Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022”.

Part 1 implements certain measures in respect of the Income Tax Act by

It also makes related and consequential amendments to the Canada Deposit Insurance Corporation Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act and the Income Tax Regulations.

Part 2 amends the Excise Act, 2001 and other related texts in order to implement changes to

(b) the federal excise duty framework for vaping products in relation to the markings, customs storage and excise duty liability of these products.

Part 3 amends the Underused Housing Tax Act to make amendments of a technical or housekeeping nature. It also makes regulations under that Act in order to, among other things, implement an exemption for certain vacation properties.

Division 1 of Part 4 authorizes the Minister of Finance to acquire and hold on behalf of His Majesty in right of Canada non-voting shares of a wholly-owned subsidiary of the Canada Development Investment Corporation that is responsible for administering the Canada Growth Fund and to requisition the amounts for the acquisition of those shares out of the Consolidated Revenue Fund.

Division 2 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the maximum financial assistance that may be provided in respect of foreign states.

Subdivision A of Division 3 of Part 4 enacts the Framework Agreement on First Nation Land Management Act.

Subdivision B of Division 3 of Part 4 contains transitional provisions in respect of the enactment of the Framework Agreement on First Nation Land Management Act and makes consequential amendments to other Acts. It also repeals the First Nations Land Management Act.

Division 4 of Part 4 amends the Government Employees Compensation Act in order to fulfil Canada’s obligations under the Memorandum of Understanding between the Government of Canada and the Government of the United States of America concerning Cooperation on the Civil Lunar Gateway.

Division 5 of Part 4 amends the Canada Student Loans Act to eliminate the accrual of interest on guaranteed student loans beginning on April 1, 2023.

It also amends the Canada Student Financial Assistance Act to eliminate the accrual of interest on student loans beginning on April 1, 2023.

Finally, it amends the Apprentice Loans Act to eliminate the accrual of interest on apprentice loans beginning on April 1, 2023 and to clarify when the repayment of apprentice loans begins during the interest suspension period from April 1, 2021 to March 31, 2023.

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

Flipped property — deemed business

(12) For the purposes of this Act, if, absent this subsection and paragraph 40(2)‍(b), a taxpayer would have had a gain from the disposition of a flipped property, then throughout the period that the taxpayer owned the flipped property

• (a) the taxpayer is deemed to carry on a business that is an adventure or concern in the nature of trade with respect to the flipped property;

• (b) the flipped property is deemed to be inventory of the taxpayer’s business; and

• (c) the flipped property is deemed not to be capital property of the taxpayer.

Definition of flipped property

(13) For the purposes of subsections (12) and (14), a flipped property means a housing unit of a taxpayer (other than a property that would be inventory of the taxpayer if the definition inventory in subsection 248(1) were read without reference to subsection (12)) located in Canada that was owned by the taxpayer for less than 365 consecutive days prior to the disposition of the property, other than a disposition that can reasonably be considered to occur due to, or in anticipation of, one or more of the following events:

• (a) the death of the taxpayer or a person related to the taxpayer;

• (b) one or more persons related to the taxpayer becoming a member of the taxpayer’s household or the taxpayer becoming a member of the household of a related person;

• (c) the breakdown of the marriage or common-law partnership of the taxpayer if the taxpayer has been living separate and apart from their spouse or common-law partner for at least 90 days prior to the disposition;

• (d) a threat to the personal safety of the taxpayer or a related person;

• (e) the taxpayer or a related person suffering from a serious illness or disability;

• (f) an eligible relocation (as defined in subsection 248(1)) of the taxpayer or the taxpayer’s spouse or common-law partner, if that definition was read without reference to the requirements for the new work location and the new residence to be in Canada;

• (g) an involuntary termination of the employment of the taxpayer or the taxpayer’s spouse or common-law partner;

• (h) the insolvency of the taxpayer; or

• (i) the destruction or expropriation of the property. (bien à revente précipitée)

Flipped property — loss denial

(14) For the purposes of this Part, a taxpayer’s loss from a business in respect of a flipped property is deemed to be nil.

• Fees — individual saving plans

  (u) any amount paid or payable by the taxpayer for services in respect of a FHSA, retirement savings plan, retirement income fund or TFSA under or of which the taxpayer is the annuitant or holder;

Application of subsection (9) to insurers

(9.‍02) For the purpose of subsection (9), an outlay or expense made or incurred by an insurer in a taxation year on account of the acquisition of an insurance policy at any time prior to the issuance of the policy is deemed to be an expense incurred as consideration for services rendered in the particular year that the policy is issued.

• (k) making a contribution to a FHSA,

• (A) a trust governed by a deferred profit sharing plan, an employees profit sharing plan, a FHSA, a registered disability savings plan, a registered retirement income fund or a TFSA, under which the taxpayer is a beneficiary or immediately after the disposition becomes a beneficiary, or

• First home savings account

  (z.‍6) any amount required by section 146.‍6 to be included in computing the taxpayer’s income for the year.

• Premium or payment — FHSA, RRSP or RRIF

  (i) any amount that is deductible under section 146, 146.‍3 or 146.‍6 or subsection 147.‍3(13.‍1) in computing the income of the taxpayer for the year;

• (a) the assistance that the corporation has received, is entitled to receive or can reasonably be expected to receive at any time, and that can reasonably be related to the specified expenses or to Canadian exploration activities to which the specified expenses relate (other than assistance that can reasonably be related to expenses referred to in any of paragraphs (b) to (b.‍2)),

• (b.‍2) if the agreement is made after March 2023, all specified expenses that are not described in paragraph (b) or (b.‍1) and that would be Canadian exploration expenses if

  • (i) the definition Canadian exploration expense in subsection 66.‍1(6) were read without reference to its paragraph (g.‍1), and

  • (ii) the definition mineral resource in subsection 248(1) were read without reference to its paragraphs (a) and (d), and

• (a) the assistance that the corporation has received, is entitled to receive, or can reasonably be expected to receive at any time, and that can reasonably be related to the specified expenses or to Canadian development activities to which the specified expenses relate (other than assistance that can reasonably be related to expenses referred to in any of paragraphs (b) to (b.‍2)),

• (b.‍2) if the agreement is made after March 2023, all specified expenses that are not described in paragraph (b) or (b.‍1) and that would be Canadian development expenses if the definition mineral resource in subsection 248(1) were read without reference to its paragraphs (a) and (d), and

• (d) as a payment of a contribution under a FHSA.

• (a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a FHSA, a pooled registered pension plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan, a retirement compensation arrangement or a TFSA;

• (xx) for the purposes of Part VI.‍2, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation.

• (e.‍2) paragraphs 87(2)‍(c), (d.‍1), (e.‍1), (e.‍3), (e.‍42), (g) to (l), (l.‍21) to (u), (x), (z.‍1), (z.‍2), (aa), (cc), (ll), (nn), (pp), (rr) and (tt) to (xx), subsection 87(6) and, subject to section 78, subsection 87(7) apply to the winding-up as if the references in those provisions to

Reference to trust or estate

104 (1) In this Act, a reference to a trust or estate (in this Subdivision referred to as a “trust”) shall, unless the context otherwise requires, be read to include a reference to the trustee, executor, administrator, liquidator of a succession, heir or other legal representative having ownership or control of the trust property, but, except for the purposes of this subsection, subsection (1.‍1), section 150, subparagraph (b)‍(v) of the definition disposition in subsection 248(1) and paragraph (k) of that definition, a trust is deemed not to include an arrangement under which the trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property unless the trust is described in any of paragraphs (a) to (e.‍1) of the definition trust in subsection 108(1).

• (c) unless the trust is a mutual fund trust, the beneficiary’s proceeds of disposition of the portion of the former interest disposed of by the beneficiary on the distribution are deemed to be equal to the amount, if any, by which

• (a) an amateur athlete trust, an employee life and health trust, an employee trust, a trust described in paragraph 149(1)‍(o.‍4) or a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a FHSA, a foreign retirement arrangement, a pooled registered pension plan, a registered disability savings plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan or a TFSA,

• (a) a qualifying expenditure (within the meaning of section 118.‍04, 118.‍041 or 122.‍92) of a beneficiary under the trust; or

Exception — underused housing tax

(8) If, in the absence of this subsection, the Minister would be required to issue a certificate under subsection (2), (4) or (5.‍2) in respect of a disposition, or a proposed disposition, of property that is residential property, as defined in section 2 of the Underused Housing Tax Act, the Minister may decline to issue the certificate if

• (a) the Minister is not satisfied that all returns that the non-resident person is required to file under section 7 of that Act in respect of the property have been filed;

• (b) the Minister is not satisfied that all taxes and other amounts payable under that Act by the non-resident person have been paid; or

• (c) the following conditions are met:

  • (i) the Minister has reasonable grounds to believe that, for the calendar year immediately preceding the calendar year in which the property is or is expected to be disposed of, the non-resident person will be required to file a return under section 7 of that Act in respect of the property or will become liable to pay an amount of tax under subsection 6(3) of that Act in respect of the property, and

  • (ii) the return has not been filed or the amount of tax has not been paid.

First-time homebuyers’ tax credit

• (v) to a fertility clinic, or donor bank, in Canada as a fee or other amount paid or payable, to obtain sperm or ova to enable the conception of a child by the individual, the individual’s spouse or common-law partner or a surrogate mother on behalf of the individual.

Surrogacy expenses

(2.‍21) An amount is deemed to be a medical expense of an individual for the purposes of this section if the amount

• (a) is paid by the individual or the individual’s spouse or common-law partner;

• (b) is

  • (i) an expenditure described under any of sections 2 to 4 of the Reimbursement Related to Assisted Human Reproduction Regulations, or

  • (ii) paid in respect of a surrogate mother or donor and would be an expenditure described in subparagraph (i) if it was paid to the surrogate mother or donor;

• (c) would be a medical expense of the individual (within the meaning of subsection (2)) if the amount was paid in respect of a good or service provided to the individual or the individual’s spouse or common-law partner;

• (d) is an expense incurred in Canada; and

• (e) is paid for the purpose of the individual becoming a parent.

SUBDIVISION A.‍6 

Multigenerational Home Renovation Tax Credit

Definitions

eligible dwelling, of a qualifying individual, for a renovation period taxation year, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of that land that exceeds the greater of ½ hectare and the portion of that land that is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if

• (a) the qualifying individual or a qualifying relation of the qualifying individual (or a trust under which the qualifying individual or a qualifying relation is a beneficiary) owns — whether jointly with another person or otherwise — at any time in the renovation period taxation year, the housing unit; and

• (b) the housing unit is ordinarily inhabited, or is reasonably expected to be ordinarily inhabited, within 12 months after the end of the renovation period

  • (i) by the qualifying individual, and

  • (ii) by a qualifying relation of the qualifying individual. (logement admissible)

eligible individual, in respect of an eligible dwelling for a renovation period taxation year, means

• (a) an individual who ordinarily resides, or intends to ordinarily reside, in the eligible dwelling within 12 months after the end of the renovation period in respect of a qualifying renovation of the eligible dwelling and who is

  • (i) a qualifying individual,

  • (ii) the cohabiting spouse or common-law partner (as defined in section 122.‍6) of a qualifying individual at any time in the renovation period taxation year, or

  • (iii) a qualifying relation of a qualifying individual; or

• (b) an individual who

  • (i) is a qualifying relation of a qualifying individual, and

  • (ii) owns the eligible dwelling or is the beneficiary of a trust that owns the eligible dwelling. (particulier admissible)

individual does not include a trust. (particulier)

qualifying expenditure, of an individual, means a reasonable outlay or expense that

• (a) is directly attributable to a qualifying renovation of an eligible dwelling in respect of which the individual is an eligible individual;

• (b) is made or incurred by the individual before the end of the renovation period in respect of the qualifying renovation referred to in paragraph (a);

• (c) is the cost of goods acquired or services received, including an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation; and

• (d) is not an outlay or expense

  • (i) for the cost of annual, recurring or routine repair or maintenance,

  • (ii) to acquire a household appliance,

  • (iii) to acquire an electronic home-entertainment device,

  • (iv) that is the cost of housekeeping, security monitoring, gardening, outdoor maintenance or similar services,

  • (v) for financing costs in respect of the qualifying renovation,

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

  • (vii) that can reasonably be considered to have been reimbursed. (dépense admissible)

qualifying individual, in respect of a renovation period taxation year, means an individual who has attained the age of

• (a) 65 years before the end of the renovation period taxation year; or

• (b) 18 years before the end of the renovation period taxation year and in respect of whom an amount is deductible, or would be deductible if this Act were read without reference to paragraph 118.‍3(1)‍(c), under section 118.‍3 in computing a taxpayer’s tax payable under this Part for the renovation period taxation year. (particulier déterminé)

qualifying relation, of a qualifying individual for a renovation period taxation year, means an individual who

• (a) has attained the age of 18 years before the end of the renovation period taxation year; and

• (b) at any time in the renovation period taxation year, is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew of either the qualifying individual or the cohabiting spouse or common-law partner (as defined in section 122.‍6) of the qualifying individual. (proche admissible)

qualifying renovation means a renovation or alteration of, or addition to, an eligible dwelling of a qualifying individual that

• (a) is of an enduring nature and integral to the eligible dwelling; and

• (b) is undertaken to enable the qualifying individual to reside in the dwelling with a qualifying relation of the qualifying individual by establishing a secondary unit within the dwelling for occupancy by the qualifying individual or the qualifying relation. (travaux de rénovation admissibles)

renovation period, for a qualifying renovation of an eligible dwelling, means a period that

• (a) begins at the time that the first qualifying expenditure is made or incurred in respect of the qualifying renovation, and

• (b) ends at the time of the completion of the qualifying renovation. (période de rénovation)

renovation period taxation year means the taxation year in which the renovation period in respect of a qualifying renovation ends. (année d’imposition de la période de rénovation)

secondary unit means a self-contained housing unit that

• (a) has a private entrance, kitchen, bathroom and sleeping area,

• (b) if applicable, meets any local requirements to qualify as a secondary dwelling unit, and

• (c) meets prescribed conditions, if any. (logement secondaire)

Qualifying expenditure — trusts

• (a) the outlay or expense would be a qualifying expenditure of the particular individual if the outlay or expense had been made or incurred by that individual; and

• (b) the trust has notified the particular individual of the amount of the outlay or expenses that are attributable to the eligible dwelling.

Deemed overpayment

Limits

• (a) in respect of a qualifying individual, there may only be one qualifying renovation for the purpose of a claim under subsection (3) by all taxpayers during the lifetime of the qualifying individual;

• (b) a maximum of $50,000 of qualifying expenditures may be claimed by all taxpayers in respect of the same qualifying renovation; and

• (c) if more than one taxpayer is entitled to a deduction under subsection (3) in respect of the same qualifying individual or the same qualifying renovation and the taxpayers cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

Effect of bankruptcy

Special rules in the event of death

• (a) the deceased individual is deemed to be resident in Canada from the time of death until the end of the year if, immediately before death, the deceased individual was resident in Canada;

• (b) the deceased individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year;

• (c) the deceased individual is deemed to be the cohabiting spouse or common-law partner of another individual (referred to in this paragraph as the “surviving spouse”) at the end of the year if,

  • (i) immediately before death, the deceased individual was the cohabiting spouse or common-law partner (as defined in section 122.‍6) of the surviving spouse, and

  • (ii) the surviving spouse is not the cohabiting spouse or common-law partner (as defined in section 122.‍6) of another individual at the end of the year; and

• (d) any return of income filed by a legal representative of the deceased individual is deemed to be a return of income filed by the individual.

Additional Tax on Banks and Life Insurers

Definition

bank or life insurer group member means a corporation that is

• (a) a bank;

• (b) a life insurance corporation that carries on business in Canada; or

• (c) a financial institution (as defined in subsection 190(1)) that is related to any corporation described in paragraph (a) or (b). (membre d’un groupe de banques ou d’assureurs-vie)

Additional tax payable

Related group

Allocation by Minister

Allocation

Anti-avoidance

• (a) the deduction is in respect of an amount that can reasonably be considered to have been paid or payable (in this subsection referred to as “the payment”), directly or indirectly, to a person or partnership that was not dealing at arm’s length with the corporation;

• (b) the person or partnership was not a bank or life insurer group member; and

• (c) it can reasonably be considered that one of the purposes of the payment was to reduce the tax payable by the corporation under subsection (2).

• (i) the taxpayer’s investment tax credit at the end of the year in respect of property acquired before the end of the year, of the taxpayer’s apprenticeship expenditure for the year or a preceding taxation year, of the taxpayer’s flow-through mining expenditure for the year or a preceding taxation year, of the taxpayer’s flow-through critical mineral mining expenditure for the year or a preceding taxation year, of the taxpayer’s pre-production mining expenditure for the year or a preceding taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the year or at the end of a preceding taxation year, and

• (A) the taxpayer’s investment tax credit at the end of the year in respect of property acquired in a subsequent taxation year, of the taxpayer’s apprenticeship expenditure for a subsequent taxation year, of the taxpayer’s flow-through mining expenditure for a subsequent taxation year, of the taxpayer’s flow-through critical mineral mining expenditure for a subsequent taxation year, of the taxpayer’s pre-production mining expenditure for a subsequent taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the subsequent taxation year to the extent that an investment tax credit was not deductible under this subsection for the subsequent taxation year, and

• (e) that is not an expense that the taxpayer has included under paragraph (a.‍21) of the definition investment tax credit in the computation of its investment tax credit in respect of which the taxpayer has, at any time, sought a deduction under subsection (5); (dépense minière déterminée)

• (a.‍21) where the taxpayer is an individual (other than a trust), 30% of the taxpayer’s flow-through critical mineral mining expenditures for the year,

critical mineral means

• (a) copper,

• (b) nickel,

• (c) lithium,

• (d) cobalt,

• (e) graphite,

• (f) a rare earth element,

• (g) scandium,

• (h) titanium,

• (i) gallium,

• (j) vanadium,

• (k) tellurium,

• (l) magnesium,

• (m) zinc,

• (n) a platinum group metal, or

• (o) uranium; (minéral critique)

flow-through critical mineral mining expenditure of a taxpayer for a taxation year means an expense deemed by subsection 66(12.‍61) (or by subsection 66(18) as a consequence of the application of subsection 66(12.‍61) to the partnership, referred to in paragraph (c) of this definition, of which the taxpayer is a member) to be incurred by the taxpayer in the year

• (a) that is a Canadian exploration expense incurred by a corporation after April 7, 2022 in conducting mining exploration activity from or above the surface of the earth primarily targeting critical minerals,

• (b) that

  • (i) is an expense described in paragraph (f) of the definition Canadian exploration expense in subsection 66.‍1(6), and

  • (ii) is not an expense in respect of

    • (A) trenching, if one of the purposes of the trenching is to carry out preliminary sampling (other than specified sampling),

    • (B) digging test pits (other than for the purpose of carrying out specified sampling), and

    • (C) preliminary sampling (other than specified sampling),

• (c) that is 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 April 7, 2022 and on or before March 31, 2027,

• (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 April 7, 2022 and on or before March 31, 2027,

• (e) that, in respect of an agreement described in paragraph (c), a qualified professional engineer or professional geoscientist certifies in prescribed form and manner that the expense is to be incurred in accordance with an exploration plan that primarily targets critical minerals if the qualified professional engineer or professional geoscientist

  • (i) completed the certification within the 12-month period immediately preceding the time when the agreement is made, and

  • (ii) acted reasonably, in their professional capacity, in completing the certification, and

• (f) that is not an expense that the taxpayer has included under paragraph (a.‍2) of the definition investment tax credit in the computation of its investment tax credit in respect of which the taxpayer has, at any time, sought a deduction under subsection (5); (dépense minière de minéral critique déterminée)

qualified professional engineer or professional geoscientist means an individual who

• (a) is an engineer or geoscientist with a university degree, or equivalent accreditation, in an area of geoscience, or engineering, relating to mineral exploration or mining,

• (b) has at least five years of experience in mineral exploration, mine development or operation, or mineral project assessment, or any combination of those, that is relevant to their professional degree or area of practice,

• (c) has experience relevant to the subject matter of the exploration plan and the certification described in paragraph (e) of the definition flow-through critical mineral mining expenditure, and

• (d) is registered and in good standing with a professional association that has the authority or recognition by law of a jurisdiction in Canada to regulate the profession of engineering or geoscience in

  • (i) the jurisdiction where the property that is the subject of the exploration plan is located, or

  • (ii) if there is no professional association in the jurisdiction described in subparagraph (i), a jurisdiction in Canada where a professional association regulates the profession of engineering or geoscience; (ingénieur ou géoscientifique professionnel qualifié)

• (c.‍21) the amount of a taxpayer’s flow-through critical mineral mining expenditure for a taxation year is deemed to be the amount of the taxpayer’s flow-through critical mineral mining expenditure for the year as otherwise determined less the amount of any government assistance or non-government assistance in respect of expenses included in determining the taxpayer’s flow-through critical mineral mining expenditure for the year that, at the time of the filing of the taxpayer’s return of income for the year, the taxpayer has received, is entitled to receive or can reasonably be expected to receive;

• (iii.‍3) a FHSA,

net asset value has the same meaning as in National Instrument 81-102 Investment Funds, as amended from time to time, of the Canadian Securities Administrators; (valeur liquidative)

Allocation to redeemers

(5.‍3) If a trust that is a mutual fund trust throughout a taxation year paid or made payable, at any time in the taxation year, to a beneficiary an amount on a redemption by that beneficiary of a unit of the trust (in this subsection and subsection (5.‍31) referred to as the “allocated amount”) and the beneficiary’s proceeds from the disposition of that unit do not include the allocated amount, in computing its income for the taxation year no deduction may be made by the trust in respect of

Allocations by ETFs

(5.‍31) If in a taxation year referred to in subsection (5.‍3)

• (a) all of the units offered in the taxation year by a mutual fund trust are listed on a designated stock exchange in Canada and are in continuous distribution (in this subsection referred to as “ETF units”), then paragraph 132(5.‍3)‍(b) does not apply and, in computing its income for the taxation year, no deduction may be made by the trust in respect of the amount determined by the formula

  A − (B ÷ (C + B) × D)

  where

  A

  is the portion of the total of all allocated amounts for the taxation year in respect of redemptions of ETF units by beneficiaries of the trust during that year that would be, without reference to subsection 104(6), amounts paid out of the taxable capital gains of the trust,

  B

  is the lesser of

  (i) the total amount paid for redemptions of the ETF units in the taxation year, and

  (ii) the greater of

  (A) the amount determined for C, and

  (B) the net asset value of the trust at the end of the previous taxation year,

  C

  is the net asset value of the trust at the end of the taxation year, and

  D

  is the amount that would be, without reference to subsection 104(6), the trust’s net taxable capital gains (as determined under subsection 104(21.‍3)) for the taxation year; or

• (b) units offered by a mutual fund trust include units that are not ETF units (in this paragraph referred to as “non-ETF units”) and units that are ETF units, then

  • (i) in respect of redemptions of ETF units, paragraph (5.‍3)‍(b) does not apply and paragraph (a) applies, except that

    • (A) the description of C is to be read as “is the portion of the net asset value of the trust at the end of the taxation year that is referable to the ETF units,”,

    • (B) clause (ii)‍(B) of the description of B shall be read as “the portion of the net asset value of the trust at the end of the previous taxation year that is referable to the ETF units,”, and

    • (C) the amount determined for D shall be the amount determined by the formula

      E ÷ F × G

      where

      E

      is the portion of the net asset value of the trust at the end of the taxation year that is referable to the ETF units,

      F

      is the net asset value of the trust at the end of the taxation year, and

      G

      is the amount that would be, without reference to subsection 104(6), the trust’s net taxable capital gains (as determined under subsection 104(21.‍3)) for the taxation year; and

  • (ii) in respect of redemptions of non-ETF units, in addition to the limitation applicable under paragraph (5.‍3)‍(b), the total amount of the deductions that may be claimed by the trust for the taxation year for the portion of the allocated amounts described in the description of A in paragraph (5.‍3)‍(b) in respect of non-ETF units shall not exceed the amount determined by the formula

    H ÷ I × J

    where

    H

    is the portion of the net asset value of the trust at the end of the taxation year that is referable to the non-ETF units,

    I

    is the net asset value of the trust at the end of the taxation year, and

    J

    is the amount that would be, without reference to subsection 104(6), the trust’s net taxable capital gains (as determined under subsection 104(21.‍3)) for the taxation year.

• (o) for the purpose of applying subsection 132(5.‍31) to a fund for a taxation year that includes the transfer time, the following amounts are to be determined as if the taxation year ended immediately before the transfer time:

  • (i) if paragraph 132(5.‍31)‍(a) applies, the amounts determined under the descriptions of B, C and D in that paragraph, and

  • (ii) if paragraph 132(5.‍31)‍(b) applies,

    • (A) the amounts determined for B and C in paragraph 132(5.‍31)‍(a), for the purpose of subparagraph 132(5.‍31)‍(b)‍(i),

    • (B) the amounts determined for D, E, F and G in clause 132(5.‍31)‍(b)‍(i)‍(C), and

    • (C) the amounts determined for H, I and J in subparagraph 132(5.‍31)‍(b)‍(ii).

• (b) if, in the immediately preceding taxation year, the designated foreign insurance business was not a designated foreign insurance business, for the purposes of paragraph (4)‍(a), subsection (9), the definition designated insurance property in subsection (12) and paragraphs 12(1)‍(d) to (e), the life insurer is deemed to have carried on the business in Canada in that immediately preceding year and to have claimed the maximum amounts to which it would have been entitled under subparagraph (3)‍(a)‍(i) and paragraphs 20(1)‍(l) and (l.‍1) and 20(7)‍(c) in respect of those specified Canadian risks if that designated foreign insurance business had been a designated foreign insurance business in that immediately preceding year; and

• (i) any amount that the insurer claims as a policy reserve for the year in respect of its groups of life insurance contracts in Canada at the end of the year, not exceeding the total of amounts that the insurer is allowed by regulation to deduct in respect of those groups,

• (a) each amount deducted under subparagraph (3)‍(a)‍(i) in computing the insurer’s income for the preceding taxation year;

• (b) the amount prescribed in respect of the insurer for the year in respect of its groups of life insurance contracts in Canada at the end of the year; and

• (j) for the purpose of determining the income of the transferor and the transferee for their taxation years following their taxation years referred to in paragraph (h), amounts deducted by the transferor as reserves under subparagraph (3)‍(a)‍(i) and paragraphs 20(1)‍(l) and (l.‍1) and 20(7)‍(c) of this Act and section 33 and paragraph 138(3)‍(c) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, in its taxation year referred to in paragraph (h) in respect of the transferred property referred to in paragraph (b) or the obligations referred to in paragraph (c) are deemed to have been deducted by the transferee, and not the transferor, for its taxation year referred to in paragraph (h),

• (l) for the purposes of this subsection and subsections (11.‍7) and (11.‍9), the fair market value of consideration received by the transferor from the transferee in respect of the assumption or reinsurance of a particular obligation referred to in paragraph (c) is deemed to be the total of the amounts deducted by the transferor as a reserve under subparagraph (3)‍(a)‍(i) and paragraph 20(7)‍(c) in its taxation year referred to in paragraph (h) in respect of the particular obligation, and

• (d) for the purposes of paragraph (4)‍(a), subsection (9), the definition designated insurance property in subsection (12) and paragraphs 12(1)‍(d), (d.‍1) and (e), the insurer is deemed to have carried on the business in Canada in that preceding year and to have claimed the maximum amounts to which it would have been entitled under subparagraph (3)‍(a)‍(i) and paragraphs 20(1)‍(l) and (l.‍1) and 20(7)‍(c) for that year,

base year of an insurer means the insurer’s taxation year that immediately precedes its transition year; (année de base)

deposit accounting insurance policy in respect of an insurer’s taxation year means an insurance policy of the insurer that, according to International Financial Reporting Standards, is not an insurance contract for that taxation year; (police d’assurance à comptabilité de dépôt )

excluded policy in respect of an insurer’s base year means an insurance policy of the insurer that would be a deposit accounting insurance policy for the insurer’s base year if International Financial Reporting Standards applied for that base year; (police exclue)

reserve transition amount of an insurer, in respect of an insurance business carried on by it in its transition year, means the positive or negative amount determined by the formula

transition year of an insurer means the insurer’s first taxation year that begins after 2022. (année transitoire)

contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, means the greater of the positive or negative amount of the contractual service margin for the group

• (a) that would be reported as at the end of the taxation year if the amount were determined without reference to amounts described in subparagraphs (a)‍(i) to (iii) of the definition liability for remaining coverage in this subsection, and

• (b) that would be determined at the end of the taxation year in respect of the group in accordance with International Financial Reporting Standards using reasonable assumptions in the circumstances if the amount were determined without reference to amounts described in subparagraphs (a)‍(i) to (iii) of the definition liability for remaining coverage in this subsection; (marge sur services contractuels)

group of insurance contracts of an insurer means a group of insurance contracts of the insurer, determined according to International Financial Reporting Standards, that is a group for the purposes of determining an amount of the insurer that is reported as at the end of the insurer’s taxation year and, for greater certainty, includes a group of insurance contracts that include reinsurance contracts under which the insurer has assumed reinsurance risk; (groupe de contrats d’assurance)

group of life insurance contracts of an insurer means a group of life insurance contracts of the insurer, determined according to International Financial Reporting Standards, that is a group for the purposes of determining an amount of the insurer that is reported as at the end of the insurer’s taxation year and, for greater certainty, includes a group of life insurance contracts that include reinsurance contracts under which the insurer has assumed reinsurance risk; (groupe de contrats d’assurance-vie)

group of life insurance contracts in Canada of an insurer means a group of life insurance contracts of the insurer that includes only life insurance contracts issued or effected by the insurer on the life of a person resident in Canada at the time the contract was issued or effected; (groupe de contrats d’assurance-vie au Canada)

group of reinsurance contracts held by an insurer means a group of reinsurance insurance contracts held by the insurer, determined according to International Financial Reporting Standards, that is a group for the purposes of determining an amount of the insurer that is reported as at the end of the insurer’s taxation year; (groupe de contrats de réassurance)

group of segregated fund policies of an insurer means a group of insurance contracts of the insurer that includes only segregated fund policies (within the meaning assigned by paragraph 138.‍1(1)‍(a)); (groupe de polices à fonds réservé)

liability for incurred claims, for a group of insurance contracts of an insurer at the end of a taxation year, means the lesser of the positive or negative amount of the liability for incurred claims for the group

• (a) that would be reported as at the end of the taxation year if the amount were determined without reference to amounts described in subparagraphs (a)‍(i) to (iii) of the definition liability for remaining coverage in this subsection, and

• (b) that would be determined at the end of the taxation year in accordance with International Financial Reporting Standards using reasonable assumptions in the circumstances if the amount were determined without reference to amounts described in subparagraphs (a)‍(i) to (iii) of the definition liability for remaining coverage in this subsection; (passif au titre des sinistres survenus)

liability for remaining coverage, for a group of insurance contracts of an insurer at the end of a taxation year, means the lesser of the positive or negative amount of the liability for remaining coverage for the group

• (a) that would be reported as at the end of the taxation year if the amount were determined without reference to

  • (i) projected

    • (A) income and capital taxes (other than the tax payable under Part XII.‍3),

    • (B) taxes on premiums that are not deductible under Part I,

    • (C) amounts not deductible after the taxation year in computing income under Part I, and

    • (D) cash flows in respect of funds withheld arrangements,

  • (ii) amounts payable that are deductible for the taxation year, or a previous taxation year, in computing income under Part I, and

  • (iii) amounts receivable to the extent they have been included for the taxation year, or a previous taxation year, in computing income under Part I, and

• (b) that would be determined at the end of the taxation year in accordance with International Financial Reporting Standards using reasonable assumptions in the circumstances if the amount were determined without reference to amounts described in subparagraphs (a)‍(i) to (iii); (passif au titre de la couverture restante)

policyholders’ liabilities, of an insurer as at the end of a taxation year, means the amount reported as policyholders’ liabilities as at the end of the year; (obligation envers les titulaires de polices)

reinsurance contract held amount, for a group of reinsurance contracts held by an insurer at the end of a taxation year, means the lesser of the positive or negative amount of the reinsurance contract held asset for the group

• (a) that would be reported as at the end of the taxation year if the amount were determined without reference to amounts described in subparagraphs (a)‍(i) to (iii) of the definition liability for remaining coverage in this subsection, and

• (b) that would be determined at the end of the taxation year in accordance with International Financial Reporting Standards using reasonable assumptions in the circumstances if the amount were determined without reference to amounts described in subparagraphs (a)‍(i) to (iii) of the definition liability for remaining coverage in this subsection; (montant au titre des contrats de réassurance détenus)

relevant authority of an insurer means

• (a) the Superintendent of Financial Institutions, if the insurer is required by law to report to the Superintendent of Financial Institutions, and

• (b) in any other case, the Superintendent of Insurance or other similar officer or authority of the province under whose laws the insurer is incorporated; (autorité compétente)

Assets and liabilities

(12.‍1) For greater certainty, in determining the amount of

• (a) the contractual service margin, liability for incurred claims and liability for remaining coverage for a group of insurance contracts of an insurer, the amount is

  • (i) a positive amount if the amount is reported as a liability, and

  • (ii) a negative amount if the amount is reported as an asset; and

• (b) the contractual service margin and reinsurance contract held amount for a group of reinsurance contracts held by an insurer, the amount is

  • (i) a positive amount if the amount is reported as an asset, and

  • (ii) a negative amount if the amount is reported as a liability.

IFRS reference

(12.‍2) Except as otherwise provided, references to International Financial Reporting Standards in this section refer to the International Financial Reporting Standards adopted by the Accounting Standards Board and effective for years that begin on or after January 1, 2023.

Amount reported

(12.‍3) A reference in subsections (12) and 138.‍1(1) of this Act and Parts XIV, XXIV and LXXXVI of the Income Tax Regulations to an amount that is reported, or that would be reported, of an insurer as at the end of a taxation year means

• (a) if the insurer is the Canada Mortgage and Housing Corporation or a foreign affiliate of a taxpayer resident in Canada, an amount that is reported, or that would be reported, in the insurer’s financial statements for the year if those statements were prepared in accordance with International Financial Reporting Standards;

• (b) if paragraph (a) does not apply and reporting by the insurer to the insurer’s relevant authority is required at the end of the year, an amount that is reported, or that would be reported, in the insurer’s non-consolidated balance sheet for the year accepted by the insurer’s relevant authority;

• (c) if paragraphs (a) and (b) do not apply and the insurer is, throughout the year, subject to the supervision of its relevant authority, an amount that is reported, or that would be reported, in a non-consolidated balance sheet for the year that is prepared in a manner consistent with the requirements that would have applied had reporting to the insurer’s relevant authority been required at the end of the year; and

• (d) in any other case, nil.

Transition year income inclusion

(16) There shall be included in computing an insurer’s income for its transition year from an insurance business carried on by it in the transition year the positive amount, if any, of the insurer’s reserve transition amount in respect of that insurance business.

Transition year income deduction

(17) There shall be deducted in computing an insurer’s income for its transition year from an insurance business carried on by it in the transition year the absolute value of the negative amount, if any, of the insurer’s reserve transition amount in respect of that insurance business.

IFRS transition — reversals

(17.‍1) In applying subsections (18) and (19) to an insurer for a taxation year of the insurer in respect of International Financial Reporting Standards,

• (a) the reference to “policy reserve” in the description of C in the definition reserve transition amount in subsection (12) is to be read as a reference to “policy reserve determined without reference to the insurer’s excluded policies”;

• (b) the description of D in the definition reserve transition amount in subsection (12) is to be read as follows:

  D

  is the amount determined by the formula

  D.‍1 − D.‍2

  where

  D.‍1

  is the maximum amount that the insurer is permitted to claim under paragraph 20(7)‍(c) as a policy reserve determined without reference to the insurer’s excluded policies, and

  D.‍2

  is the amount of policy acquisition costs of the insurer that is not deductible, but in the absence of subsection 18(9.‍02) (as it read in the base year) would have been deductible, in the base year or a preceding taxation year;

• (c) the reference to “life insurance policies” in the description of G in the definition reserve transition amount in subsection (12) is to be read as a reference to “life insurance policies other than excluded policies”; and

• (d) the amount included in the description of H in the definition reserve transition amount in subsection (12) is to be determined without reference to excluded policies.

Transition year income inclusion reversal

(18) If an amount has been included under subsection (16) in computing an insurer’s income for its transition year from an insurance business carried on by it, there shall be deducted in computing the insurer’s income, for each particular taxation year of the insurer that ends after the beginning of the transition year, from that insurance business, the amount determined by the formula

Transition year income deduction reversal

(19) If an amount has been deducted under subsection (17) in computing an insurer’s income for its transition year from an insurance business carried on by it, there shall be included in computing the insurer’s income, for each particular taxation year of the insurer that ends after the beginning of the transition year, from that insurance business, the amount determined by the formula

Winding-up

(20) If an insurer has, in a winding-up to which subsection 88(1) has applied, been wound-up into another corporation (referred to in this subsection as the “parent”), and immediately after the winding-up the parent carries on an insurance business, in applying subsections (18) and (19) in computing the income of the insurer and of the parent for particular taxation years that end on or after the first day (referred to in this subsection as the “start day”) on which assets of the insurer were distributed to the parent on the winding-up,

• (a) the parent is, on and after the start day, deemed to be the same corporation as and a continuation of the insurer in respect of

  • (i) any amount included under subsection (16) or deducted under subsection (17) in computing the insurer’s income from an insurance business for its transition year,

  • (ii) any amount deducted under subsection (18) or included under subsection (19) in computing the insurer’s income from an insurance business for a taxation year of the insurer that begins before the start day, and

  • (iii) any amount that would — in the absence of this subsection and if the insurer existed and carried on an insurance business on each day that is the start day or a subsequent day and on which the parent carries on an insurance business — be required to be deducted or included, in respect of any of those days, under subsection (18) or (19) in computing the insurer’s income from an insurance business; and

• (b) the insurer is, in respect of each of its particular taxation years, to determine the value for B in the formulas in subsections (18) and (19) without reference to the start day and days after the start day.

Amalgamations

(21) If there is an amalgamation (within the meaning assigned by subsection 87(1)) of an insurer with one or more other corporations to form one corporation (referred to in this subsection as the “new corporation”), and immediately after the amalgamation the new corporation carries on an insurance business, in applying subsections (18) and (19) in computing the income of the new corporation for particular taxation years of the new corporation that begin on or after the day on which the amalgamation occurred, the new corporation is, on and after that day, deemed to be the same corporation as and a continuation of the insurer in respect of

• (a) any amount included under subsection (16) or deducted under subsection (17) in computing the insurer’s income from an insurance business for its transition year;

• (b) any amount deducted under subsection (18) or included under subsection (19) in computing the insurer’s income from an insurance business for a taxation year that begins before the day on which the amalgamation occurred; and

• (c) any amount that would — in the absence of this subsection and if the insurer existed and carried on an insurance business on each day that is the day on which the amalgamation occurred or a subsequent day and on which the new corporation carries on an insurance business — be required to be deducted or included, in respect of any of those days, under subsection (18) or (19) in computing the insurer’s income from an insurance business.

Application of subsection (23)

(22) Subsection (23) applies if, at any time, an insurer (referred to in this subsection and subsection (23) as the “transferor”) transfers, to a corporation (referred to in this subsection and subsection (23) as the “transferee”) that is related to the transferor, property in respect of an insurance business carried on by the transferor (referred to in this subsection and subsection (23) as the “transferred business”) and

• (b) subsection 85(1) applies to the transfer, the transfer includes all or substantially all of the property and liabilities of the transferred business and, immediately after the transfer, the transferee carries on an insurance business.

• (iii) any amount that would — in the absence of this subsection and if the transferor existed and carried on an insurance business on each day that includes that time or is a subsequent day and on which the transferee carries on an insurance business — be required to be deducted or included, in respect of any of those days, under subsection (18) or (19) in computing the transferor’s income that can reasonably be attributed to the transferred business; and

Ceasing to carry on business

(24) If at any time an insurer ceases to carry on all or substantially all of an insurance business (referred to in this subsection as the “discontinued business”), and none of subsections (20) to (22) apply,

• (a) there shall be deducted, in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

  A − B

  where

  A

  is the amount included under subsection (16) in computing the insurer’s income from the discontinued business for its transition year, and

  B

  is the total of all amounts each of which is an amount deducted under subsection (18) in computing the insurer’s income from the discontinued business for a taxation year that began before that time; and

• (b) there shall be included, in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

  C − D

  where

  C

  is the amount deducted under subsection (17) in computing the insurer’s income from the discontinued business for its transition year, and

  D

  is the total of all amounts each of which is an amount included under subsection (19) in computing the insurer’s income from the discontinued business for a taxation year that began before that time.

Ceasing to exist

(25) If at any time an insurer that carried on an insurance business ceases to exist (otherwise than as a result of a winding-up or amalgamation described in subsection (20) or (21)), for the purposes of subsection (24), the insurer is deemed to have ceased to carry on the insurance business at the earlier of

• (a) the time (determined without reference to this subsection) at which the insurer ceased to carry on the insurance business, and

• (b) the time that is immediately before the end of the last taxation year of the insurer that ended at or before the time at which the insurer ceased to exist.

Rules relating to segregated funds

138.‍1 (1) In respect of life insurance policies for which all or any part of an insurer’s reserves vary in amount depending on the fair market value of a specified group of properties that is reported to a relevant authority (as defined in subsection 138(12)) as a segregated fund (in this section referred to as a “segregated fund”), for the purposes of this Part, the following rules apply:

Non-application of subsections (1) to (6)

(7) Subsections (1) to (6) do not apply to the holder of a segregated fund policy with respect to such a policy that is issued or effected as or under a FHSA, pooled registered pension plan, registered pension plan, registered retirement income fund, registered retirement savings plan or TFSA.

transition year of a taxpayer means the taxpayer’s first taxation year that begins after 2022. (année transitoire)

Transition year income inclusion

(2) If a taxpayer is an insurer in its transition year, there shall be included in computing the taxpayer’s income for its transition year the absolute value of the negative amount, if any, of the taxpayer’s transition amount.

Transition year income deduction

(3) If a taxpayer is an insurer in its transition year, there shall be deducted in computing the taxpayer’s income for its transition year the positive amount, if any, of the taxpayer’s transition amount.

Transition year income inclusion reversal

(4) If an amount has been included under subsection (2) in computing a taxpayer’s income for its transition year, there shall be deducted in computing the taxpayer’s income for each particular taxation year of the taxpayer that ends after the beginning of the transition year, and in which particular taxation year the taxpayer is an insurer, the amount determined by the formula

Transition year income deduction reversal

(5) If an amount has been deducted under subsection (3) in computing a taxpayer’s income for its transition year, there shall be included in computing the taxpayer’s income, for each particular taxation year of the taxpayer ending after the beginning of the transition year, and in which particular taxation year the taxpayer is an insurer, the amount determined by the formula

Winding-up

(6) If a taxpayer has, in a winding-up to which subsection 88(1) has applied, been wound-up into another corporation (referred to in this subsection as the “parent”), and immediately after the winding-up the parent is an insurer, in applying subsections (4) and (5) in computing the income of the taxpayer and of the parent for particular taxation years that end on or after the first day (referred to in this subsection as the “start day”) on which assets of the taxpayer were distributed to the parent on the winding-up,

• (iii) any amount that would — in the absence of this subsection and if the taxpayer existed and was an insurer on each day that is the start day or a subsequent day and on which the parent is an insurer — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the taxpayer’s income for its transition year; and

Amalgamations

(7) If there is an amalgamation (within the meaning assigned by subsection 87(1)) of a taxpayer with one or more other corporations to form one corporation (referred to in this subsection as the “new corporation”), and immediately after the amalgamation the new corporation is an insurer, in applying subsections (4) and (5) in computing the income of the new corporation for particular taxation years of the new corporation that begin on or after the day on which the amalgamation occurred, the new corporation is, on and after that day, deemed to be the same corporation as and a continuation of the taxpayer in respect of

• (c) any amount that would — in the absence of this subsection and if the taxpayer existed and was an insurer on each day that is the day on which the amalgamation occurred or a subsequent day and on which the new corporation is an insurer — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the taxpayer’s income.

• (b) subsection 85(1) applies to the transfer, the transfer includes all or substantially all of the property and liabilities of the transferred business and, immediately after the transfer, the transferee is an insurer.

• (iii) any amount that would — in the absence of this subsection and if the transferor existed and was an insurer on each day that includes that time or is a subsequent day and on which the transferee is an insurer — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the transferor’s income that can reasonably be attributed to the transferred business; and

Ceasing to carry on a business

(11) If at any time, a taxpayer ceases to be an insurer

Ceasing to exist

(12) If at any time a taxpayer ceases to exist (otherwise than as a result of a merger to which subsection 87(2) applies or a winding-up to which subsection 88(1) applies), for the purposes of subsection (11), the taxpayer is deemed to have ceased to be an insurer at the earlier of

• (a) the time (determined without reference to this subsection) at which the taxpayer ceased to be an insurer, and

Application of subsection (13.‍1)

(13) Subsection (13.‍1) applies to a taxpayer for a particular taxation year of the taxpayer if

• (a) the taxpayer holds a transition property in the particular taxation year;

• (b) the property was a mark-to-market property of the taxpayer for the taxation year preceding the particular taxation year; and

• (c) the property is not a mark-to-market property of the taxpayer for the particular taxation year.

Ceasing to be mark-to-market property

(13.‍1) If this subsection applies to a taxpayer for a particular taxation year of the taxpayer, for purposes of this section

• (a) the taxpayer is deemed to have ceased to be an insurer at the particular time that is the beginning of the particular taxation year; and

• (b) the time immediately before the particular time shall be deemed to be the end of the taxation year that ends immediately before the particular taxation year.

• (a.‍2) to a FHSA for the benefit of the transferor, if subsection (8.‍3) would not apply to an amount in respect of the property in the case that the property was instead received by the transferor as a benefit out of or under the registered retirement savings plan, or

• (d) no deduction may be made under subsection (5), (5.‍1) or (8.‍2) or section 8, 60 or 146.‍6 in respect of the payment or transfer in computing the income of any taxpayer, and

• (x) a FHSA in accordance with subsection 146.‍6(7);

Tax-Free First Home Savings Account

Definitions

annual FHSA limit of a taxpayer for a taxation year is the least of 

• (a) the amount determined by the formula

  A + B − C

  where

  A

  is the total of all contributions made to a FHSA in the year by the taxpayer (other than any contributions made after the taxpayer’s first qualifying withdrawal from a FHSA),

  B

  is

  (i) if the taxpayer’s maximum participation period has not begun in a preceding taxation year, nil, and

  (ii) in any other case, the amount by which the amount determined under this paragraph for the preceding taxation year exceeds the annual FHSA limit for that taxation year, and

  C

  is the total of all designated amounts described in paragraph (b) of the definition designated amount in subsection 207.‍01(1) for the year,

• (b) the amount determined by the formula

  $8,000 + D − (E − F − G)

  where

  D

  is the amount of the FHSA carryforward for the taxation year;

  E

  is the total of all amounts transferred in the year or a preceding taxation year under paragraph 146(16)‍(a.‍2) to a FHSA under which the taxpayer is the holder, and

  F

  is the total of all amounts, each of which is an amount determined in respect of each preceding taxation year that is

  (i) if the taxpayer had not started their maximum participation period in the preceding taxation year, nil, or

  (ii) in any other case, the lesser of

  (A) the amount determined by the formula

  H − I

  where

  H

  is the amount determined for E in the preceding taxation year, and

  I

  is the amount determined for F in the preceding taxation year, and

  (B) $8,000 plus the amount of the FHSA carryforward for the preceding taxation year, and

  G

  is the total of all designated amounts described in paragraph (a) of the definition designated amount in subsection 207.‍01(1), and

• (c) nil, if the taxation year is after the year in which

  • (i) the taxpayer’s maximum participation period has ended, or

  • (ii) the taxpayer has died. (plafond annuel au titre du CELIAPP)

beneficiary under a FHSA means an individual (including an estate) or a qualified donee that has a right to receive a distribution from the FHSA after the death of the holder of the FHSA. (bénéficiaire)

first home savings account or FHSA means an arrangement registered with the Minister that has not ceased to be a FHSA under subsection 146.‍6(16). (compte d’épargne libre d’impôt pour l’achat d’une première propriété ou CELIAPP )

FHSA carryforward of a taxpayer for a taxation year is the least of

• (a) $8,000,

• (b) the amount determined by the formula

  A − B

  where

  A

  is the amount determined in paragraph (b) of the definition annual FHSA limit for the preceding taxation year, and

  B

  is the amount determined in paragraph (a) of the definition annual FHSA limit for the preceding taxation year, and

• (c) nil, if the taxpayer had not started their maximum participation period prior to the taxation year. (montant des cotisations reporté)

holder of an arrangement means

• (a) until the death of the individual who entered into the arrangement, the individual; and

• (b) after the death of the individual, the individual’s survivor, if the survivor is designated under the arrangement to become a successor of the holder and is a qualifying individual. (titulaire)

issuer of an arrangement means the person described as the issuer in the definition qualifying arrangement. (émetteur)

maximum participation period of an individual means the period that

• (a) begins when an individual first enters into a qualifying arrangement; and

• (b) ends at the end of the year following the year in which the earliest of the following events occur:

  • (i) the 14th anniversary of the date the individual first enters into a qualifying arrangement,

  • (ii) the individual attains 70 years of age, and

  • (iii) the individual first makes a qualifying withdrawal from a FHSA. (période de participation maximale)

non-qualified investment has the same meaning as in subsection 207.‍01(1). (placement non admissible)

qualified investment has the same meaning as in subsection 207.‍01(1). (placement admissible)

qualifying arrangement, at a particular time, means an arrangement

• (a) that is entered into after March 2023 between a person (in this definition referred to as the “issuer”) and a qualifying individual;

• (b) that is

  • (i) an arrangement in trust with an issuer that is a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,

  • (ii) an annuity contract with an issuer that is a licensed annuities provider, or

  • (iii) a deposit with an issuer that is

    • (A) a person that is, or is eligible to become, a member of the Canadian Payments Association, or

    • (B) a credit union that is a shareholder or member of a body corporate referred to as a “central” for the purposes of the Canadian Payments Act;

• (c) that provides for contributions to be made under the arrangement to the issuer in consideration of, or to be used, invested or otherwise applied for the purpose of, the issuer making distributions under the arrangement to the holder;

• (d) under which the issuer and the qualifying individual agree, at the time the arrangement is entered into, that the issuer will file with the Minister an election to register the arrangement as a FHSA, in the prescribed form and manner under the Social Insurance Number of the qualifying individual with whom the arrangement was entered into; and

• (e) that, at all times throughout the period that begins at the time the arrangement is entered into and that ends at the particular time, complies with the conditions in subsection (2).‍ (arrangement admissible)

qualifying home means

• (a) a housing unit located in Canada; or

• (b) a share of the capital stock of a cooperative housing corporation, the holder of which is entitled to possession of a housing unit located in Canada, except that, where the context so requires, a reference to a share with a right to possession of a housing unit described means the housing unit to which the share relates.‍ (habitation admissible)

qualifying individual, at a particular time, means an individual who

• (a) is a resident of Canada;

• (b) is at least 18 years of age; and

• (c) did not, at any prior time in the calendar year or in the preceding four calendar years, inhabit as a principal place of residence a qualifying home (or what would be a qualifying home if it were located in Canada) that was owned, whether jointly with another person or otherwise, by

  • (i) the individual, or

  • (ii) a person who is the spouse or common-law partner of the individual at the particular time. (particulier déterminé)

qualifying withdrawal of an individual means an amount received at a particular time by the individual as a benefit out of or under a FHSA if

• (a) the amount is received as a result of the individual’s written request in prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisition by the individual to begin, using as a principal place of residence;

• (b) the individual

  • (i) is a resident of Canada throughout the period that begins at the particular time and ends at the earlier of the time of the individual’s death and the time at which the individual acquires the qualifying home, and

  • (ii) does not have an owner-occupied home within the meaning of paragraph 146.‍01(2)‍(a.‍1) in the period

    • (A) that begins at the beginning of the fourth preceding calendar year that ended before the particular time, and

    • (B) that ends on the 31st day before the particular time;

• (c) the individual entered into an agreement in writing before the particular time for the acquisition or construction of the qualifying home before October 1 of the calendar year following the year in which the amount was received; and

• (d) the individual did not acquire the qualifying home more than 30 days before the particular time. (retrait admissible)

survivor of a qualifying individual means another individual who is, immediately before the qualifying individual’s death, a spouse or common-law partner of the qualifying individual.‍ (survivant)

Qualifying arrangement conditions

• (a) the arrangement requires that it be maintained for the exclusive benefit of the holder (determined without regard to any right of a person to receive a payment out of or under the arrangement only on or after the death of the holder);

• (b) the arrangement prohibits, while there is a holder of the arrangement, anyone that is neither the holder nor the issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds;

• (c) the arrangement prohibits anyone other than the holder from making contributions under the arrangement;

• (d) the arrangement permits distributions to be made to reduce the amount of tax otherwise payable by the holder under section 207.‍021;

• (e) the arrangement provides that, at the direction of the holder, the issuer shall transfer all or any part of the property held in connection with the arrangement (or an amount equal to its value) to another FHSA of the holder or to an RRSP or a RRIF under which the holder is the annuitant;

• (f) if the arrangement is an arrangement in trust, it prohibits the trust from borrowing money or other property for the purposes of the arrangement;

• (g) the arrangement provides that it ceases to be a FHSA after the end of the holder’s maximum participation period;

• (h) the arrangement, if it involves an issuer described in subparagraph (b)‍(iii) of the definition qualifying arrangement in subsection (1), includes provisions stipulating that the issuer has no right of offset with respect to the property held under the arrangement in connection with any debt or obligation owing to the issuer; and

• (i) the arrangement meets prescribed conditions.

Trust not taxable

• (a) income includes dividends described in section 83;

• (b) the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition; and

• (c) the trust’s income shall be computed without reference to subsection 104(6).

Carrying on a business

• (a) the holder of the FHSA is jointly and severally, or solidarily, liable with the trust to pay each amount payable under this Act by the trust that is attributable to that business or those businesses; and

• (b) the issuer’s liability at any time for amounts payable under this Act in respect of that business or those businesses may not exceed the total of

  • (i) the amount of property of the trust that the issuer is in possession or control of at that time in its capacity as legal representative of the trust, and

  • (ii) the total amount of all distributions of property from the trust on or after the date that the notice of assessment was sent in respect of the taxation year and before that time.

FHSA deduction

• (a) the amount determined by the formula

  A − B

  where

  A

  is the total of all amounts each of which is the taxpayer’s annual FHSA limit for the year and each preceding taxation year, and

  B

  is the total of all amounts each of which is an amount deducted under this subsection in computing the individual’s income for preceding taxation years, and

• (b) the amount by which $40,000 exceeds the total of

  • (i) the amount determined for B in paragraph (a), and

  • (ii) all amounts transferred in the year or a preceding taxation year under paragraph 146(16)‍(a.‍2) to a FHSA under which the taxpayer is the holder.

Withdrawals included in income

• (a) a qualifying withdrawal;

• (b) a designated amount as defined in subsection 207.‍01(1); or

• (c) otherwise included in computing the income of the taxpayer.

Transfer of amounts

• (a) the amount is transferred on behalf of an individual who is

  • (i) the holder of the transferor FHSA,

  • (ii) a spouse or common-law partner or former spouse or common-law partner of the holder of the transferor FHSA and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the holder and the individual, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or

  • (iii) entitled to the amount as a consequence of the death of the holder of the transferor FHSA and was a spouse or common-law partner of the holder immediately before the death;

• (b) the amount is transferred directly to

  • (i) another FHSA of the individual, or

  • (ii) an RRSP or a RRIF under which the individual is the annuitant; and

• (c) if the transfer is not made to another FHSA of the holder of the transferor FHSA, the amount does not exceed the amount determined by the formula

  A − B

  where

  A

  is the amount that is the total fair market value, immediately before the particular time, of all property held by a FHSA under which the holder of the transferor FHSA is a holder, and

  B

  is the excess FHSA amount (as defined in subsection 207.‍01(1)) of the holder of the transferor FHSA at the particular time.

Tax-free transfer

• (a) the amount shall not, by reason only of the transfer, be included in computing the income of any taxpayer; and

• (b) no deduction may be made under this Part in respect of the amount in computing the income of any taxpayer.

Taxable transfer

• (a) the amount is deemed to have been received from the FHSA by the holder of the FHSA;

• (b) the holder or annuitant of the transferee plan is deemed to have paid the amount as a contribution or premium to the transferee plan; and

• (c) in the case that the transferee plan is a RRIF, for the purposes of subsection 146(5) and Part X.‍1, the annuitant of the transferee plan is deemed to have paid the amount at the time of the transfer as a premium under a RRSP under which the annuitant is the annuitant (as defined in subsection 146(1)).

Apportionment of transferred amount

• (a) subsection (8) applies to the portion of the amount transferred in accordance with subsection (7), and

• (b) subsection (9) applies with respect to the remainder of the amount.

Security for loan

Recovery of property used as security

Successor holder

• (a) the survivor is a qualifying individual and the balance of the FHSA is transferred to a RRSP or a RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death; or

• (b) the survivor is not a qualifying individual, in which case the balance of the FHSA is to be transferred to a RRSP or a RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death.

Distribution on death

Deemed transfer or distribution

• (a) if a payment is made from the estate to a FHSA, RRSP or RRIF of the survivor, the payment is deemed to be a transfer from the FHSA to the extent that

  • (i) it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister, and

  • (ii) it meets the conditions to be a transferred amount under subsections (7) to (10);

• (b) if a payment is made from the estate to the survivor, the payment is deemed for the purposes of subsection (14) to be a distribution to the survivor as a beneficiary to the extent that it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister; and

• (c) for the purposes of subsection (14), the amount distributed to the legal representative from the FHSA is deemed to be reduced by the amounts designated in paragraphs (a) and (b).

Arrangement ceasing to be a FHSA

• (a) subject to paragraph (b), the earliest of the following times:

  • (i) the end of the maximum participation period of the last holder,

  • (ii) the end of the year following the year of the death of the last holder,

  • (iii) the time at which the arrangement ceases to be a qualifying arrangement, or

  • (iv) the time at which the arrangement is not administered in accordance with the conditions in subsection (2); or

• (b) a later time specified by the Minister in writing.

Rules applicable on FHSA cessation

• (a) subsection (3) does not apply to exempt the trust governed by the arrangement from tax under this Part on the taxable income of the trust earned after the particular time;

• (b) if the taxpayer who was the holder under the arrangement is not deceased at the particular time, an amount equal to the fair market value of all property of the arrangement immediately before the particular time is to be included in the taxpayer’s income for the taxation year that includes the particular time; and

• (c) if the last holder is deceased at the particular time, each beneficiary of the FHSA shall include in their income, for the taxation year that includes the particular time, the proportion of the fair market value of all property of the arrangement immediately before the particular time that the beneficiary is entitled to.

Regulations

• (b.‍4) a FHSA,

• FHSA trust

  (u.‍4) a trust governed by a FHSA to the extent provided by section 146.‍6;

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

• (d) expenditures on administration and management of the charity.

• (d) of a registered charity, if it has in a taxation year received a gift of property (other than a designated gift) from another registered charity with which it does not deal at arm’s length and it has expended, before the end of the next taxation year, in addition to its disbursement quota for each of those taxation years, an amount that is less than the fair market value of the property, on charitable activities carried on by it or by way of gifts that are qualifying disbursements to qualified donees or grantee organizations, with which it deals at arm’s length;

Reduction

(5) The Minister may, on application made to the Minister in prescribed form by a registered charity, specify an amount in respect of the charity for a taxation year and the registered charity’s disbursement quota shall be deemed to be reduced by that amount.

Exception

(1.‍1) Subject to subsection (1.‍2), subsection (1) does not apply to a taxation year of a taxpayer if

Exception — trusts

• (a) had been in existence for less than three months at the end of the year;

• (b) holds assets with a total fair market value that does not exceed $50,000 throughout the year, if the only assets held by the trust throughout the year are one or more of

  • (i) money,

  • (ii) a debt obligation described in paragraph (a) of the definition fully exempt interest in subsection 212(3),

  • (iii) a share, debt obligation or right listed on a designated stock exchange,

  • (iv) a share of the capital stock of a mutual fund corporation,

  • (v) a unit of a mutual fund trust,

  • (vi) an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.‍1(1)‍(a)), and

  • (vii) an interest as a beneficiary under a trust, all the units of which are listed on a designated stock exchange;

• (c) is required under the relevant rules of professional conduct or the laws of Canada or a province to hold funds for the purposes of the activity that is regulated under those rules or laws, provided the trust is not maintained as a separate trust for a particular client or clients;

• (d) is a registered charity;

• (e) is a club, society or association described in paragraph 149(1)‍(l);

• (f) is a mutual fund trust;

• (g) is, for greater certainty, a related segregated fund trust, within the meaning assigned by paragraph 138.‍1(1)‍(a);

• (h) is a trust, all the units of which are listed on a designated stock exchange;

• (i) is prescribed to be a master trust;

• (j) is, for greater certainty, a graduated rate estate;

• (k) is a qualified disability trust, as defined in subsection 122(3);

• (l) is an employee life and health trust;

• (m) is a trust described under paragraph 81(1)‍(g.‍3);

• (n) is a trust under or governed by

  • (i) a deferred profit sharing plan,

  • (ii) a pooled registered pension plan,

  • (iii) a registered disability savings plan,

  • (iv) a registered education savings plan,

  • (v) a registered pension plan,

  • (vi) a registered retirement income fund,

  • (vii) a registered retirement savings plan,

  • (viii) a tax-free savings account,

  • (ix) an employee profit sharing plan,

  • (x) a registered supplementary unemployment benefit plan, or

  • (xi) a first home savings account; or

• (o) is a cemetery care trust or a trust governed by an eligible funeral arrangement.

Bare trusts and arrangements — inclusion

Solicitor-client privilege

Determination under subsection 245(2)

(1.‍11) If at any time the Minister ascertains the tax consequences to a taxpayer because of subsection 245(2) with respect to a transaction, the Minister

• (a) shall, in the case of a determination under subsection 245(8), determine any amount that is, or could at a subsequent time be, relevant for the purposes of computing the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or amount refundable to, the taxpayer under this Act;

• (b) may, in any case not described in paragraph (a), determine any amount referred to in paragraph (a); and

• (c) shall, if a determination is made under this subsection, send to the taxpayer, with all due dispatch, a notice of determination stating the amount so determined.

• (v.‍1) is made in respect of an amount deducted under subsection 127(5) in respect of a flow-through critical mineral mining expenditure as defined in subsection 127(9),

• (v) a payment out of or under

  • (i) a FHSA, if the amount is required by section 146.‍6 to be included in computing a taxpayer’s income, or

  • (ii) an arrangement that ceased to be a FHSA by application of subsection 146.‍6(16)

Interpretation

(0.‍1) In this section and section 160.‍01, a transaction includes an arrangement or event.

• d) le bénéficiaire du transfert et l’auteur du transfert sont solidairement responsables du paiement d’une partie de l’impôt de l’auteur du transfert en vertu de la présente partie pour chaque année d’imposition égale à l’excédent de l’impôt pour l’année sur ce que cet impôt aurait été sans l’application des articles 74.‍1 à 75.‍1 de la présente loi et de l’article 74 de la Loi de l’impôt sur le revenu, chapitre 148 des Statuts revisés du Canada de 1952, à l’égard de tout revenu tiré des biens ainsi transférés ou des biens y substitués ou à l’égard de tout gain tiré de la disposition de tels biens;

• e) le bénéficiaire du transfert et l’auteur du transfert sont solidairement responsables du paiement en vertu de la présente loi d’un montant égal au moins élevé des montants suivants :

Anti-avoidance rules

(5) For the purposes of subsections (1) to (4), if a person (referred to in this section as the “transferor”) has transferred property either directly or indirectly, by means of a trust or by any other means whatever to another person (referred to in this section as the “transferee”) in a transaction or as part of a series of transactions

• (a) the transferor is deemed to not be dealing at arm’s length with the transferee at all times in the transaction or series of transactions if

  • (i) at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, the transferor and transferee do not deal at arm’s length, and

  • (ii) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and transferor for an amount payable under this Act;

• (b) an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) is deemed to have become payable in the taxation year in which the property was transferred if it is reasonable to conclude that one of the purposes for the transfer of property is to avoid the payment of a future amount payable under this Act by the transferor or transferee; and

• (c) the amount determined under subparagraph (1)‍(e)‍(i) is deemed to be the greater of

  • (i) the amount otherwise determined under that subparagraph without reference to this paragraph, and

  • (ii) the amount determined by the formula

    A − B

    where

    A

    is the fair market value of the property at the time of the transfer, and

    B

    is

    (A) the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, or

    (B) if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A),

    (I) the amount that is the lowest of the amount determined in clause (A) and the fair market value during the period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or

    (II) if there is no property that is substituted for the consideration referred to in clause (A), other than property cancelled or extinguished during the period, nil.

Definitions

160.‍01 (1) The following definitions apply in this section.

gross entitlements of a person at any time, in respect of a planning activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)

person includes a partnership. (personne)

planning activity has the same meaning as in subsection 163.‍2(1). (activité de planification)

section 160 avoidance planning by a person, means planning activity in respect of a transaction or series of transactions that

• (a) is, or is part of, a section 160 avoidance transaction; and

• (b) one of the purposes of the transaction or series of transactions is to

  • (i) reduce a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor (or that would be owing by the transferor if not for a tax attribute transaction), or

  • (ii) reduce the person’s or another person’s ability to pay any amount owing, or that may become owing, under this Act. (planification d’évitement en vertu de l’article 160)

section 160 avoidance transaction means a transaction or series of transactions in respect of which

• (a) the conditions set out in paragraph 160(5)‍(a) or (b) are met; or

• (b) if subsection 160(5) applied to the transaction or series of transactions, the amount determined under subparagraph 160(5)‍(c)‍(ii) would exceed the amount determined under subparagraph 160(5)‍(c)‍(i). (opération d’évitement en vertu de l’article 160)

tax attribute means a balance, pool or other amount determined under this Act that is or may be relevant in computing income or in determining a taxpayer’s liability for tax under this Act in any taxation year and includes

• (a) a capital loss, non-capital loss, restricted farm loss, farm loss and limited partnership loss;

• (b) an amount that is deductible in computing a person’s income;

• (c) any balance of undeducted outlays, expenses or other amounts;

• (d) paid-up capital in respect of a share of any class of the capital stock of a corporation;

• (e) cost or capital cost of a property; 

• (f) an amount deductible from an amount otherwise payable under this Act; and

• (g) an amount that is deemed to have been remitted as an amount payable under this Act. (attribut fiscal)

tax attribute transaction means a transaction or series of transactions in which a tax attribute – of a person that dealt at arm’s length with a transferor or transferee immediately before the transaction or series of transactions – is used, directly or indirectly, to provide a tax benefit for the transferor or transferee (or, if either the transferor or transferee is amalgamated with another corporation, the new corporation within the meaning assigned by subsection 87(1)). (opération d’attribut fiscal)

tax benefit has the same meaning as in subsection 163.‍2(1). (avantage fiscal)

transferee has the meaning assigned by subsections 160(1) and (5). (bénéficiaire du transfert)

transferor has the meaning assigned by subsections 160(1) and (5). (auteur du transfert)

Penalty

(2) Every person that engages in, participates in, assents to or acquiesces in planning activity that they know is section 160 avoidance planning, or would reasonably be expected to know is section 160 avoidance planning, but for circumstances amounting to gross negligence is liable to a penalty that is the lesser of

• (a) 50% of the amount payable under this Act (determined without reference to this subsection), the joint and several, or solidary, liability for which was sought to be avoided through the planning, and

• (b) the total of $100,000 and the person’s gross entitlements at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning.

Clerical or secretarial services

(3) Subsection (2) does not apply to a person solely because the person provided clerical services or secretarial services with respect to the planning.

Joint and several liability — FHSA

(2.‍3) If an amount required to be included in the income of a holder of a FHSA because of section 146.‍6 is received by a taxpayer other than the holder, that taxpayer is jointly and severally, or solidarily, liable with the holder to pay a part of the holder’s tax under this Part for the taxation year in which the amount is received equal to the amount by which the holder’s tax for the year exceeds the amount that would be the holder’s tax for the year if the amount had not been received, but nothing in this subsection limits the liability of the holder under any other provision of this Act or of the taxpayer for the interest that the taxpayer is liable to pay under this Act on an assessment in respect of the amount that the taxpayer is liable to pay because of this subsection.

Rules applicable

(4) If a taxpayer and an annuitant or holder have, by virtue of subsection (1), (2) or (2.‍3), become jointly and severally, or solidarily, liable in respect of part or all of a liability of the annuitant or holder under this Act, the following rules apply:

• (a) a payment by the taxpayer on account of the taxpayer’s liability shall to the extent thereof discharge their liability; but

• (b) a payment by the annuitant or holder on account of the liability of the annuitant or holder discharges the taxpayer’s liability only to the extent that the payment operates to reduce the liability of the annuitant or holder to an amount less than the amount in respect of which the taxpayer was, by subsection (1), (2) or (2.‍3), as the case may be, made jointly and severally, or solidarily, liable.

• (a) the total of the taxpayer’s taxes payable under this Part and Parts I.‍3, VI, VI.‍1 and VI.‍2 (determined in accordance with subsection 191.‍5(9)) for the year

exceeds

• (b) the total of all amounts each of which is an amount paid at or before that time on account of the taxpayer’s tax payable and applied as at that time by the Minister against the taxpayer’s liability for an amount payable under this Part or Part I.‍3, VI, VI.‍1 or VI.‍2 for the year,

False statement or omission

(5) A person or partnership is liable to a penalty if the person or partnership

• (a) knowingly or under circumstances amounting to gross negligence

  • (i) makes — or participates in, assents to or acquiesces in, the making of — a false statement or omission in a return of income of a trust that is not subject to one of the exceptions listed in paragraphs 150(1.‍2)‍(a) to (o) for a taxation year, or

  • (ii) fails to file a return described in subparagraph (i); or

• (b) fails to comply with a demand under subsection 150(2) or 231.‍2(1) to file a return described in subparagraph (a)‍(i).

False statement or omission — trust return

(6) The amount of the penalty to which the person or partnership is liable under subsection (5) is equal to the greater of

• (a) $2,500, and

• (b) 5% of the highest amount at any time in the year that is equal to the total fair market value of all the property held by the trust referred to in subsection (5) at that time.

Prescribed expressions

(2) For the purposes of this Part, the expressions attributed surplus, Canadian assets, Canadian premiums, Canadian reserve liabilities, contractual service margin, group of insurance contracts, group of reinsurance contracts, permanent establishment, policyholders’ liabilities, reinsurance contract held amount, total assets, total premiums and total reserve liabilities have such meanings as may be prescribed.

• (b) in the case of an insurance corporation that was resident in Canada at any time in the year and carried on a life insurance business at any time in the year, the amount determined by the formula

  A + B + (0.‍9 × C) − (0.‍9 × D) − E

  where

  A

  is the amount of the corporation’s long-term debt at the end of the year,

  B

  is the total amount, at the end of the year, of the corporation’s

  (i) capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions),

  (ii) retained earnings,

  (iii) accumulated other comprehensive income,

  (iv) policyholders’ liabilities,

  (v) contributed surplus, and

  (vi) any other surpluses,

  C

  is the total of all amounts each of which is the contractual service margin for a group of insurance contracts of the corporation at the end of the year other than a group of segregated fund policies,

  D

  is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the corporation at the end of the year, that is

  (i) if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, and

  (ii) in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion of the contractual service margin that is in respect of the reinsurance of risks under segregated fund policies, and

  E

  is the amount of any deficit deducted in computing the shareholders’ equity (including, for this purpose, the amount of any provision for the redemption of preferred shares) at the end of the year;

• (c) in the case of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, the amount determined by the formula

  A + B + (0.‍9 × C) − (0.‍9 × D) + E − F − G

  where

  A

  is the amount of the corporation’s long-term debt at the end of the year,

  B

  is the total amount, at the end of the year, of the corporation’s

  (i) capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions),

  (ii) retained earnings,

  (iii) accumulated other comprehensive income,

  (iv) policyholders’ liabilities,

  (v) contributed surplus, and

  (vi) any other surpluses,

  C

  is total of all amounts each of which is the contractual service margin for a group of insurance contracts of the corporation at the end of the year that is in respect of

  (i) non-cancellable or guaranteed renewable accident and sickness policies in respect of accident and sickness insurance (as defined in subsection 1408(1) of the Income Tax Regulations),

  (ii) mortgage insurance (as defined in subsection 1408(1) of the Income Tax Regulations), or

  (iii) title insurance (as defined in subsection 1408(1) of the Income Tax Regulations),

  D

  is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the corporation at the end of the year, that is

  (i) the contractual service margin for the group, if no portion of the contractual service margin is in respect of a risk under an insurance policy other than an insurance policy that is in respect of

  (A) non-cancellable or guaranteed renewable accident and sickness policies in respect of accident and sickness insurance (as defined in subsection 1408(1) of the Income Tax Regulations),

  (B) mortgage insurance (as defined in subsection 1408(1) of the Income Tax Regulations), or

  (C) title insurance (as defined in subsection 1408(1) of the Income Tax Regulations), and

  (ii) in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of risks under policies other than those described in any of clauses (i)‍(A) to (C),

  E

  is the amount of the corporation’s reserves for the year, except to the extent that they

  (i) were deducted in computing its income under Part I for the year, or

  (ii) are reserves in respect of the contractual service margin for a group of insurance contracts of the corporation at the end of the year,

  F

  is the total of all amounts each of which is the reinsurance contract held amount for a group of reinsurance contracts held by the corporation at the end of the year, to the extent the amount can be reasonably regarded as being included in the amount determined under the description of E, and

  G

  is the amount of any deficit deducted in computing the shareholders’ equity (including, for this purpose, the amount of any provision for the redemption of preferred shares) at the end of the year;

• (F) the total of all amounts each of which is the reinsurance contract held amount for a group of reinsurance contracts held by the corporation at the end of the year, to the extent the amount can be reasonably regarded as being included in the amount determined under clause (A); and

contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12); (marge sur services contractuels)

group of insurance contracts of an insurer has the same meaning as in subsection 138(12); (groupe de contrats d’assurance)

group of reinsurance contracts held by an insurer has the same meaning as in subsection 138(12); (groupe de contrats de réassurance)

group of segregated fund policies of an insurer has the same meaning as in subsection 138(12); (groupe de polices à fonds réservé)

policyholders’ liabilities of an insurer at the end of a taxation year has the same meaning as in subsection 138(12); (obligation envers les titulaires de polices)

• (a) the corporation’s tax payable under Parts I and VI.‍2 (determined in accordance with subsection 191.‍5(9)) for the year; and

• (b) in the case of a life insurance corporation that was resident in Canada at any time in the year, the amount determined by the formula

  A + B + (0.‍9 × C) − (0.‍9 × D) − E

  where

  A

  is the amount of the corporation’s long-term debt at the end of the year,

  B

  is the total amount, at the end of the year, of the corporation’s

  (i) capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions),

  (ii) retained earnings,

  (iii) accumulated other comprehensive income,

  (iv) policyholders’ liabilities,

  (v) contributed surplus, and

  (vi) any other surpluses,

  C

  is the total of all amounts each of which is the contractual service margin for a group of insurance contracts of the corporation at the end of the year other than a group of segregated fund policies,

  D

  is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the corporation at the end of the year, that is

  (i) if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, and

  (ii) in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of risk under a segregated fund policy, and

  E

  is the amount of any deficit deducted in computing the shareholders’ equity (including, for this purpose, the amount of any provision for the redemption of preferred shares) at the end of the year;

PART vi.‍2 

Canada Recovery Dividend

Definition

bank or life insurer group member means a corporation that is

• (a) a bank;

• (b) a life insurance corporation that carries on business in Canada; or

• (c) a financial institution (as defined in subsection 190(1)) that is related to any corporation described in paragraph (a) or (b). (membre d’un groupe de banques ou d’assureurs-vie)

Tax payable

Multiple 2022 taxation years

Multiple 2020 and 2021 taxation years

• (a) if a corporation has more than one 2020 taxation year and the aggregate number of days in all its 2020 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (a) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2020 taxation years; and

• (b) if a corporation has more than one 2021 taxation year and the aggregate number of days in all its 2021 taxation years is greater than 365 days, the amount determined for the corporation under paragraph (b) of the description of A in subsection (2) shall be reduced to that proportion of that amount that 365 is of the aggregate number of days in all 2021 taxation years.

Related group

Allocation by Minister

Allocation

Return

Instalments

Administrative provisions — Part VI.‍2

Tax payable

204.‍6 (1) If at the end of any month a taxpayer that is a registered investment described in paragraph 204.‍4(2)‍(b), (d) or (f) holds property that is not a prescribed investment for that taxpayer, it shall, in respect of that month, pay a tax under this Part equal to the total of all amounts each of which is an amount determined in respect of such a property by the formula

Definitions

207.‍01 (1) The following definitions and the definitions in subsections 146(1) (other than the definition benefit), 146.‍1(1), 146.‍2(1), 146.‍3(1), 146.‍4(1) and 146.‍6(1) apply in this Part and Part XLIX of the Income Tax Regulations.

registered plan means a FHSA, RDSP, RESP, RRIF, RRSP or TFSA. (régime enregistré)

• (e) the holder of a FHSA. (particulier contrôlant)

qualified investment for a trust governed by a FHSA or TFSA means

• (a) an investment that would be described by any of paragraphs (a) to (d), (f) and (g) of the definition qualified investment in section 204 if the reference in that definition to “a trust governed by a deferred profit sharing plan or revoked plan” were read as a reference to “a trust governed by a FHSA or TFSA” and if that definition were read without reference to the words “with the exception of excluded property in relation to the trust”;

• (a) included in the income of a person under section 146, 146.‍1, 146.‍3, 146.‍4 or 146.‍6;

• (b.‍1) a qualifying withdrawal under section 146.‍6;

• (b.‍2) a designated amount;

• (i) both registered plans are RRIFs, RRSPs or FHSAs;

designated amount of an individual means an amount, not exceeding the excess FHSA amount of the individual, designated by the individual in the prescribed form and manner that is

• (a) a transfer in accordance with subparagraph 146.‍6(7)‍(b)‍(ii) to a FHSA under which the individual is the holder, to the extent that it does not exceed the total of all amounts transferred under paragraph 146(16)‍(a.‍2) on or before the date of the designation less the total of all amounts previously designated under this paragraph; or

• (b) a withdrawal from a FHSA under which the individual is the holder, to the extent that it does not exceed the total of all amounts contributed to a FHSA under which the individual is the holder on or before the date of the designation less the total of all amounts previously designated under this paragraph. (montant désigné)

excess FHSA amount of an individual at a particular time in a taxation year means the amount determined by the formula 

Tax payable on excess FHSA amount

207.‍021 If, at any time in a calendar month, an individual has an excess FHSA amount, the individual shall, in respect of that month, pay a tax under this Part equal to 1% of the highest such amount in that month.

Survivor as successor holder

207.‍022 If an individual’s survivor becomes the holder of a FHSA as a consequence of the individual’s death and, immediately before the individual’s death, the individual had an excess FHSA amount, the survivor is deemed to have made, at the beginning of the month following the individual’s death, a contribution under a FHSA equal to the amount, if any, by which

• (a) that excess FHSA amount

exceeds

• (b) the total fair market value immediately before the individual’s death of all property held under the FHSAs of the individual (other than a FHSA in respect of which the survivor became the successor holder as a consequence of the individual’s death).

Waiver of tax payable

(3) If an individual would otherwise be liable to pay a tax under section 207.‍021, the Minister may waive or cancel all or part of the liability if

• (a) the individual establishes to the satisfaction of the Minister that the liability arose as a consequence of a reasonable error; and

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

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

  • (ii) the income (including any capital gain) that is reasonably attributable, directly or indirectly, to the amount described in subparagraph (i).

• First home savings account

  (y) a payment out of a FHSA, other than any portion of the payment that is transferred in accordance with subsection 146.‍6(7).

Interest coupon stripping arrangement — conditions

(21) Subsection (22) applies at any time in respect of a taxpayer if

• (a) the taxpayer pays or credits a particular amount at that time as, on account or in lieu of payment of, or in satisfaction of, interest to a person or partnership (in this subsection and subsection (22) referred to as the “interest coupon holder”) in respect of a debt or other obligation, other than a specified publicly offered debt obligation, owed to another person or partnership (in this subsection and subsection (22) referred to as the “non-arm’s length creditor”) that is

  • (i) a non-resident person with whom the taxpayer is not dealing at arm’s length, or

  • (ii) a partnership other than a Canadian partnership; and

• (b) the tax that would be payable under this Part in respect of the particular amount, if the particular amount were paid or credited to the non-arm’s length creditor rather than the interest coupon holder, is greater than the tax payable under this Part (determined without reference to subsection (22)) in respect of the particular amount.

Interest coupon stripping arrangement — application

(22) If this subsection applies at any time in respect of a taxpayer, then for the purpose of paragraph (1)‍(b), the taxpayer is deemed, at that time, to pay interest to the non-arm’s length creditor, the amount of which is determined by the formula

Definition of specified publicly offered debt obligation

(23) For the purposes of subsection (21), specified publicly offered debt obligation means a debt or other obligation that meets the following conditions:

• (a) it was issued by the taxpayer as part of an offering that is lawfully distributed to the public in accordance with a prospectus, registration statement or similar document filed with and, where required by law, accepted for filing by a public authority; and

• (b) it can reasonably be considered that none of the main purposes of a transaction or event, or series of transactions or events, as a part of which the taxpayer pays or credits an amount as, on account or in lieu of payment of, or in satisfaction of, interest to a person or partnership in respect of the debt or other obligation is to avoid or reduce tax that would otherwise be payable under this Part by a non-resident person or partnership to whom the debt or other obligation is owed.

Information gathering

• (a) inspect, audit or examine any document, including books and records, of a taxpayer or any other person that may be relevant in determining the obligations or entitlements of the taxpayer or any other person under this Act;

• (b) examine any property or process of, or matter relating to, a taxpayer or any other person, an examination of which may assist the authorized person in determining the obligations or entitlements of the taxpayer or any other person under this Act;

• (c) enter any premises or place where any business is carried on, any property is kept, anything is done in connection with any business or any books or records are or should be kept, except that, if the premises or place is a dwelling-house, the authorized person may enter the dwelling-house without the consent of the occupant only under the authority of a warrant under subsection (3);

• (d) require a taxpayer or any other person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Act and

  • (i) to attend with the authorized person, at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

  • (ii) to answer the questions in writing, in any form specified by the authorized person; and

• (e) require a taxpayer or any other person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Act.

• (h) in the case of a registrant that is a charity, an application by the registrant, and information filed in support of the application, for a designation, determination or decision by the Minister under any of subsections 149.‍1(6.‍3), (7), (8) and (13); and

• (i) in the case of a registrant that is a charity, in respect of an application for a determination by the Minister under subsection 149.‍1(5), information in respect of the application, including

  • (i) the application,

  • (ii) information filed in support of the application, and

  • (iii) a copy of the entirety of or any part of any letter or notice by the Minister to the registrant relating to the application.

tax benefit means

• (a) a reduction, avoidance or deferral of tax or other amount payable under this Act, and includes a reduction, avoidance or deferral of tax or other amount that would be payable under this Act but for a tax treaty,

• (b) an increase in a refund of tax or other amount under this Act, and includes an increase in a refund of tax or other amount under this Act as a result of a tax treaty, or

• (c) a reduction, increase or preservation of an amount that could at a subsequent time

  • (i) be relevant for the purpose of computing an amount referred to in paragraph (a) or (b), and

  • (ii) result in any of the effects described in paragraph (a) or (b); (avantage fiscal)

tax consequences, to a person, means

• (a) the amount of income, taxable income or taxable income earned in Canada of the person under this Act,

• (b) the tax or other amount payable by, or refundable to, the person under this Act, or

• (c) any other amount that is, or could at a subsequent time be, relevant for the purpose of computing an amount referred to in paragraph (a) or (b); (attribut fiscal)

first home savings account or FHSA has the same meaning as in subsection 146.‍6(1); (compte d’épargne libre d’impôt pour l’achat d’une première propriété ou CELIAPP)

Investments in limited partnerships

First home savings account

(3.‍1) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a first home savings account as defined in subsection 248(1) of the Income Tax Act, and the account is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from that depositor under any other first home savings account that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

Inspection

(3) Every person required by subsection (1) to keep records and books of account shall, at all reasonable times, for any purpose related to the administration or enforcement of this Act

• (a) make the records and books of account and every account and voucher necessary to verify the information therein available to a particular person that is an officer of the Agency or another person authorized by the Minister;

• (b) give the particular person all reasonable assistance to inspect, audit or examine the records, books, accounts and vouchers;

• (c) give the particular person all reasonable assistance, answer all proper questions relating to the administration and enforcement of this Act and

  • (i) attend with the particular person at a place designated by the particular person, or by video-conference or by another form of electronic communication, and answer the questions orally, and

  • (ii) answer the questions in writing, in any form specified by the particular person; and

• (d) give the particular person all reasonable assistance with anything the particular person is authorized to do under this Act.

Definitions

gross entitlements of a person at any time, in respect of a planning activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)

planning activity has the same meaning as in subsection 285.‍1(1). (activité de planification)

section 325 avoidance planning, by a person, means a planning activity in respect of a transaction or series of transactions that meets the following conditions:

• (a) the transaction or series of transactions is, or is part of, a section 325 avoidance transaction; and

• (b) one of the purposes of the transaction or series of transactions is to

  • (i) reduce a transferee’s joint and several, or solidary, liability under section 325 for an amount payable or remittable under this Part by a transferor or for an amount that would be payable or remittable by the transferor but for a transaction or series of transactions in which an amount, that is or may be relevant in determining any obligations or entitlements under this Part of a person that dealt at arm’s length with the transferor or transferee immediately before the transaction or series of transactions, is used directly or indirectly to provide a tax benefit for the transferor or transferee, or

  • (ii) reduce the person or another person’s ability to pay any amount payable or remittable, or that may become payable or remittable, under this Part. (planification d’évitement de l’article 325)

section 325 avoidance transaction means a transaction or series of transactions in respect of which

• (a) the conditions in paragraph 325(5)‍(a) or (b) are met; or

• (b) if subsection 325(5) applied to the transaction or series of transactions, the amount determined under subparagraph 325(5)‍(c)‍(ii) would exceed the amount determined under subparagraph 325(5)‍(c)‍(i). (opération d’évitement de l’article 325)

tax benefit has the same meaning as in subsection 285.‍1(1). (avantage fiscal)

transaction includes an arrangement or event.‍  (opération)

Penalty

• (a) 50% of the amount payable or remittable under this Part in respect of which the joint and several, or solidary, liability was sought to be avoided through the planning, and

• (b) the total of $100,000 and the person’s gross entitlements in respect of the planning at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning.

Clerical or secretarial services

Inspections

• (a) inspect, audit or examine any documents, property or processes of a person that may be relevant in determining the obligations or entitlements of that or any other person under this Part;

• (b) enter any premises or place where any business or commercial activity is carried on, where any property is kept, where anything is done in connection with any business or commercial activity or where any documents are or should be kept;

• (c) require any person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration and enforcement of this Part and

  • (i) to attend with the authorized person at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

  • (ii) to answer the questions in writing, in any form specified by the authorized person; and

• (d) require the person or any other person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Part.

Prior authorization

• (a) there are reasonable grounds to believe that a dwelling-house is a premises or place referred to in subsection (1),

• (e) in the case of any penalty payable by the person, other than a penalty under section 280.‍1, 285, 285.‍01, 285.‍02, 285.‍03 or 285.‍1, more than four years after the person became liable to pay the penalty;

Definitions

325 (0.‍1) The following definitions apply in this section.

property includes money. (bien)

transaction includes an arrangement or event. (opération)

Anti-avoidance rules

(5) For the purposes of this section, if a person transfers property to another person as part of a transaction or series of transactions, the following rules apply:

• (a) the transferor is deemed to not be dealing at arm’s length with the transferee at the time of the transfer of the property if

  • (i) the transferor and the transferee do not deal at arm’s length at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, and

  • (ii) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable or remittable under this Part;

• (b) an amount that the transferor is liable to pay or remit under this Part (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) in respect of that amount) is deemed to have become payable or remittable, as the case may be, in the reporting period of the transferor in which the property was transferred, if it is reasonable to conclude that one of the purposes of the transfer of the property is to avoid the payment of a future amount payable under this Part by the transferor or transferee; and

• (c) the amount determined for A in paragraph (1)‍(d) is deemed to be the greater of

  • (i) the amount otherwise determined for A in paragraph (1)‍(d) without reference to this paragraph, and

  • (ii) the amount determined by the formula

    A − B

    where

    A

    is the fair market value of the property at the time of the transfer, and

    B

    is the fair market value, at its lowest at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, of the consideration given by the transferee for the transfer of the property (other than any part of the consideration that is in a form that is cancelled or extinguished during that period and for which no property that is neither cancelled nor extinguished during that period is substituted) provided that the consideration is held by the transferor at that time.

Powers of authorized person

(2) Subject to subsection (3), the authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Act

• (b) require any person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Act and

  • (i) to attend with the authorized person at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

  • (ii) to answer the questions in writing, in any form specified by the authorized person; and

• (c) require any person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Act.

Prior authorization

(3) If any place referred to in subsection (2) is a dwelling-house, the authorized person may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4).

• (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in subsection (2);

Powers of officer

(2) Subject to subsection (3), the officer may, at all reasonable times, for any purpose related to the administration or enforcement of this Act

• (a) enter any place in which the officer reasonably believes the person keeps records or carries on any activity to which this Act applies;

• (b) stop a conveyance or direct that it be moved to a place where an inspection or examination may be performed;

• (c) require any person to give the officer all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Act and

  • (i) to attend with the officer at a place designated by the officer, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

  • (ii) to answer the questions in writing, in any form specified by the officer;

• (g) require any person to give the officer all reasonable assistance with anything the officer is authorized to do under this Act.

Prior authorization

(3) If any place referred to in subsection (2) is a dwelling-house, the officer may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4).

• (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in subsection (2);