Bill C-462

62-63 ELIZABETH II

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CHAPTER 7

An Act restricting the fees charged by promot­ers of the disability tax credit and making consequential amendments to the Tax Court of Canada Act

[Assented to 29th May, 2014]

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

SHORT TITLE

1. This Act may be cited as the Disability Tax Credit Promoters Restrictions Act.

INTERPRETATION

2. The following definitions apply in this Act.

“claimant” means an individual who is the subject of a disability tax credit request or who has a dependant on behalf of whom a disability tax credit request is made.

“disability tax credit request” means a request, made in respect of a claimant,

(a) for determination of disability tax credit eligibility under subsection 152(1.01) of the Income Tax Act;

(b) in respect of a deduction under subsection 118.3(1) or (2) of the Income Tax Act; or

(c) in respect of any deduction or overpayment of tax under the Income Tax Act that is contingent upon the eligibility for a deduction under subsection 118.3(1) or (2) of that Act.

“fee” means the fair market value of any consideration accepted or charged by a person, directly or indirectly, to prepare a disability tax credit request.

“maximum fee” means the maximum fee set by regulations made under section 9.

“Minister” means the Minister of National Revenue.

“person” has the same meaning as in subsection 248(1) of the Income Tax Act.

“prescribed” means prescribed by regulation.

“promoter” means a person who, directly or indirectly, accepts or charges a fee in respect of a disability tax credit request.

PROMOTER'S FEE

3. (1) It is prohibited for a promoter to accept or charge a fee that exceeds the maximum fee.

(2) Every promoter who contravenes subsection (1) is liable to a penalty in respect of the fee equal to the total of $1,000 and the amount determined by the formula

A – (B + C)

where

A      is the fee in respect of a disability tax credit request,

B      is the maximum fee, and

C      is the amount of the fee in respect of the disability tax credit request that is repaid to the claimant within 120 days after notification is given to the Minister in accordance with section 4 or any longer period that is acceptable to the Minister.

4. Every promoter, other than a prescribed exempt promoter, must notify the Minister, in a form and manner authorized by the Minister, of the fee accepted or charged by the promoter in respect of a disability tax credit request if it exceeds the maximum fee.

5. It is prohibited for a promoter to make, participate in, assent to or acquiesce in the making of any false or deceptive entries in a notification required under section 4.

OFFENCES

6. Every promoter who fails to notify the Minister under section 4 or who contravenes section 5 is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $1,000 and not more than $25,000.

7. Every promoter who contravenes section 3 is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than 100% and not more than 200% of the total of all amounts by which the fee exceeds the maximum fee amount in respect of a disability tax credit request.

DISCLOSURE OF INFORMATION

8. Section 241 of the Income Tax Act does not apply to information or documents that can reasonably be regarded as necessary for the administration or enforcement of this Act and an official or authorized person, as defined for the purposes of that section, may make that information or a copy of any such documents available to any person for a purpose related to the administration or enforcement of this Act.

REGULATIONS

9. The Governor in Council may make regulations for carrying out the purposes and provisions of this Act including, without restricting the generality of the foregoing, regulations

(a) setting the maximum fee;

(b) exempting certain promoters from the notifying requirements set out in section 4; and

(c) prescribing anything that by this Act is to be prescribed.

APPLICATION OF INCOME TAX ACT

10. Sections 152, 158 and 159, subsections 161(1) and (11), sections 162 to 167 and 257, Division J of Part I and Part XV of the Income Tax Act are applicable with respect to the circumstances related to a disability tax credit request, with such modifications as the circumstances require.

CONSEQUENTIAL AMENDMENTS

Tax Court of Canada Act

11. Subsection 12(1) of the Tax Court of Canada Act is replaced by the following:

12. (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Air Travellers Security Charge Act, the Canada Pension Plan, the Cultural Property Export and Import Act, Part V.1 of the Customs Act, the Disability Tax Credit Promoters Restrictions Act, the Employment Insurance Act, the Excise Act, 2001, Part IX of the Excise Tax Act, the Income Tax Act, the Old Age Security Act, the Petroleum and Gas Revenue Tax Act and the Softwood Lumber Products Export Charge Act, 2006 when references or appeals to the Court are provided for in those Acts.

COMING INTO FORCE

12. This Act comes into force on a day to be fixed by order of the Governor in Council.