Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2017-11-06 and last amended on 2017-07-01. Previous Versions

PART XV.1Reporting of Electronic Funds Transfer

Marginal note:Definitions

 The following definitions apply in this Part.

cash

cash means coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada pursuant to the Bank of Canada Act that are intended for circulation in Canada or coins or bank notes of countries other than Canada. (espèces)

casino

casino means

  • (a) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code,

    • (i) in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, or

    • (ii) in any other permanent establishment, conducts and manages games that are operated on or through a slot machine, as defined in subsection 198(3) of that Act, or any other similar electronic gaming device, if there are more than 50 of those machines or other devices in the establishment;

  • (b) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code, conducts and manages a lottery scheme, other than bingo or the sale of lottery tickets, that is accessible to the public through the Internet or other digital network, except if the network is an internal network within an establishment referred to in subparagraph (a)(ii);

  • (c) an organization that, in accordance with paragraph 207(1)(b) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, unless the organization is a registered charity and the lottery scheme is conducted or managed for a period of not more than two consecutive days at a time; and

  • (d) the board of a fair or of an exhibition, or the operator of a concession leased by such a board, that, in accordance with paragraph 207(1)(c) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games. (casino)

client

client means a particular entity that engages in a financial transaction or activity with a reporting entity and includes an entity on whose behalf the particular entity is acting. (client)

credit union central

credit union central means a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec. (centrale de caisses de crédit)

electronic funds transfer

electronic funds transfer means the transmission — through any electronic, magnetic or optical device, telephone instrument or computer — of instructions for the transfer of funds, other than the transfer of funds within Canada. In the case of Society for Worldwide Interbank Financial Telecommunication messages, only SWIFT MT 103 messages are included. (télévirement)

entity

entity means an individual, a body corporate, a partnership, a fund or an unincorporated association or organization. (entité)

funds

funds means cash, currency or securities, or negotiable instruments or other financial instruments, in any form, that indicate an entity’s title or interest, or for civil law a right, in them. (fonds)

money services business

money services business means an entity engaged in the business of foreign exchange dealing, of remitting funds or transmitting funds by any means or through any entity or electronic funds transfer network, or of issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named entity. (entreprise de transfert de fonds ou de vente de titres négociables)

reporting entity

reporting entity means an entity that is

  • (a) an authorized foreign bank within the meaning of section 2 of the Bank Act in respect of its business in Canada, or a bank to which that Act applies;

  • (b) a cooperative credit society, savings and credit union or caisse populaire regulated by a provincial Act;

  • (c) a financial services cooperative regulated by An Act respecting financial services cooperatives, R.S.Q., c. C-67.3, or An Act respecting the Mouvement Desjardins, S.Q. 2000, c. 77;

  • (d) an association regulated by the Cooperative Credit Associations Act;

  • (e) a company to which the Trust and Loan Companies Act applies;

  • (f) a trust company regulated by a provincial Act;

  • (g) a loan company regulated by a provincial Act;

  • (h) a money services business;

  • (i) a casino, including a casino owned or controlled by Her Majesty;

  • (j) a department or an agent of Her Majesty in right of Canada or of a province that is engaged in the business of accepting deposit liabilities in the course of providing financial services to the public; or

  • (k) a credit union central in respect of financial services it offers to an entity, other than an entity that is referred to in any of paragraphs (a) to (g) and (j) and is a member of that credit union central. (entité déclarante)

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2014, c. 20, s. 29.
Marginal note:Electronic funds transfer
  •  (1) Every reporting entity shall file with the Minister an information return in prescribed form in respect of

    • (a) the sending out of Canada, at the request of a client, of an electronic funds transfer of $10,000 or more in the course of a single transaction; or

    • (b) the receipt from outside Canada of an electronic funds transfer, sent at the request of a client, of $10,000 or more in the course of a single transaction.

  • Marginal note:Transfer within Canada

    (2) For greater certainty and subject to subsection (3), subsection (1) does not apply to a reporting entity in respect of an electronic funds transfer if the entity

    • (a) sends the transfer to an entity in Canada, even if the final recipient is outside Canada; or

    • (b) receives the transfer from an entity in Canada, even if the initial sender is outside Canada.

  • Marginal note:Intermediary

    (3) Subsection (1) applies to a reporting entity in respect of an electronic funds transfer if the entity

    • (a) orders another reporting entity to send, at the request of a client, the transfer out of Canada, unless it provides the other reporting entity with the name and address of the client; or

    • (b) receives the transfer for a beneficiary in Canada from another reporting entity in circumstances where the initial sender is outside Canada, unless the transfer contains the name and address of the beneficiary.

  • Marginal note:Transfer conducted by agent

    (4) If a particular reporting entity is an agent of or is authorized to act on behalf of another reporting entity in respect of an electronic funds transfer, subsection (1) applies, in respect of the transfer, to the other reporting entity and not to the particular reporting entity.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2014, c. 20, s. 29.
Marginal note:Casino

 An electronic funds transfer in respect of which subsection 244.2(1) applies that occurs in the course of a business, temporarily conducted for charitable purposes in the establishment of a casino by a registered charity carried on for not more than two consecutive days at a time under the supervision of the casino, shall be reported by the supervising casino.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2014, c. 20, s. 29.
Marginal note:Single transaction
  •  (1) For the purposes of this Part, two or more electronic funds transfers of less than $10,000 each that are made within 24 consecutive hours and that total $10,000 or more are considered to be made in the course of a single transaction of $10,000 or more if

    • (a) an individual, other than a trust, who is a reporting entity knows that the transfers are conducted by, or on behalf of, the same entity; and

    • (b) an employee of a reporting entity, other than an entity described in paragraph (a), knows that the transfers are conducted by, or on behalf of, the same entity.

  • Marginal note:Exception

    (2) For greater certainty, subsection (1) does not apply in respect of an electronic funds transfer sent to two or more beneficiaries if the transfer is requested by

    • (a) an administrator of a pension fund that is regulated by or under an Act of Parliament or of the legislature of a province;

    • (b) a department or agent of Her Majesty in right of Canada or of a province;

    • (c) an incorporated city, town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body or an agent of any of them;

    • (d) an organization that operates a public hospital and that is designated by the Minister as a hospital authority under the Excise Tax Act, or an agent of such an organization; or

    • (e) a corporation that has minimum net assets of $75 million on its last audited balance sheet, whose shares are traded on a Canadian stock exchange or a designated stock exchange and that operates in a country that is a member of the Financial Action Task Force on Money Laundering established in 1989.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2014, c. 20, s. 29.
 
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