An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004 (S.C. 2004, c. 22)
Full Document:
Assented to 2004-05-14
An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004
S.C. 2004, c. 22
Assented to 2004-05-14
An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004
SUMMARY
Part 1 of this enactment amends Part I of the Federal Provincial Fiscal Arrangements Act to authorize the Minister of Finance to make fiscal equalization payments to the provinces for each of the five fiscal years in the period beginning on April 1, 2004 and ending on March 31, 2009 and to change the manner in which those payments will be calculated. It also amends Part V.1 of that Act to increase the amount that Canada will pay under the Canada Social Transfer in respect of the fiscal year beginning on April 1, 2004 and the fiscal year beginning on April 1, 2005.
Part 2 makes a consequential amendment to the Canada Newfoundland Atlantic Accord Implementation Act.
Part 3 amends the Canada Foundation for Sustainable Development Technology Act and provides for the making of certain payments to a trust, the Province of Nova Scotia, the Province of Saskatchewan, the Canada Foundation for Sustainable Development Technology and the Canada Health Infoway Inc.
Part 4 amends the Canada Pension Plan to clarify the rules governing contributions to the Canada Pension Plan and refunds of amounts remitted in relation to employers' contributions and to allow for the reinstatement of certain disability benefits.
With respect to the rules governing contributions to the Canada Pension Plan, the amendments allow an employer who immediately succeeds another employer, in a year after 2003, as a result of a change in business structure to take into account amounts relating to the determination of the contributions for an employee of the predecessor employer in determining contributions for the employee of the successor employer. The amendments also provide for situations where self employed individuals become employees of a corporation controlled by them or vice versa.
Other amendments clarify the amount of annual employers' contributions required under the Act and specify that only amounts remitted in excess of the required amount may be refunded to the employer. Those amendments are deemed to have come into force on March 18, 2003.
With respect to reinstatement of disability benefits, the amendments allow for reinstatement of a disability pension that has ceased to be payable because a person has returned to work, if the person again becomes incapable of working within a two year period after the date when payment of the pension ceased. It also provides for reinstatement of a disabled contributor's child benefit to the child of a person whose disability pension is reinstated.
Part 5 amends the Employment Insurance Act to provide the Governor in Council with the authority to set the employment insurance premium rate for 2005. It also amends that Act to effect amendments that are equivalent to those made in Part 4 to the Canada Pension Plan with respect to contributions in the event of business restructuring.
Part 6 amends the Farm Credit Canada Act to increase the capital of Farm Credit Canada.
Part 7 amends the Excise Tax Act to implement the 100 percent rebate of the Goods and Services Tax and the federal component of the Harmonized Sales Tax for municipalities. It also amends the Act to make certain supplies of property and services made by municipalities taxable, to introduce new rules to modify the determination of the basic tax content of property of a municipality and to provide for the public disclosure of the amount of the incremental rebate paid to individual municipalities. Those amendments generally apply as of February 1, 2004.
Part 8 amends the Air Travellers Security Charge Act, the Excise Act, the Excise Act, 2001, the Excise Tax Act and the Income Tax Act to implement a uniform 10 year limitation period for the collection of amounts payable or remittable under those Acts effective as of March 4, 2004 when those amendments were first publicly proposed. It stipulates that certain collection actions or events restart or extend the limitation period. It precludes any claim because of the timing of action taken before March 4, 2004 to collect a charge debt or tax debt under those Acts. It also provides for a 10 year limitation period to begin March 4, 2004 for all amounts unpaid or unremitted under those Acts on that date. In addition, it ensures that the 10 year limitation period begins on that date for any of those amounts that would otherwise be affected by a court order made after March 3, 2004 and before the amendments in this Part come into force, which is the day on which they receive royal assent.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Budget Implementation Act, 2004.
PART 1R.S., c. F8; 1995, c. 17, s. 45(1)AMENDMENTS TO THE FEDERALPROVINCIAL FISCAL ARRANGEMENTS ACT
Fiscal Equalization Payments
Marginal note:1999, c. 11, s. 1
2. Section 3 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:
Marginal note:Fiscal equalization payments
3. Subject to the other provisions of this Act, the Minister may pay to a province for each fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2009 a fiscal equalization payment not exceeding the amount computed in accordance with section 4.
Marginal note:1999, c. 11, s. 2(1)
3. (1) Subsections 4(1) to (1.4) of the Act are replaced by the following:
Marginal note:Computation of payments
4. (1) Subject to the other provisions of this Part, the fiscal equalization payment that may be paid to a province for a fiscal year is the amount determined by the Minister by the formula
1.10 (A + B + C)/3
where
- A
- is the greater of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting, for each revenue source, the per capita yield in that province for the revenue source for the immediately preceding fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for the revenue source for the immediately preceding fiscal year
by
(ii) the population of the province for the immediately preceding fiscal year, and
(b) zero;
- B
- is the greater of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting, for each revenue source, the per capita yield in that province for the revenue source for the fiscal year two years prior to that fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for the revenue source for the fiscal year two years prior to that fiscal year
by
(ii) the population of the province for the fiscal year two years prior to that fiscal year, and
(b) zero;
- C
- is the greater of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting, for each revenue source, the per capita yield in that province for the revenue source for the fiscal year three years prior to that fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for the revenue source for the fiscal year three years prior to that fiscal year
by
(ii) the population of the province for the fiscal year three years prior to that fiscal year, and
(b) zero;
Marginal note:Payment for fiscal year 20042005
(1.1) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2004 is the amount calculated in accordance with the former legislation. Subsections (6) and (7), as they read immediately before the coming into force of this subsection, apply to that payment as if those subsections expressly provided that they apply to it.
Marginal note:Payment for fiscal year 20052006
(1.2) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2005 is the amount determined by the Minister by the formula
2D + E
where
- D
- is one third of the amount calculated in accordance with the former legislation; and
- E
- is 1.10 x A/3, where A has the same description as in subsection (1).
Marginal note:Payment for fiscal year 20062007
(1.3) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2006 is the amount determined by the Minister by the formula
F + G + H
where
- F
- is one third of the amount calculated in accordance with the former legislation;
- G
- is 1.10 x A/3, where A has the same description as in subsection (1); and
- H
- is 1.10 x B/3, where B has the same description as in subsection (1).
(2) The portion of subsection 4(2) of the Act before the definition “national average rate of tax” is replaced by the following:
Marginal note:Definitions
(2) In this section and in section 4.1,
(3) Subsection 4(2) of the Act is amended by adding the following in alphabetical order:
“former legislation”
« législation antérieure »
“former legislation” means subsection 4(1) of this Act and section 6 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, as this Act and those Regulations read on March 31, 2004;
Marginal note:1999, c. 11, s. 2(4)
(4) The portion of subsection 4(6) of the Act before paragraph (a) is replaced by the following:
Marginal note:Minimum payment to province in certain cases
(6) Notwithstanding subsections (1) and (1.2) to (5) but subject to subsection (9), the fiscal equalization payment that may be paid to a province for a fiscal year beginning on or after April 1, 2005, if the province received a fiscal equalization payment for the immediately preceding fiscal year, shall not be less than the greater of
Marginal note:1999, c. 11, s. 2(4)
(5) Subsection 4(7) of the Act is replaced by the following:
Definition of “national per capita equalization standard”
(7) For the purposes of this section, “national per capita equalization standard” means the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for all revenue sources.
Definition of “threshold amount”
(8) For the purposes of subsection (6), the “threshold amount”
(a) for a fiscal year, except as otherwise provided by paragraphs (b) and (c), is the amount determined by the formula
0.016x 1.10 x X x Y
where
- X
- is one third of the sum of the national per capita equalization standard for the immediately preceding fiscal year, the national per capita equalization standard for the fiscal year two years prior to that fiscal year and the national per capita equalization standard for the fiscal year three years prior to that fiscal year, and
- Y
- is the least of the population of the province for the immediately preceding fiscal year, the population for the fiscal year two years prior to that fiscal year and the population for the fiscal year three years prior to that fiscal year;
(b) for the fiscal year 20052006, is the amount determined by the formula
0.016 x X1 x Y1
where
- X1
- X1 is the sum of two thirds of the national per capita equalization standard for the fiscal year 2005–2006 calculated taking into account section 6 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, as those Regulations read on March 31, 2004, and one third of the national per capita equalization standard for the fiscal year 2004–2005 plus 10 per cent, and
- Y1
- is the lesser of the population of the province for the fiscal year 2004–2005 and the population for the fiscal year 2005–2006; and
(c) for the fiscal year 2006–2007, the amount determined by the formula
0.016 x X2 x Y2
where
- X2
- is the sum of one third of the national per capita equalization standard for the fiscal year 2006–2007 calculated taking into account section 6 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, as those Regulations read on March 31, 2004, one third of the national per capita equalization standard for the fiscal year 2005–2006 plus 10 per cent, and one third of the national per capita equalization standard for 2004–2005 plus 10 per cent, and
- Y2
- is the least of the population of the province for the fiscal year 2004–2005, the population for the fiscal year 2005–2006 and the population for the fiscal year 2006–2007.
Marginal note:1994, c. 2, s. 2(3); 1999, c. 11, s. 2(6)
(6) Subsections 4(10) and (11) of the Act are replaced by the following:
Marginal note:Adjustment of revenue to be equalized
(10) Subject to subsection (11), for a fiscal year in the period beginning on April 1, 1993 and ending on March 31, 2005, where a province that qualifies for a fiscal equalization payment under this Part for the fiscal year has 70 per cent or more of the revenue base for all of the provinces in the fiscal year in respect of a revenue source described in the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), the revenue to be equalized from that revenue source for all of the provinces for the fiscal year is an amount equal to 70 per cent of the revenue as determined before the adjustment from that revenue source for all of the provinces in respect of the fiscal year.
Marginal note:Adjustment of revenue to be equalized
(10.1) Subject to subsections (11) and (11.1), for a fiscal year beginning on or after April 1, 2005, the revenue to be equalized from a revenue source described in the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), for all of the provinces, derived in any of the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year, is an amount equal to 70 per cent of the revenue as determined before the adjustment from that revenue source for all of the provinces for any of those fiscal years taken into account, if in any of those fiscal years taken into account
(a) a province has 70 per cent or more of the revenue base for all of the provinces in that fiscal year in respect of a revenue source; and
(b) the aggregate of that province's per capita yields for all revenue sources is less than the aggregate of the averages of the per capita yields for all revenue sources for the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan.
Marginal note:Election
(11) In order for subsections (10) and (10.1), as the case may be, to apply in respect of the offshore minerals revenue included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), a province that is eligible for a fiscal equalization offset payment under the CanadaNewfoundland Atlantic Accord Implementation Act, in respect of a fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2007, shall make an election, in the prescribed manner, within 15 days after the Chief Statistician of Canada submits to the Minister a certificate in respect of the fiscal year for which the election is made in accordance with subsection 9(2) of the FederalProvincial Fiscal Arrangements Regulations, 1999.
Marginal note:Election
(11.1) In order for subsection (10.1) to apply in respect of the offshore minerals revenue included in the description set out in paragraph (z. 5) of the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), a province that is eligible for a fiscal equalization offset payment under the Canada-Newfoundland Atlantic Accord Implementation Act, in respect of a fiscal year beginning on or after April 1, 2007, shall make an election, in the prescribed manner, within 15 days after the Chief Statistician of Canada submits to the Minister a certificate in respect of the fiscal year immediately preceding the fiscal year for which the election is made, in accordance with subsection 9(2) of the Federal-Provincial Fiscal Arrangements Regulations, 1999.
- Date modified: