SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Budget Implementation Act, 2003.

PART 1DIAGNOSTIC AND MEDICAL EQUIPMENT

Marginal note:Payments to trust — equipment and training

• 2. (1) The Minister of Finance may make direct payments, in an aggregate amount of not more than $1.5 billion, to a trust established to provide the provinces with funding for the purposes of acquiring diagnostic and medical equipment and related specialized staff training in order to improve access to publicly funded diagnostic and treatment services.

• Marginal note:Provincial share

  (2) The amount that may be provided to a province under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1).

• Marginal note:Payments out of C.R.F.

  (3) Any amount payable under this section may be paid by the Minister out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.

PART 2R.S., c. F-8; 1995, c. 17, s. 45(1)AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Marginal note:2001, c. 19, s. 1

3. Paragraph 4(9)(a) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

Marginal note:2000, c. 35, s. 5(2)

3.1 Subsection 13(4) of the Act is replaced by the following:

Marginal note:2000, c. 35, s. 6

• 4. (1) Paragraph 14(f) of the Act is repealed.

• Marginal note:2000, c. 35, s. 6

  (2) Paragraph 14(g) of the Act is amended by adding the word “and” at the end of subparagraph (ii) and by replacing subparagraphs (iii) to (v) with the following:

  • (iii) $4.325 billion for the fiscal year beginning on April 1, 2003; and

• (3) Section 14 of the Act is amended by adding the following after paragraph (g):

  • (h) a cash contribution of $2.5 billion to be paid to the trust referred to in section 16.3.

5. Section 15 of the Act is amended by adding the following after subsection (5):

Marginal note:1999, c. 31, s. 238

• 6. (1) The portion of paragraph 16(2)(a) of the French version of the Act after subparagraph (iii) is replaced by the following;

  égal au produit obtenu en multipliant par 13,5/(100-9,143) l’« impôt qu’il est par ailleurs tenu de payer en vertu de la présente partie », au sens du paragraphe 120(4) de la Loi de l’impôt sur le revenu, sur ces revenus;

• Marginal note:1999, c. 31, s. 238

  (2) The portion of paragraph 16(2)(b) of the French version of the Act after subparagraph (iii) is replaced by the following;

  égal au produit obtenu en multipliant par 13,5/(100-9,143) l’« impôt qu’il est par ailleurs tenu de payer en vertu de la présente partie », au sens du paragraphe 120(4) de la Loi de l’impôt sur le revenu, sur ces revenus;

7. The Act is amended by adding the following after section 16.2:

8. The Act is amended by adding the following after section 23.2:

PART 3STUDENT LOANS

1994, c. 28Canada Student Financial Assistance Act

Marginal note:2001, c. 27, s. 219

9. Paragraph (a) of the definition “qualifying student” in subsection 2(1) of the Canada Student Financial Assistance Act is replaced by the following:

Marginal note:2000, c. 14, s. 19

• 10. (1) The definitions “net costs” and “total program net costs” in subsection 14(6) of the Act are replaced by the following:

  “net costs”

  « coût net »

  “net costs”, for a province for a loan year, means the amount determined by the formula

  (A + B) - (C + D)

  where

  A

  is the estimated aggregate of all amounts paid by the Minister in that loan year

  • (a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province, and

  • (b) to persons pursuant to regulations made under paragraph 15(p),

  excluding

  • (c) any amounts paid pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii),

  B

  is the estimated aggregate of

  • (a) the amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

  • (b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (a) has been reduced in that loan year in accordance with the regulations,

  • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has, in that loan year, cancelled the obligation to pay, in accordance with the regulations, as a result of the death or disability of the borrower, and

  • (d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has commenced collection action in that loan year, minus the amount of the outstanding principal and interest in respect of loans referred to in that paragraph for which the Minister has ended collection action in that loan year due to the occurrence of an event set out in the regulations that resulted in the removal of restrictions to financial assistance,

  C

  is the estimated aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act, in respect of loans referred to in the description of A, other than loans made under an agreement entered into under section 6.1, excluding

  • (a) any amounts received pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii), and

  D

  is the estimated aggregate of

  • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under section 6.1, and

  • (b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph (a).

  “total program net costs”

  « coût net total du programme »

  “total program net costs”, for a loan year, means the amount determined by the formula

  (A + B) - (C + D)

  where

  A

  is the aggregate of all amounts paid by the Minister in that loan year

  • (a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authorities for participating provinces, and

  • (b) to persons pursuant to regulations made under paragraph 15(p),

  excluding

  • (c) any amounts paid pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii),

  B

  is the aggregate of

  • (a) the estimated amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

  • (b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (a) has been reduced in that loan year in accordance with the regulations,

  • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has, in that loan year, cancelled the obligation to pay, in accordance with the regulations, as a result of the death or disability of the borrower, and

  • (d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has commenced collection action in that loan year, minus the amount of the outstanding principal and interest in respect of loans referred to in that paragraph for which the Minister has ended collection action in that loan year due to the occurrence of an event set out in the regulations that resulted in the removal of restrictions to financial assistance,

  C

  is the aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act, in respect of loans referred to in the description of A, other than loans made under an agreement entered into under section 6.1, excluding

  • (a) any amounts received pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii), and

  D

  is the aggregate of

  • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under section 6.1, and

  • (b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph (a).

• (2) Subsection 14(7) of the Act is replaced by the following:

  • Marginal note:Exception

    (7) The following amounts shall be included in the calculations described in the definitions “net costs” and “total program net costs” in subsection (6) only if the government of the province satisfies the Minister, by written notice received by the Minister before the beginning of the loan year in question, that, in relation to the matter in question, the provincial student financial assistance plan has substantially the same effect as the plan established by this Act and the regulations:

    • (a) amounts that are determined as a result of the application of subparagraph 5(a)(viii) or section 7, 10 or 11;

    • (b) amounts in relation to programs established by regulations made under paragraph 15(l), (m), (n) or (p);

    • (c) in respect of loans made under an agreement entered into under section 6.1, amounts in relation to a termination of the Minister’s rights or a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15(o), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis; and

    • (d) amounts in relation to programs established by regulations made under section 11 of the Canada Student Loans Act.

  • Marginal note:Negative amounts

    (8) If the amount determined by the formula “(A + B) - (C + D)” in subsection (6) would, but for this subsection, be a negative amount, it is deemed to be zero.

11. The Act is amended by adding the following after section 16:

12. Section 20 of the Act is renumbered as subsection 20(1) and is amended by adding the following:

R.S., c. S-23Canada Student Loans Act

13. The Canada Student Loans Act is amended by adding the following after section 19:

Coming into Force

Marginal note:Coming into force

• 14. (1) Sections 9, 11 and 13 come into force or are deemed to have come into force on August 1, 2003.

• Marginal note:Coming into force

  (2) Sections 10 and 12 are deemed to have come into force on August 1, 2002.

PART 4EMPLOYMENT INSURANCE

1996, c. 23Employment Insurance Act

Marginal note:2000, c. 12, s. 106

15. The definition “common-law partner” in subsection 2(1) of the Employment Insurance Act is replaced by the following:

• 16. (1) Section 10 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Exception

    (5.1) A claim for benefits referred to in section 23.1 with respect to a family member shall not be regarded as having been made on an earlier day under subsection (4) or (5) if

    • (a) at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted;

    • (b) the beginning of the period referred to in subsection 23.1(4) has already been determined with respect to that family member and the claim would have the effect of moving the beginning of that period to an earlier date; or

    • (c) the claim is made in any other circumstances set out in the regulations.

• Marginal note:2002, c. 9, s. 12(4)

  (2) Subsections 10(13) to (15) of the Act are replaced by the following:

  • Marginal note:Extension of benefit period — special benefits

    (13) If, during a claimant’s benefit period,

    • (a) regular benefits were not paid to the claimant,

    • (b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)(a), (b) and (c), and

    • (c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)(a), (b) and (c),

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of paragraphs 12(3)(a), (b) and (c).

  • Marginal note:Extension of benefit period — special benefits

    (13.1) If, during a claimant’s benefit period,

    • (a) regular benefits were not paid to the claimant,

    • (b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)(b), (c) and (d), and

    • (c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)(b), (c) and (d),

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of paragraphs 12(3)(b), (c) and (d).

  • Marginal note:Extension of benefit period — special benefits

    (13.2) If, during a claimant’s benefit period,

    • (a) regular benefits were not paid to the claimant,

    • (b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)(a), (b) and (d), and

    • (c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)(a), (b) and (d),

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of paragraphs 12(3)(a), (b) and (d).

  • Marginal note:Extension of benefit period — special benefits

    (13.3) If, during a claimant’s benefit period,

    • (a) regular benefits were not paid to the claimant,

    • (b) benefits were paid because of all of the reasons mentioned in subsection 12(3), and

    • (c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)(a), (b), (c) and (d),

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of those paragraphs.

  • Marginal note:Maximum extension under subsections (10) to (13.3)

    (14) Subject to subsection (15), no extension under any of subsections (10) to (13.3) may result in a benefit period of more than 104 weeks.

  • Marginal note:Maximum extension under subsections (13) to (13.3)

    (15) Unless the benefit period is also extended under any of subsections (10) to (12),

    • (a) no extension under subsection (13) may result in a benefit period of more than 67 weeks;

    • (b) no extension under subsection (13.1) or (13.2) may result in a benefit period of more than 58 weeks; and

    • (c) no extension under subsection (13.3) may result in a benefit period of more than 73 weeks.

• 17. (1) Subsection 12(3) of the Act is amended by striking out the word “and” at the end of paragraph (b), by adding the word “and” at the end of paragraph (c) and by adding the following after paragraph (c):

  • (d) because the claimant is providing care or support to one or more family members described in subsection 23.1(2), is six.

• (2) Section 12 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Maximum — compassionate care benefits

    (4.1) Even if more than one claim is made, or certificate is issued, in respect of the same family member, the maximum number of weeks of benefits payable under section 23.1 is six weeks during the period of 26 weeks beginning with the first day of the week referred to in paragraph 23.1(4)(a).

  • Marginal note:Shorter period

    (4.2) If a shorter period is prescribed for the purposes of subsection 23.1(5), then that shorter period applies for the purposes of subsection (4.1).

  • Marginal note:Expiration of shorter period

    (4.3) When a shorter period referred to in subsection (4.2) has expired in respect of a family member, no further benefits are payable under section 23.1 in respect of that family member until the minimum prescribed number of weeks has elapsed.

• Marginal note:2000, c. 14, s. 3(3); 2002, c. 9, s. 13

  (3) Subsection 12(5) of the Act is replaced by the following:

  • Marginal note:Combined weeks of benefits

    (5) In a claimant’s benefit period, the claimant may combine weeks of benefits to which the claimant is entitled because of a reason mentioned in subsection (3), but the maximum number of combined weeks is 50. If the benefit period

    • (a) is extended under subsection 10(13), the maximum number of combined weeks is 65;

    • (b) is extended under subsection 10(13.1) or (13.2), the maximum number of combined weeks is 56; and

    • (c) is extended under subsection 10(13.3), the maximum number of combined weeks is 71.

Marginal note:2002, c. 9, s. 14

18. Subsections 23(3.2) and (3.3) of the Act are replaced by the following:

19. The Act is amended by adding the following after section 23:

• 20. (1) Section 54 of the Act is amended by adding the following after paragraph (c.1):

  • (c.2) setting out circumstances for the purposes of paragraphs 10(5.1)(c) and 23.1(6)(c);

• (2) Section 54 of the Act is amended by adding the following before paragraph (g):

  • (f.2) prescribing classes of persons for the purposes of paragraph 23.1(1)(d);

  • (f.3) defining and determining what is care or support for the purposes of paragraph 23.1(2)(b);

  • (f.4) prescribing classes of medical practitioners for the purposes of subsection 23.1(3) and setting out the circumstances in which a certificate may be issued by them under subsection 23.1(2);

  • (f.5) prescribing a shorter period for the purposes of subsection 23.1(5) and prescribing a minimum number of weeks in relation to that shorter period for the purposes of subsection 12(4.3);

  • (f.6) prescribing requirements for the purposes of paragraph 23.1(7)(c);

  • (f.7) prescribing rules for the purposes of subsection 23.1(9);

Marginal note:2001, c. 5, s. 10

21. Section 67 of the Act is replaced by the following:

• 22. (1) Paragraph 69(1)(a) of the Act is replaced by the following:

  • (a) the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care or compassionate care under a plan that covers insured persons employed by the employer, other than one established under provincial law, would have the effect of reducing the special benefits payable to the insured persons; and

• (2) Subsection 69(2) of the Act is replaced by the following:

  • Marginal note:Provincial plans

    (2) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer’s and employee’s premiums when the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care or compassionate care under a provincial law to insured persons would have the effect of reducing or eliminating the special benefits payable to those insured persons.

• (3) Section 69 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Definition

    (6) The reference to the payment of allowances, money or other benefits because of compassionate care in subsections (1) and (2) means the payment of allowances, money or other benefits for the same or substantially the same reasons for which benefits are payable under section 23.1.

SOR/96-445Employment Insurance (Fishing) Regulations

Marginal note:SOR/2001-74

• 23. (1) Subsection 8(11.1) of the Employment Insurance (Fishing) Regulations is replaced by the following:

  • (11.1) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsections (17) and (18), the benefit period of a fisher shall be extended by one week for each week in respect of which the fisher is entitled to special benefits under section 21, 22, 23 or 23.1 of the Act, but shall not exceed a maximum of 52 weeks.

• Marginal note:2002, c. 9, s. 16(1)

  (2) Subsections 8(11.3) to (11.5) of the Regulations are replaced by the following:

  • (11.3) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

    • (a) benefits were not paid to the fisher under subsection (12),

    • (b) benefits were paid because of the reasons mentioned in paragraphs 12(3)(a), (b) and (c) of the Act, and

    • (c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)(a), (b) and (c) of the Act,

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each of paragraphs 12(3)(a), (b) and (c) of the Act.

  • (11.31) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

    • (a) benefits were not paid to the fisher under subsection (12),

    • (b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)(b), (c) and (d) of the Act, and

    • (c) benefits were not paid for the maximum number of weeks established for those reasons,

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each of paragraphs 12(3)(b), (c) and (d) of the Act.

  • (11.32) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

    • (a) benefits were not paid to the fisher under subsection (12),

    • (b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)(a), (b) and (d) of the Act, and

    • (c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)(a), (b) and (d) of the Act,

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each of paragraphs 12(3)(a), (b) and (d) of the Act.

  • (11.33) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

    • (a) benefits were not paid to the fisher under subsection (12),

    • (b) benefits were paid because of all of the reasons mentioned in subsection 12(3) of the Act, and

    • (c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)(a), (b), (c) and (d) of the Act,

    the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each those paragraphs.

  • (11.4) Subject to subsection (11.5), no extension under any of subsections (11.1) to (11.33) may result in a benefit period of more than 104 weeks.

  • (11.5) Unless a benefit period is also extended under subsection (11.1) or (11.2), no extension under subsections (11.3) to (11.33) may result in a benefit period of more than

    • (a) in the case of an extension under subsection (11.3), 67 weeks;

    • (b) in the case of an extension under subsection (11.31) or (11.32), 58 weeks; and

    • (c) in the case of an extension under subsection (11.33), 73 weeks.

• Marginal note:2002, c. 9, s. 16(2)

  (3) Subsection 8(14) of the Regulations is replaced by the following:

  • (14) No benefit period established under subsection (1) or (6) shall be extended beyond the date determined in accordance with any of subsections (11) to (11.33).

• Marginal note:2002, c. 9, s. 16(3)

  (4) Subsection 8(17.1) of the Regulations is replaced by the following:

  • (17.1) For the purpose of subsection (17), the reference in subsection 12(5) of the Act to

    • (a) subsection 10(13) of the Act is to be read as a reference to subsection (11.3) of this section;

    • (b) subsection 10(13.1) of the Act is to be read as a reference to subsection (11.31) of this section;

    • (c) subsection 10(13.2) of the Act is to be read as a reference to subsection (11.32) of this section; and

    • (d) subsection 10(13.3) of the Act is to be read as a reference to subsection (11.33) of this section.

• 24. (1) Subsection 12(3) of the Regulations is replaced by the following:

  • (3) Subject to subsection (4), sections 22 to 23.1 of the Act apply to the payment of special benefits under this section.

• (2) Paragraph 12(4)(b) of the Regulations is replaced by the following:

  • (b) entitled to benefits under section 22, 23 or 23.1 of the Act.

Transitional Provisions

• 25. (1) Sections 15 to 20 and 22 apply to a claimant for any benefit period

  • (a) that begins on or after January 4, 2004; or

  • (b) that has not ended before January 4, 2004, but only for weeks of benefits that begin on or after that date.

• (2) Sections 23 and 24 apply to a fisher for any benefit period

  • (a) that begins on or after January 4, 2004; or

  • (b) that has not ended before January 4, 2004, but only for weeks of benefits that begin on or after that date.

Related Amendments

R.S., c. L-2Canada Labour Code

Marginal note:1993, c. 42, s. 26

26. The heading “Reassignment, Maternity Leave and Parental Leave” immediately after the heading “Division VII” in Part III of the Canada Labour Code is replaced by the following:

27. The Act is amended by adding the following after section 206.2:

28. Section 209.3 of the Act is renumbered as subsection 209.3(1) and is amended by adding the following:

29. Section 209.4 of the Act is amended by adding the following after paragraph (a):

Coming into Force

Marginal note:Coming into force

• 30. (1) Subject to subsection (2), the provisions of this Part, other than sections 21, 23 and 24, come into force on a day to be fixed by order of the Governor in Council.

• Marginal note:Coming into force

  (2) Despite section 153 of the Employment Insurance Act, sections 23 and 24 come into force on a day to be fixed by order of the Governor in Council.

PART 5GENERAL — NON-TAX MEASURES

Foundations

1997, c. 26Budget Implementation Act, 1997

31. Section 31 of the Budget Implementation Act, 1997 is renumbered as subsection 31(1) and is amended by adding the following:

1998, c. 21Budget Implementation Act, 1998

32. Section 43 of the Budget Implementation Act, 1998 is renumbered as subsection 43(1) and is amended by adding the following:

2001, c. 23Canada Foundation for Sustainable Development Technology Act

33. Section 32 of the Canada Foundation for Sustainable Development Technology Act is renumbered as subsection 32(1) and is amended by adding the following:

Appropriations for Grants

Canada Foundation for Sustainable Development Technology

Marginal note:$250,000,000 granted

34. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of the Environment and the Minister of Natural Resources, be paid and applied a sum not exceeding two hundred and fifty million dollars for payment to the Canada Foundation for Sustainable Development Technology for its use.

Canadian Foundation for Climate and Atmospheric Sciences

Marginal note:$50,000,000 granted

35. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of the Environment, be paid and applied a sum not exceeding fifty million dollars for payment to the Canadian Foundation for Climate and Atmospheric Sciences for its use.

Canada Health Infoway Inc.

Marginal note:$600,000,000 granted

36. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Health, be paid and applied a sum not exceeding six hundred million dollars for payment to the Canada Health Infoway Inc. for its use.

Canadian Health Services Research Foundation

Marginal note:$25,000,000 granted

37. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Health, be paid and applied a sum not exceeding twenty-five million dollars for payment to the Canadian Health Services Research Foundation for its use.

Canadian Institute for Health Information

Marginal note:$70,000,000 granted

38. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Health, be paid and applied a sum not exceeding seventy million dollars for payment to the Canadian Institute for Health Information for its use.

Canada Foundation for Innovation

Marginal note:$500,000,000 granted

39. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding five hundred million dollars for payment to the Canada Foundation for Innovation for its use.

Genome Canada

Marginal note:$75,000,000 granted

40. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding seventy-five million dollars for payment to Genome Canada for its use.

1993, c. 14; 2001, c. 22, s. 2Amendments to the Farm Credit Canada Act

Marginal note:2001, c. 22, s. 5(4)

41. Paragraph 4(2)(f.4) of the Farm Credit Canada Act is replaced by the following:

Marginal note:1997, c. 26, s. 93

42. Subsection 11(1) of the Act is replaced by the following:

1992, c. 18Repeal of Debt Servicing and Reduction Account Act

• 43. (1) The Debt Servicing and Reduction Account Act does not apply to the fiscal year ending on March 31, 2003 or to any subsequent fiscal year.

• (2) The Act is repealed.

PART 62002, c. 9, s. 5AMENDMENTS TO THE AIR TRAVELLERS SECURITY CHARGE ACT

• 44. (1) Paragraphs 12(1)(a) to (c) of the Air Travellers Security Charge Act are replaced by the following:

  • (a) $6.54 for each chargeable emplanement included in the service, to a maximum of $13.08, if

    • (i) the service does not include transportation to a destination outside Canada, and

    • (ii) tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

  • (b) $7.00 for each chargeable emplanement included in the service, to a maximum of $14.00, if

    • (i) the service does not include transportation to a destination outside Canada, and

    • (ii) tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service;

  • (c) $11.22 for each chargeable emplanement included in the service, to a maximum of $22.43, if

    • (i) the service includes transportation to a destination outside Canada and does not include transportation to a destination outside the continental zone, and

    • (ii) tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

  • (d) $12.00 for each chargeable emplanement included in the service, to a maximum of $24.00, if

    • (i) the service includes transportation to a destination outside Canada and does not include transportation to a destination outside the continental zone, and

    • (ii) tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or

  • (e) $24.00, if the service includes transportation to a destination outside the continental zone.

• (2) Subsection (1) applies in respect of any air transportation service that includes a chargeable emplanement after February 2003 and for which any consideration is paid or becomes payable after February 2003.

PART 7AMENDMENTS RELATED TO THE TAXATION OF TOBACCO PRODUCTS

1997, c. 36Customs Tariff

Marginal note:2002, c. 22, s. 412

45. Paragraphs 21(2)(a) to (c) of the Customs Tariff are replaced by the following:

2002, c. 22Excise Act, 2001

46. Paragraphs 240(a) to (c) of the Excise Act, 2001 are replaced by the following:

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

  • (a) $0.374875 for each five cigarettes or fraction of five cigarettes contained in any package, if the cigarettes are black stock

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

  • (b) $0.396255 for each five cigarettes or fraction of five cigarettes contained in any package, in any other case.

• 48. (1) The portion of paragraph 2(a) of Schedule 1 to the Act before subparagraph (i) is replaced by the following:

  • (a) $0.054983 per stick, if the tobacco sticks are black stock

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

  • (b) $0.057983 per stick, in any other case.

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

  • (a) $49.983 per kilogram, if the manufactured tobacco is black stock

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

  • (b) $53.981 per kilogram, in any other case.

• 50. (1) Paragraph (a) of Schedule 2 to the Act is replaced by the following:

  • (a) $0.065 per cigar, and

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

  • (b) 65%, computed on

51. Paragraphs 1(a) to (c) of Schedule 3 to the Act are replaced by the following:

52. Paragraphs 2(a) to (c) of Schedule 3 to the Act are replaced by the following:

53. Paragraphs 3(a) to (c) of Schedule 3 to the Act are replaced by the following:

54. Paragraphs 4(a) to (c) of Schedule 3 to the Act are replaced by the following:

R.S., c. E-15Excise Tax Act

Marginal note:2002, c. 22, s. 414

55. Paragraphs 23.11(2)(a) to (c) of the Excise Tax Act are replaced by the following:

Marginal note:2002, c. 22, s. 415

56. Paragraphs 23.12(1)(a) to (c) of the Act are replaced by the following:

Marginal note:2002, c. 22, s. 416(1)

• 57. (1) Paragraphs 23.13(1)(a) to (c) of the Act are replaced by the following:

  • (a) $0.075 per cigarette, in the case of cigarettes;

  • (b) $0.055 per stick, in the case of tobacco sticks; and

  • (c) $50.00 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.

• Marginal note:2002, c. 22, ss. 416(2) and (3)

  (2) Paragraphs 23.13(2)(a) to (c) of the Act are replaced by the following:

  • (a) $0.1475 per cigarette, in the case of cigarettes;

  • (b) $0.08165 per stick, in the case of tobacco sticks; and

  • (c) $81.65 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.

Marginal note:1994, c. 29, s. 14(1); 2002, c. 22, s. 419

58. Sections 1 to 4 of Schedule II to the Act are replaced by the following:

Coming into Force and Application

59. For the purposes of applying the provisions of the Customs Act and the Excise Tax Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this Act had been assented to on June 18, 2002.

• 60. (1) Section 45 is deemed to have come into force on June 18, 2002. For greater certainty, the Customs Tariff, as amended by section 45, is further amended by section 346 of the Excise Act, 2001 on the coming into force of that section 346, regardless of whether that coming into force occurs before or after this Act is assented to.

• (2) Sections 46 to 54 come into force or are deemed to have come into force on the day that is the earlier of the day on which this Act is assented to and the day on which Part 3 of the Excise Act, 2001 comes into force.

• (3) Sections 55 to 58 are deemed to have come into force on June 18, 2002. For greater certainty, the Excise Tax Act, as amended by those sections, is further amended by sections 368 and 390 of the Excise Act, 2001 on the coming into force of those sections 368 and 390, regardless of whether that coming into force occurs before or after this Act is assented to.

PART 8AMENDMENTS RELATED TO EXCISE TAX ON FUEL AND TO THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX

R.S., c. E-15Excise Tax Act

• 61. (1) Section 23.4 of the Excise Tax Act is amended by adding the following after subsection (2):

  • Marginal note:Where excise tax not payable on diesel-alcohol

    (3) Where diesel fuel has been blended with alcohol to produce a diesel-alcohol fuel, the excise tax imposed under section 23 on diesel fuel is not payable on the portion of the diesel-alcohol fuel that is equal to the percentage by volume of alcohol in the fuel.

• (2) Subsection (1) is deemed to have come into force on February 19, 2003.

• 62. (1) The Act is amended by adding the following after section 23.4:

  Definition of “bio-diesel fuel”

  • 23.5 (1) In this section, “bio-diesel fuel” means a diesel fuel that is produced from waste materials, or feedstocks, of biological origin and not from petroleum, natural gas or coal.

  • Marginal note:Excise tax not payable on bio-diesel fuel

    (2) The excise tax imposed under section 23 on diesel fuel is not payable on bio-diesel fuel.

  • Marginal note:Where excise tax not payable on bio-diesel blended with diesel

    (3) Where diesel fuel has been blended with bio-diesel fuel to produce a diesel-bio-diesel fuel, the excise tax imposed under section 23 on diesel fuel is not payable on the portion of the diesel-bio-diesel fuel that is equal to the percentage by volume of bio-diesel fuel in the fuel.

• (2) Subsection (1) is deemed to have come into force on February 19, 2003.

• 63. (1) Section 68.1 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Exception

    (3) For greater certainty, no amount is payable to a person under subsection (1) in respect of tax paid on gasoline or diesel fuel transported out of Canada in the fuel tank of the vehicle that is used for that transportation.

• (2) Subsection (1) applies in respect of any application for a payment under section 68.1 of the Act received by the Minister of National Revenue after February 17, 2003.

Marginal note:1990, c. 45, s. 18

• 64. (1) Section 5 of Part III of Schedule V to the Act is replaced by the following:

  • 5. A supply made by a school authority to a person other than another school authority of a service of transporting elementary or secondary school students to or from a school that is operated by a school authority.

• (2) Subsection (1) is deemed to have come into force on December 17, 1990.

• (3) If the amount of a school authority’s net tax for a reporting period determined under the Act as amended by subsection (1) is different from the amount that would be the authority’s net tax for the period if that subsection were not enacted, and the Minister of National Revenue has assessed the net tax for the period, the Minister may reassess the net tax or an amount payable by the authority under section 230.1 of the Act to take into account that difference, on or before the later of the day that is one year after the day on which this Act is assented to and the last day of the period otherwise allowed under section 298 of the Act for making the reassessment, despite that section and despite any decision of a court in respect of that reporting period of the authority that is rendered after December 21, 2001.

Marginal note:1997, c. 10, s. 115(1)

• 65. (1) Section 21 of Part VI of Schedule V to the Act is replaced by the following:

  • 21. A supply of a municipal service, if

    • (a) the supply is

      • (i) made by a government or municipality to a recipient that is an owner or occupant of real property situated in a particular geographic area, or

        • (ii) made on behalf of a government or municipality to a recipient that is an owner or occupant of real property situated in a particular geographic area and that is not the government or municipality;

    • (b) the service is

      • (i) one which the owner or occupant has no option but to receive, or

      • (ii) supplied because of a failure by the owner or occupant to comply with an obligation imposed under a law; and

    • (c) the service is not one of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner.

• (2) Subsection (1) is deemed to have come into force on December 17, 1990 except that, in applying section 21 of Part VI of Schedule V to the Act, as enacted by subsection (1), to supplies for which all of the consideration becomes due or is paid before April 24, 1996, it shall be read without reference to subparagraph (b)(ii).

2002, c. 22Consequential Amendment to Excise Act, 2001

• 66. (1) Section 377 of the Excise Act, 2001 is replaced by the following:

  Marginal note:2000, c. 30, s. 12(1)

  377. Subsection 68.1(2) of the Act is repealed.

• (2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day before the day on which section 377 of the Excise Act, 2001 comes into force and the day on which this Act is assented to.

PART 9FIRST NATIONS GOODS AND SERVICES TAXES

First Nations Goods and Services Tax Act

• 67. (1) The First Nations Goods and Services Tax Act is enacted as follows:

  An Act respecting first nations goods and services tax

  SHORT TITLE

  Marginal note:Short title

  1. This Act may be cited as the First Nations Goods and Services Tax Act.

  INTERPRETATION

  Marginal note:Definitions

  • 2. (1) The definitions in this subsection apply in this Act.

    “administration agreement”

    « accord d’application »

    “administration agreement” means an agreement referred to in subsection 5(2).

    “authorized body”

    « organe autorisé »

    “authorized body”, of a first nation, means the body of the first nation that has the authority to enter into an administration agreement.

    “band”

    « bande »

    “band” has the meaning assigned by subsection 2(1) of the Indian Act.

    “governing body”

    « corps dirigeant »

    “governing body”means the body of a first nation that is identified opposite the name of the first nation listed in the schedule.

    “imported taxable supply”

    « fourniture taxable importée »

    “imported taxable supply” has the meaning assigned by section 217 of the Excise Tax Act.

    “input tax credit”

    « crédit de taxe sur les intrants »

    “input tax credit” has the same meaning as in Part IX of the Excise Tax Act.

    “lands”

    « terres »

    “lands”, of a first nation, means the lands that are described opposite the name of the first nation listed in the schedule.

    “Minister”

    « ministre »

    “Minister” means the Minister of Finance.

    “net tax”

    « taxe nette »

    “net tax” has the same meaning as in Part IX of the Excise Tax Act.

    “Part IX of the Excise Tax Act”

    « partie IX de la Loi sur la taxe d’accise »

    “Part IX of the Excise Tax Act” includes Schedules V to X to that Act.

    “reserve”

    « réserve »

    “reserve” has the meaning assigned by subsection 2(1) of the Indian Act.

  • Marginal note:Expressions defined in s. 123(1) of the Excise Tax Act

    (2) Unless a contrary intention appears, words and expressions used in this Act have the meanings assigned by subsection 123(1) of the Excise Tax Act.

  • Marginal note:Mobile home or floating home

    (3) A mobile home or floating home is deemed to be tangible personal property for the purposes of applying the provisions of this Act and any first nation law, as defined in subsection 11(1) or 12(1), in respect of the bringing of tangible personal property onto the lands of a first nation.

  • Marginal note:Application of deeming rules

    (4) If a provision of Part IX of the Excise Tax Act deems certain circumstances or facts to exist, those circumstances or facts are deemed to exist for the purposes of determining the matters in respect of which a first nation may enact a first nation law, as defined in subsection 11(1) or 12(1).

  APPLICATION OF OTHER ACTS OF PARLIAMENT

  Marginal note:Section 87 of Indian Act and similar provisions

  • 3. (1) The obligation to pay tax or any other amount that is required to be paid under a first nation law, as defined in subsection 11(1) or 12(1), applies despite the application of the exemption under section 87 of the Indian Act and of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

  • Marginal note:Subsection 4(1) applies despite any other Act of Parliament

    (2) The governing body of a first nation listed in the schedule may enact a law under subsection 4(1) that imposes a tax despite any other Act of Parliament that limits the authority of the first nation to enact a law that imposes a tax.

  • Marginal note:Binding on Her Majesty

    (3) If a provision of Part IX of the Excise Tax Act is binding on Her Majesty in right of Canada or a province, that provision, to the extent that it applies for the purposes of a first nation law, as defined in subsection 11(1) or 12(1), and any provision of the first nation law that corresponds to that provision of that Part, are so binding for the purposes of that law.

  FIRST NATION GOODS AND SERVICES TAX LAW

  Marginal note:Authority to impose tax

  • 4. (1) Subject to this section, the governing body of a first nation that is listed in the schedule and that is a band or has the power to enact laws that has been recognized or granted under any other Act of Parliament or under an agreement that has been given effect by any other Act of Parliament may enact a law that imposes

    • (a) a tax in respect of a taxable supply made on the lands of the first nation;

    • (b) a tax in respect of the bringing of tangible personal property onto the lands of the first nation from a place in Canada; and

    • (c) a tax in respect of an imported taxable supply made on the lands of the first nation.

  • Marginal note:Supply made on lands

    (2) A supply, other than an imported taxable supply, is made on the lands of a first nation only if at least one of the following conditions is met:

    • (a) if the lands of the first nation were a participating province, a provision of Part IX of the Excise Tax Act would deem the supply to be made in that participating province if

      • (i) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province, and

      • (ii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces; or

    • (b) tax under Part IX of the Excise Tax Act is not payable in respect of the supply and such tax would, without section 13, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

  • Marginal note:Supply of specified motor vehicle on lands

    (3) Despite subsection (2), for the purposes of paragraph (1)(a), a supply of a specified motor vehicle by way of lease, licence or similar arrangement under an agreement under which continuous possession or use of the vehicle is provided for a period of more than three months is made on the lands of a first nation only if

    • (a) in the case of a recipient who is an individual, the recipient ordinarily resides on those lands at the time the supply is made; and

    • (b) in the case of a recipient who is not an individual, the ordinary location of the vehicle, determined for the purposes of Schedule IX to the Excise Tax Act at the time the supply is made, is on those lands.

  • Marginal note:Imported taxable supply made on lands

    (4) An imported taxable supply is made on the lands of a first nation only if at least one of the following conditions is met:

    • (a) tax would be payable in respect of the imported taxable supply under subsection 218.1(1) of the Excise Tax Act if

      • (i) the lands of the first nation were the particular participating province referred to in that subsection,

      • (ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province,

      • (iii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces, and

      • (iv) the recipient of the supply were not a selected listed financial institution; or

    • (b) tax under Part IX of the Excise Tax Act is not payable in respect of the imported taxable supply and such tax would, without section 13, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

  • Marginal note:Bringing of property onto lands

    (5) Subject to subsection (6), a tax in respect of the bringing of property onto the lands of a first nation by a person shall be imposed under a law of the first nation enacted under subsection (1) only if the property was last supplied to the person by way of sale at a time when an administration agreement was in effect in respect of that law and tax would have been payable under Part IX of the Excise Tax Act in respect of the supply otherwise than at the rate of zero but for the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

  • Marginal note:Exception

    (6) A tax in respect of the bringing of property onto the lands of a first nation by a person shall not be imposed if

    • (a) tax became payable by the person in respect of the property under any first nation law, as defined in subsection 11(1) or 12(1), or section 212 of the Excise Tax Act before the property is brought onto the lands of the first nation; or

    • (b) tax would not be payable under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of the property onto the lands of the first nation if

      • (i) the lands of the first nation were the particular participating province referred to in that subsection,

      • (ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the property is brought onto the lands of the first nation were each a separate participating province,

      • (iii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces, and

      • (iv) paragraphs 220.05(3)(a) and (b) of the Excise Tax Act, section 18 of Part I of Schedule X to that Act, the exemption under section 87 of the Indian Act and any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section did not apply in respect of the bringing of the property onto the lands of the first nation.

  • Marginal note:Carriers

    (7) For the purposes of this Act, if a particular person brings property onto the lands of a first nation on behalf of another person, the other person, and not the particular person, is deemed to have brought the property onto those lands.

  • Marginal note:Amount of tax — bringing of property onto lands

    (8) For the purposes of subsection (1), the amount of tax that may be imposed under the law of a first nation in respect of the bringing of property onto the lands of the first nation by a person is equal to the amount determined by the formula

    A x B

    where

    A

    is the rate of tax set out in subsection 165(1) of the Excise Tax Act, and

    B

    is

    • (a) if the person last acquired the property by way of a sale under which the property was delivered to the person within thirty days before the day on which it is brought onto the lands of the first nation, the value of the consideration on which tax under Part IX of the Excise Tax Act in respect of the sale would have been calculated but for the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section, and

    • (b) in any other case, the lesser of

      • (i) the fair market value of the property at the time the property is brought onto the lands of the first nation, and

      • (ii) the value of the consideration referred to in paragraph (a).

  • Marginal note:Reporting and payment of tax

    (9) Tax that is imposed under a law of a first nation enacted under subsection (1) in respect of the bringing of property onto the lands of the first nation shall become payable by the person who brings it onto the lands at the time it is brought onto the lands and

    • (a) if the person is a registrant who acquired the property for consumption, use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return in respect of net tax is required to be filed under the law of the first nation for the reporting period in which the tax became payable, pay the tax to the Receiver General and report the tax in that return; and

    • (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister of National Revenue in the manner authorized by that Minister a return in respect of the tax in the form authorized by and containing information specified by that Minister.

  • Marginal note:Amount of tax — supply made on lands

    (10) For the purposes of paragraphs (1)(a) and (c), the amount of tax that may be imposed under the law of a first nation in respect of a supply is equal to the amount of tax that would be imposed under Part IX of the Excise Tax Act in respect of that supply if

    • (a) the Excise Tax Act applied and the law of the first nation, the exemption under section 87 of the Indian Act and any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section did not apply in respect of that supply;

    • (b) the amount were determined without reference to subparagraph (v) of the description of A or subparagraph (vi) of the description of J in the definition “basic tax content” in subsection 123(1) of the Excise Tax Act; and

    • (c) no amount of tax under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 of Part IX of the Excise Tax Act were included in determining that amount.

  • Marginal note:Administration and enforcement

    (11) A law enacted under subsection (1) by the governing body of a first nation shall be administered and enforced, and the tax imposed under that law shall be collected, in accordance with an administration agreement entered into under subsection 11(2) by the authorized body of the first nation.

  Marginal note:Tax attributable to a first nation

  • 5. (1) An administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a particular first nation shall provide for payments by the Government of Canada to the particular first nation in respect of that law based on an estimate for each calendar year of the total (in this section referred to as “tax attributable to the first nation”) of

    • (a) the amount by which

      • (i) the total of all amounts each of which is an amount of tax (other than tax payable by a listed financial institution) that, while that first nation law was in force, became payable in the year under a first nation law, as defined in subsection 11(1) or 12(1), or Part IX of the Excise Tax Act (other than subsections 165(2), 212.1(2) and 218.1(1) and Division IV.1) and that is attributable to property or a service that is for consumption or use on the lands of the particular first nation exceeds

      • (ii) the total of all amounts each of which is included in the total determined under subparagraph (i) and

        • (A) is included in determining an input tax credit or in determining a deduction that may be claimed in determining the net tax of a person,

        • (B) can reasonably be regarded as an amount that a person is or was entitled to recover by way of a rebate or refund or otherwise under a first nation law, as defined in subsection 11(1) or 12(1), or under any Act of Parliament, or

        • (C) is an amount of tax in respect of a supply to a person who is, under any Act of Parliament or any other law, exempt from paying the tax, and

    • (b) the total of all amounts each of which is determined in respect of a listed financial institution by the formula

      A x B

      where

      A

      is the excess that would be determined under paragraph (a) in respect of the financial institution if subparagraph (a)(i) were read without reference to the words “that is for consumption or use on the lands of the particular first nation” and that subparagraph included amounts of tax payable by the financial institution but did not include amounts of tax payable by any other person, and

      B

      is the percentage that would be determined, for the purpose of the description of C in the formula in subsection 225.2(2) of the Excise Tax Act, as the financial institution’s percentage for the particular first nation for the last taxation year of the financial institution ending in that calendar year (or, if the financial institution does not have a taxation year ending in that calendar year, for the period that would be that last taxation year if the taxation year of the financial institution that is partly included in that calendar year ended at the end of that calendar year) if the financial institution were a selected listed financial institution and the lands of the particular first nation were a participating province.

  • Marginal note:Administration agreement

    (2) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a first nation with the authorized body of the first nation and, among other things, the agreement shall provide

    • (a) the method for estimating, in accordance with the formulae, rules, conditions and data sources specified in the agreement, the tax attributable to the first nation;

    • (b) for the sharing, if any, between the first nation and the Government of Canada of the tax attributable to the first nation;

    • (c) for the retention by the Government of Canada, as its property, of

      • (i) the portion, if any, of the total tax imposed by the first nation under the first nation law that is not tax attributable to the first nation, and

      • (ii) the Government of Canada’s share, if any, under paragraph (b) of the tax attributable to the first nation;

    • (d) for the payments, and for the eligibility for payments, by the Government of Canada to the first nation in respect of the tax attributable to the first nation out of the Consolidated Revenue Fund to which the first nation is entitled under the agreement, the time when and the manner in which such payments will be made, and the remittance by the first nation to the Government of Canada of any overpayments or advances by the Government of Canada or the right of the Government of Canada to set off any overpayments or advances against amounts payable by the Government of Canada to the first nation under the agreement;

    • (e) for the administration and enforcement of the first nation law by the Government of Canada and for the collection, by the Government of Canada, of amounts imposed under that law;

    • (f) for the provision by the Government of Canada to the first nation of information acquired in the administration and enforcement of the first nation law or, subject to section 295 of the Excise Tax Act, Part IX of that Act and for the provision by the first nation to the Government of Canada of information acquired in the administration and enforcement of the first nation law;

    • (g) for the accounting for amounts collected in accordance with the agreement;

    • (h) for the payment by the Government of Canada and its agents and subservient bodies of amounts imposed under the first nation law or any other first nation law, as defined in subsection 11(1) or 12(1), and for the payment by the first nation and its agents and subservient bodies of amounts imposed under that law, any other first nation law, as defined in subsection 11(1) or 12(1), or Part IX of the Excise Tax Act;

    • (i) for the accounting for the payments referred to in paragraph (h);

    • (j) for the compliance by the Government of Canada and its agents and subservient bodies with the first nation law and any other first nation law, as defined in subsection 11(1) or 12(1), and for the compliance by the first nation and its agents and subservient bodies with that law, any other first nation law, as defined in subsection 11(1) or 12(1), and Part IX of the Excise Tax Act; and

    • (k) for other matters that relate to, and that are considered advisable for the purposes of implementing or administering, the first nation law.

  • Marginal note:Amending agreements

    (3) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement with the authorized body of a first nation amending or varying an administration agreement with the first nation or an agreement under this subsection.

  • Marginal note:Payments to first nation

    (4) If the Minister, on behalf of the Government of Canada, has entered into an administration agreement with the authorized body of a first nation, the Minister may pay to the first nation out of the Consolidated Revenue Fund

    • (a) amounts determined in accordance with the agreement as provided, and at such times as are specified, in the agreement; and

    • (b) in accordance with the agreement, advances in respect of the amounts referred to in paragraph (a).

  • Marginal note:Payments to other persons

    (5) Subject to subsection (6), if an administration agreement has been entered into in respect of a first nation law, as defined in subsection 11(1) or 12(1), payments may be made to a person out of the Consolidated Revenue Fund on account of any amount that is payable to the person under that law in accordance with the agreement.

  • Marginal note:Recoverable advance out of Consolidated Revenue Fund

    (6) If no amount is held on behalf of a first nation from which payment under subsection (5) may be made in accordance with an administration agreement, or the amount of the payment exceeds the amount so held, payment under subsection (5) may be made as a recoverable advance out of the Consolidated Revenue Fund if the repayment of the amount or excess by the first nation is provided for in the agreement.

  Marginal note:Statutory authority to make payments

  6. Despite any other Act of Parliament, the payments made under an administration agreement under the authority of subsection 5(4), (5) or (6) may be made without any other or further appropriation or authority.

  Marginal note:Coming into force — law under subsection 4(1)

  • 7. (1) A law enacted under subsection 4(1) may come into force only on or after the later of the day on which a copy of the law is received by the Minister and the day on which an administration agreement in respect of that law comes into effect.

  • Marginal note:Law deemed not in force

    (2) A law enacted under subsection 4(1) is deemed to not be in force at a particular time unless an administration agreement in respect of that law is in effect at that time.

  • Marginal note:Not subject to Statutory Instruments Act

    (3) A law enacted under subsection 4(1) is not subject to the Statutory Instruments Act.

  Marginal note:Proof of law

  8. A copy of a first nation law, as defined in subsection 11(1) or 12(1), enacted by the governing body of a first nation is, if it is certified to be a true copy, evidence that the law was duly enacted by the governing body and, in the case of a law enacted under subsection 4(1), was received by the Minister, without proof of the signature or official character of the person certifying it to be a true copy if that person is

  • (a) in the case of a first nation law, as defined in subsection 11(1), the Minister or a person authorized by the Minister; and

  • (b) in the case of a first nation law, as defined in subsection 12(1), a person authorized by the governing body.

  Marginal note:Law of a band

  • 9. (1) A law enacted under subsection 4(1) by the governing body of a band is valid only if the power of the governing body to enact the law is exercised in conformity with paragraph 2(3)(b) of the Indian Act and no such law is invalid by reason of any defect in form.

  • Marginal note:Expenditures

    (2) The power of the governing body of a band to expend moneys paid by the Government of Canada pursuant to an administration agreement in respect of a law enacted under subsection 4(1) by the governing body is validly exercised only if the power is exercised in conformity with paragraph 2(3)(b) of the Indian Act.

  • Marginal note:Publication of law

    (3) The governing body of a band shall, on demand, provide a copy of any law enacted under subsection 4(1) by that governing body and shall publish a copy of every such law in a newspaper that has general circulation in the place where the law applies and in the First Nations Gazette, but no such law shall be invalid by reason of a failure to publish it.

  • Marginal note:Indian moneys

    (4) Moneys raised pursuant to a tax imposed under a law of a first nation enacted under subsection 4(1) are not Indian moneys within the meaning of subsection 2(1) of the Indian Act.

  Marginal note:First nation — provisions of other Acts of Parliament

  • 10. (1) Subject to subsection (2), if any other Act of Parliament or an agreement that has been given effect by any other Act of Parliament recognizes or grants a power of a first nation, other than a band, to enact a law and that Act or agreement contains provisions relating to such matters as the expenditure of moneys raised under a law of the first nation relating to taxation, the style, form or registration of such a law or the procedure for enacting, publishing and providing copies of such a law, the provisions of that Act or agreement apply, with such modifications as the circumstances require, for the purposes of a law of the first nation that is enacted under subsection 4(1).

  • Marginal note:Exception

    (2) Subsection (1) does not apply to the extent that provisions relating to the matters referred to in that subsection are contained in a law of a first nation that is enacted under a power recognized or granted under any other Act of Parliament or under a power recognized or granted under an agreement that has been given effect by any other Act of Parliament.

  Meaning of “first nation law”

  • 11. (1) In this section, “first nation law” means a law enacted under subsection 4(1).

  • Marginal note:Administration agreement

    (2) The authorized body of a first nation may enter into an administration agreement in respect of a first nation law enacted by the governing body of the first nation.

  • Marginal note:Rules where agreement

    (3) If the authorized body of a first nation and the Minister have entered into an administration agreement in respect of a first nation law,

    • (a) every provision of Part IX of the Excise Tax Act (other than subsection 327(2) of that Act) applies, with such modifications as the circumstances require, for the purposes of the first nation law as if tax referred to in each of paragraphs 4(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act respectively and, subject to subsection 4(9), as if tax referred to in paragraph 4(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of property into a participating province, but the first nation law shall not thereby be construed as imposing a tax except as provided in section 4;

    • (b) the first nation law applies as if tax imposed under Part IX of the Excise Tax Act were imposed under the first nation law and as if the provisions of that Part relating to that tax were included in the first nation law, but the first nation law shall not thereby be construed as imposing a tax except as provided in section 4;

    • (c) Part IX of the Excise Tax Act applies, other than for the purposes of paragraph (a), as if tax imposed under the first nation law were imposed under that Part and as if the provisions of the first nation law relating to that tax were included in that Part, but that Part shall not thereby be construed as imposing a tax except as provided in that Part;

    • (d) all Acts of Parliament, other than this Act and Part IX of the Excise Tax Act, apply as if tax referred to in each of paragraphs 4(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act respectively and, subject to subsection 4(9), as if tax referred to in paragraph 4(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of property into a participating province; and

    • (e) for greater certainty,

      • (i) a person who does anything to satisfy a requirement of the first nation law that would satisfy a corresponding requirement of Part IX of the Excise Tax Act if the tax imposed under the first nation law were imposed under that Part is deemed to have satisfied the requirement of the first nation law,

      • (ii) a person who does anything to exercise an authority, right or privilege under the first nation law that would be a valid exercise of a corresponding authority, right or privilege under Part IX of the Excise Tax Act if the tax imposed under the first nation law were imposed under that Part is deemed to have validly exercised the authority, right or privilege under the first nation law,

      • (iii) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under Part IX of the Excise Tax Act is deemed to have done that thing for the purposes of both that Part and the first nation law,

      • (iv) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under the first nation law is deemed to have done that thing for the purposes of both that law and Part IX of the Excise Tax Act,

      • (v) a person who is a registrant for the purposes of Part IX of the Excise Tax Act is a registrant for the purposes of both that Part and the first nation law,

      • (vi) a person who is a registrant for the purposes of the first nation law is a registrant for the purposes of both that law and Part IX of the Excise Tax Act, and

      • (vii) if a proceeding may be taken under any other Act of Parliament in respect of the tax imposed under Part IX of the Excise Tax Act, that proceeding may be taken in respect of the tax imposed under the first nation law.

  FIRST NATION LAW ENACTED UNDER SEPARATE POWER

  Meaning of “first nation law”

  • 12. (1) In this section, “first nation law” means a law enacted by the governing body of a first nation listed in the schedule under a power recognized or granted under any other Act of Parliament or an agreement that has been given effect by any other Act of Parliament, if that law and its application are consistent with subsections 4(1) to (10), paragraphs 11(3)(a) and (b) and subparagraphs 11(3)(e)(i) to (iii) and (v).

  • Marginal note:Rules where agreement

    (2) If the authorized body of a first nation and the Minister have entered into an administration agreement in respect of a first nation law,

    • (a) Part IX of the Excise Tax Act applies as if tax imposed under the first nation law were imposed under that Part and as if the provisions of the first nation law relating to that tax were included in that Part, but that Part shall not thereby be construed as imposing a tax except as provided in that Part;

    • (b) all Acts of Parliament, other than this Act and Part IX of the Excise Tax Act, apply as if tax referred to in each of paragraphs 4(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act respectively and, subject to subsection 4(9), as if tax referred to in paragraph 4(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of property into a participating province; and

    • (c) for greater certainty,

      • (i) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under the first nation law is deemed to have done that thing for the purposes of both that law and Part IX of the Excise Tax Act,

      • (ii) a person who is a registrant for the purposes of the first nation law is a registrant for the purposes of both that law and Part IX of the Excise Tax Act, and

      • (iii) if a proceeding may be taken under any other Act of Parliament in respect of the tax imposed under Part IX of the Excise Tax Act, that proceeding may be taken in respect of the tax imposed under the first nation law.

  • Marginal note:Cessation of agreement

    (3) If an administration agreement in respect of a first nation law ceases to have effect at any time, this Act applies after that time in respect of the first nation law as if the first nation law had been repealed at that time.

  ADMINISTRATION AGREEMENT AND PART IX OF EXCISE TAX ACT

  Marginal note:Tax not payable

  13. If an administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), is in effect, no tax (other than tax imposed under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 of Part IX of the Excise Tax Act) is payable or deemed to have been paid or collected under Part IX of the Excise Tax Act in respect of a supply to the extent that tax is payable or deemed to have been paid or collected, as the case may be, in respect of the supply under the first nation law.

  OFFENCES

  Marginal note:Offences

  14. When an administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), is in effect and a person commits an act or omission in respect of that law that would be an offence under a provision of Part IX of the Excise Tax Act or regulations made under that Part if the act or omission were committed in relation to that Part or those regulations,

  • (a) subject to paragraph (b), the person is guilty of an offence punishable on summary conviction;

  • (b) the Attorney General of Canada may elect to prosecute the person by indictment if an offence under that provision may be prosecuted by indictment; and

  • (c) the person is liable on conviction to the punishment provided for in that provision.

  GENERAL

  Marginal note:Amendment of schedule

  15. The Governor in Council may, by order, amend the schedule by adding, deleting or varying the name of any first nation or of the governing body of any first nation or the description of the lands of any first nation.

  Marginal note:Information reports

  • 16. (1) If an administration agreement entered into by the authorized body of a first nation is in effect, the Minister of National Revenue may, for the purposes of that agreement, require any person having a place of business, or maintaining assets of a business, on the lands of the first nation to make a report respecting supplies relating to that business made by the person or property or services acquired or imported for consumption, use or supply in connection with those lands and that business.

  • Marginal note:Form and manner of filing

    (2) A report under subsection (1) shall be filed with the Minister of National Revenue in the manner and form authorized by that Minister and at the time and containing information specified by that Minister.

• (2) The schedule to the First Nations Goods and Services Tax Act is set out in the schedule to this Act.

Consequential Amendments

R.S., c. E-15Excise Tax Act

Marginal note:1993, c. 27, s. 128(3)

• 68. (1) Subparagraph 295(5)(d)(i) of the Excise Tax Act is replaced by the following:

  • (i) to an official of the Department of Finance solely for the purposes of the formulation or evaluation of fiscal policy or for the purposes of an administration agreement, as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act, entered into with an aboriginal government, as defined in that subsection, or for the purposes of an administration agreement, as defined in subsection 2(1) of the First Nations Goods and Services Tax Act,

• (2) Paragraph 295(5)(d) of the Act is amended by adding the following after subparagraph (iv.1):

  • (iv.2) to a person authorized by the governing body of a first nation listed in the schedule to the First Nations Goods and Services Tax Act solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax referred to in that Act,

PART 10AMENDMENTS TO THE INCOME TAX ACT AND ANOTHER ACT AS A CONSEQUENCE

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

• 69. (1) The descriptions of A and B in subsection 6(2) of the Income Tax Act are replaced by the following:

  A

  is

  • (a) the lesser of the total kilometres that the automobile is driven (otherwise than in connection with or in the course of the taxpayer’s office or employment) during the total available days and the value determined for the description of B for the year in respect of the standby charge for the automobile during the total available days, if

    • (i) the taxpayer is required by the employer to use the automobile in connection with or in the course of the office or employment, and

    • (ii) the distance travelled by the automobile in the total available days is primarily in connection with or in the course of the office or employment, and

  • (b) the value determined for the description of B for the year in respect of the standby charge for the automobile during the total available days, in any other case;

  B

  is the product obtained when 1,667 is multiplied by the quotient obtained by dividing the total available days by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower of those two numbers;

• (2) Subsection (1) applies to the 2003 and subsequent taxation years.

• 70. (1) The definitions “qualifying cost”, “qualifying portion of a capital gain” and “qualifying portion of the proceeds of disposition” in subsection 44.1(1) of the Act are repealed.

• (2) The descriptions of E and F in the definition “ACB reduction” in subsection 44.1(1) of the Act are replaced by the following:

  E

  is the cost to the individual of the replacement share; and

  F

  is the cost to the individual of all the replacement shares of the individual in respect of the qualifying disposition.

• (3) The descriptions of G, H and I in the definition “permitted deferral” in subsection 44.1(1) of the Act are replaced by the following:

  G

  is the lesser of the individual’s proceeds of disposition from the qualifying disposition and the total of all amounts each of which is the cost to the individual of a replacement share in respect of the qualifying disposition;

  H

  is the individual’s proceeds of disposition from the qualifying disposition; and

  I

  is the individual’s capital gain from the qualifying disposition.

• (4) Paragraph (a) of the definition “replacement share” in subsection 44.1(1) of the Act is replaced by the following:

  • (a) acquired by the individual in the year or within 120 days after the end of the year; and

• (5) Subsections (1) to (4) apply in respect of dispositions that occur after February 18, 2003.

• 71. (1) Subparagraph 60(l)(v) of the Act is amended by adding the following after clause (B):

  • (B.01) the amount included in computing the taxpayer’s income for the year as a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) received by the taxpayer out of or under a registered pension plan as a consequence of the death of an individual of whom the taxpayer was a child or grandchild, if the taxpayer was, immediately before the death, financially dependent on the individual for support because of mental or physical infirmity,

• (2) The portion of subclause 60(l)(v)(B.1)(II) of the Act before sub-subclause 1 is replaced by the following:

  • (II) the amount (other than any portion of it that is included in the amount determined under clause (B), (B.01) or (B.2)) that is included in computing the taxpayer’s income for the year as

• (3) Subsections (1) and (2) apply in respect of deaths that occur after 2002.

• 72. (1) Paragraph 104(27)(c) of the French version of the Act is replaced by the following:

  • c) lorsque la prestation est un montant unique, au sens du paragraphe 147.1(1), qu’un régime de pension agréé verse à la fiducie par suite du décès de l’auteur de celle-ci :

    • (i) si le bénéficiaire était, immédiatement avant le décès de l’auteur, l’enfant ou le petit-enfant de celui-ci qui était financièrement à sa charge en raison d’une déficience mentale ou physique, la part du bénéficiaire sur la prestation (à l’exception de toute fraction de celle-ci qui se rapporte à un surplus actuariel) est réputée, pour l’application de l’alinéa 60l), être un montant provenant d’un régime de pension agréé qui est inclus dans le calcul du revenu du bénéficiaire pour l’année donnée à titre de paiement visé à la division 60l)(v)(B.01),

    • (ii) si le bénéficiaire — enfant ou petit-enfant de l’auteur — avait moins de 18 ans au décès de l’auteur, la part du bénéficiaire sur la prestation (à l’exception de toute fraction de celle-ci qui se rapporte à un surplus actuariel) est réputée, pour l’application de l’alinéa 60l), être un montant provenant d’un régime de pension agréé qui est inclus dans le calcul du revenu du bénéficiaire pour l’année donnée à titre de paiement visé à la subdivision 60l)(v)(B.1)(II).

• (2) Paragraph 104(27)(e) of the English version of the Act is replaced by the following:

  • (e) where the benefit is a single amount (within the meaning assigned by subsection 147.1(1)) paid by a registered pension plan to the trust as a consequence of the death of the settlor of the trust,

    • (i) if the beneficiary was, immediately before the settlor’s death, a child or grandchild of the settlor who, because of mental or physical infirmity, was financially dependent on the settlor for support, the beneficiary’s share of the benefit (other than any portion of it that relates to an actuarial surplus) is deemed, for the purposes of paragraph 60(l), to be an amount from a registered pension plan included in computing the beneficiary’s income for the particular year as a payment described in clause 60(l)(v)(B.01), and

    • (ii) if the beneficiary was, at the time of the settlor’s death, under 18 years of age and a child or grandchild of the settlor, the beneficiary’s share of the benefit (other than any portion of it that relates to an actuarial surplus) is deemed, for the purposes of paragraph 60(l), to be an amount from a registered pension plan included in computing the beneficiary’s income for the particular year as a payment described in subclause 60(l)(v)(B.1)(II).

• (3) Subsections (1) and (2) apply in respect of deaths that occur after 2002.

• 73. (1) Paragraph 118.2(2)(l.4) of the Act is replaced by the following:

  • (l.4) on behalf of the patient who has a speech or hearing impairment, for sign language interpretation services or real-time captioning services, to the extent that the payment is made to a person in the business of providing such services;

  • (l.41) on behalf of the patient who has a mental or physical impairment, for note-taking services, if

    • (i) the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services, and

    • (ii) the payment is made to a person in the business of providing such services;

  • (l.42) on behalf of the patient who has a physical impairment, for the cost of voice recognition software, if the patient has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires that software;

• (2) Subsection 118.2(2) of the Act is amended by striking out the word “or” at the end of paragraph (p), by adding the word “or” at the end of paragraph (q) and by adding the following after paragraph (q):

  • (r) on behalf of the patient who has celiac disease, the incremental cost of acquiring gluten-free food products as compared to the cost of comparable non-gluten-free food products, if the patient has been certified in writing by a medical practitioner to be a person who, because of that disease, requires a gluten-free diet.

• (3) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.

• 74. (1) Subparagraph 118.3(1)(a.2)(iii) of the English version of the Act is replaced by the following:

  • (iii) an impairment with respect to an individual’s ability in feeding or dressing themself, or in walking, a medical doctor or an occupational therapist,

• (2) Subparagraph 118.3(1)(a.2)(iv) of the French version of the Act is replaced by the following:

  • (iv) s’il s’agit d’une déficience quant à la capacité de marcher, de s’alimenter ou de s’habiller, un médecin en titre ou un ergothérapeute,

• (3) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.

• 75. (1) Subparagraph 118.4(1)(c)(ii) of the Act is replaced by the following:

  • (ii) feeding oneself or dressing oneself,

• (2) Subsection 118.4(1) of the Act is amended by striking out the word “and” at the end of paragraph (c) and by adding the following after paragraph (d):

  • (e) feeding oneself does not include

    • (i) any of the activities of identifying, finding, shopping for or otherwise procuring food, or

    • (ii) the activity of preparing food to the extent that the time associated with the activity would not have been necessary in the absence of a dietary restriction or regime; and

  • (f) dressing oneself does not include any of the activities of identifying, finding, shopping for or otherwise procuring clothing.

• (3) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.

• 76. (1) Paragraph 118.6(3)(b) of the English version of the Act is amended by adding the following after subparagraph (i):

  • (i.1) a speech impairment, by a medical doctor or a speech-language pathologist,

• (2) Paragraph 118.6(3)(b) of the French version of the Act is amended by adding the following after subparagraph (ii):

  • (ii.1) s’il s’agit d’un trouble de la parole, un médecin en titre ou un orthophoniste,

• (3) Subparagraph 118.6(3)(b)(iii) of the English version of the Act is replaced by the following:

  • (iii) an impairment with respect to the individual’s ability in feeding or dressing themself, or in walking, by a medical doctor or an occupational therapist, or

• (4) Subparagraph 118.6(3)(b)(iv) of the French version of the Act is replaced by the following:

  • (iv) s’il s’agit d’une déficience quant à la capacité de marcher, de s’alimenter ou de s’habiller, un médecin en titre ou un ergothérapeute,

• (5) Subsections (1) and (2) apply in respect of certifications made after October 17, 2000.

• (6) Subsections (3) and (4) apply to the 2003 and subsequent taxation years.

• 77. (1) The first formula in subsection 122.61(1) of the Act is replaced by the following:

  1/12[(A - B) + C + M]

• (2) Subsection 122.61(1) of the Act is amended by striking out the word “and” at the end of the description of B and by replacing paragraphs (a) and (b) of the description of F in the description of C with the following:

  • (a) only one qualified dependant, $1,463, and

  • (b) two or more qualified dependants, the total of

    • (i) $1,463 for the first qualified dependant,

    • (ii) $1,254 for the second qualified dependant, and

    • (iii) $1,176 for each of the third and subsequent qualified dependants,

• (3) The descriptions of G and H in the description of C in subsection 122.61(1) of the Act are replaced by the following:

  G

  is the amount determined by the formula

  J - [K - (L/0.122)]

  where

  J

  is the person’s adjusted income for the year,

  K

  is the amount referred to in paragraph (b) of the description of B, and

  L

  is the amount referred to in paragraph (a) of the description of F, and

  H

  is

  • (a) if the person is an eligible individual in respect of only one qualified dependant, 12.2%, and

  • (b) if the person is an eligible individual in respect of two or more qualified dependants, the fraction (expressed as a percentage rounded to the nearest one-tenth of one per cent) of which

    • (i) the numerator is the total that would be determined under the description of F in respect of the eligible individual if that description were applied without reference to the fourth and subsequent qualified dependants in respect of whom the person is an eligible individual, and

    • (ii) the denominator is the amount referred to in paragraph (a) of the description of F, divided by 0.122; and

• (4) Subsection 122.61(1) of the Act is amended by adding the following after the description of C:

  M

  is the amount determined by the formula

  N - (O x P)

  where

  N

  is the product obtained by multiplying $1,600 by the number of qualified dependants in respect of whom both

  • (a) an amount may be deducted under section 118.3 for the taxation year that includes the month, and

  • (b) the person is an eligible individual at the beginning of the month,

  O

  is the amount determined by the formula

  J - [F/H + (K - L/0.122)]

  where the descriptions of J, F, H, K, and L are described in the description of C, and

  P

  is the amount that would be determined for the description of H if the person were an eligible individual in respect of only the number of qualified dependants included in the description of N.

• (5) Subsection 122.61(6) of the Act is replaced by the following:

  • Marginal note:Additions to NCB supplement — July 2005 and 2006

    (6) Each amount referred to in the description of F in subsection (1) that is to be used for the purpose of determining the amount deemed to be an overpayment arising during months that are

    • (a) after June 2005 and before July 2006, is to be replaced with the amount that is the total of $185 and the amount otherwise determined under subsection (5) for those months; and

    • (b) after June 2006 and before July 2007, is to be replaced with the amount that is the total of $185 and the amount otherwise determined, for those months, by applying subsection (5) to the amount determined under paragraph (a).

• (6) Subsections (1) to (5) apply in respect of overpayments deemed to arise during months that are after June 2003 except that, for overpayments deemed to arise during those months that are before July 2004, the following applies:

  • (a) the description of G in subsection 122.61(1) of the Act, as enacted by subsection (3), is to be read as follows:

    G

    is the amount, if any, by which the person’s adjusted income for the year exceeds $21,529, and

  • (b) subparagraph (b)(ii) in the description of H in subsection 122.61(1) of the Act, as enacted by subsection (3), is to be read as follows:

    • (ii) the denominator is the amount by which the amount referred to in paragraph (b) of the description of B exceeds $21,529.

  • (c) the description of O in subsection 122.61(1) of the Act, as enacted by subsection (4), is to be read as follows:

    O

    is the amount determined by the formula

    • (a) “J - $33,487”, if the person is an eligible individual in respect of three or fewer qualified dependants, and

    • (b) “J - (F/H + $21,529)”, if the person is an eligible individual in respect of more than three qualified dependants,

    where the descriptions of J, F and H are described in the description of C, and

• 78. (1) The definition “CCPC rate reduction percentage” in subsection 123.4(1) of the Act is repealed.

• (2) Paragraph (b) of the definition “full rate taxable income” in subsection 123.4(1) of the Act is amended by adding the word “and” at the end of subparagraph (ii) and by repealing subparagraph (iv).

• (3) Paragraph (c) of the definition “full rate taxable income” in subsection 123.4(1) of the Act is replaced by the following:

  • (c) if the corporation is throughout the year an investment corporation, a mortgage investment corporation or a mutual fund corporation, nil.

• (4) Paragraphs 123.4(3)(a) and (b) of the Act are replaced by the following:

  • (a) the amount determined by the formula

    ($300,000/A) x B

    where

    A

    is the total of

    • (i) that proportion of $200,000 that the number of days in the taxation year that are before 2003 is of the number of days in the taxation year,

    • (ii) that proportion of $225,000 that the number of days in the taxation year that are in 2003 is of the number of days in the taxation year, and

    • (iii) that proportion of $250,000 that the number of days in the taxation year that are in 2004 is of the number of days in the taxation year, and

    B

    is the corporation’s business limit for the taxation year as determined under section 125 for the purpose of paragraph 125(1)(c),

  • (b) the amount that would be determined under paragraph 125(1)(a) in respect of the corporation for the year if the description of M in the definition “specified partnership income” in subsection 125(7) were read as it is to be read for fiscal periods that begin after 2005, and

• (5) Subsection 123.4(3) of the Act is repealed.

• (6) Subsections (1) to (3) and (5) apply to the 2005 and subsequent taxation years.

• (7) Subsection (4) applies to the 2003 and 2004 taxation years.

• 79. (1) Subsections 125(2) to (4) of the Act are replaced by the following:

  • Marginal note:Interpretation of business limit

    (2) For the purpose of this section, a corporation’s “business limit” for a taxation year is $300,000 unless the corporation is associated in the year with one or more other Canadian-controlled private corporations in which case, except as otherwise provided in this section, its business limit for the year is nil.

  • Marginal note:Associated corporations

    (3) Notwithstanding subsection (2), if all the Canadian-controlled private corporations that are associated with each other in a taxation year file with the Minister in prescribed form an agreement that assigns for the purpose of this section a percentage to one or more of them for the year, the business limit for the year of each of the corporations is

    • (a) if the total of the percentages assigned in the agreement does not exceed 100%, $300,000 multiplied by the percentage assigned to that corporation in the agreement; and

    • (b) in any other case, nil.

  • Marginal note:Failure to file agreement

    (4) If any of the Canadian-controlled private corporations that are associated with each other in a taxation year has failed to file with the Minister an agreement as contemplated by subsection (3) within 30 days after notice in writing by the Minister has been forwarded to any of them that such an agreement is required for the purpose of any assessment of tax under this Part, the Minister shall, for the purpose of this section, allocate an amount to one or more of them for the taxation year. The total amount so allocated must equal the least of the amounts that would, if none of the corporations were associated with any other corporation during the year and if this Act were read without reference to subsections (5) and (5.1), be the business limits of the corporations for the year.

• (2) The description of M in the definition “specified partnership income” in subsection 125(7) of the Act is replaced by the following:

  M

  is the lesser of

  • (i) $300,000, and

  • (ii) the product obtained when $822 is multiplied by the total of all amounts each of which is the number of days in a fiscal period of the partnership that ends in the year, and

• (3) Subsection (1) applies to the 2003 and subsequent taxation years except that for taxation years that begin before 2006

  • (a) the reference in subsection 125(2) of the Act, as enacted by subsection (1), to “$300,000” is to be read as a reference to the total of

    • (i) that proportion of $200,000 that the number of days in the taxation year that are before 2003 is of the number of days in the taxation year,

    • (ii) that proportion of $225,000 that the number of days in the taxation year that are in 2003 is of the number of days in the taxation year,

    • (iii) that proportion of $250,000 that the number of days in the taxation year that are in 2004 is of the number of days in the taxation year,

    • (iv) that proportion of $275,000 that the number of days in the taxation year that are in 2005 is of the number of days in the taxation year, and

    • (v) that proportion of $300,000 that the number of days in the taxation year that are after 2005 is of the number of days in the taxation year; and

  • (b) the reference in subsection 125(3) of the Act, as enacted by subsection (1), to “$300,000” is to be read as a reference to “the amount that would, if the corporation were not associated in the year with any other corporation, be its business limit for the year determined without reference to subsections (5) and (5.1),”.

• (4) Subsection (2) applies to the 2003 and subsequent taxation years except that, for taxation years that begin before 2006, the references in the description of M in the definition “specified partnership income” in subsection 125(7) of the Act, as enacted by subsection (2), to “$300,000” and “$822”, are to be read,

  • (a) for fiscal periods of a partnership that end in a corporation’s 2003 taxation year, as “$225,000” and “$617”, respectively;

  • (b) for fiscal periods of a partnership that end in a corporation’s 2004 taxation year, as “$250,000” and “$685”, respectively; and

  • (c) for fiscal periods of a partnership that end in a corporation’s 2005 taxation year, as “$275,000” and “$754”, respectively.

• 80. (1) Subsection 125.5(3) of the Act is replaced by the following:

  • Marginal note:Tax credit

    (3) An eligible production corporation in respect of an accredited production for a taxation year is deemed to have paid on its balance-due day for the year an amount on account of its tax payable under this Part for the year equal to 16% of its qualified Canadian labour expenditure for the year in respect of the production, if

    • (a) the corporation files with its return of income for the year

      • (i) a prescribed form containing prescribed information in respect of the production,

      • (ii) an accredited film or video production certificate in respect of the production, and

      • (iii) each other document prescribed in respect of the production; and

    • (b) the principal filming or taping of the production began before the end of the year.

• (2) Subsection (1) applies in respect of Canadian labour expenditures incurred after February 18, 2003.

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

  • (a) that is a Canadian exploration expense incurred after October 17, 2000 and before 2005 by a corporation in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition “mineral resource” in subsection 248(1),

• (2) The definition “flow-through mining expenditure” in subsection 127(9) of the Act is amended by adding the word “and” at the end of paragraph (c), by striking out the word “and” at the end of paragraph (d) and by repealing paragraph (e).

• (3) Subsection 127(10.2) of the Act is replaced by the following:

  • Marginal note:Expenditure limit determined

    (10.2) For the purpose of subsection (10.1), a corporation’s expenditure limit for a particular taxation year is the amount determined by the formula

    ($5,000,000 - 10A) x B/C

    where

    A

    is the greater of $300,000 and either

    • (a) if the corporation is associated with one or more other corporations in the particular year and the particular year ends in a calendar year, the total of all amounts each of which is the taxable income of the corporation, or of such an associated corporation, for its last taxation year that ended in the preceding calendar year (determined before taking into consideration the specified future tax consequences for that last taxation year), or

    • (b) if paragraph (a) does not apply, the corporation’s taxable income for its immediately preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding year),

    B

    is the total of the business limits under section 125 for the particular year of the corporation and any such other corporations for the particular year, and

    C

    is

    • (a) if the corporation is associated with one or more other corporations in the particular year, the total of all amounts each of which would be the business limit for the particular year of the corporation or of such an associated corporation, if this Act were read without reference to subsections 125(5) and (5.1), or

    • (b) if paragraph (a) does not apply, the amount that would, if this Act were read without reference to subsections 125(5) and (5.1), be the corporation’s business limit for the particular year.

  • Marginal note:Expenditure limits — associated CCPCs

    (10.21) Notwithstanding subsection (10.2), the expenditure limit for a taxation year of a corporation that is associated in the taxation year with one or more other Canadian-controlled private corporations is, except as otherwise provided in this section, nil.

• (4) Subsections (1) and (2) apply after February 18, 2003.

• (5) Subsection (3) applies to taxation years that end after 2002 except that, for taxation years that immediately follow taxation years that ended before 2003, the reference in the formula in subsection 127(10.2) of the Act, as enacted by subsection (3), to “$5,000,000” is to be read as a reference to “$4,000,000” and the reference to “$300,000” in the description of A is to be read as a reference to “$200,000”.

• 82. (1) The definition “refund of premiums” in subsection 146(1) of the Act is replaced by the following:

  “refund of premiums”

  « remboursement de primes »

  “refund of premiums” means any amount paid out of or under a registered retirement savings plan (other than a tax-paid amount in respect of the plan) as consequence of the death of the annuitant under the plan,

  • (a) to an individual who was, immediately before the death, a spouse or common-law partner of the annuitant, where the annuitant died before the maturity of the plan, or

  • (b) to a child or grandchild of the annuitant who was, immediately before the death, financially dependent on the annuitant for support;

• (2) Paragraphs (a) and (b) of the definition “RRSP dollar limit” in subsection 146(1) of the Act are replaced by the following:

  • (a) for years other than 1996 and 2003, the money purchase limit for the preceding year,

  • (b) for 1996, $13,500, and

  • (c) for 2003, $14,500;

• (3) Section 146 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Restriction — financially dependent

    (1.1) For the purpose of paragraph (b) of the definition “refund of premiums” in subsection (1), clause 60(l)(v)(B.01) and subparagraph 104(27)(e)(i), it is assumed, unless the contrary is established, that an individual’s child or grandchild was not financially dependent on the individual for support immediately before the individual’s death if the income of the child or grandchild for the taxation year preceding the taxation year in which the individual died exceeded the amount determined by the formula

    A + B

    where

    A

    is the amount used under paragraph (c) of the description of B in subsection 118(1) for that preceding taxation year; and

    B

    is nil, unless the financial dependency was because of mental or physical infirmity, in which case it is $6,180 adjusted for each such preceding taxation year that is after 2002 in the manner set out in section 117.1.

• (4) Subsections (1) and (3) apply in respect of deaths that occur after 2002.

• (5) Subsection (2) applies after 2002.

• 83. (1) Paragraph 146.3(2)(a) of the Act is replaced by the following:

  • (a) the fund provides that the carrier shall make only those payments described in any of paragraphs (d) and (e), the definition “retirement income fund” in subsection (1), and subsections (14) and (14.1);

• (2) The portion of paragraph 146.3(2)(e.1) of the Act before subparagraph (i) is replaced by the following:

  • (e.1) where the fund does not govern a trust or the fund governs a trust created before 1998 that does not hold an annuity contract as a qualified investment for the trust, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to a person who has agreed to be a carrier of another registered retirement income fund of the annuitant or to a registered pension plan in accordance with subsection (14.1), the transferor shall retain an amount equal to the lesser of

• (3) The portion of paragraph 146.3(2)(e.2) of the Act before subparagraph (i) is replaced by the following:

  • (e.2) where paragraph (e.1) does not apply, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to a person who has agreed to be a carrier of another registered retirement income fund of the annuitant or to a registered pension plan in accordance with subsection (14.1), the transferor shall retain property in the fund sufficient to ensure that the total of

• (4) Subsection 146.3(14) of the Act is replaced by the following:

  • Marginal note:Transfer on breakdown of marriage or common-law partnership

    (14) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount

    • (a) is transferred on behalf of an individual who is a spouse or common-law partner or former spouse or common-law partner of the annuitant and who is entitled to the amount under a decree, an order or a judgment of a competent tribunal, or under a written agreement, that relates to a division of property between the annuitant and the individual in settlement of rights that arise out of, or on a breakdown of, their marriage or common-law partnership; and

    • (b) is transferred directly to

      • (i) a registered retirement income fund under which the individual is the annuitant, or

      • (ii) a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)).

  • Marginal note:Transfer to money purchase RPP

    (14.1) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount is transferred at the direction of the annuitant directly to a registered pension plan of which, at any time before the transfer, the annuitant was a member (within the meaning assigned by subsection 147.1(1)) or to a prescribed registered pension plan and allocated to the annuitant under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of the plan.

  • Marginal note:Taxation of amount transferred

    (14.2) An amount transferred on behalf of an individual in accordance with paragraph (2)(e) or subsection (14) or (14.1)

    • (a) is not, solely because of that transfer, to be included in computing the income of any taxpayer; and

    • (b) is not to be deducted in computing the income of any taxpayer.

• (5) Subsections (1) to (4) apply after 2003.

• 84. (1) Paragraphs (g) to (j) of the definition “money purchase limit” in subsection 147.1(1) of the Act are replaced by the following:

  • (g) for years after 1995 and before 2003, $13,500,

  • (h) for 2003, $15,500,

  • (i) for 2004, $16,500,

  • (j) for 2005, $18,000,

  • (k) for each year after 2005, the greater of

    • (i) the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of

      • (A) $18,000, and

      • (B) the quotient obtained when the average wage for the year is divided by the average wage for 2005, and

    • (ii) the money purchase limit for the preceding year;

• (2) Subsection (1) applies after 2002. However, for the purpose of determining a pension credit of an individual for the 2002 calendar year under section 8308.1 or 8308.3 of the Income Tax Regulations or an amount prescribed in respect of an individual under section 8308.2 or 8309 of the Income Tax Regulations for the 2003 calendar year, the money purchase limit for 2002 is deemed to be $14,500.

• 85. (1) Subsection 181.1(1) of the Act is replaced by the following:

  Marginal note:Tax payable

  • 181.1 (1) Every corporation shall pay a tax under this Part for each taxation year equal to the amount obtained by multiplying the corporation’s specified percentage for the taxation year by the amount, if any, by which

    • (a) its taxable capital employed in Canada for the year

    exceeds

    • (b) its capital deduction for the year.

  • Marginal note:Specified percentage

    (1.1) For the purpose of subsection (1), the specified percentage of a corporation for a taxation year that ends after 2003 is the total of

    • (a) that proportion of 0.225% that the number of days in the taxation year that are before 2004 is of the number of days in the taxation year,

    • (b) that proportion of 0.200% that the number of days in the taxation year that are in 2004 is of the number of days in the taxation year,

    • (c) that proportion of 0.175% that the number of days in the taxation year that are in 2005 is of the number of days in the taxation year,

    • (d) that proportion of 0.125% that the number of days in the taxation year that are in 2006 is of the number of days in the taxation year, and

    • (e) that proportion of 0.0625% that the number of days in the taxation year that are in 2007 is of the number of days in the taxation year.

  • Marginal note:Exceptions

    (1.2) Notwithstanding subsection (1.1), for the purposes of applying subsection 125(5.1) and the definitions “unused surtax credit” in subsections (6) and 190.1(5), the amount of tax in respect of a corporation under subsection (1) for a taxation year is to be determined as if the specified percentage of the corporation for the taxation year were 0.225%.

• (2) Subsection (1) applies to the 2004 and subsequent taxation years.

• 86. (1) Subsections 181.5(1) to (3) of the Act are replaced by the following:

  Marginal note:Capital deduction

  • 181.5 (1) Subject to subsection (1.1), the capital deduction of a corporation for a taxation year is $50 million unless the corporation is related to another corporation at any time in the taxation year, in which case, subject to subsection (4), its capital deduction for the year is nil.

  • Marginal note:Exceptions

    (1.1) For the purposes of applying subsection 125(5.1), the definitions “unused surtax credit” in subsections 181.1(6) and 190.1(5), and subsection 225.1(8), the amount of tax in respect of a corporation under subsection 181.1(1) for a taxation year is to be determined as if the reference to “$50 million” in subsection (1) were a reference to “$10 million”.

  • Marginal note:Related corporations

    (2) Subject to subsection (4.1), a corporation that is related to any other corporation at any time in a taxation year of the corporation that ends in a calendar year may file with the Minister in prescribed form an agreement on behalf of the related group of which the corporation is a member under which an amount that does not exceed $50 million is allocated among all corporations that are members of the related group for each taxation year of each such corporation ending in the calendar year and at a time when it was a member of the related group.

  • Marginal note:Allocation by Minister

    (3) Subject to subsection (4.1), the Minister may request a corporation that is related to any other corporation at the end of a taxation year to file with the Minister an agreement referred to in subsection (2) and, if the corporation does not file such an agreement within 30 days after receiving the request, the Minister may allocate an amount among the members of the related group of which the corporation is a member for the taxation year not exceeding $50 million.

• (2) Section 181.5 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Exceptions

    (4.1) For the purposes of applying subsection 125(5.1), the definitions “unused surtax credit” in subsections 181.1(6) and 190.1(5), and subsection 225.1(8), subsections (2) to (4) are to be read as if the amount determined under subsection (2) or (3), as the case may be, in respect of the corporation for the taxation year were that proportion of $10 million that the amount otherwise determined in respect of the corporation for the taxation year under that subsection is of $50 million.

• (3) Subsections (1) and (2) apply to the 2004 and subsequent taxation years.

• 87. (1) The definition “tax shelter” in subsection 237.1(1) of the Act is replaced by the following:

  “tax shelter”

  « abri fiscal »

  “tax shelter” means

  • (a) a gifting arrangement described by paragraph (b) of the definition “gifting arrangement”; and

  • (b) a gifting arrangement described by paragraph (a) of the definition “gifting arrangement”, or a property (including any right to income) other than a flow-through share or a prescribed property, in respect of which it can reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the gifting arrangement or the property, that, if a person were to enter into the gifting arrangement or acquire an interest in the property, at the end of a particular taxation year that ends within four years after the day on which the gifting arrangement is entered into or the interest is acquired,

    • (i) the total of all amounts each of which is

      • (A) an amount, or a loss in the case of a partnership interest, represented to be deductible in computing the person’s income for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property (including, if the property is a right to income, an amount or loss in respect of that right that is stated or represented to be so deductible), or

      • (B) any other amount stated or represented to be deemed under this Act to be paid on account of the person’s tax payable, or to be deductible in computing the person’s income, taxable income or tax payable under this Act, for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property, other than an amount so stated or represented that is included in computing a loss described in clause (A),

    would equal or exceed

    • (ii) the amount, if any, by which

      • (A) the cost to the person of the property acquired under the gifting arrangement, or of the interest in the property at the end of the particular year, determined without reference to section 143.2,

      would exceed

      • (B) the total of all amounts each of which is the amount of any prescribed benefit that is expected to be received or enjoyed, directly or indirectly, in respect of the property acquired under the gifting arrangement, or of the interest in the property, by the person or another person with whom the person does not deal at arm’s length.

• (2) Subsection 237.1(1) of the Act is amended by adding the following in alphabetical order:

  “gifting arrangement”

  « arrangement de don »

  “gifting arrangement” means any arrangement under which it may reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the arrangement, that if a person were to enter into the arrangement, the person would

  • (a) make a gift to a qualified donee, or a contribution referred to in subsection 127(4.1), of property acquired by the person under the arrangement; or

  • (b) incur a limited-recourse amount that can reasonably be considered to relate to a gift to a qualified donee or a contribution referred to in subsection 127(4.1).

• (3) The portion of the definition “tax shelter” in subsection 237.1(1) of the Act before paragraph (a), as enacted by subsection (1), and the portion of the definition “gifting arrangement” in subsection 237.1(1) of the Act before paragraph (a), as enacted by subsection (2), apply after February 18, 2003.

• (4) Paragraph (a) of the definition “tax shelter” in subsection 237.1(1) of the Act, as enacted by subsection (1), and paragraph (b) of the definition “gifting arrangement” in subsection 237.1(1) of the Act, as enacted by subsection (2) apply in respect of property acquired, and gifts, contributions, statements and representations made, after February 18, 2003.

• (5) Paragraph (b) of the definition “tax shelter” in subsection 237.1(1) of the Act, as enacted by subsection (1), and paragraph (a) of the definition “gifting arrangement” in subsection 237.1(1) of the Act, as enacted by subsection (2), apply in respect of property acquired, and statements and representations made, after February 18, 2003.

• 88. (1) The definition automobile in subsection 248(1) of the French version of the Act is amended by adding the following after paragraph (a):

  • a.1) les véhicules d’intervention d’urgence clairement identifiés qui sont utilisés dans le cadre de la charge ou de l’emploi d’un particulier au sein d’un service des incendies ou de la police;

• (2) The definition “automobile” in subsection 248(1) of the English version of the Act is amended by adding the following after paragraph (b):

  • (b.1) a clearly marked emergency-response vehicle that is used in connection with or in the course of an individual’s office or employment with a fire department or the police;

• (3) Paragraph (d) of the definition automobile in subsection 248(1) of the French version of the Act is replaced by the following:

  • d) les véhicules à moteur suivants :

    • (i) les véhicules de type fourgonnette ou camionnette, ou d’un type analogue, comptant au maximum trois places assises, y compris celle du conducteur, et qui, au cours de l’année d’imposition où ils sont acquis ou loués, sont utilisés principalement pour le transport de marchandises ou de matériel en vue de gagner un revenu,

    • (ii) les véhicules de type fourgonnette ou camionnette, ou d’un type analogue, dont la totalité ou la presque totalité de l’utilisation au cours de l’année d’imposition où ils sont acquis ou loués est pour le transport de marchandises, de matériel ou de passagers en vue de gagner un revenu,

    • (iii) les véhicules de type camionnette qui sont utilisés, au cours de l’année d’imposition où ils sont acquis ou loués, principalement pour le transport de marchandises, de matériel ou de passagers en vue de gagner un revenu à un ou plusieurs endroits au Canada qui sont, à la fois :

      • (A) visés, pour ce qui est d’un ou de plusieurs des occupants du véhicule, aux sous-alinéas 6(6) a)(i) ou (ii),

      • (B) situés à au moins 30 kilomètres du point le plus rapproché de la limite de la plus proche région urbaine, au sens du dernier dictionnaire du recensement publié par Statistique Canada avant l’année en question, qui compte une population d’au moins 40 000 personnes selon le dernier recensement publié par Statistique Canada avant cette même année.

• (4) Paragraph (e) of the definition “automobile” in subsection 248(1) of the English version of the Act is replaced by the following:

  • (e) a motor vehicle

    • (i) of a type commonly called a van or pick-up truck, or a similar vehicle, that has a seating capacity for not more than the driver and two passengers and that, in the taxation year in which it is acquired or leased, is used primarily for the transportation of goods or equipment in the course of gaining or producing income,

    • (ii) of a type commonly called a van or pick-up truck, or a similar vehicle, the use of which, in the taxation year in which it is acquired or leased, is all or substantially all for the transportation of goods, equipment or passengers in the course of gaining or producing income, or

    • (iii) of a type commonly called a pick-up truck that is used in the taxation year in which it is acquired or leased primarily for the transportation of goods, equipment or passengers in the course of earning or producing income at one or more locations in Canada that are

      • (A) described, in respect of any of the occupants of the vehicle, in subparagraph 6(6)(a)(i) or (ii), and

      • (B) at least 30 kilometres outside the nearest point on the boundary of the nearest urban area, as defined by the last census dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year.

• (5) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

  “limited-recourse amount”

  « montant à recours limité »

  “limited-recourse amount” means an amount that is a limited-recourse amount under section 143.2.

• (6) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.

• (7) Subsections (3) and (4) apply to taxation years that begin after 2002.

• (8) Subsection (5) applies after February 18, 2003.

• 89. (1) Subsection 252(3) of the Act is replaced by the following:

  • Extended meaning of “spouse” and “former spouse”

    (3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) and (j), section 60.1, subsections 70(6) and (6.1), 73(1) and (5) and 104(4), (5.1) and (5.4), the definition “pre-1972 spousal trust” in subsection 108(1), subsection 146(16), subparagraph 146.3(2)(f)(iv), subsections 146.3(14), 147(19), 147.3(5) and (7) and 148(8.1) and (8.2), the definition “small business property” in subsection 206(1), subparagraph 210(c)(ii) and subsections 248(22) and (23), “spouse” and “former spouse” of a particular individual include another individual of the opposite sex who is a party to a voidable or void marriage with the particular individual.

• (2) Subsection (1) applies after 2003.

1992, c. 48, sch.Children’s Special Allowances Act

• 90. (1) Subsection 8(1) of the Children’s Special Allowances Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) if an amount may be deducted under section 118.3 of that Act in respect of the child, the amount expressed in dollars in the description of N in subsection 122.61(1) of that Act,

• (2) Subsection (1) applies in respect of special allowances payable for months that are after June 2003.

PART 11AMENDMENTS RELATED TO STANDARDIZED ACCOUNTING

2002, c. 22Excise Act, 2001

• 91. (1) Section 165 of the Excise Act, 2001 is replaced by the following:

  Marginal note:Amounts owing of $2 or less in total

  • 165. (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty under this Act does not exceed two dollars, those amounts are deemed to be nil.

  • Marginal note:Amounts payable of $2 or less in total

    (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister shall apply those amounts against any amount owing, at that time, by the person to Her Majesty under this Act. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts are deemed to be nil.

• (2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day on which Parts 3 and 4 of the Act come into force and the day on which this Act is assented to.

• 92. (1) Subsections 170(3) to (5) of the Act are replaced by the following:

  • Marginal note:Period where interest not payable

    (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.

  • Marginal note:Interest amounts of $25 or less

    (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest, owing at that time to Her Majesty under this Act for a fiscal month and the total amount of interest payable by the person under this Act for that month is not more than $25.00, the Minister may cancel the interest.

• (2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day on which Parts 3 and 4 of the Act come into force and the day on which this Act is assented to.

• 93. (1) Section 171 of the Act is replaced by the following:

  Marginal note:Compound interest on amounts payable by Minister

  171. Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty, unless this Act provides otherwise.

• (2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day on which Parts 3 and 4 of the Act come into force and the day on which this Act is assented to.

R.S., c. E-15Excise Tax Act

Marginal note:R.S., c. 7 (2nd Supp.), s. 3(1)

• 94. (1) Subsection 7(1) of the Excise Tax Act is replaced by the following:

  Marginal note:Penalty for default

  • 7. (1) Every person who refuses or neglects to make a return as required by subsection 5(1) is liable to a penalty of five per cent of the amount of tax unpaid at the expiration of the time for filing the return.

• (2) Subsection (1) applies in respect of any period for which a return is required to be filed after June 2003.

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

  “fiscal month”

  « mois d’exercice »

  “fiscal month” means a fiscal month as determined under subsection 78(1);

  “month”

  « mois »

  “month” means a period beginning on a particular day in a calendar month and ending on

  • (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or

  • (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month;

• (2) Subsection (1) comes into force or is deemed to have come into force on July 1, 2003.

96. Section 59 of the Act is amended by adding the following after subsection (3.3):

Marginal note:2002, c. 22, s. 428

• 97. (1) Subsection 68.5(7) of the Act is amended by adding the word “and” at the end of paragraph (a), by striking out the word “and” at the end of paragraph (b) and by repealing paragraph (c).

• Marginal note:2002, c. 22, s. 428

  (2) Paragraph 68.5(9)(b) of the Act is replaced by the following:

  • (b) interest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed.

• Marginal note:2002, c. 22, s. 428

  (3) Subsections 68.5(11) to (13) of the Act are repealed.

• Marginal note:2002, c. 22, s. 428

  (4) Paragraph 68.5(14)(b) of the Act is replaced by the following:

  • (b) paid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time.

• (5) Subsection (1) applies in respect of rebate periods ending after June 2003.

• (6) Subsections (2) to (4) apply in respect of amounts owing after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 34(1); 2001, c. 16, s. 30(2)

• 98. (1) Subsections 72(7) and (8) of the Act are replaced by the following:

  • Marginal note:Interest on payment

    (7) If an amount is paid to an applicant under subsection (6), the Minister shall pay interest at the prescribed rate to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received by the Minister and ending on the day on which the amount is paid.

• (2) Subsection (1) applies in respect of an application received by the Minister of National Revenue after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 34(1)

• 99. (1) Subsections 74(3) and (4) of the Act are replaced by the following:

  • Marginal note:Interest on deduction

    (3) If a deduction is authorized under subsection (1), interest shall be authorized at the prescribed rate as a deduction in accordance with that subsection for the period beginning on the day that is 30 days after the day on which the application for the payment in respect of which the deduction was authorized was received by the Minister and ending on the day on which the notice of determination was sent.

• (2) Subsection (1) applies in respect of an application received by the Minister of National Revenue after June 2003.

Marginal note:R.S., c. 15 (1st Supp.), s. 26(1), c. 7 (2nd Supp.), ss. 35(2) and (3) and 36(2), c. 12 (4th Supp.), ss. 31(1) and (2) and 32(1) to (4); 2000, c. 30, s. 14(1); 2001, c. 16, ss. 32(1) to (3)

• 100. (1) Sections 78 and 79 of the Act are replaced by the following:

  Marginal note:Determination of fiscal months

  • 78. (1) The fiscal months of a person shall be determined in accordance with the following rules:

    • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) for the purposes of Part IX, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

    • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) for the purposes of Part IX, the person may select for the purposes of this Act fiscal months that meet the requirements set out in subsection 243(2); and

    • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

  • Marginal note:Notification of Minister

    (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

  Marginal note:Returns and payments

  • 79. (1) Every person who is required to pay tax under Part III or IV and every person who holds a licence granted under or in respect of those Parts shall, not later than the last day of the first month after each fiscal month of the person,

    • (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

    • (b) calculate, in the return, the total amount of the tax payable, if any, by the person for that fiscal month; and

    • (c) pay that amount to the Receiver General.

  • Marginal note:Authority for extended reporting period

    (2) Despite subsection (1), the Minister may authorize a person to file a return and pay tax in respect of

    • (a) any period longer than one fiscal month but not longer than six fiscal months, if the tax payable by that person under Parts III and IV for the preceding twelve fiscal months did not exceed $4,800; or

    • (b) any period longer than one fiscal month but not longer than six fiscal months, if

      • (i) the activities of the person that give rise to tax payable by that person under Part III or IV are predominantly limited to a seasonal period of operation, and

      • (ii) the tax payable by that person under Parts III and IV for the equivalent period in the preceding twelve fiscal months did not exceed an average of $400 per fiscal month during that equivalent period.

  • Marginal note:Filing of return for extended reporting period

    (3) If the Minister authorizes a person under subsection (2) to file a return and pay tax in respect of a period longer than one fiscal month, the person shall, not later than the last day of the first month after the end of the period, file the return and pay any tax owing.

  Marginal note:Transition to reporting based on fiscal months

  79.01 For the purposes of sections 78, 79 and 79.1, if the period that includes July 1, 2003 for which a person would have been required to file a return under section 78 as it read before that day (which period is referred to in this section as the “pre-existing accounting period”) overlaps one or more fiscal months of the person, including any part of a fiscal month, the following rules apply:

  • (a) the person shall file a return and pay any amounts owing in respect of the pre-existing accounting period in the same manner and at the same time as the person would have been required to under section 78 as it read before that day; and

  • (b) in the case of a particular fiscal month that includes the last day of the pre-existing accounting period, the portion of that particular fiscal month after that last day is deemed to be part of the first fiscal month following the particular fiscal month and, for this purpose, that following fiscal month may exceed 35 days in length.

  Marginal note:Amounts owing of $2 or less in total

  • 79.02 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, those amounts are deemed to be nil.

  • Marginal note:Amounts payable of $2 or less in total

    (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister shall apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada under this Act. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil.

  Marginal note:Compound interest on amounts not paid when required

  • 79.03 (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day on which the amount is paid.

  • Marginal note:Payment of interest that is compounded

    (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day.

  • Marginal note:Period where interest not payable

    (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.

  • Marginal note:Interest amounts of $25 or less

    (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest, owing at that time to Her Majesty in right of Canada under this Act for a fiscal month of the person and the total amount of interest payable by the person under this Act for that month is not more than $25.00, the Minister may cancel the interest.

  Marginal note:Compound interest on amounts owed by Her Majesty

  79.04 Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada, unless this Act provides otherwise.

  Marginal note:Application of interest provisions if Act amended

  79.05 For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

• (2) Sections 78 to 79.01 of the Act, as enacted by subsection (1), come into force or are deemed to have come into force on July 1, 2003.

• (3) Sections 79.02 to 79.04 of the Act, as enacted by subsection (1), apply in respect of amounts owing by a person to Her Majesty in right of Canada, and in respect of amounts payable by the Minister of National Revenue, after June 2003.

Marginal note:R.S., c. 12 (4th Supp.), s. 33(1)

• 101. (1) Subparagraphs 79.1(1)(a)(i) to (iii) of the Act are replaced by the following:

  • (i) for a fiscal month is the lesser of

    • (A) the tax payable under Parts III and IV, as the case may be, other than tax payable in accordance with the Customs Act, by that person in that month, and

    • (B) the tax so payable in the last preceding fiscal month, and

  • (ii) for any period authorized under subsection 79(2) is the lesser of

    • (A) the tax payable under Parts III and IV, as the case may be, other than tax payable in accordance with the Customs Act, by that person in that period, and

    • (B) the tax so payable in the last preceding period so authorized multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in that last preceding period; and

• Marginal note:R.S., c. 12 (4th Supp.), s. 33(1); 1999, c. 31, par. 247(b)(F)

  (2) Subparagraph 79.1(1)(b)(ii) of the Act is replaced by the following:

  • (ii) the person

    • (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days if that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts III and IV, other than taxes payable in accordance with the Customs Act, by the group in that year exceeded twelve million dollars, and

    • (B) is not, at that time, authorized under subsection 79(2) to file a return for a period longer than one fiscal month.

• Marginal note:R.S., c. 12 (4th Supp.), s. 33(1)

  (3) Subsections 79.1(2) to (8) of the Act are replaced by the following:

  • Marginal note:Instalment payments by large taxpayers

    (2) A large taxpayer who is required to file a return and pay tax under subsection 79(1) shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the fiscal month in which the tax became payable or the sales were made, as the case may be, the first to be paid not later than the last day of that month and the second not later than the day that is 15 days after that last day.

  • Marginal note:Instalment payments by other persons

    (3) A person, other than a large taxpayer, who is required under subsection 79(1) or (3) to file a return and pay tax in respect of a fiscal month or other period authorized under subsection 79(2) shall, not later than 21 days after the end of the month or period, as the case may be, pay an instalment on account of the tax equal to the person’s instalment base for the month or period.

• (4) Subsections (1) to (3) come into force or are deemed to have come into force on July 1, 2003.

Marginal note:R.S., c. 12 (4th Supp.), s. 33(1); 1999, c. 17, s. 150(E) and par. 156(a)

• 102. (1) Section 79.2 of the Act is replaced by the following:

  Marginal note:Filing of return by mail

  • 79.2 (1) If a person who is required under this Act to file a return with the Minister does so by mailing the return, the return is deemed to have been filed with the Minister on the day on which the return was mailed and the date of the postmark is evidence of that day.

  • Marginal note:Payment or remittance of amounts

    (2) A person who is required under this Act to pay or remit an amount to the Receiver General shall not be considered as having paid or remitted the amount until it is received by the Receiver General.

• (2) Subsection (1) comes into force or is deemed to have come into force on July 1, 2003.

Marginal note:1990, c. 45, s. 11(1)

• 103. (1) Subsection 80(2) of the Act is replaced by the following:

  • Marginal note:Alternate reporting

    (2) Any person filing a return under section 79 may, in lieu of submitting a report under subsection (1), include in the return a report in the prescribed form containing details of the person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the period to which the return relates and any other prescribed information.

• (2) Subsection (1) applies in respect of fiscal months that begin after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 38(1)

• 104. (1) Subsections 81.16(4) to (6) of the Act are replaced by the following:

  • Marginal note:Interest on reassessment

    (4) Subject to subsection (5), if an amount is paid under subsection (1), interest at the prescribed rate shall be paid, in respect of each day between the date of the notice of the assessment that is the subject of the objection and the day on which the payment was sent.

  • Marginal note:Interest on amount paid by person

    (5) If a person has paid an amount on account of the amount owing as set out in a notice of assessment and a payment is made to that person under subsection (1) on an objection to the assessment, interest at the prescribed rate shall be paid, in respect of each day between the day on which the amount was paid by that person and the day on which the payment was sent to that person.

• (2) Subsection (1) applies in respect of amounts payable by the Minister of National Revenue after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 38(1)

• 105. (1) Subsections 81.18(3) to (5) of the Act are replaced by the following:

  • Marginal note:Interest on refund payments

    (3) If an amount is paid under subsection (1), interest at the prescribed rate shall be paid, in respect of each day between the day that is 30 days after the day on which the application that is the subject of the reconsideration was received by the Minister and the day on which the payment is sent.

  • Marginal note:Interest on refund deductions

    (4) If a deduction is authorized under subsection (2), interest at the prescribed rate shall be authorized as a deduction in accordance with subsection 74(1), calculated in respect of each day between the day that is 30 days after the day on which the application was received by the Minister and the day on which the notice of decision was sent.

• (2) Subsection (1) applies in respect of amounts payable by the Minister of National Revenue after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 38(1); 2001, c. 16, s. 33(1)

• 106. (1) Subsections 81.38(6) to (9) of the Act are replaced by the following:

  • Marginal note:Interest on assessment

    (6) Subject to subsection (7), if a payment is made under subsection (1) or (4) in respect of an assessment, interest at the prescribed rate shall be paid, in respect of each day between the date of the notice of assessment and the day on which the payment was sent.

  • Marginal note:Interest on amounts payable to person

    (7) If a person has paid an amount on account of the amount owing as set out in a notice of assessment or a notice of decision and a payment is made to that person under subsection (1) or (4) in respect of the assessment, interest at the prescribed rate shall be paid, in respect of each day between the day on which the amount was paid by that person and the day on which the payment was sent to that person.

  • Marginal note:Interest on refunds

    (8) If a payment is made under subsection (1) or (4) in respect of an application under any of sections 68 to 69, interest at the prescribed rate shall be paid, in respect of each day between the day that is 30 days after the day on which the application was received by the Minister and the day on which the payment was sent.

• (2) Subsection (1) applies in respect of amounts owing by a person to the Receiver General or amounts payable by the Minister of National Revenue, as the case may be, after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 38(1); 1993, c. 27, s. 4(1)

• 107. (1) Section 81.39 of the Act is replaced by the following:

  Marginal note:Deemed tax

  • 81.39 (1) Subject to subsection (4), if a person has

    • (a) received a drawback under section 70,

    • (b) received a payment under subsection 68.16(1) or (2), 72(6) or (7), 81.14(1), 81.16(1), (4) or (5), 81.18(1) or (3) or 120(7), or

    • (c) made a deduction under subsection 69(2), 73(1), (2) or (3), 74(1) or (3) or 81.18(2) or (4)

    to which that person was not entitled or in excess of the drawback, payment or deduction to which the person was entitled, the amount of the drawback, payment or deduction or the excess is deemed to be a tax under this Act payable by that person on the day the drawback, payment or deduction was made.

  • Marginal note:Amount payable after disposition of appeal

    (2) If a person has received a payment under subsection 81.38(1), (6), (7) or (8) and, on the final disposition of the appeal by further appeal or otherwise, it is determined that the person was not entitled to the payment or that the payment was in excess of the payment to which the person was entitled, the amount of the payment or the excess is deemed to be a tax under this Act payable by that person on the day the payment was made.

  • Marginal note:Amount payable after disposition of further appeal

    (3) If a person has received a payment under subsection 81.38(4), (6), (7) or (8) and, on the final disposition by further appeal or otherwise of the appeal referred to in subsection 81.38(1) on the basis of which the payment was made, it is determined that the person was not entitled to the payment or that the payment was in excess of the payment to which the person was entitled, the amount of the payment or the excess is deemed to be a tax under this Act payable by that person on the day the payment was made.

  • Marginal note:Amount payable after recovery of payment

    (4) If a person is liable to pay an amount under subsection 68.15(3) or 68.21(3), that amount is deemed to be a tax under this Act payable by that person on the day the liability arose.

• (2) Subsection (1) applies in respect of amounts paid to a person after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 41(1), c. 12 (4th Supp.), s. 35(1)

• 108. (1) Subsections 84(5) to (9) of the Act are replaced by the following:

  • Marginal note:Application of payments

    (5) Any moneys paid by a person under subsection (4) shall, in addition to being applied to that person’s liability under this section, be applied on account of the tax debtor’s liability under this Act.

  • Marginal note:Receipt by Receiver General

    (6) The receipt by the Receiver General of moneys paid as required under this section is a good and sufficient discharge of the liability to the tax debtor to the extent of the amount received.

  • Definition of “tax debtor”

    (7) In this section, “tax debtor” means a person by whom any tax, penalty, interest or other sum is payable under this Act.

• (2) Subsection (1) applies in respect of an amount payable by a person after June 2003.

Marginal note:2001, c. 15, s. 3(1)

• 109. (1) Section 88 of the Act is replaced by the following:

  Marginal note:Waiver or cancellation of interest or penalty

  • 88. (1) The Minister may waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty.

  • Marginal note:Interest where amounts cancelled

    (2) If a person has paid an amount of interest or penalty and the Minister cancels that amount under subsection (1), the Minister shall pay interest on the amount paid by the person beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the amount is refunded or applied against an amount owed by the person to Her Majesty in right of Canada.

• (2) Subsection (1) applies in respect of requests received by the Minister of National Revenue after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 51(1)

• 110. (1) The portion of paragraph 116(4)(a) of the Act before subparagraph (i) is replaced by the following:

  • (a) the purchaser and not the manufacturer or wholesaler from whom the goods were purchased is liable to pay the tax and any interest under subsection 79.03(1), if

• Marginal note:R.S., c. 7 (2nd Supp.), s. 51(1)

  (2) Paragraph 116(4)(b) of the Act is replaced by the following:

  • (b) in any other case, the purchaser and the manufacturer or wholesaler from whom the goods were purchased are jointly and severally liable to pay the tax and any interest under subsection 79.03(1).

• (3) Subsections (1) and (2) apply in respect of amounts owing by a person after June 2003.

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

• 111. (1) Paragraph 129(2.1)(b) of the Income Tax Act is replaced by the following:

  • (b) the day that is 30 days after the day on which the corporation’s return of income under this Part for the year was filed under section 150, unless the return was filed on or before the day on or before which it was required to be filed,

• (2) Subsection (1) applies to taxation years that end after June 2003.

• 112. (1) Paragraph 131(3.1)(b) of the Act is replaced by the following:

  • (b) the day that is 30 days after the day on which the corporation’s return of income under this Part for the year was filed under section 150, unless the return was filed on or before the day on or before which it was required to be filed,

• (2) Subsection (1) applies to taxation years that end after June 2003.

• 113. (1) The portion of subsection 132(2.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Interest on capital gains refund

    (2.1) If a capital gains refund for a taxation year is paid to, or applied to a liability of, a mutual fund trust, the Minister shall pay or apply interest on the refund at the prescribed rate for the period beginning on the day that is 30 days after the later of

• (2) Subsection (1) applies to taxation years that end after June 2003.

• 114. (1) Paragraph 133(7.01)(b) of the Act is replaced by the following:

  • (b) the day that is 30 days after the day on which the corporation’s return of income under this Part for the year was filed under section 150, unless the return was filed on or before the day on or before which it was required to be filed,

• (2) Subsection (1) applies to taxation years that end after June 2003.

• 115. (1) Subsection 157(2) of the Act is repealed.

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 116. (1) Subsection 161(2.1) of the Act is repealed.

• (2) The portion of paragraph 161(7)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) the amount by which the tax payable under this Part and Parts I.3, VI and VI.1 by the taxpayer for the year is reduced as a consequence of the deduction or exclusion of amounts described in paragraph (a) is deemed to have been paid on account of the taxpayer’s tax payable under this Part for the year on the day that is 30 days after the latest of

• (3) Subsection (1) applies to taxation years that end after June 2003.

• (4) Subsection (2) applies in respect of applications received after June 2003.

• 117. (1) The Act is amended by adding the following after section 161.1:

  Marginal note:Period where interest not payable

  161.2 Notwithstanding any other provision of this Act, if the Minister notifies a taxpayer that the taxpayer is required to pay a specified amount under this Act and the taxpayer pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.

  Small Amounts Owing

  Marginal note:Interest and penalty amounts of $25 or less

  161.3 If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty, owing at that time to Her Majesty in right of Canada under this Act for a taxation year of the person and the total amount of interest and penalty payable by the person under this Act for that year is not more than $25.00, the Minister may cancel the interest and penalty.

  Marginal note:Taxpayer

  • 161.4 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, those amounts are deemed to be nil.

  • Marginal note:Minister

    (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister shall apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil.

• (2) Section 161.2 of the Act, as enacted by subsection (1), comes into force or is deemed to have come into force on July 1, 2003.

• (3) Section 161.3 of the Act, as enacted by subsection (1), applies to taxation years that end after June 2003.

• (4) Section 161.4 of the Act, as enacted by subsection (1), applies to amounts owing or payable, as the case may be, after June 2003.

• 118. (1) Subsection 164(3) of the Act is replaced by the following:

  • Marginal note:Interest on refunds and repayments

    (3) Where under this section an amount in respect of a taxation year (other than an amount or portion of it that can reasonably be considered to arise from the operation of section 122.5, 122.61 or 126.1) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period beginning on the day that is the latest of the days referred to in the following paragraphs and ending on the day on which the amount is refunded, repaid or applied:

    • (a) if the taxpayer is an individual, the day that is 30 days after the individual’s balance-due day for the year;

    • (b) if the taxpayer is a corporation, the day that is 120 days after the end of the year;

    • (c) if the taxpayer is

      • (i) a corporation, the day that is 30 days after the day on which its return of income for the year was filed under section 150, unless the return was filed on or before the corporation’s filing-due date for the year, and

      • (ii) an individual, the day that is 30 days after the day on which the individual’s return of income for the year was filed under section 150;

    • (d) in the case of a refund of an overpayment, the day on which the overpayment arose; and

    • (e) in the case of a repayment of an amount in controversy, the day on which an overpayment equal to the amount of the repayment would have arisen if the total of all amounts payable on account of the taxpayer’s liability under this Part for the year were the amount by which

      • (i) the lesser of the total of all amounts paid on account of the taxpayer’s liability under this Part for the year and the total of all amounts assessed by the Minister as payable under this Part by the taxpayer for the year

      exceeds

      • (ii) the amount repaid.

• (2) Subsection 164(3.2) of the Act is replaced by the following:

  • Marginal note:Interest where amounts cancelled

    (3.2) Notwithstanding subsection (3), if an overpayment of a taxpayer for a taxation year is determined because of an assessment made under subsection 152(4.2) or 220(3.1) or (3.4) and an amount in respect of the overpayment is refunded to, or applied to another liability of, the taxpayer under subsection (1.5) or (2), the Minister shall pay or apply interest on the overpayment at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply those subsections and ending on the day on which the amount is refunded or applied.

• (3) The portion of subsection 164(5) of the Act after paragraph (h.3) and before paragraph (i) is replaced by the following:

  is deemed to have arisen on the day that is 30 days after the latest of

• (4) Subsections (1) and (3) apply to taxation years that end after June 2003.

• (5) Subsection (2) applies in respect of requests received by the Minister of National Revenue after June 2003.

• 119. (1) The portion of subsection 183.1(2) of the Act after paragraph (b) is replaced by the following:

  the corporation shall, on or before its balance-due day for its taxation year that includes that time, pay tax of 45% of that amount or portion of it, as the case may be.

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 120. (1) The portion of subsection 186(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Tax on assessable dividends

  • 186. (1) Every corporation (in this section referred to as the “particular corporation”) that is at any time in a taxation year a private corporation or a subject corporation shall, on or before its balance-due day for the year, pay a tax under this Part for the year equal to the amount, if any, by which the total of

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 121. (1) Section 187.2 of the Act is replaced by the following:

  Marginal note:Tax on dividends on taxable preferred shares

  187.2 Every corporation shall, on or before its balance-due day for a taxation year, pay a tax under this Part for the year equal to 10% of the total of all amounts each of which is a dividend, other than an excepted dividend, received by the corporation in the year on a taxable preferred share (other than a share of a class in respect of which an election under subsection 191.2(1) has been made) to the extent that an amount in respect of the dividend was deductible under section 112 or 113 or subsection 138(6) in computing its taxable income for the year or under subsection 115(1) in computing its taxable income earned in Canada for the year.

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 122. (1) Subsection 187.3(1) of the Act is replaced by the following:

  Marginal note:Tax on dividends on taxable RFI shares

  • 187.3 (1) Every restricted financial institution shall, on or before its balance-due day for a taxation year, pay a tax under this Part for the year equal to 10% of the total of all amounts each of which is a dividend, other than an excepted dividend, received by the institution at any time in the year on a share acquired by any person before that time and after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 that was, at the time the dividend was paid, a taxable RFI share to the extent that an amount in respect of the dividend was deductible under section 112 or 113 or subsection 138(6) in computing its taxable income for the year or under subsection 115(1) in computing its taxable income earned in Canada for the year.

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 123. (1) Paragraph 196(3)(b) of the Act is replaced by the following:

  • (b) the remainder, if any, of the tax payable by it under this Part for the year, on or before its balance-due day for the year.

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 124. (1) Paragraph 204.86(1)(c) of the Act is replaced by the following:

  • (c) on or before its balance-due day for the year, pay to the Receiver General the amount of tax and penalties, if any, payable under this Part by it for the year.

• (2) Paragraph 204.86(2)(c) of the Act is replaced by the following:

  • (c) on or before its balance-due day for the year, pay to the Receiver General the amount of tax payable under this Part by it for the year.

• (3) Subsections (1) and (2) apply to taxation years that begin after June 2003.

• 125. (1) The portion of subsection 208(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Return and payment of tax

    (2) A person liable to pay a tax under this Part in respect of a year shall, on or before its balance-due day for a taxation year,

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 126. (1) Paragraph 209(4)(b) of the Act is replaced by the following:

  • (b) the remainder, if any, of the tax payable by the person under this Part for the year, on or before the person’s balance-due day for the year.

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 127. (1) Section 211.4 of the Act is replaced by the following:

  Marginal note:Payment of remainder of tax

  211.4 Every life insurer shall pay, on or before its balance-due day for a taxation year, the remainder, if any, of the tax payable under this Part by the insurer for the year.

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 128. (1) The portion of subsection 219(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Additional tax

  • 219. (1) Every corporation that is non-resident in a taxation year shall, on or before its balance-due day for the year, pay a tax under this Part for the year equal to 25% of the amount, if any, by which the total of

• (2) Subsection (1) applies to taxation years that begin after June 2003.

• 129. (1) Subsection 220(3) of the Act is replaced by the following:

  • Marginal note:Extensions for returns

    (3) The Minister may at any time extend the time for making a return under this Act. However, the extension does not apply for the purpose of calculating a penalty that a person is liable to pay under section 162 if the person fails to make the return within the period of the extension.

• (2) Subsection (1) applies in respect of extensions granted after February 18, 2003.

Coordinating Amendments

Excise Act, 2001

• 130. (1) On the later of the coming into force of subsection 100(1) of this Act and section 382 of the Excise Act, 2001, being chapter 22 of the Statutes of Canada, 2002 (the “other Act”), section 78 of the Excise Tax Act is replaced by the following:

  Marginal note:Determination of fiscal months

  • 78. (1) The fiscal months of a person shall be determined in accordance with the following rules:

    • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) for the purposes of Part IX, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

    • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) for the purposes of Part IX, the person may select for the purposes of this Act fiscal months that meet the requirements set out in subsection 243(2); and

    • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

  • Marginal note:Notification of Minister

    (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

• (2) On the later of the coming into force of subsection 100(1) of this Act and section 383 of the other Act, section 79 of the Excise Tax Act is replaced by the following:

  Marginal note:Returns and payments

  • 79. (1) Every person who is required to pay tax under Part III and every person who holds a licence granted under or in respect of that Part shall, not later than the last day of the first month after each fiscal month of the person,

    • (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

    • (b) calculate, in the return, the total amount of the tax payable, if any, by the person for that fiscal month; and

    • (c) pay that amount to the Receiver General.

  • Marginal note:Authority for extended reporting period

    (2) Despite subsection (1), the Minister may authorize a person to file a return and pay tax in respect of

    • (a) any period longer than one fiscal month but not more than six fiscal months, if the tax payable by that person under Part III for the preceding twelve fiscal months did not exceed $4,800; or

    • (b) any period longer than one fiscal month but not more than six fiscal months, if

      • (i) the activities of the person that give rise to tax payable by that person under Part III are predominantly limited to a seasonal period of operation, and

      • (ii) the tax payable by that person under Part III for the equivalent period in the preceding twelve fiscal months did not exceed an average of $400 per fiscal month during that equivalent period.

  • Marginal note:Filing of return for extended reporting period

    (3) If the Minister authorizes a person under subsection (2) to file a return and pay tax in respect of a period longer than one fiscal month, the person shall, not later than the last day of the first month after the end of the period, file the return and pay any tax owing.

• (3) On the later of the coming into force of subsection 101(1) of this Act and subsection 384(1) of the other Act, clause 79.1(1)(a)(i)(A) of the Excise Tax Act is replaced by the following:

  • (A) the tax payable under Part III, other than tax payable in accordance with the Customs Act, by that person in that month, and

• (4) On the later of the coming into force of subsection 101(1) of this Act and subsection 384(2) of the other Act, clause 79.1(1)(a)(ii)(A) of the Excise Tax Act is replaced by the following:

  • (A) the tax payable under Part III, other than tax payable in accordance with the Customs Act, by that person in that period, and

• (5) If subsection 101(1) of this Act comes into force before, or on the same day as, subsection 384(3) of the other Act, then, on the day on which that subsection 101(1) comes into force, that subsection 384(3) is repealed.

• (6) On the later of the coming into force of subsection 101(2) of this Act and subsection 384(4) of the other Act, subparagraph 79.1(1)(b)(ii) of the Excise Tax Act is replaced by the following:

  • (ii) the person

    • (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days if that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Part III, other than taxes payable in accordance with the Customs Act, by the group in that year exceeded twelve million dollars, and

    • (B) is not, at that time, authorized under subsection 79(2) to file a return for a period longer than one fiscal month.

• (7) If subsection 101(3) of this Act comes into force before, or on the same day as, subsection 384(5) of the other Act, then, on the day on which that subsection 101(3) comes into force, that subsection 384(5) is repealed.