(6) An election under subsection (2) made jointly by a participating employer of a pension plan and a pension entity of the pension plan ceases to have effect on the earliest of

(a) the day on which the participating employer ceases to be a participating employer of the pension plan,

(b) the day on which the pension entity ceases to be a pension entity of the pension plan,

(c) the day on which a joint revocation of the election by the participating employer and the pension entity becomes effective, and

(d) the day specified in a notice of revocation of the election sent to the participating employer under subsection (9).

(7) If an election made jointly under subsection (2) by a participating employer of a pension plan and a pension entity of the pension plan is in effect at any time in a fiscal year of the participating employer and if the participating employer fails to account for, as and when required under this Part, any tax deemed to have been collected by the participating employer on the last day of the fiscal year under subsection 172.1(5) or (6) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the participating employer and to the pension entity that the Minister proposes to revoke the election as of the first day of the fiscal year.

(8) Upon receipt of a notice of intent, a participating employer must establish to the satisfaction of the Minister that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer under subsection 172.1(5) or (6) in respect of the pension plan.

(9) If, after 60 days after the day on which the notice of intent was sent by the Minister to the participating employer, the Minister is not satisfied that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer on the last day of a particular fiscal year under subsection 172.1(5) or (6) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of revocation”) to the participating employer and to the pension entity of the pension plan with which the participating employer made the election that the election is revoked as of the day specified in the notice of revocation, and that day is not to be earlier than the day specified in the notice of intent and must be the first day of any particular fiscal year.

(10) For the purposes of this Part, an election under subsection (2) that has been revoked by the Minister under subsection (9) is deemed never to have been in effect on any day on or after the day specified in the notice of revocation.

(2) Subsection (1) applies to supplies made after March 21, 2013.

44. (1) Subsection 172.1(1) of the Act is amended by adding the following in alphabetical order:

“specified supply” of a participating employer of a pension plan to the pension plan means

(a) a taxable supply deemed to have been made under subsection (5) of all or part of property or a service that the participating employer acquired for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan;

(b) a taxable supply deemed to have been made under subsection (6) of an employer resource of the participating employer that the participating employer consumed or used for the purpose of making a supply of property or a service to a pension entity of the pension plan; or

(c) a taxable supply deemed to have been made under subsection (7) of an employer resource of the participating employer that the participating employer consumed or used in the course of pension activities in respect of the pension plan.

(2) The portion of subsection 172.1(5) of the Act before paragraph (b) is replaced by the following:

(5) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a selected qualifying employer of the pension plan at that time, if the person acquires at that time property or a service (in this subsection referred to as the “specified resource”) for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and if the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:

(a) for the purposes of this Part, the person is deemed to have made a taxable supply of the specified resource or part on the last day of the particular fiscal year;

(3) The portion of subsection 172.1(6) of the Act before paragraph (a) is replaced by the following:

(6) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a selected qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person for the purpose of making a supply of property or a service (in this subsection referred to as the “pension supply”) to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and if the employer resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:

(4) The portion of subsection 172.1(7) of the Act before paragraph (a) is replaced by the following:

(7) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person in the course of pension activities in respect of the pension plan, if the employer resource is not an excluded resource of the person in respect of the pension plan and if subsection (6) does not apply to that consumption or use, the following rules apply:

(5) Section 172.1 of the Act is amended by adding the following after subsection (8):

(9) For the purposes of this section, a particular participating employer of a pension plan is a selected qualifying employer of the pension plan for a particular fiscal year of the particular participating employer if no election under subsection 157(2) made jointly by the particular participating employer and a pension entity of the pension plan is in effect in the particular fiscal year, if the particular participating employer did not become a participating employer of the pension plan in the particular fiscal year, if the amount determined for A in the following formula is less than $5,000 and if the amount (expressed as a percentage) determined by the following formula is less than 10%:

A/(B – C)

where

A      is the total of all amounts, each of which is

(a) an amount of tax deemed to have been collected under subsection (5), (6) or (7) by the particular participating employer in respect of a specified supply of the particular participating employer to the pension plan during the fiscal year (in this subsection referred to as the “preceding fiscal year”) of the particular participating employer preceding the particular fiscal year less the amount, if any, determined for B under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in determining that amount of tax,

(b) if the particular participating employer is a selected qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under subsection (5) or (6) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under that subsection and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a selected qualifying employer, less the amount, if any, that would be determined for B under paragraph (5)(c) or (6)(c), whichever is applicable, in determining that amount of tax,

(c) if the particular participating employer is a qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under subsection (7) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under that subsection and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a qualifying employer, less the amount, if any, that would be determined for B under paragraph (7)(c) in determining that amount of tax,

(d) an amount of tax deemed to have been collected under subsection (5), (6) or (7) by another participating employer of the pension plan in respect of a specified supply of the other participating employer to the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer, less the amount, if any, determined for B under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in determining that amount of tax,

(e) an amount of tax that would have been deemed to have been collected under subsection (5) or (6) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under that subsection and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a selected qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a selected qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (5)(c) or (6)(c), whichever is applicable, in determining that amount of tax, or

(f) an amount of tax that would have been deemed to have been collected under subsection (7) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under that subsection and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (7)(c) in determining that amount of tax;

B      is the total of all amounts, each of which is

(a) an amount of tax under subsection 165(1) or section 212, 218 or 218.01 paid by a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the amount is an eligible amount (as defined in subsection 261.01(1)) for a claim period (as defined in that subsection) of the pension entity,

(b) an amount of tax deemed to have been collected under subsection (5), (6) or (7) by a participating employer of the pension plan, including the particular participating employer, during a fiscal year of the participating employer that ends in the preceding fiscal year in respect of a specified supply of the participating employer to the pension plan less the amount, if any, determined for B under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in determining that amount of tax, or

(c) an amount required to be added to the net tax of a pension entity of the pension plan under paragraph 232.01(5)(b) or 232.02(4)(b) for a reporting period of the pension entity that ends in the preceding fiscal year as a consequence of the issuance of a tax adjustment note under subsection 232.01(3) or 232.02(2) or, if less, the amount that would have been required to be so added if the pension entity were a selected listed financial institution; and

C      is the total of all amounts, each of which is

(a) the federal component amount of a tax adjustment note issued under subsection 232.01(3) or 232.02(2) by a participating employer of the pension plan, including the particular participating employer, to a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year, or

(b) a recoverable amount (as defined in subsection 261.01(1)) of a pension entity of the pension plan in respect of a claim period ending in a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the recoverable amount is in respect of an amount determined for A under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in determining an amount of tax deemed to have been paid by the pension entity under this section for the purposes of section 261.01.

(10) For the purposes of this section, a particular participating employer of a pension plan is a qualifying employer of the pension plan for a particular fiscal year of the particular participating employer if the particular participating employer did not become a participating employer of the pension plan in the particular fiscal year, if the amount determined for A in the following formula is less than $5,000 and if the amount (expressed as a percentage) determined by the following formula is less than 10%:

A/(B – C)

where

A      is the total of all amounts, each of which is

(a) an amount of tax deemed to have been collected under subsection (7) by the particular participating employer in respect of a specified supply of the particular participating employer to the pension plan during the fiscal year (in this subsection referred to as the “preceding fiscal year”) of the particular participating employer preceding the particular fiscal year less the amount, if any, determined for B under paragraph (7)(c) in determining that amount of tax,

(b) if the particular participating employer is a qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under subsection (7) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under that subsection and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a qualifying employer, less the amount, if any, that would be determined for B under paragraph (7)(c) in determining that amount of tax,

(c) an amount of tax deemed to have been collected under subsection (7) by another participating employer of the pension plan in respect of a specified supply of the other participating employer to the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer, less the amount, if any, determined for B under paragraph (7)(c) in determining that amount of tax, or

(d) an amount of tax that would have been deemed to have been collected under subsection (7) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under that subsection and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (7)(c) in determining that amount of tax;

B      is the total of all amounts, each of which is

(a) an amount of tax under subsection 165(1) or section 212, 218 or 218.01 paid by a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the amount is an eligible amount (as defined in subsection 261.01(1)) for a claim period (as defined in that subsection) of the pension entity,

(b) an amount of tax deemed to have been collected under subsection (5), (6) or (7) by a participating employer of the pension plan, including the particular participating employer, during a fiscal year of the participating employer that ends in the preceding fiscal year in respect of a specified supply of the participating employer to the pension plan less the amount, if any, determined for B under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in determining that amount of tax, or

(c) an amount required to be added to the net tax of a pension entity of the pension plan under paragraph 232.01(5)(b) or 232.02(4)(b) for a reporting period of the pension entity that ends in the preceding fiscal year as a consequence of the issuance of a tax adjustment note under subsection 232.01(3) or 232.02(2) or, if less, the amount that would have been required to be so added if the pension entity were a selected listed financial institution; and

C      is the total of all amounts, each of which is

(a) the federal component amount of a tax adjustment note issued under subsection 232.01(3) or 232.02(2) by a participating employer of the pension plan, including the particular participating employer, to a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year, or

(b) a recoverable amount (as defined in subsection 261.01(1)) of a pension entity of the pension plan in respect of a claim period ending in a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the recoverable amount is in respect of an amount determined for A under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in determining an amount of tax deemed to have been paid by the pension entity under this section for the purposes of section 261.01.

(11) For the purposes of this section, if a person becomes a participating employer of a pension plan in a particular fiscal year, the person is

(a) a selected qualifying employer of the pension plan for the particular fiscal year if it is reasonable to expect, at the time the person becomes a participating employer of the pension plan, that the person will be a selected qualifying employer of the pension plan for the fiscal year of the person following the particular fiscal year; and

(b) a qualifying employer of the pension plan for the particular fiscal year if it is reasonable to expect, at the time the person becomes a participating employer of the pension plan, that the person will be a qualifying employer of the pension plan for the fiscal year of the person following the particular fiscal year.

(12) If two or more corporations (each of which is referred to in this subsection as a “predecessor”), any of which is a participating employer of a pension plan, are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”) that is a participating employer of the pension plan, otherwise than as the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation, despite section 271 and for the purposes of applying subsections (9) to (11) to the new corporation, the following rules apply:

(a) the new corporation is deemed to have a fiscal year (in this subsection referred to as the “prior fiscal year of the new corporation”) of 365 days immediately preceding the first fiscal year of the new corporation;

(b) any amount of tax deemed to have been collected under any of subsections (5), (6) and (7) by a predecessor, or that would have been deemed to have been collected under any of those subsections if the predecessor were neither a selected qualifying employer nor a qualifying employer, at any time during the period of 365 days preceding the first fiscal year of the new corporation is deemed to have been collected under the same subsection by the new corporation, and not by a predecessor, on the last day of the prior fiscal year of the new corporation;

(c) any specified supply of a predecessor to the pension plan in respect of a taxable supply deemed to have been made under any of subsections (5), (6) and (7), or that would have been deemed to have been made under any of those subsections if the predecessor were neither a selected qualifying employer nor a qualifying employer, at any time during the period of 365 days preceding the first fiscal year of the new corporation is deemed to be a specified supply of the new corporation to the pension plan and not of the predecessor; and

(d) the new corporation is deemed not to have become a participating employer of the pension plan.

(13) If at any time a particular corporation that is a participating employer of a pension plan is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before that time, owned by another corporation that is a participating employer of the pension plan, despite subsection (11) and section 272 and for the purposes of applying the definition “specified supply” in subsection (1) in respect of the other corporation and applying subsections (9) and (10) to the other corporation, the other corporation is deemed to be the same corporation as, and a continuation of, the particular corporation.

(6) Subsections (1) to (5) apply in respect of fiscal years of a person beginning after March 21, 2013.

45. Section 229 of the Act is amended by adding the following after subsection (2):

(2.1) The Minister is not required to pay a net tax refund under subsection (1) to a person that is a registrant unless the Minister is satisfied that all information, that is contact information or that is information relating to the identification and business activities of the person, to be given by the person on the application for registration made by the person under section 240 has been provided and is accurate.

46. (1) The portion of subsection 289(3) of the Act before paragraph (a) is replaced by the following:

(3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this section referred to as the “group”) if the judge is satisfied by information on oath that

(2) Subsections 289(4) to (6) of the Act are repealed.

(3) Subsections (1) and (2) apply to applications made by the Minister of National Revenue after the day on which this Act receives royal assent.

47. (1) The definition “homemaker serv-ice” in section 1 of Part II of Schedule V to the Act is repealed.

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

“home care service” means a household or personal care service, such as bathing, feeding, assistance with dressing or medication, cleaning, laundering, meal preparation and child care, if the service is rendered to an individual who, due to age, infirmity or disability, requires assistance;

“qualifying health care supply” means a supply of property or a service that is made for the purpose of

(a) maintaining health,

(b) preventing disease,

(c) treating, relieving or remediating an injury, illness, disorder or disability,

(d) assisting (other than financially) an individual in coping with an injury, illness, disorder or disability, or

(e) providing palliative health care.

(3) Subsections (1) and (2) are deemed to have come into force on March 22, 2013.

48. (1) Part II of Schedule V to the Act is amended by adding the following after section 1.1:

1.2 For the purposes of this Part, other than sections 9 and 11 to 14, a supply that is not a qualifying health care supply is deemed not to be included in this Part.

(2) Subsection (1) applies to any supply made after March 21, 2013.

49. (1) The portion of section 13 of Part II of Schedule V to the Act before paragraph (a) is replaced by the following:

13. A supply of a home care service that is rendered to an individual in the individual’s place of residence, whether the recipient of the supply is the individual or any other person, if

(2) The portion of paragraph 13(b) of Part II of Schedule V to the Act before subparagraph (i) is replaced by the following:

(b) a government, municipality or organization administering a government or municipal program in respect of home care services pays an amount

(3) Paragraph 13(c) of Part II of Schedule V to the Act is replaced by the following:

(c) another supply of a home care service rendered to the individual is made in the circumstances described in paragraph (a) or (b).

(4) Subsections (1) to (3) apply to any supply made after March 21, 2013.

50. (1) Section 2 of Part VI of Schedule V to the Act is amended by striking out “or” at the end of paragraph (o) and by replacing subparagraph (p)(ii) with the following:

(ii) the supply of which would be included in Part II of this Schedule or Part II of Schedule VI if Part II of this Schedule were read without reference to sections 1.1 and 1.2 or Part II of Schedule VI were read without reference to section 1.2, as the case may be; or

(2) Section 2 of Part VI of Schedule V to the Act is amended by adding the following after paragraph (p):

(q) property or a service

(i) the supply of which is not a qualifying health care supply (as defined in section 1 of Part II of this Schedule), and

(ii) the supply of which would be included in any of sections 2 to 8 and 10 of Part II of this Schedule if that Part were read without reference to sections 1.1 and 1.2.

(3) Subsections (1) and (2) apply to any supply made after March 21, 2013.

51. (1) The heading of Part VIII of Schedule VI to the Act is replaced by the following:

INTERNATIONAL ORGANIZATIONS

(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2013.

52. (1) Section 1 of Part VIII of Schedule VI to the Act is repealed.

(2) Subsection (1) applies to any supply made on or after July 1, 2013.

Excise Act, 2001

Amendments to the Act

53. (1) The portion of subsection 208(3) of the Excise Act, 2001 before paragraph (a) is replaced by the following:

(3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement relating to an unnamed person or more than one unnamed person (in this section referred to as the “group”) if the judge is satisfied by information on oath that

(2) Subsections 208(4) to (6) of the Act are repealed.

(3) Subsections (1) and (2) apply to applications made by the Minister of National Revenue after the day on which this Act receives royal assent.

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

(iii) $0.213 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

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

(iii) $0.319 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

55. Paragraph 240(c) of the Act is replaced by the following:

(c) $451.81 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.

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

(a) $4.685938 per 50 grams or fraction of 50 grams contained in any package, if the manufactured tobacco is black stock

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

(b) $5.3125 per 50 grams or fraction of 50 grams contained in any package, in any other case.

(3) Subsections (1) and (2) are deemed to have come into force on March 22, 2013.

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

(c) $4.6875 per 50 grams or fraction of 50 grams contained in any package, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

(2) Subsection (1) is deemed to have come into force on March 22, 2013.

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

(c) $4.6875 per 50 grams or fraction of 50 grams contained in any package, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

(2) Subsection (1) is deemed to have come into force on March 22, 2013.

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

(c) $93.75 per kilogram, in the case of tobacco products other than cigarettes or tobacco sticks.

(2) Subsection (1) is deemed to have come into force on March 22, 2013.

60. (1) Paragraph 4(c) of Schedule 3 to the Act is replaced by the following:

(c) $5.98275 per 50 grams or fraction of 50 grams contained in any package, in the case of tobacco products other than cigarettes or tobacco sticks.

(2) Subsection (1) is deemed to have come into force on March 22, 2013.

Application

61. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as if sections 56 to 60 had come into force on March 22, 2013.

PART 3

VARIOUS MEASURES

Division 1

Customs Tariff

Amendments to the Act

62. Section 36 of the Customs Tariff is replaced by the following:

36. Sections 33 to 35 cease to have effect on December 31, 2024 or on any earlier date that may be fixed by order of the Governor in Council.

63. Section 40 of the Act is replaced by the following:

40. Sections 37 to 39 cease to have effect on December 31, 2024 or on any earlier date that may be fixed by order of the Governor in Council.

64. Tariff item No. 4203.21.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “Free (M)” after the abbreviation “CRT” with a reference to “Free (F)”.

65. Tariff item No. 4203.21.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “15.5% (A)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “Free (M)” after the abbreviation “CRT” with a reference to “Free (F)”;

(c) in the column “Preferential Tariff / Final Rate”, the reference to “Free (R2)” after the abbreviation “PT” with reference to “Free (F)”;

(d) in the column “Preferential Tariff / Final Rate”, the reference to “10% (A)” after the abbreviation “GPT” with a reference to “Free (F)”;

(e) in the column “Preferential Tariff / Final Rate”, the reference to “8.5% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(f) in the column “Preferential Tariff / Final Rate”, the reference to “8.5% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

66. Tariff item No. 6111.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (E)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “NZT” with a reference to “Free (F)”.

67. Tariff item No. 6111.30.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (E)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “NZT” with a reference to “Free (F)”.

68. Tariff item No. 6111.90.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (E)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “NZT” with a reference to “Free (F)”.

69. Tariff item No. 6209.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “17% (E)” with a reference to “Free (F)”.

70. Tariff item No. 6209.30.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (E)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “11% (E)” after the abbreviation “NZT” with a reference to “Free (F)”.

71. Tariff item No. 6209.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (A)” with a reference to “Free (F)”.

72. Tariff item No. 6209.90.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (A)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “12% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “12% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

73. Tariff item No. 6401.92.92 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “20% (A)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “18.5% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “18.5% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

74. Tariff item No. 6402.12.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (A)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

75. Tariff item No. 6402.12.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “17.9% (E)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “13.4% (E)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “13.4% (E)” after the abbreviation “NZT” with a reference to “Free (F)”.

76. Tariff item No. 6403.12.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (A)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

77. Tariff item No. 6403.12.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18.2% (E)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “13.7% (E)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “13.7% (E)” after the abbreviation “NZT” with a reference to “Free (F)”.

78. The Description of Goods of tariff item No. 6506.10.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by

(a) adding a semi-colon after the reference to “operators”; and

(b) adding, in alphabetical order, a reference to “Other protective headgear, athletic”.

79. Tariff item No. 9506.11.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

80. Tariff item No. 9506.12.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

81. Tariff item No. 9506.19.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “3% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

82. Tariff item No. 9506.21.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “9.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “6% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

83. Tariff item No. 9506.29.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

84. Tariff item No. 9506.31.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “4% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

85. Tariff item No. 9506.32.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “5.5% (A)” with a reference to “Free (F)”.

86. Tariff item No. 9506.32.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “8% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

87. Tariff item No. 9506.39.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”.

88. Tariff item No. 9506.39.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “4.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “3% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

89. Tariff item No. 9506.39.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

90. Tariff item No. 9506.40.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

91. Tariff item No. 9506.62.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

92. Tariff item No. 9506.69.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”.

93. Tariff item No. 9506.69.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

94. Tariff item No. 9506.70.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (A)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

95. Tariff item No. 9506.70.12 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “18% (A)” with a reference to “Free (F)”;

(b) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

(c) in the column “Preferential Tariff / Final Rate”, the reference to “13.5% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

96. Tariff item No. 9506.91.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

97. Tariff item No. 9506.99.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”.

98. Tariff item No. 9506.99.31 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”.

99. Tariff item No. 9506.99.40 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7% (A)” with a reference to “Free (F)”.

100. Tariff item No. 9506.99.50 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “15.5% (A)” with a reference to “Free (F)”.

101. Tariff item No. 9506.99.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

(a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “7.5% (A)” with a reference to “Free (F)”; and

(b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

102. The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in the schedule to this Act.