Budget Implementation Act, 2009 (S.C. 2009, c. 2)

Assented to 2009-03-12

Budget Implementation Act, 2009

S.C. 2009, c. 2

Assented to 2009-03-12

An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures

SUMMARY

Part 1 implements income tax measures proposed in the January 27, 2009 Budget. In particular, it

  • (a) increases by 7.5% above their 2008 levels the basic personal amount and the upper limits for the two lowest personal income tax brackets, thereby also increasing the income levels at which income testing begins for the base benefit under the Canada Child Tax Credit and the National Child Benefit supplement;

  • (b) increases by $1,000 the amount on which the Age Credit is calculated;

  • (c) increases to $25,000 the maximum amount eligible for withdrawal under the Home Buyers’ Plan;

  • (d) introduces amendments to the rules related to Registered Retirement Savings Plans and Registered Retirement Income Funds to allow for recognition of losses in accounts between the time of the annuitant’s death and final distribution of property from the account;

  • (e) repeals the interest deductibility constraints in section 18.2 of the Income Tax Act;

  • (f) extends the mineral exploration tax credit for one year;

  • (g) increases to $500,000 the annual amount of active business income eligible for the 11% small business income tax rate and makes related amendments;

  • (h) clarifies rules relating to timing of acquisition of control of a corporation; and

  • (i) creates cost savings through electronic filing of tax information.

In addition, Part 1 implements income tax measures that were referenced in the January 27, 2009 Budget and that were originally proposed in the February 26, 2008 Budget but not included in the Budget Implementation Act, 2008. In particular, it

  • (a) clarifies the application of the excess corporate holdings rules for private foundations;

  • (b) increases the amount that corporations will be able to pay as “eligible dividends”;

  • (c) enacts several regulatory amendments that complement and complete measures enacted in the Budget Implementation Act, 2008;

  • (d) introduces minor adjustments to the Tax-Free Savings Account rules and the scientific research and experimental development investment tax credit rules included in the Budget Implementation Act, 2008;

  • (e) implements rules in respect of donations of medicines; and

  • (f) reduces the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.

Part 1 also implements other income tax measures referred to in the January 27, 2009 Budget that either were themselves previously announced or flow directly from previously announced measures. In particular, it

  • (a) implements technical changes relating to specified investment flow-through trusts and partnerships and new tax rules to facilitate the conversion of these entities into corporations;

  • (b) contains amendments to take into account financial institution accounting changes;

  • (c) extends the general treatment of capital gains and losses on an acquisition of control of a corporation to gains and losses that result from fluctuations in foreign exchange rates in respect of debt denominated in foreign currency;

  • (d) enhances the carry-forward for investment tax credits;

  • (e) implements amendments relating to the computation of income, gains and losses of a foreign affiliate;

  • (f) implements amendments to the functional currency tax reporting rules;

  • (g) implements minor tax amendments relating to interprovincial allocation of corporate taxable income, the Wage Earner Protection Program and the Canada-United States tax treaty’s rules for cross-border pensions;

  • (h) provides for an extension of time for income tax assessments that are consequential to provincial reassessments;

  • (i) ensures the appropriate application of the Income Tax Act’s trust rules to certain arrangements and institutions under Quebec civil law;

  • (j) enacts regulatory amendments relating to prescribed amounts for automobile expenses and benefits, eligible medical expenses, and the tax treatment of foreign affiliate active business income earned in a jurisdiction with which Canada has concluded a tax information exchange agreement;

  • (k) introduces rules to reduce the required minimum amount that must be withdrawn from a Registered Retirement Income Fund or from a variable benefit money purchase pension plan by 25% for 2008, and allows related re-contributions;

  • (l) extends the deadline for Registered Disability Savings Plan contributions; and

  • (m) modifies the provisions relating to amateur athletic trusts.

Part 2 amends the Excise Act, 2001 and the Excise Tax Act to implement measures to reduce the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.

Part 3 amends the Customs Tariff to implement measures announced in the January 27, 2009 Budget to

  • (a) reduce Most-Favoured-Nation rates of duty and, if applicable, rates of duty under other tariff treatments on a number of tariff items relating to machinery and equipment imported on or after January 28, 2009;

  • (b) divide tariff item 9801.10.00 into two separate tariff items pertaining to conveyances and containers, respectively, and make two technical corrections, effective January 28, 2009; and

  • (c) modify the tariff treatment of milk protein substances, effective September 8, 2008.

Part 4 amends the Employment Insurance Act until September 11, 2010 to extend regular benefit entitlements by five weeks. It also provides that a pilot project ceases to have effect. In addition, it amends that Act to provide that the cost of benefit enhancement measures under that Act, provided for in the budget tabled in Parliament on January 27, 2009, are not to be charged to the Employment Insurance Account. Finally, it sets the premium rate provided for under that Act for the years 2002, 2003, 2005 and 2010.

Division 1 of Part 5 amends the Financial Administration Act to authorize the Minister of Finance to take, subject to certain conditions, a number of measures intended to promote the stability or maintain the efficiency of the financial system, including financial markets, in Canada.

Division 2 of Part 5 amends the Canada Deposit Insurance Corporation Act to provide the Canada Deposit Insurance Corporation with greater flexibility to enhance its ability to safeguard financial stability in Canada. The Division also adds Tax-Free Saving Accounts as a distinct category for the purposes of deposit insurance. It also makes consequential amendments to other acts.

Division 3 of Part 5 amends the Export Development Act to, among other things, expand the Export Development Corporation’s mandate to include the support and development of domestic trade and business opportunities for a period of two years. The period may be extended by the Governor in Council. Division 3 also increases the Corporation’s authorized capital.

Division 4 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada.

Division 5 of Part 5 amends the Canada Small Business Financing Act to increase the maximum outstanding loan amount in relation to a borrower. It also increases individual lenders’ cap on claims. These amendments will apply to new loans made after March 31, 2009.

Division 6 of Part 5 amends a number of Acts governing federal financial institutions to improve access to credit and strengthen the financial system in Canada, including amendments that will

  • (a) provide new authority for further safeguards to promote the stability of the financial system;

  • (b) enhance consumer protection by establishing new measures to help consumers of financial products; and

  • (c) implement other technical measures to strengthen the financial sector framework in Canada.

Division 7 of Part 5 provides for payments to be made to provinces and territories, provides authority to the Minister of Finance to enter into agreements respecting securities regulation with provinces and territories and enacts the Canadian Securities Regulation Regime Transition Office Act.

Part 6 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes, including infrastructure and housing.

Part 7 amends Part I of the Navigable Waters Protection Act to create a tiered approval process for works in order to streamline the approval process and to exclude certain classes of works and works on certain classes of navigable waters from the approval process. This Part further amends Part I of the Act to clarify the scope of the application of that Part to works owned or previously owned by the Crown, to provide for the application of the Act to bridges over the St. Lawrence River and to add certain regulation-making powers.

Part 7 also amends the Act to clarify the provisions related to obstacles and obstructions to navigation. The Act is also amended by adding administration and enforcement powers, consolidating all offence provisions, increasing fines and requiring a review of the Act within five years of the amendments coming into force.

Division 1 of Part 8 amends the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations to provide that unpaid wages for which an individual may receive payment under the Wage Earner Protection Program include unpaid severance pay and termination pay.

Division 2 of Part 8 amends the Canada Student Financial Assistance Act to, among other things,

  • (a) require the Chief Actuary of the Office of the Superintendent of Financial Institutions to report on financial assistance provided under that Act; and

  • (b) authorize the Minister of Human Resources and Skills Development to suspend or deny financial assistance to all those who are qualifying students in respect of a designated educational institution.

Division 2 of Part 8 also amends both the Canada Student Financial Assistance Act and the Canada Student Loans Act to, among other things,

  • (a) terminate all obligations of a borrower with respect to risk-shared loans and guaranteed loans if the borrower dies;

  • (b) authorize the Minister of Human Resources and Skills Development to require any person who has received financial assistance or a guaranteed student loan to provide that Minister with documents or information for the purpose of verifying compliance with those Acts; and

  • (c) authorize that Minister to terminate or deny financial assistance in certain circumstances.

Division 3 of Part 8 amends the Financial Administration Act to provide express authority for agent Crown corporations to lease their property, restrict the appointment of employees of a Crown corporation to its board of directors, require Crown corporations to hold annual public meetings, clarify Treasury Board’s duties to indemnify Crown corporation directors and officers, permit more flexibility in the frequency of special examinations of Crown corporations, and require the reports of special examinations to be submitted to the appropriate Minister and Treasury Board and made public. This Division also makes consequential amendments to other Acts.

Part 9 amends the Federal-Provincial Fiscal Arrangements Act to set out the amount of the fiscal equalization payments to the provinces for the fiscal year beginning on April 1, 2009 and amends the method by which fiscal equalization payments will be calculated for subsequent fiscal years. It also amends the method by which the Canada Health Transfer is calculated for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014.

Part 10 enacts the Expenditure Restraint Act. The purpose of that Act is to put in place a reasonable and an affordable approach to compensation across the federal public sector in support of responsible fiscal management in a difficult economic environment.

It sets out rules governing economic increases to the rates of pay of unionized and non-unionized employees for periods that begin during the period that begins on April 1, 2006 and ends on March 31, 2011. It also continues certain other terms and conditions at their current levels. It preserves the right of collective bargaining with regard to other matters and it does not affect the right to strike.

The Act does not preclude the continued development of workplace improvements by employers and employees’ bargaining agents through the National Joint Council or other bodies that they may agree on. It also permits bargaining agents and employers to agree to the amendment of certain terms and conditions of collective agreements or arbitral awards.

Part 11 enacts the Public Sector Equitable Compensation Act and makes consequential amendments to other Acts. The purpose of the Act is to ensure that proactive measures are taken to provide employees in female predominant job groups with equitable compensation.

It requires public sector employers that have non-unionized employees to determine periodically whether any equitable compensation matters exist in the workplace and, if so, to prepare a plan to resolve them. With respect to public sector employers that have unionized employees, the employers and the bargaining agents are to resolve those matters through the collective bargaining process.

It sets out the procedure for informing employees as to whether an equitable compensation assessment was required to be conducted and, if so, how it was conducted, and how any equitable compensation matters were resolved. It also establishes a recourse process for employees if the Act is not complied with.

Finally, since the Act puts in place a comprehensive equitable compensation scheme for public sector employees, this Part amends the Canadian Human Rights Act so that the provisions of that Act dealing with gender-based wage discrimination no longer apply to public sector employers. It extends the mandate of the Public Service Labour Relations Board to allow it to hear equitable compensation complaints and to provide other services related to equitable compensation in the public sector.

Part 12 amends the Competition Act. The amendments include

  • (a) introducing a dual-track approach to agreements between competitors, with a limited criminal anti-cartel provision and a civil provision to address other agreements that substantially lessen or prevent competition;

  • (b) providing that bid-rigging includes agreements or arrangements to withdraw bids or tenders;

  • (c) repealing the provisions dealing with price discrimination and predatory pricing, replacing the criminal resale price maintenance provision with a new civil provision to address price maintenance practices that have an adverse effect on competition, and repealing all provisions dealing specifically with the airline industry;

  • (d) introducing an administrative monetary penalty for cases of abuse of dominant position, increasing the maximum amount of administrative monetary penalties for deceptive marketing cases, and increasing the maximum fines or terms of imprisonment, or both, for agreements or arrangements between competitors, bid-rigging, criminal false or misleading representations, deceptive telemarketing, deceptive notice of winning a prize, obstruction of Competition Bureau investigations and failure to comply with prohibition orders or production orders;

  • (e) clarifying that, in proceedings under section 52, 74.01 or 74.02, it is not necessary to establish that false or misleading representations are made to the public in Canada or are made in a place to which the public has access, and clarifying that the “general impression test” applies to all deceptive marketing practices in sections 74.01 and 74.02;

  • (f) providing that the court may make an order in respect of cases of false or misleading representations to require the person who engaged in the conduct to compensate persons affected by the conduct, and may issue an interim injunction to freeze assets if the Commissioner of Competition intends to ask for such a compensation order; and

  • (g) introducing a two-stage merger review process for notifiable transactions, increased merger pre-notification thresholds and a reduced merger review limitation period.

Part 13 amends the Investment Canada Act so that the review of an investment will be applied only to the more significant investments. It also amends the Act to allow more information to be made public. This Part also provides for the review of foreign investments in Canada that could threaten national security and allows the Governor in Council to take any measures that the Governor in Council considers advisable to protect national security, such as prohibiting a non-Canadian from implementing an investment.

Part 14 amends the Canada Transportation Act to provide the Governor in Council with flexibility to increase the foreign ownership limit from the existing levels to a maximum of 49%.

Part 15 amends the Air Canada Public Participation Act in relation to the mandatory provisions in the articles of Air Canada regarding constraints imposed on the issue, transfer and ownership of shares. It provides for the repeal of the provisions requiring that the articles of Air Canada contain provisions imposing limits on non-resident share ownership and the repeal of the provisions requiring that the articles of Air Canada contain provisions respecting the enforcement of these constraints.

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

 This Act may be cited as the Budget Implementation Act, 2009.

PART 1AMENDMENTS IN RESPECT OF INCOME TAX

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

  •  (1) Subparagraph 6(1)(g)(ii) of the Income Tax Act is replaced by the following:

    • (ii) a return of amounts contributed to the plan by the taxpayer or a deceased employee of whom the taxpayer is an heir or legal representative, to the extent that the amounts were not deducted in computing the taxable income of the taxpayer or the deceased employee for any taxation year, or

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Paragraph 7(1.4)(b) of the Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v):

    • (vi) if the disposition is before 2013 and the old securities were equity in a SIFT wind-up entity that was at the time of the disposition a mutual fund trust, a SIFT wind-up corporation in respect of the SIFT wind-up entity

  • (2) Subsection (1) applies after December 19, 2007.

  •  (1) Subsection 12(1) of the Act is amended by adding the following after paragraph (z.4):

    • Marginal note:Former TFSA

      (z.5) any amount required because of subsection 146.2(9) to be included in computing the taxpayer’s income for the year; and

  • (2) The definition “investment contract” in subsection 12(11) of the Act is amended by adding the following after paragraph (d):

    • (d.1) a TFSA,

  • (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

  •  (1) The Act is amended by adding the following after section 12.4:

    Marginal note:Definitions
    • 12.5 (1) The definitions in this section apply for the purposes of this section and section 20.4.

      “base year”

      « année de base »

      “base year” of an insurer means the insurer’s taxation year that immediately precedes its transition year.

      “insurance business”

      « entreprise d’assurance »

      “insurance business” of an insurer, is an insurance business carried on by the insurer, other than a life insurance business.

      “reserve transition amount”

      « montant transitoire »

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

      A – B

      where

      A 
      is the maximum amount that the insurer would be permitted to claim under paragraph 20(7)(c) (and that would be prescribed by section 1400 of the Regulations for the purpose of paragraph 20(7)(c)) as a policy reserve for its base year in respect of its insurance policies if
      • (a) the generally accepted accounting principles that applied to the insurer in valuing its assets and liabilities for its transition year had applied to it for its base year, and

      • (b) section 1400 of the Regulations were read in respect of the insurer’s base year as it reads in respect of its transition year; and

      B 
      is the maximum amount that the insurer is permitted to claim under paragraph 20(7)(c) as a policy reserve for its base year.

      “transition year”

      « année transitoire »

      “transition year” of an insurer means the insurer’s first taxation year that begins after September 2006.

    • Marginal note:Transition year income inclusion

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

    • Marginal note:Transition year income deduction reversal

      (3) If an amount has been deducted under subsection 20.4(2) in computing an insurer’s income for its transition year from an insurance business carried on by it in Canada, there shall be included in computing the insurer’s income, for each particular taxation year of the insurer that ends after the beginning of the transition year, from that insurance business, the amount determined by the formula

      A × B/1825

      where

      A 
      is the amount deducted under subsection 20.4(2) in computing the insurer’s income for the transition year from that insurance business; and
      B 
      is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year.
    • Marginal note:Winding-up

      (4) If an insurer has, in a winding-up to which subsection 88(1) has applied, been wound-up into another corporation (referred to in this subsection as the “parent”), and immediately after the winding-up the parent carries on an insurance business, in applying subsections (3) and 20.4(3) in computing the incomes of the insurer and of the parent for particular taxation years that end on or after the first day (referred to in this subsection as the “start day”) on which assets of the insurer were distributed to the parent on the winding-up,

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

        • (i) any amount included under subsection (2) or deducted under subsection 20.4(2) in computing the insurer’s income from an insurance business for its transition year,

        • (ii) any amount included under subsection (3) or deducted under subsection 20.4(3) in computing the insurer’s income from an insurance business for a taxation year of the insurer that begins before the start day, and

        • (iii) any amount that would — in the absence of this subsection and if the insurer existed and carried on an insurance business on each day that is the start day or a subsequent day and on which the parent carries on an insurance business — be required to be included or deducted, in respect of any of those days, under subsection (3) or 20.4(3) in computing the insurer’s income from an insurance business; and

      • (b) the insurer is, in respect of each of its particular taxation years, to determine the value for B in the formulas in subsections (3) and 20.4(3) without reference to the start day and days after the start day.

    • Marginal note:Amalgamations

      (5) If there is an amalgamation (within the meaning assigned by subsection 87(1)) of an insurer with one or more other corporations to form one corporation (referred to in this subsection as the “new corporation”), and immediately after the amalgamation the new corporation carries on an insurance business, in applying subsections (3) and 20.4(3) in computing the new corporation’s income for particular taxation years that begin on or after the day on which the amalgamation occurred, the new corporation is, on and after that day, deemed to be the same corporation as and a continuation of the insurer in respect of

      • (a) any amount included under subsection (2) or deducted under subsection 20.4(2) in computing the insurer’s income from an insurance business for its transition year;

      • (b) any amount included under subsection (3) or deducted under subsection 20.4(3) in computing the insurer’s income from an insurance business for a taxation year of the insurer that begins before the day on which the amalgamation occurred; and

      • (c) any amount that would — in the absence of this subsection and if the insurer existed and carried on an insurance business on each day that is the day on which the amalgamation occurred or a subsequent day and on which the new corporation carries on an insurance business — be required to be included or deducted, in respect of any of those days, under subsection (3) or 20.4(3) in computing the insurer’s income from an insurance business.

    • Marginal note:Application of subsection (7)

      (6) Subsection (7) applies if, at any time, an insurer (referred to in this subsection and subsection (7) as the “transferor”) transfers, to a corporation (referred to in this subsection and subsection (7) as the “transferee”) that is related to the transferor, property in respect of an insurance business carried on by the transferor in Canada (referred to in this subsection and subsection (7) as the “transferred business”) and

      • (a) subsection 138(11.5) or (11.94) applies to the transfer; or

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

    • Marginal note:Transfer of insurance business

      (7) If this subsection applies in respect of the transfer, at any time, of property

      • (a) the transferee is, at and after that time, deemed to be the same corporation as and a continuation of the transferor in respect of

        • (i) any amount included under subsection (2) or deducted under subsection 20.4(2) in computing the transferor’s income for its transition year that can reasonably be attributed to the transferred business,

        • (ii) any amount included under subsection (3) or deducted under subsection 20.4(3) in computing the transferor’s income for a taxation year of the transferor that begins before that time that can reasonably be attributed to the transferred business,

        • (iii) any amount that would — in the absence of this subsection and if the transferor existed and carried on an insurance business on each day that includes that time or is a subsequent day and on which the transferee carries on an insurance business — be required to be included or deducted, in respect of any of those days, under subsection (3) or 20.4(3) in computing the transferor’s income that can reasonably be attributed to the transferred business; and

      • (b) in determining, in respect of the day that includes that time or any subsequent day, any amount that is required under subsection (3) or 20.4(3) to be included or deducted in computing the transferor’s income for each particular taxation year from the transferred business, the description of A in the formulas in those subsections is deemed to be nil.

    • Marginal note:Ceasing to carry on business

      (8) If at any time an insurer ceases to carry on all or substantially all of an insurance business (referred to in this subsection as the “discontinued business”), and none of subsections (4) to (6) apply, there shall be included in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

      A – B

      where

      A 
      is the amount deducted under subsection 20.4(2) in computing the insurer’s income from the discontinued business for its transition year; and
      B 
      is the total of all amounts each of which is an amount included under subsection (3) in computing the insurer’s income from the discontinued business for a taxation year that began before that time.
    • Marginal note:Ceasing to exist

      (9) If at any time an insurer that carried on an insurance business ceases to exist (otherwise than as a result of a winding-up or amalgamation described in subsection (4) or (5)), for the purposes of subsections (8) and 20.4(4), the insurer is deemed to have ceased to carry on the insurance business at the earlier of

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

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

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) Section 18.2 of the Act is repealed.

  • (2) Subsection (1) applies in respect of interest and other borrowing costs paid or payable in respect of a period or periods that begin after 2011.

  •  (1) Subsection 20(3) of the Act is replaced by the following:

    • Marginal note:Borrowed money

      (3) For greater certainty, if a taxpayer uses borrowed money to repay money previously borrowed, or to pay an amount payable for property described in subparagraph (1)(c)(ii) previously acquired (which previously borrowed money or amount payable in respect of previously acquired property is, in this subsection, referred to as the “previous indebtedness”), subject to subsection 20.1(6), for the purposes of paragraphs (1)(c), (e) and (e.1), subsections 20.1(1) and (2), section 21 and subparagraph 95(2)(a)(ii), and for the purpose of paragraph 20(1)(k) of the Income Tax Act, Chapter 148 of the Revised Statutes of Canada, 1952, the borrowed money is deemed to be used for the purpose for which the previous indebtedness was used or incurred, or was deemed by this subsection to have been used or incurred.

  • (2) Subsection (1) applies in respect of interest paid or payable in respect of a period or periods that begin after January 27, 2009.

  •  (1) The Act is amended by adding the following after section 20.3:

    Marginal note:Definitions
    • 20.4 (1) The definitions in section 12.5 apply for the purposes of this section.

    • Marginal note:Transition year income deduction

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

    • Marginal note:Transition year income inclusion reversal

      (3) If an amount has been included under subsection 12.5(2) in computing an insurer’s income for its transition year from an insurance business carried on by it in Canada, there shall be deducted in computing the insurer’s income, for each particular taxation year of the insurer that ends after the beginning of the transition year, from that insurance business, the amount determined by the formula

      A × B/1825

      where

      A 
      is the amount included under subsection 12.5(2) in computing the insurer’s income for the transition year from that insurance business; and
      B 
      is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year.
    • Marginal note:Ceasing to carry on business

      (4) If at any time an insurer ceases to carry on all or substantially all of an insurance business (referred to in this subsection as the “discontinued business”), and none of subsections 12.5(4) to (6) apply, there shall be deducted in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

      A – B

      where

      A 
      is any amount included under subsection 12.5(2) in computing the insurer’s income from the discontinued business for its transition year; and
      B 
      is the total of all amounts each of which is an amount deducted under subsection (3) in computing the insurer’s income from the discontinued business for a taxation year that began before that time.
  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) Subparagraph 39(1)(a)(ii.2) of the Act is replaced by the following:

    • (ii.2) a property if the disposition is a disposition to which subsection 142.4(4) or (5) or 142.5(1) applies,

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) Subsection 40(3.5) of the Act is amended by adding the following after paragraph (b):

    • (b.1) a share of the capital stock of a SIFT wind-up corporation in respect of a SIFT wind-up entity is, if the share was acquired before 2013, deemed to be a property that is identical to equity in the SIFT wind-up entity;

  • (2) Section 40 of the Act is amended by adding the following after subsection (9):

    • Marginal note:Application

      (10) Subsection (11) applies in computing at any particular time a corporation’s gain or loss (in this subsection and subsection (11) referred to as the “new gain” or “new loss”, as the case may be), in respect of any part (which in this subsection and subsection (11) is referred to as the “relevant part” and which may for greater certainty be the whole) of a foreign currency debt of the corporation, arising from a fluctuation in the value of the currency of the foreign currency debt (other than, for greater certainty, a gain or a capital loss that arises because of the application of subsection 111(12)), if at any time before the particular time the corporation realized a capital loss or gain in respect of the foreign currency debt because of subsection 111(12).

    • Marginal note:Gain or loss on foreign currency debt

      (11) If this subsection applies, the new gain is the positive amount, or the new loss is the negative amount, as the case may be, determined by the formula

      A + B – C

      where

      A 
      is
      • (a) if the corporation would, but for any application of subsection 111(12), recognize a new gain, the amount of the new gain, determined without reference to this subsection, or

      • (b) if the corporation would, but for any application of subsection 111(12), recognize a new loss, the amount of the new loss, determined without reference to this subsection, multiplied by (-1);

      B  
      is the total of all amounts each of which is that portion of the amount of a capital loss realized by the corporation at any time before the particular time, in respect of the foreign currency debt and because of subsection 111(12), that is reasonably attributable to
      • (a) the relevant part of the foreign currency debt at the particular time, or

      • (b) the forgiven amount, if any, (within the meaning assigned by subsection 80(1)) in respect of the foreign currency debt at the particular time; and

      C 
      is the total of all amounts each of which is that portion of the amount of a gain realized by the corporation at any time before the particular time, in respect of the foreign currency debt and because of subsection 111(12), that is reasonably attributable to
      • (a) the relevant part of the foreign currency debt at the particular time, or

      • (b) the forgiven amount, if any, (within the meaning assigned by subsection 80(1)) in respect of the foreign currency debt at the particular time.

  • (3) Subsection (1) applies to dispositions that occur on or after November 28, 2008.

  • (4) Subsection (2) applies after 2005.

  •  (1) Paragraph 53(1)(e) of the Act is amended by adding “and” at the end of subparagraph (xii), by striking out “and” at the end of subparagraph (xiii) and by repealing subparagraph (xiv).

  • (2) Paragraph 53(2)(c) of the Act is amended by adding “and” at the end of subparagraph (xi), by striking out “and” at the end of subparagraph (xii) and by repealing subparagraph (xiii).

  • (3) Subsections (1) and (2) apply after 2011.

  •  (1) Paragraph (c) of the definition “superficial loss” in section 54 of the Act is replaced by the following:

    • (c) a disposition deemed to have been made by paragraph 33.1(11)(a), subsection 45(1), section 48 as it read in its application before 1993, section 50 or 70, subsection 104(4), section 128.1, paragraph 132.2(1)(f), subsection 138(11.3) or 142.5(2), section 142.6, or any of subsections 144(4.1) and (4.2) and 149(10),

  • (2) The portion of the definition “superficial loss” in section 54 of the Act after paragraph (h) is replaced by the following:

    and, for the purpose of this definition,

    • (i) a right to acquire a property (other than a right, as security only, derived from a mortgage, hypothec, agreement for sale or similar obligation) is deemed to be a property that is identical to the property, and

    • (j) a share of the capital stock of a SIFT wind-up corporation in respect of a SIFT wind-up entity is, if the share was acquired before 2013, deemed to be a property that is identical to equity in the SIFT wind-up entity.

  • (3) Subsection (1) applies to taxation years that begin after September 2006.

  • (4) Subsection (2) applies to dispositions that occur after February 2, 2009.

  •  (1) Paragraph 56(1)(d) of the Act is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

    • (iii) received out of or under an annuity contract issued or effected as a TFSA;

  • (2) Paragraph 56(1)(r) of the Act is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after subparagraph (iii):

    • (iv) financial assistance provided under a program established by a government, or government agency, in Canada that provides income replacement benefits similar to income replacement benefits provided under a program established under the Employment Insurance Act, or

    • (v) amounts received by the taxpayer in the year under the Wage Earner Protection Program Act in respect of wages (within the meaning of that Act);

  • (3) Subsection (1) applies to the 2009 and subsequent taxation years.

  • (4) Subsection (2) applies to the 2003 and subsequent taxation years except that, in its application to the 2003 to 2007 taxation years, paragraph 56(1)(r) of the Act, as amended by subsection (2), is to be read without reference to its subparagraph (v).

  •  (1) Paragraph 60(i) of the Act is replaced by the following:

    • Marginal note:Premium or payment under RRSP or RRIF

      (i) any amount that is deductible under section 146 or 146.3 or subsection 147.3(13.1) in computing the income of the taxpayer for the year;

  • (2) Subsection (1) applies in respect of a registered retirement income fund in respect of which the last payment out of the fund is made after 2008.

  •  (1) The Act is amended by adding the following after section 60.02:

    Marginal note:Additions to clause 60(l)(v)(B.2) for 2008
    • 60.021 (1) In determining the amount that may be deducted because of paragraph 60(l) in computing a taxpayer’s income for the 2008 taxation year, clause 60(l)(v)(B.2) shall be read as follows:

      • (B.2) the total of all amounts each of which is

        • (I) the taxpayer’s eligible amount (within the meaning assigned by subsection 146.3(6.11)) for the year in respect of a registered retirement income fund,

        • (II) the taxpayer’s eligible RRIF withdrawal amount (within the meaning assigned by subsection 60.021(2)) for the year in respect of a registered retirement income fund, or

        • (III) the taxpayer’s eligible variable benefit withdrawal amount (within the meaning assigned by subsection 60.021(3)) for the year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan,

    • Marginal note:Meaning of eligible RRIF withdrawal amount

      (2) A taxpayer’s eligible RRIF withdrawal amount for a taxation year in respect of a registered retirement income fund under which the taxpayer is the annuitant at the beginning of the taxation year is

      • (a) except where paragraph (b) applies, the amount determined by the formula

        A – B

        where

        A 
        is the lesser of
        • (i) the total of all amounts included, because of subsection 146.3(5), in computing the income of the taxpayer for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or to a registered retirement savings plan), and

        • (ii) the amount that would, in the absence of subsection 146.3(1.1), be the minimum amount under the fund for the taxation year, and

        B 
        is the minimum amount under the fund for the taxation year; and
      • (b) if the taxpayer attained 70 years of age in 2007, nil.

    • Marginal note:Meaning of eligible variable benefit withdrawal amount

      (3) A taxpayer’s eligible variable benefit withdrawal amount for a taxation year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan is the amount determined by the formula

      A – B – C

      where

      A 
      is the lesser of
      • (a) the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs 8506(1)(a) to (e) of the Regulations) paid from the plan in the taxation year in respect of the account and included, because of paragraph 56(1)(a), in computing the taxpayer’s income for the taxation year, and

      • (b) the amount that would, in the absence of paragraph 8506(7)(b) of the Regulations, be the minimum amount for the account for the taxation year;

      B 
      is the minimum amount for the account for the taxation year; and
      C 
      is the total of all contributions made by the taxpayer under the provision and designated for the purposes of subsection 8506(10) of the Regulations.
    • Marginal note:Expressions used in this section

      (4) For the purposes of this section,

      • (a) the term “money purchase provision” has the meaning assigned by subsection 147.1(1);

      • (b) the term “retirement benefit” has the meaning assigned by subsection 8500(1) of the Regulations; and

      • (c) the minimum amount for an account of a taxpayer under a money purchase provision of a registered pension plan is the amount determined in accordance with subsection 8506(5) of the Regulations.

  • (2) Amounts paid by a taxpayer, to a registered retirement savings plan or registered retirement income fund under which the taxpayer is the annuitant, during the period that begins on March 2, 2009 and that ends on the day that is 30 days after the day on which this Act is assented to, are deemed for the purpose of paragraph 60(l) of the Act to have been made on March 1, 2009, and not when they were actually made, except that the amounts so deemed shall not exceed the total of all amounts each of which is

    • (a) the taxpayer’s eligible RRIF withdrawal amount for 2008 in respect of a registered retirement income fund, or

    • (b) the taxpayer’s eligible variable benefit withdrawal amount for 2008 in respect of an account of the taxpayer under a money purchase provision of a registered pension plan.

  •  (1) Subparagraph 62(1)(c)(i) of the Act is replaced by the following:

    • (i) in any case described in subparagraph (a)(i) of the definition “eligible relocation” in subsection 248(1), the total of all amounts, each of which is an amount included in computing the taxpayer’s income for the taxation year from the taxpayer’s employment at a new work location or from carrying on the business at the new work location, or because of subparagraph 56(1)(r)(v) in respect of the taxpayer’s employment at the new work location, and

  • (2) Subsection (1) applies to the 2008 and subsequent taxation years.

  •  (1) Section 80.01 of the Act is amended by adding the following after subsection (5):

    • Marginal note:Deemed settlement on SIFT trust wind-up event

      (5.1) If a trust that is a SIFT wind-up entity is the only beneficiary under another trust (in this subsection referred to as the “subsidiary trust”), and a capital property that is a debt or other obligation (in this subsection referred to as the “subsidiary trust’s obligation”) of the subsidiary trust to pay an amount to the SIFT wind-up entity is, as a consequence of a distribution from the subsidiary trust that is a SIFT trust wind-up event, settled at a particular time without any payment of an amount or by the payment of an amount that is less than the principal amount of the subsidiary trust’s obligation

      • (a) paragraph (b) applies if

        • (i) the payment is less than the amount that would have been the adjusted cost base to the SIFT wind-up entity of the subsidiary trust’s obligation immediately before the particular time, and

        • (ii) the SIFT wind-up entity elects, in prescribed form on or before the SIFT wind-up entity’s filing-due date for the taxation year that includes the particular time, to have paragraph (b) apply;

      • (b) if this paragraph applies, the amount paid at the particular time in satisfaction of the principal amount of the subsidiary trust’s obligation is deemed to be equal to the amount that would be the adjusted cost base to the SIFT wind-up entity of the subsidiary trust’s obligation immediately before the particular time if that adjusted cost base included amounts added in computing the SIFT wind-up entity’s income in respect of the portion of the indebtedness representing unpaid interest, to the extent that the SIFT wind-up entity has not deducted any amounts as bad debts in respect of that unpaid interest; and

      • (c) for the purposes of applying section 80 to the subsidiary trust’s obligation, the subsidiary trust’s obligation is deemed to have been settled immediately before the time that is immediately before the distribution.

  • (2) Subsection (1) applies after July 14, 2008.

  •  (1) Section 85.1 of the Act is amended by adding the following after subsection (6):

    • Marginal note:Application of subsection (8)

      (7) Subsection (8) applies in respect of the disposition before 2013 by a taxpayer of SIFT wind-up entity equity (referred to subsection (8) as the “particular unit”) to a taxable Canadian corporation if

      • (a) the disposition occurs during a period (referred to in this subsection and subsection (8) as the “exchange period”) of no more than 60 days at the end of which all of the equity in the SIFT wind-up entity is owned by the corporation;

      • (b) the taxpayer receives no consideration for the disposition other than a share (referred to in this subsection and subsection (8) as the “exchange share”) of the capital stock of the corporation that is issued during the exchange period to the taxpayer by the corporation;

      • (c) neither of subsections 85(1) and (2) applies to the disposition; and

      • (d) all of the exchange shares issued to holders of equity in the SIFT wind-up entity are shares of a single class of the capital stock of the corporation.

    • Marginal note:Rollover on SIFT unit for share exchange

      (8) If this subsection applies in respect of a disposition by a taxpayer of a particular unit of a SIFT wind-up entity to a corporation for consideration that is an exchange share, the following rules apply:

      • (a) the taxpayer’s proceeds of disposition of the particular unit, and cost of the exchange share, are deemed to be equal to the cost amount to the taxpayer of the particular unit immediately before the disposition;

      • (b) if the particular unit was immediately before the disposition taxable Canadian property of the taxpayer, the exchange share is deemed to be taxable Canadian property of the taxpayer;

      • (c) if the exchange share’s fair market value immediately after the disposition exceeds the particular unit’s fair market value at the time of the disposition, the excess is deemed to be an amount that section 15 requires to be included in computing the taxpayer’s income for the taxpayer’s taxation year in which the disposition occurs;

      • (d) if the particular unit’s fair market value at the time of the disposition exceeds the exchange share’s fair market value immediately after the disposition, and it is reasonable to regard any part of the excess as a benefit that the taxpayer desired to have conferred on a person, or partnership, with whom the taxpayer does not deal at arm’s length, the excess is deemed to be an amount that section 15 requires to be included in computing the taxpayer’s income for the taxpayer’s taxation year in which the disposition occurs;

      • (e) the cost to the corporation of the particular unit is deemed to be the lesser of

        • (i) the fair market value of the particular unit immediately before the disposition, and

        • (ii) the amount determined for B in the formula in paragraph (f) in respect of the particular unit; and

      • (f) in computing the paid up capital in respect of each class of shares of the capital stock of the corporation at any time after the disposition there shall be deducted the amount determined by the formula

        (A – B) × C/A

        where

        A 
        is the increase, if any, as a result of the disposition, in the paid-up capital in respect of all the shares of the capital stock of the corporation, computed without reference to this paragraph as it applies to the disposition,
        B 
        is the amount determined by the formula

        D – E

        where

        D 
        is
        • (i) unless subparagraph (ii) applies, the total of all amounts each of which is

          • (A) if the SIFT wind-up entity is a trust, the fair market value of property received by the SIFT wind-up entity on the issuance of the particular unit, or

          • (B) if the SIFT wind-up entity is a partnership,

            • (I) an amount that has at any time been added, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(1)(e)(iv) or (x), or

            • (II) an amount that would at any time have been added, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(1)(e)(i) if subsection 96(1) were read without reference to its paragraph (d) and the partnership deducted all amounts otherwise deductible because of that paragraph, and

        • (ii) if the SIFT wind-up entity has on or after the end of the exchange period issued a unit, nil, and

        E 
        is the total of all amounts each of which
        • (i) if the SIFT wind-up entity is a trust, has become payable by the SIFT wind-up entity, in respect of the particular unit, to any holder of the unit on or before the disposition, other than an amount that has become payable out of its income (determined without reference to subsection 104(6)) or capital gains, and

        • (ii) if the SIFT wind-up entity is a partnership,

          • (A) has at any time been deducted, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(2)(c)(iv) or (v), or

          • (B) would have at any time been deducted, in computing the adjusted cost base to any taxpayer of the particular unit on or before the disposition, because of subparagraph 53(2)(c)(i) if subsection 96(1) were read without reference to its paragraph (d) and the partnership deducted all amounts otherwise deductible because of that paragraph, and

        C 
        is the increase, if any, as a result of the disposition, in the paid-up capital in respect of the class of shares, computed without reference to this paragraph as it applies to the disposition.
  • (2) Subsection (1) applies to

    • (a) dispositions that occur on or after July 14, 2008; and

    • (b) a disposition, by a taxpayer to a corporation, that occurs on or after December 20, 2007 and before July 14, 2008, if the corporation (jointly with the taxpayer, if the taxpayer and the corporation have validly elected that subsection 85(1) or (2) of the Act apply to the disposition) elects in writing, filed with the Minister of National Revenue on or before the corporation’s filing-due date for its taxation year that includes the day on which this Act is assented to, that this subsection apply to the disposition.

  •  (1) Paragraph 87(2)(g.2) of the Act is replaced by the following:

    • Marginal note:Financial institution rules

      (g.2) for the purposes of paragraphs 142.4(4)(c) and (d) and subsections 142.5(5) and (7), 142.51(11) and 142.6(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

  • (2) Subsection 87(2) of the Act is amended by adding the following after paragraph (s):

    • Marginal note:Deemed SIFT wind-up corporation

      (s.1) if a predecessor corporation was a SIFT wind-up corporation immediately before the amalgamation, the new corporation is deemed to be a SIFT wind-up corporation;

  • (3) Subsection 87(2.2) of the Act is replaced by the following:

    • Marginal note:Amalgamation of insurers

      (2.2) Where there has been an amalgamation and one or more of the predecessor corporations was an insurer, the new corporation is, notwithstanding subsection (2), deemed, for the purposes of paragraphs 12(1)(d), (e), (e.1), (i) and (s), subsection 12.5(8), paragraphs 20(1)(l), (l.1), (p) and (jj) and 20(7)(c), subsections 20(22) and 20.4(4), sections 138, 138.1, 140, 142 and 148 and Part XII.3, to be the same corporation as, and a continuation of, each of those predecessor corporations.

  • (4) Subsections (1) and (3) apply to taxation years that begin after September 2006.

  • (5) Subsection (2) applies after December 19, 2007.

  •  (1) Subparagraph 88(1)(g)(i) of the Act is replaced by the following:

    • (i) for the purposes of paragraphs 12(1)(d), (e), (e.1), (i) and (s), subsection 12.5(8), paragraphs 20(1)(l), (l.1), (p) and (jj) and 20(7)(c), subsections 20(22) and 20.4(4), sections 138, 138.1, 140, 142 and 148 and Part XII.3, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary, and

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) The Act is amended by adding the following after section 88:

    Marginal note:Application
    • 88.1 (1) Subsection (2) applies to a trust’s distribution of property to a taxpayer if

      • (a) the distribution is a SIFT trust wind-up event;

      • (b) the trust is

        • (i) a SIFT wind-up entity whose only beneficiary, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, is a taxable Canadian corporation, or

        • (ii) a trust whose only beneficiary, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, is another trust described by subparagraph (i);

      • (c) where the trust is a SIFT wind-up entity, the distribution occurs no more than 60 days after the earlier of

        • (i) the first SIFT trust wind-up event of the trust, and

        • (ii) the first distribution to the trust that is a SIFT trust wind-up event of another trust; and

      • (d) if the property is shares of the capital stock of a taxable Canadian corporation,

        • (i) the property was not acquired by the trust on a distribution to which subsection 107(3.1) applies, and

        • (ii) the trust elects in writing, filed with the Minister on or before the trust’s filing-due date for its taxation year that includes the time of the distribution, that this section apply to the distribution.

    • Marginal note:SIFT trust wind-up event

      (2) If this subsection applies to a trust’s distribution of property to a taxpayer, subsections 88(1) to (1.7), and section 87 and paragraphs 256(7)(a) to (e) as they apply for the purposes of those subsections, apply, with any modifications that the circumstances require, as if

      • (a) the trust were a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) that is not a private corporation;

      • (b) where the taxpayer is a SIFT wind-up entity, the taxpayer were a taxable Canadian corporation that is not a private corporation;

      • (c) the distribution were a winding-up of the subsidiary;

      • (d) the taxpayer’s interest as a beneficiary under the trust were shares of a single class of shares of the capital stock of the subsidiary owned by the taxpayer;

      • (e) paragraph 88(1)(b) deemed the taxpayer’s proceeds of disposition of the shares described in paragraph (d) and owned by the taxpayer immediately before the distribution to be equal to the adjusted cost base to the taxpayer of the taxpayer’s interest as a beneficiary under the trust immediately before the distribution;

      • (f) each trust, a majority-interest beneficiary (in this subsection, within the meaning assigned by section 251.1) of which is another trust that is by operation of this subsection treated as if it were a corporation, were a corporation; and

      • (g) except for the purposes of subsections 88(1.1) and (1.2), the taxpayer last acquired control of the subsidiary and of each corporation (including a trust that is by operation of this subsection treated as if it were a corporation) controlled by the subsidiary at the time, if any, at which the taxpayer last became a majority-interest beneficiary of the trust.

  • (2) Subsection (1) applies after July 14, 2008, except that subsection 88.1(1) of the Act, as enacted by subsection (1), is to be read without reference to its paragraph (c) in its application to a trust’s distribution of property, if the distribution occurs no more than 60 days after the day on which this Act is assented to.

  •  (1) The definition “general rate income pool” in subsection 89(1) of the Act is replaced by the following:

    “general rate income pool”

    « compte de revenu à taux général »

    “general rate income pool” at the end of a particular taxation year, of a taxable Canadian corporation that is a Canadian-controlled private corporation or a deposit insurance corporation in the particular taxation year, is the positive or negative amount determined by the formula

    A – B

    where

    A 
    is the positive or negative amount that would, before taking into consideration the specified future tax consequences for the particular taxation year, be determined by the formula

    C + D + E + F – G

    where

    C 
    is the corporation’s general rate income pool at the end of its preceding taxation year,
    D 
    is the amount, if any, that is the product of the corporation’s general rate factor for the particular taxation year multiplied by its adjusted taxable income for the particular taxation year,
    E 
    is the total of all amounts each of which is
    • (a) an eligible dividend received by the corporation in the particular taxation year, or

    • (b) an amount deductible under section 113 in computing the taxable income of the corporation for the particular taxation year,

    F 
    is the total of all amounts determined under subsections (4) to (6) in respect of the corporation for the particular taxation year, and
    G 
    is
    • (a) unless paragraph (b) applies, the amount, if any, by which

      • (i) the total of all amounts each of which is the amount of an eligible dividend paid by the corporation in its preceding taxation year

      exceeds

      • (ii) the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year, or

    • (b) if subsection (4) applies to the corporation in the particular taxation year, nil, and

    B  
    is the amount determined by the formula

    H × (I – J)

    where

    H  
    is the corporation’s general rate factor for the particular taxation year,
    I  
    is the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for the corporation’s preceding three taxation years, determined without taking into consideration the specified future tax consequences, for those preceding taxation years, that arise in respect of the particular taxation year, and
    J  
    is the total of the corporation’s full rate taxable incomes (as would be defined in the definition “full rate taxable income” in subsection 123.4(1), if that definition were read without reference to its subparagraphs (a)(i) to (iii)) for those preceding taxation years;
  • (2) Subparagraph (b)(iii) of the definition “paid-up capital” in subsection 89(1) of the Act is replaced by the following:

    • (iii) where the particular time is after March 31, 1977, an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act except subsections 51(3) and 66.3(2) and (4), sections 84.1 and 84.2, subsections 85(2.1), 85.1(2.1) and (8), 86(2.1), 87(3) and (9), 128.1(2) and (3), 138(11.7), 139.1(6) and (7), 192(4.1) and 194(4.1) and section 212.1,

  • (3) Subsection 89(1) of the Act is amended by adding the following in alphabetical order:

    “adjusted taxable income”

    « revenu imposable rajusté »

    “adjusted taxable income” of a corporation for a taxation year is the amount determined by the formula

    A – B – C

    where

    A 
    is
    • (a) unless paragraph (b) applies, the corporation’s taxable income for the taxation year, and

    • (b) if the corporation is a deposit insurance corporation in the taxation year, nil,

    B 
    is the amount determined by multiplying the amount, if any, deducted by the corporation under subsection 125(1) for the taxation year by the quotient obtained by dividing 100 by the rate of the deduction provided under that subsection for the taxation year, and
    C 
    is
    • (a) if the corporation is a Canadian-controlled private corporation in the taxation year, the lesser of the corporation’s aggregate investment income for the taxation year and the corporation’s taxable income for the taxation year, and

    • (b) in any other case, nil;

    “general rate factor”

    « facteur du taux géneral »

    “general rate factor” of a corporation for a taxation year is the total of

    • (a) that proportion of 0.68 that the number of days in the taxation year that are before 2010 is of the number of days in the taxation year,

    • (b) that proportion of 0.69 that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year,

    • (c) that proportion of 0.70 that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and

    • (d) that proportion of 0.72 that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year;

  • (4) Subsections (1) and (3) apply to the 2006 and subsequent taxation years.

  • (5) Subsection (2) applies after December 19, 2007.

  •  (1) Subsections 91(5.1) to (5.3) of the Act are repealed.

  • (2) Subsection (1) applies after 2011.

  •  (1) Subsection 92(1) of the Act is replaced by the following:

    Marginal note:Adjusted cost base of share of foreign affiliate
    • 92. (1) In computing, at any time in a taxation year, the adjusted cost base to a taxpayer resident in Canada of any share owned by the taxpayer of the capital stock of a foreign affiliate of the taxpayer,

      • (a) there shall be added in respect of that share any amount included in respect of that share under subsection 91(1) or (3) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been required to have been so included in computing the taxpayer’s income but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952); and

      • (b) there shall be deducted in respect of that share

        • (i) any amount deducted by the taxpayer under subsection 91(2) or (4), and

        • (ii) any dividend received by the taxpayer before that time, to the extent of the amount deducted by the taxpayer, in respect of the dividend, under subsection 91(5)

        in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been deductible by the taxpayer but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952).

  • (2) Subsection (1) applies after 2011.

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

    “antecedent corporation”

    « société antécédente »

    “antecedent corporation” of a particular corporation means

    • (a) a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation to which subsection 87(11) applied and by which the particular corporation was formed,

    • (b) a predecessor corporation (within the meaning of subsection 87(1)) of the corporation (referred to in this definition as the “first amalco”) that was formed on an amalgamation of the predecessor corporation and another corporation, where

      • (i) shares of the capital stock of the predecessor corporation that were not owned by the other corporation, or by a corporation of which the other corporation is a subsidiary wholly-owned corporation, were exchanged on the amalgamation for shares of the capital stock of the first amalco that were, during the series of transactions or events that includes the amalgamation, redeemed, acquired or cancelled by the first amalco for money,

      • (ii) the first amalco was a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation to which subsection 87(11) applied and by which the particular corporation was formed, and

      • (iii) the amalgamation referred to in subparagraph (i) occurred in a series of transactions or events that included the amalgamation referred to in subparagraph (ii),

    • (c) a corporation that was wound-up into the particular corporation in a winding-up to which subsection 88(1) applied, or

    • (d) an antecedent corporation of an antecedent corporation of the particular corporation;

    “calculating currency”

    « monnaie de calcul »

    “calculating currency” for a taxation year of a foreign affiliate of a taxpayer means

    • (a) the currency of the country in which the foreign affiliate is resident at the end of the taxation year, or

    • (b) any currency that the taxpayer demonstrates to be reasonable in the circumstances;

    “designated acquired corporation”

    « société acquise désignée »

    “designated acquired corporation” of a taxpayer means a particular antecedent corporation of the taxpayer if

    • (a) the taxpayer or another antecedent corporation of the taxpayer acquired control of

      • (i) the particular antecedent corporation, or

      • (ii) a corporation (referred to in this definition as a “successor corporation”) of which the particular antecedent corporation is an antecedent corporation, and

    • (b) immediately before the acquisition of control or a series of transactions or events that includes the acquisition of control, the taxpayer, the other antecedent corporation or a corporation resident in Canada of which the taxpayer or the other antecedent corporation is a subsidiary wholly-owned corporation, as the case may be, dealt at arm’s length (otherwise than because of a right referred to in paragraph 251(5)(b)) with the particular antecedent corporation or the successor corporation, as the case may be;

    “specified person or partnership”

    « personne ou société de personnes déterminée »

    “specified person or partnership”, in respect of a taxpayer, at any time means the taxpayer or a person (other than a designated acquired corporation of the taxpayer), or a partnership, that is at that time

    • (a) a person (other than a partnership) that is resident in Canada and does not, at that time, deal at arm’s length with the taxpayer,

    • (b) a specified predecessor corporation of the taxpayer or of a specified person or partnership in respect of the taxpayer,

    • (c) a foreign affiliate of

      • (i) the taxpayer,

      • (ii) a person that is at that time a specified person or partnership in respect of the taxpayer under this definition because of paragraph (a) or (b), or

      • (iii) a partnership that is at that time a specified person or partnership in respect of the taxpayer under this definition because of paragraph (d), or

    • (d) a partnership a member of which is at that time a specified person or partnership in respect of the taxpayer under this definition;

    “specified predecessor corporation”

    « société remplacée déterminée »

    “specified predecessor corporation” of a particular corporation means

    • (a) an antecedent corporation of the particular corporation,

    • (b) a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation by which the particular corporation was formed, or

    • (c) a specified predecessor corporation of a specified predecessor corporation of the particular corporation;

  • (2) Paragraph 95(2)(f) of the Act is replaced by the following:

    • (f) except as otherwise provided in this subdivision and except to the extent that the context otherwise requires, a foreign affiliate of a taxpayer is deemed to be at all times resident in Canada for the purposes of determining, in respect of the taxpayer for a taxation year of the foreign affiliate, each amount that is the foreign affiliate’s

      • (i) capital gain, capital loss, taxable capital gain or allowable capital loss from a disposition of a property, or

      • (ii) income or loss from a property, from a business other than an active business or from a non-qualifying business;

    • (f.1) in computing an amount described in paragraph (f) in respect of a property or a business, there is not to be included any portion of that amount that can reasonably be considered to have accrued, in respect of the property (including for the purposes of this paragraph any property for which the property was substituted) or the business, while no person or partnership that held the property or carried on the business was a specified person or partnership in respect of the taxpayer referred to in paragraph (f);

    • (f.11) in determining an amount described in paragraph (f) for a taxation year of a foreign affiliate of a taxpayer,

      • (i) if the amount is described in subparagraph (f)(i), this Act is to be read without reference to section 26 of the Income Tax Application Rules, and

      • (ii) if the amount is described in subparagraph (f)(ii),

        • (A) this Act is to be read without reference to subsections 14(1.01) to (1.03), 17(1) and 18(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership, and

        • (B) if the foreign affiliate has, in the taxation year, disposed of a foreign resource property in respect of a country, it is deemed to have designated, in respect of the disposition and in accordance with subparagraph 59(1)(b)(ii) for the taxation year, the amount, if any, by which

          • (I) the amount determined under paragraph 59(1)(a) in respect of the disposition

          exceeds

          • (II) the amount determined under subparagraph 59(1)(b)(i) in respect of the disposition;

    • (f.12) a foreign affiliate of a taxpayer shall determine each of the following amounts using its calculating currency for a taxation year:

      • (i) subject to paragraph (f.13), each capital gain, capital loss, taxable capital gain and allowable capital loss of the foreign affiliate for the taxation year from the disposition, at any time, of a property that, at that time, was an excluded property of the foreign affiliate,

      • (ii) its income or loss for the taxation year from each active business carried on by it in the taxation year in a country, and

      • (iii) its income or loss that is included in computing its income or loss from an active business for the taxation year because of paragraph (a);

    • (f.13) where the calculating currency of a foreign affiliate of a taxpayer is a currency other than Canadian currency, the foreign affiliate shall determine the amount included in computing its foreign accrual property income, in respect of the taxpayer for a taxation year of the foreign affiliate, attributable to its capital gain or taxable capital gain, from the disposition of an excluded property in the taxation year, in Canadian currency by converting the amount of the capital gain, or taxable capital gain, otherwise determined under subparagraph (f.12)(i) using its calculating currency for the taxation year into Canadian currency using the rate of exchange quoted by the Bank of Canada at noon on the day on which the disposition was made;

    • (f.14) a foreign affiliate of a taxpayer shall determine using Canadian currency each amount of its income, loss, capital gain, capital loss, taxable capital gain or allowable capital loss for a taxation year, other than an amount to which paragraph (f.12) or (f.13) applies;

    • (f.15) for the purpose of applying subparagraph (f.12)(i), the reference in subsection 39(2) to “the currency or currencies of one or more countries other than Canada relative to Canadian currency” is to be read as a reference to “one or more currencies other than the calculating currency relative to the calculating currency” and the references in that subsection to “of a country other than Canada” are to be read as references to “other than the calculating currency”;

  • (3) The portion of subsection 95(2.2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Qualifying interest throughout year

      (2.2) For the purposes of paragraphs (2)(a) and (g), a non-resident corporation that is not a foreign affiliate of a taxpayer in respect of which the taxpayer has a qualifying interest throughout a particular taxation year is deemed to be a foreign affiliate of the taxpayer in respect of which the taxpayer has a qualifying interest throughout that particular taxation year if

  • (4) Section 95 of the Act is amended by adding the following after subsection (2.2):

    • Marginal note:Controlled foreign affiliate throughout year

      (2.201) For the purposes of paragraphs (2)(a) and (g), a non-resident corporation is deemed to be a controlled foreign affiliate of a taxpayer throughout a taxation year of the non-resident corporation if

      • (a) in the taxation year, a person or partnership acquires or disposes of shares of the capital stock of a corporation and, because of the acquisition or disposition, the non-resident corporation becomes or ceases to be a controlled foreign affiliate of the taxpayer; and

      • (b) at either or both of the beginning and end of the taxation year, the non-resident corporation is a controlled foreign affiliate of the taxpayer.

  • (5) Section 95 of the Act is amended by adding the following after subsection (2.5):

    • Rule for the definition “specified person or partnership”

      (2.6) For the purposes of paragraphs (a) to (d) of the definition “specified person or partnership” in subsection (1), if a person or partnership (referred to in this subsection as the “taxpayer”) is not dealing at arm’s length with another person or partnership (referred to in this subsection as the “particular person”) at a particular time, the taxpayer is deemed to have existed and not to have dealt at arm’s length with the particular person, nor with each specified predecessor corporation of the particular person, throughout the period that began when the particular person or the specified predecessor corporation, as the case may be, came into existence and that ends at the particular time.

  • (6) Subsections (1), (2) and (5) apply to taxation years of a foreign affiliate of a taxpayer that begin after October 2, 2007. However,

    • (a) for taxation years of a foreign affiliate that begin before 2009, subparagraph 95(2)(f)(ii) of the Act, as enacted by subsection (2), shall be read as follows:

      • (ii) income or loss from a property or from a business other than an active business;

    • (b) if the taxpayer elects in writing in respect of all of its foreign affiliates and files the election with the Minister of National Revenue on or before the day (referred to in this subsection as the taxpayer’s “election day”) that is the later of the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to and the day that is one year after the day on which this Act is assented to, subsection 95(2.6) of the Act, as enacted by subsection (5), shall, in its application to a taxation year of a foreign affiliate of the taxpayer that begins after October 2, 2007 and before July 14, 2008, be read as follows:

      • (2.6) For the purposes of paragraphs (a) to (d) of the definition “specified person or partnership” in subsection (1), in determining whether, at a particular time, a person was not, at a time (referred to in this subsection as the “prior time”) that is before the particular time and at which that person did not exist, dealing at arm’s length with another person, where the person exists at the particular time but did not exist at the prior time

        • (a) the person is deemed to exist at the prior time; and

        • (b) where the person is related to another person at the particular time, the person is deemed to have been related to that other person at the prior time.

    • (c) if the taxpayer elects in writing in respect of all of its foreign affiliates and files the election with the Minister of National Revenue on or before the taxpayer’s election day, subsections (1), (2) and (5) also apply to taxation years of a foreign affiliate of the taxpayer that begin before October 2, 2007 and after the date chosen by the taxpayer under paragraph (d), except that subparagraph 95(2)(f)(ii) of the Act, as enacted by subsection (2), shall be read in its application to those taxation years in the manner described in paragraph (a); and

    • (d) to be valid, an election under paragraph (c) must include the identification by the taxpayer of its choice of one of the following dates:

      • (i) December 31, 1994,

      • (ii) December 20, 2002, or

      • (iii) February 27, 2004.

  • (7) Subsection (3) applies to taxation years of a foreign affiliate of a taxpayer that begin after 1994. However, the portion of subsection 95(2.2) of the Act before paragraph (a), as enacted by subsection (3), shall, in its application to taxation years of a foreign affiliate that begin after 1994 and before 2009, be read as follows:

    • (2.2) For the purposes of paragraphs (2)(a) and (g),

  • (8) Subsection (4) applies to taxation years of a foreign affiliate of a taxpayer that end after 1999. However,

    • (a) subject to paragraph (b), for taxation years of a foreign affiliate that begin before December 21, 2002, the reference to “for the purposes of paragraphs (2)(a) and (g)” in subsection 95(2.201) of the Act, as enacted by subsection (4), shall be read as a reference to “for the purpose of paragraph (2)(a)”; and

    • (b) if the taxpayer has made a valid election under subsection 26(46) of the Budget and Economic Statement Implementation Act, 2007, subsection (4) applies to taxation years of a foreign affiliate of the taxpayer that begin after 1994.

  • (9) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest and penalties payable under the Act for any taxation year shall be made that is necessary to take into account the provisions of subsections (1) to (8).

  •  (1) The portion of subsection 107(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Distribution by personal trust

      (2) Subject to subsections (2.001), (2.002) and (4) to (5), if at any time a property of a personal trust or a prescribed trust is distributed (otherwise than as a SIFT trust wind-up event) by the trust to a taxpayer who was a beneficiary under the trust and there is a resulting disposition of all or any part of the taxpayer’s capital interest in the trust,

  • (2) The portion of subsection 107(2.1) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Other distributions

      (2.1) Where at any time a property of a trust is distributed by the trust to a beneficiary under the trust, there would, if this Act were read without reference to paragraphs (h) and (i) of the definition “disposition” in subsection 248(1), be a resulting disposition of all or any part of the beneficiary’s capital interest in the trust (which interest or part, as the case may be, is in this subsection referred to as the “former interest”) and the rules in subsections (2) and (3.1) and sections 88.1 and 132.2 do not apply in respect of the distribution,

  • (3) Section 107 of the Act is amended by adding the following after subsection (2.2):

    • Marginal note:Application of subsection (3.1)

      (3) Subsection (3.1) applies to a trust’s distribution of property to a taxpayer if

      • (a) the distribution is a SIFT trust wind-up event to which section 88.1 does not apply;

      • (b) the property is a share and the only shares distributed on any SIFT trust wind-up event of the trust are of a single class of the capital stock of a taxable Canadian corporation; and

      • (c) where the trust is a SIFT wind-up entity, the distribution occurs no more than 60 days after the earlier of

        • (i) the first SIFT trust wind-up event of the trust, and

        • (ii) the first distribution to the trust that is a SIFT trust wind-up event of another trust.

    • Marginal note:SIFT trust wind-up event

      (3.1) If this subsection applies to a trust’s distribution of property, the following rules apply:

      • (a) the trust is deemed to have disposed of the property for proceeds of disposition equal to the adjusted cost base to the trust of the property immediately before the distribution;

      • (b) the taxpayer is deemed to have disposed of the taxpayer’s interest as a beneficiary under the trust for proceeds of disposition equal to the cost amount to the taxpayer of the interest immediately before the distribution;

      • (c) the taxpayer is deemed to have acquired the property at a cost equal to

        • (i) if, at all times at which the trust makes a distribution that is a SIFT trust wind-up event, the taxpayer is the only beneficiary under the trust and is a SIFT wind-up entity or a taxable Canadian corporation, the adjusted cost base to the trust of the property immediately before the distribution, and

        • (ii) in any other case, the cost amount to the taxpayer of the taxpayer’s interest as a beneficiary under the trust immediately before the distribution;

      • (d) if the taxpayer’s interest as a beneficiary under the trust was immediately before the disposition taxable Canadian property of the taxpayer, the property is deemed to be taxable Canadian property of the taxpayer; and

      • (e) if a liability of the trust becomes as a consequence of the distribution a liability of the corporation described in paragraph (3)(b) in respect of the distribution, and the amount payable by the corporation on the maturity of the liability is the same as the amount that would have been payable by the trust on its maturity,

        • (i) the transfer of the liability by the trust to the corporation is deemed not to have occurred, and

        • (ii) the liability is deemed

          • (A) to have been incurred or issued by the corporation at the time at which, and under the agreement under which, it was incurred or issued by the trust, and

          • (B) not to have been incurred or issued by the trust.

  • (4) Subsections (1) to (3) apply after July 14, 2008, except that

    • (a) paragraph 107(3)(b) of the Act, as enacted by subsection (3), is to be read without reference to “of a single class” in its application to a trust’s distribution of property before February 3, 2009; and

    • (b) subsection 107(3) of the Act, as enacted by subsection (3), is to be read without reference to its paragraph (c) in its application to a trust’s distribution of property, if the distribution occurs no more than 60 days after the day on which this Act is assented to.

  •  (1) Paragraph 107.4(3)(f) of the Act is replaced by the following:

    • (f) if the property was deemed to be taxable Canadian property of the transferor by this paragraph or paragraph 44.1(2)(c), 51(1)(f), 85(1)(i) or 85.1(1)(a) or (8)(b), subsection 85.1(5) or 87(4) or (5) or paragraph 97(2)(c) or 107(2)(d.1) or (3.1)(d), the property is deemed to be taxable Canadian property of the transferee trust;

  • (2) Subsection (1) applies

    • (a) to dispositions that occur after December 23, 1998; and

    • (b) in respect of the 1996 and subsequent taxation years, to transfers of capital property that occurred before December 24, 1998.

  •  (1) The portion of the definition “cost amount” in subsection 108(1) of the Act before paragraph (a) is replaced by the following:

    “cost amount”

    « coût indiqué »

    “cost amount” to a taxpayer at any time of a capital interest or part of it, as the case may be, in a trust, means (notwithstanding subsection 248(1) and except for the purposes of subsection 107(3.1) and section 107.4 and except in respect of a capital interest in a trust that is at that time a foreign affiliate of the taxpayer),

  • (2) Subsection (1) applies after July 14, 2008.

  •  (1) Paragraph 110.1(8)(e) of the English version of the Act is replaced by the following:

    • (e) the donee is a registered charity that, in the opinion of the Minister for International Cooperation (or, if there is no such Minister, the Minister responsible for the Canadian International Development Agency) meets conditions prescribed by regulation.

  • (2) Section 110.1 of the Act is amended by adding the following after subsection (8):

    • Marginal note:Rules governing international medical charities

      (9) For the purpose of paragraph (8)(e),

      • (a) for greater certainty, nothing in paragraph (8)(b) modifies the application to a registered charity of the prescribed conditions referred to in paragraph (8)(e);

      • (b) if, in respect of a registered charity, the Minister referred to in paragraph (8)(e) is of the opinion described in that paragraph

        • (i) that Minister may also designate a period of time during which that opinion is valid, and

        • (ii) notwithstanding subparagraph (i), the opinion may be revoked at any time by that Minister if

          • (A) that Minister is of the opinion that the registered charity no longer meets prescribed conditions referred to in paragraph (8)(e), or

          • (B) any person has made any misrepresentation that is attributable to neglect, carelessness or wilful default for the purpose of obtaining the opinion; and

      • (c) a revocation referred to in subparagraph (b)(ii) is effective as of the time that notice, in writing, of the revocation is issued by that Minister to the registered charity.

  • (3) Subsections (1) and (2) apply in respect of gifts made after June 2008.

  •  (1) Subsection 111(8) of the Act is amended by adding the following in alphabetical order:

    “exchange rate”

    « taux de change »

    “exchange rate” at any time in respect of a currency of a country other than Canada means the rate of exchange between that currency and Canadian currency quoted by the Bank of Canada at noon on the day that includes that time or, if that day is not a business day, on the day that immediately precedes that day, or a rate of exchange acceptable to the Minister;

    “foreign currency debt”

    « dette en monnaie étrangère »

    “foreign currency debt” means a debt obligation denominated in a currency of a country other than Canada;

  • (2) Section 111 of the Act is amended by adding the following after subsection (11):

    • Marginal note:Foreign currency debt on acquisition of control

      (12) For the purposes of subsection (4), if at any time a corporation owes a foreign currency debt in respect of which the corporation would have had, if the foreign currency debt had been repaid at that time, a capital loss or gain, the corporation is deemed to own at the time (in this subsection referred to as the “measurement time”) that is immediately before that time a property

      • (a) the adjusted cost base of which at the measurement time is the amount determined by the formula

        A + B – C

        where

        A  
        is the amount of principal owed by the corporation under the foreign currency debt at the measurement time, calculated, for greater certainty, using the exchange rate applicable at the measurement time,
        B 
        is the portion of any gain, previously recognized in respect of the foreign currency debt because of this section, that is reasonably attributable to the amount described in A, and
        C 
        is the portion of any capital loss previously recognized in respect of the foreign currency debt because of this section, that is reasonably attributable to the amount described in A; and
      • (b) the fair market value of which is the amount that would be the amount of the principal owed by the corporation under the foreign currency debt at the measurement time if that amount were calculated using the exchange rate applicable at the time of the original borrowing.

  • (3) Subsections (1) and (2) apply to any acquisition of control of a corporation that occurs

    • (a) after March 7, 2008, other than an acquisition of control that occurs before 2009 under the terms of an agreement made in writing on or before March 7, 2008; or

    • (b) after 2005, if the corporation so elects in writing and files the election with the Minister of National Revenue on or before the corporation’s filing-due date for the corporation’s taxation year that includes the day on which this Act is assented to.

  • (4) If an election under paragraph (3)(b) is made by the corporation in respect of an acquisition of control, a designation under paragraph 111(4)(e) of the Act by the corporation for its taxation year that ended immediately before the acquisition of control is deemed to have been made in a timely manner if that designation is made on or before the corporation’s filing-due date for its taxation year that includes the day on which this Act is assented to.

  •  (1) Subparagraph 115(1)(a)(iii.21) of the Act is replaced by the following:

    • (iii.21) the total of all amounts, each of which is an amount included under subparagraph 56(1)(r)(v) or section 56.3 in computing the non-resident person’s income for the year,

  • (2) Subsection (1) applies to the 2008 and subsequent taxation years.

  •  (1) Paragraph 116(6)(b) of the Act is replaced by the following:

    • (b) a security that is

      • (i) listed on a recognized stock exchange, and

      • (ii) either

        • (A) a share of the capital stock of a corporation, or

        • (B) SIFT wind-up entity equity;

  • (2) Subsection (1) applies after July 14, 2008.

  •  (1) Subsection 117(2) of the Act is replaced by the following:

    • Marginal note:Rates for taxation years after 2008

      (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for a taxation year is

      • (a) 15% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $40,726;

      • (b) if the amount taxable is greater than $40,726 and is equal to or less than $81,452, the maximum amount determinable in respect of the taxation year under paragraph (a), plus 22% of the amount by which the amount taxable exceeds $40,726 for the year;

      • (c) if the amount taxable is greater than $81,452, but is equal to or less than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (b), plus 26% of the amount by which the amount taxable exceeds $81,452 for the year; and

      • (d) if the amount taxable is greater than $126,264, the maximum amount determinable in respect of the taxation year under paragraph (c), plus 29% of the amount by which the amount taxable exceeds $126,264 for the year.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The portion of paragraph (a) of the description of B in subsection 118(1) of the Act before the description of C in subparagraph (ii) is replaced by the following:

    • Marginal note:Married or common-law partnership status

      (a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual’s spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of

      • (i) $10,320, and

      • (ii) the amount determined by the formula

        $10,320 – C

        where

  • (2) The description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the English version of the Act is replaced by the following:

    C 
    is the income of the individual’s spouse or common-law partner for the year or, where the individual and the individual’s spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the spouse’s or common-law partner’s income for the year while married to, or in a common-law partnership with, the individual and not so separated,
  • (3) The portion of paragraph 118(1)(b) of the French version of the Act before the description of D is replaced by the following:

    • Marginal note:Crédit équivalent pour personne entièrement à charge

      b) le total de 10 320 $ et de la somme obtenue par la formule suivante :

      10 320 $ – D

      où :

  • (4) Subparagraphs (b)(iii) and (iv) of the description of B in subsection 118(1) of the English version of the Act are replaced by the following:

    • (iii) $10,320, and

    • (iv) the amount determined by the formula

      $10,320 – D

      where

      D 
      is the dependent person’s income for the year,
  • (5) Paragraph (c) of the description of B in subsection 118(1) of the Act is replaced by the following:

    • Marginal note:Single status

      (c) except in the case of an individual entitled to a deduction because of paragraph (a) or (b), $10,320,

  • (6) The formula in subsection 118(2) of the Act is replaced by the following:

    A × ($6,408 – B)

  • (7) Subsections 118(3.1), (3.2) and (9) of the Act are repealed.

  • (8) Paragraph (b) of the description of B in subsection 118(10) of the Act is replaced by the following:

    • (b) the total of all amounts, each of which is an amount included in computing the individual’s income for the taxation year from an office or employment or an amount included in the taxpayer’s income for the taxation year because of subparagraph 56(1)(r)(v).

  • (9) Subsections (1) and (2) to (7) apply to the 2009 and subsequent taxation years.

  • (10) Subsection (3) applies to the 2007 and subsequent taxation years.

  • (11) Subsection (8) applies to the 2008 and subsequent taxation years.

  •  (1) The portion of subsection 118.1(5.3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Direct designation — RRSPs, RRIFs and TFSAs

      (5.3) If as a consequence of an individual’s death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from an arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier) that is a registered retirement savings plan or registered retirement income fund or that was, immediately before the individual’s death, a TFSA to a qualified donee, solely because of the donee’s interest or, for civil law, a right as a beneficiary under the arrangement, the individual was the annuitant under, or the holder of, the arrangement immediately before the individual’s death and the transfer occurs within the 36-month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances),

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The definition “investment” in subsection 122.1(1) of the Act is replaced by the following:

    “investment”

    « placement »

    “investment”, in a trust or partnership,

    • (a) means

      • (i) a property that is a security of the trust or partnership, or

      • (ii) a right which may reasonably be considered to replicate a return on, or the value of, a security of the trust or partnership; but

    • (b) does not include

      • (i) an unaffiliated publicly-traded liability of the trust or partnership, nor

      • (ii) regulated innovative capital.

  • (2) The portion of paragraph (a) of the definition “non-portfolio property” in subsection 122.1(1) of the Act before subparagraph (i) is replaced by the following:

    • (a) a security of a subject entity (other than a portfolio investment entity), if at that time the trust or partnership holds

  • (3) Paragraph (a) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following:

    • (a) a real or immovable property;

  • (4) Subparagraph (c)(i) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following:

    • (i) legal title to real or immovable property of the trust or of another subject entity all of the securities of which are held by the trust (including real or immovable property that the trust or the other subject entity holds together with one or more other persons or partnerships), and

  • (5) Paragraphs (c) and (d) of the definition “real estate investment trust” in subsection 122.1(1) of the Act are replaced by the following:

    • (c) not less than 75% of the trust’s revenues for the taxation year are derived from one or more of the following:

      • (i) rent from real or immovable properties,

      • (ii) interest from mortgages, or hypothecs, on real or immovable properties, and

      • (iii) capital gains from dispositions of real or immovable properties; and

    • (d) at each time in the taxation year an amount, that is equal to 75% or more of the equity value of the trust at that time, is the amount that is the total fair market value of all properties held by the trust each of which is real or immovable property, indebtedness of a Canadian corporation represented by a bankers’ acceptance, property described by either paragraph (a) or (b) of the definition “qualified investment” in section 204, or a deposit with a credit union.

  • (6) Subparagraph (a)(ii) of the definition “rent from real or immovable properties” in subsection 122.1(1) of the Act is replaced by the following:

    • (ii) payment for services ancillary to the rental of real or immovable properties and customarily supplied or rendered in connection with the rental of real or immovable properties, and

    • (iii) a payment that is included under paragraph 104(13)(a) in computing the recipient’s income and that was made from the part of a trust’s income (determined without reference to subsection 104(6)) that was derived from rent from real or immovable properties; but

  • (7) The portion of the definition “SIFT trust” in subsection 122.1(1) of the Act before paragraph (a) is replaced by the following:

    “SIFT trust”

    « fiducie intermédiaire de placement déterminée »

    “SIFT trust”, being a specified investment flow-through trust, for a taxation year means a trust (other than an excluded subsidiary entity, or a real estate investment trust, for the taxation year) that meets the following conditions at any time during the taxation year:

  • (8) Subsection 122.1(1) of the Act is amended by adding the following in alphabetical order:

    “equity”

    « capitaux propres »

    “equity”, of an entity, means

    • (a) if the entity is a corporation, a share of the capital stock of the corporation;

    • (b) if the entity is a trust, an income or capital interest in the trust;

    • (c) if the entity is a partnership, an interest as a member of the partnership;

    • (d) a liability of the entity (and, for purposes of the definition “publicly-traded liability” in this section, a security of the entity that is a liability of another entity) if

      • (i) the liability is convertible into, or exchangeable for, equity of the entity or of another entity, or

      • (ii) any amount paid or payable in respect of the liability is contingent or dependent on the use of or production from property, or is computed by reference to revenue, profit, cash flow, commodity price or any other similar criterion or by reference to dividends paid or payable to shareholders of any class of shares of the capital stock of a corporation, or to income or capital paid or payable to any member of a partnership or beneficiary under a trust; and

    • (e) a right to, or to acquire, anything described in this paragraph and any of paragraphs (a) to (d).

    “excluded subsidiary entity”

    « filiale exclue »

    “excluded subsidiary entity”, for a taxation year, means an entity none of the equity of which is at any time in the taxation year

    • (a) listed or traded on a stock exchange or other public market; nor

    • (b) held by any person or partnership other than

      • (i) a real estate investment trust,

      • (ii) a taxable Canadian corporation,

      • (iii) a SIFT trust (determined without reference to subsection (2)),

      • (iv) a SIFT partnership (determined without reference to subsection 197(8)), or

      • (v) an excluded subsidiary entity for the taxation year.

    “portfolio investment entity”

    « entité de placement de portefeuille »

    “portfolio investment entity” at any time means an entity that does not at that time hold any non-portfolio property.

    “publicly-traded liability”

    « dette transigée publiquement »

    “publicly-traded liability”, of an entity, means a liability that is a security of the entity, that is not equity of the entity and that is listed or traded on a stock exchange or other public market.

    “regulated innovative capital”

    « capital innovateur réglementé »

    “regulated innovative capital” means equity of a trust, where

    • (a) since November 2006, the equity has been authorized, by the Superintendent of Financial Institutions or by a provincial regulatory authority having powers similar to those of the Superintendent, as Tier 1 or Tier 2 capital of a financial institution (as defined by subsection 181(1));

    • (b) the terms and conditions of the equity have not changed after August 1, 2008;

    • (c) the trust has not issued any equity after October 31, 2006; and

    • (d) the trust does not hold any non-portfolio property other than

      • (i) liabilities of the financial institution, and

      • (ii) shares of the capital stock of the financial institution that were acquired by the trust for the sole purpose of satisfying a right to require the trust to accept, as demanded by a holder of the equity, the surrender of the equity.

    “unaffiliated publicly-traded liability”

    « dette non affiliée transigée publiquement »

    “unaffiliated publicly-traded liability”, of an entity at any time means a publicly-traded liability of the entity if, at that time the total fair market value of all publicly-traded liabilities of the entity that are held at that time by persons or partnerships that are not affiliated with the entity is at least 90% of the total fair market value of all publicly-traded liabilities of the entity.

  • (9) Subsections (1) to (8) are deemed to have come into force on October 31, 2006.

  •  (1) Paragraph (c) of the definition “eligible individual” in subsection 122.51(1) of the Act is replaced by the following:

    • (c) the total of whose incomes for the year from the following sources is at least $2,500:

      • (i) offices and employments (computed without reference to paragraph 6(1)(f)),

      • (ii) businesses each of which is a business carried on by the individual either alone or as a partner actively engaged in the business, and

      • (iii) the program established under the Wage Earner Protection Program Act.

  • (2) Subsection (1) applies to the 2008 and subsequent taxation years.

  •  (1) Paragraph (b) of the definition “working income” in subsection 122.7(1) of the Act is replaced by the following:

    • (b) all amounts that are included, or that would, but for paragraph 81(1)(a), be included, because of paragraph 56(1)(n) or (o) or subparagraph 56(1)(r)(v) in computing the individual’s income for a period in the taxation year; and

  • (2) Subsection (1) applies to the 2008 and subsequent taxation years.

  •  (1) Subsection 125(2) of the Act is replaced by the following:

    • Marginal note:Business limit

      (2) For the purpose of this section, a corporation’s business limit for a taxation year is $500,000 unless the corporation is associated in the taxation year with one or more other Canadian-controlled private corporations, in which case, except as otherwise provided in this section, its business limit is nil.

  • (2) Paragraph 125(3)(a) of the Act is replaced by the following:

    • (a) if the total of the percentages assigned in the agreement does not exceed 100%, $500,000 multiplied by the percentage assigned to that corporation in the agreement; and

  • (3) In applying subsection 125(5) of the Act to a corporation for a 2009 or 2010 taxation year of the corporation that began before 2009, subparagraph 125(5)(a)(i) of the Act is to be read as follows:

    • (i) the amount that would have been its business limit determined under subsection (3) or (4) for the first such taxation year ending in the calendar year if the reference to $400,000 in subsection (3), as it applied in respect of that first such taxation year, had been read in the same manner as it is read in respect of the particular taxation year ending in the calendar year, and

  • (4) 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) $500,000, and

    • (ii) the product obtained when $1,370 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

  • (5) Subsection (1) applies to the 2009 and subsequent taxation years except that, for a 2009 or 2010 taxation year that began before 2009, the reference in subsection 125(2) of the Act, as enacted by subsection (1), to “$500,000” shall be read as a reference to the total of

    • (a) that proportion of $400,000 that the number of days in the taxation year that are before 2009 is of the number of days in the taxation year, and

    • (b) that proportion of $500,000 that the number of days in the taxation year that are after 2008 is of the number of days in the taxation year.

  • (6) Subsection (2) applies to the 2009 and subsequent taxation years except that, for a 2009 or 2010 taxation year that began before 2009, the reference in paragraph 125(3)(a) of the Act, as enacted by subsection (2), to “$500,000” 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)”.

  • (7) Subsection (4) applies to fiscal periods of a partnership that end after 2008.

  •  (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 by a corporation after March 2009 and before 2011 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2011) 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) Paragraphs (c) and (d) of the definition “flow-through mining expenditure” in subsection 127(9) of the Act are replaced by the following:

    • (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2009 and before April 2010, and

    • (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2009 and before April 2010;

  • (3) Paragraph 127(9.01)(b) of the Act is replaced by the following:

    • (b) the number that is the total of 10 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 1997 exceeds 11.

  • (4) Paragraph 127(9.02)(b) of the Act is replaced by the following:

    • (b) the number that is the total of 9 and the number of taxation years by which the number of taxation years of the taxpayer that have ended after 1997 exceeds 11.

  • (5) The formula in subsection 127(10.2) of the Act is replaced by the following:

    ($8 million – 10A) × [($40 million – B)/$40 million]

  • (6) Paragraph (a) of the description of A in subsection 127(10.2) of the Act is replaced by the following:

    • (a) $500,000, and

  • (7) Subparagraphs (a)(i) and (ii) of the description of B in subsection 127(10.2) of the Act are replaced by the following:

    • (i) if the particular corporation is not associated with any other corporation in the particular taxation year, the amount that is its taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year, or

    • (ii) if the particular corporation is associated with one or more other corporations in the particular taxation year, the amount that is the total of all amounts, each of which is the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of the particular corporation for its, or of one of the other corporations for its, last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or

  • (8) Subsection 127(10.22) of the Act is replaced by the following:

    • Marginal note:Deemed non-association of corporations

      (10.22) If a particular Canadian-controlled private corporation is associated with another corporation in circumstances where those corporations would not be associated if the Act were read without reference to paragraph 256(1.2)(a), the particular corporation has issued shares to one or more persons who have been issued shares by the other corporation and there is at least one shareholder of the particular corporation who is not a shareholder of the other corporation or one shareholder of the other corporation who is not a shareholder of the particular corporation, the particular corporation is deemed not to be associated with the other corporation for the purpose of determining the particular corporation’s expenditure limit under subsection (10.2).

  • (9) Paragraph 127(10.6)(c) of the Act is replaced by the following:

    • (c) for the purpose of subsection (10.2), where a Canadian-controlled private corporation has a taxation year that is less than 51 weeks, the taxable income of the corporation for the year shall be determined by multiplying that amount by the ratio that 365 is of the number of days in that year.

  • (10) Paragraph 127(36)(b) of the Act is replaced by the following:

    • (b) the number that is the total of 10 and the number of taxation years or fiscal periods, as the case may be, by which the number of taxation years or fiscal periods of the taxpayer that have ended after 1997 exceeds 11.

  • (11) Subsections (1) and (2) apply to expenses renounced under a flow through share agreement made after March 2009.

  • (12) Subsections (3), (4) and (10) apply in respect of the 2008 and subsequent taxation years.

  • (13) Subsections (5) and (6) apply to the 2010 and subsequent taxation years, except that the expenditure limit in subsection 127(10.2) of the Act in respect of a corporation for 2010 taxation years that begin before 2010, be determined by the formula

    A + [(B – A) × (C/D)]

    where

    A 
    is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Act as that subsection read in its application to taxation years that end in 2009;
    B 
    is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Act, as that subsection would apply to the taxation year in the absence of this exception;
    C 
    is the number of days in the taxation year that are after 2009; and
    D 
    is the total number of days in the taxation year.
  • (14) Subsection (7) applies to taxation years that end on or after February 26, 2008.

  • (15) Subsections (8) and (9) apply to taxation years that end on or after March 9, 2009.

  •  (1) The definition “qualifying corporation” in subsection 127.1(2) of the Act is replaced by the following:

    “qualifying corporation”

    « société admissible »

    “qualifying corporation” for a particular taxation year that ends in a calendar year means a particular corporation that is a Canadian-controlled private corporation in the particular taxation year the taxable income of which for its immediately preceding taxation year — together with, if the particular corporation is associated in the particular taxation year with one or more other corporations (in this subsection referred to as “associated corporations”), the taxable income of each 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 year) — does not exceed the qualifying income limit of the particular corporation for the particular taxation year;

  • (2) Subsection 127.1(2) of the Act is amended by adding the following in alphabetical order:

    “qualifying income limit”

    « plafond de revenu admissible »

    “qualifying income limit” of a corporation for a particular taxation year is the amount determined by the formula

    $500,000 × [($40 million – A)/$40 million]

    where

    A 
    is
    • (a) nil, if $10 million is greater than or equal to the amount (in paragraph (b) referred to as the “taxable capital amount”) that is the total of the corporation’s taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year and the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of each associated corporation for the associated corporation’s last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or

    • (b) in any other case, the lesser of $40 million and the amount by which the taxable capital amount exceeds $10 million;

  • (3) Section 127.1 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Qualifying income limit determined in certain cases

      (4) For the purpose of the definition of “qualifying corporation” in subsection (2), where a Canadian-controlled private corporation has a taxation year that is less than 51 weeks, the taxable income of the corporation for the year shall be determined by multiplying that amount by the ratio that 365 is of the number of days in that year.

  • (4) Subsections (1) and (2) apply to taxation years that end on or after February 26, 2008, except that

    • (a) for taxation years that include February 26, 2008, the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act and the portion of that definition that follows that formula, as enacted by subsection (2), shall be read as follows:

      A + [($400,000 × [($40 million – B)/$40 million] – A) × (C/D)]

      where

      A 
      is the business limit of the corporation for the particular taxation year determined in accordance with section 125 — together with, if the particular corporation is associated in the particular taxation year with one or more other corporations the business limit of each of those associated corporations for its last taxation year that ends in the particular taxation year (determined in accordance with section 125),
      B 
      is
      • (a) nil, if $10 million is greater than or equal to the amount (in paragraph (b) referred to as the “taxable capital amount”) that is the total of the corporation’s taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year and the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of each associated corporation for the associated corporation’s last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, or

      • (b) in any other case, the lesser of $40 million and the amount by which the taxable capital amount exceeds $10 million,

      C 
      is the number of days in the particular taxation year that are after February 25, 2008, and
      D 
      is the total number of days in the particular taxation year;
    • (b) for taxation years that begin after February 26, 2008 and end before 2010, the reference to “$500,000” in the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act, as enacted by subsection (2), shall be read as a reference to “$400,000”; and

    • (c) for 2010 taxation years that begin before 2010, the reference to “$500,000” in the formula in the definition “qualifying income limit” in subsection 127.1(2) of the Act, as enacted by subsection (2), shall be read as a reference to an amount that is the total of $400,000 and that proportion of $100,000 that the number of days in the taxation year that are in 2010 is of the number of days in the taxation year.

  • (5) Subsection (3) applies in respect of the 2008 and subsequent taxation years.

  •  (1) The definition “qualifying trust” in subsection 127.4(1) of the Act is replaced by the following:

    “qualifying trust”

    « fiducie admissible »

    “qualifying trust” for an individual in respect of a share means

    • (a) a trust governed by a registered retirement savings plan, under which the individual is the annuitant, that is not a spousal or common-law partner plan (in this definition having the meaning assigned by subsection 146(1)) in relation to another individual,

    • (b) a trust governed by a registered retirement savings plan, under which the individual or the individual’s spouse or common-law partner is the annuitant, that is a spousal or common-law partner plan in relation to the individual or the individual’s spouse or common-law partner, if the individual and no other person claims a deduction under subsection (2) in respect of the share, or

    • (c) a trust governed by a TFSA of which the individual is the holder;

  • (2) Subsection (1) applies to the 2001 and subsequent taxation years, except that the definition “qualifying trust” in subsection 127.4(1) of the Act, as enacted by subsection (1),

    • (a) shall, for taxation years before 2009, be read without reference to its paragraph (c); and

    • (b) if a taxpayer and a person have jointly elected under section 144 of the Modernization of Benefits and Obligations Act in respect of the 1998, 1999 or 2000 taxation year, applies to the taxpayer and the person in respect of that taxation year and subsequent taxation years.

  •  (1) Section 128.3 of the Act is replaced by the following:

    Marginal note:Former resident — replaced shares

    128.3 If, in a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and (ii), subsection 85.1(8) or section 86 or 87 applies, a person acquires a share (in this section referred to as the “new share”) in exchange for another share or equity in a SIFT wind-up entity (in this section referred to as the “old share”), for the purposes of section 119, subsections 126(2.21) to (2.23), 128.1(6) to (8), 180.1(1.4) and 220(4.5) and (4.6), the person is deemed not to have disposed of the old share, and the new share is deemed to be the same share as the old share.

  • (2) Subsection (1) applies after December 19, 2007.

  •  (1) The portion of the definition “qualifying exchange” in subsection 132.2(2) of the Act before paragraph (a) is replaced by the following:

    “qualifying exchange”

    « échange admissible »

    “qualifying exchange” means a transfer at any time (in this section referred to as the “transfer time”) of all or substantially all of the property of a mutual fund corporation (other than a SIFT wind-up corporation) or mutual fund trust to a mutual fund trust (in this section referred to as the “transferor” and “transferee”, respectively, and as the “funds”), if

  • (2) Subsection (1) applies after December 19, 2007.

  •  (1) The portion of subsection 138(10) of the Act before paragraph (b) is replaced by the following:

    • Marginal note:Application of financial institution rules

      (10) Notwithstanding sections 142.3, 142.4, 142.5 and 142.51, where in a taxation year an insurer (other than an insurer resident in Canada that does not carry on a life insurance business) carries on an insurance business in Canada and in a country other than Canada, in computing its income for the year from carrying on an insurance business in Canada,

      • (a) sections 142.3, 142.5 and 142.51 apply only in respect of property that is designated insurance property for the year in respect of the business; and

  • (2) Subsection 138(12) of the Act is amended by adding the following in alphabetical order:

    “base year”

    « année de base »

    “base year” of a life insurer means the life insurer’s taxation year that immediately precedes its transition year;

    “reserve transition amount”

    « montant transitoire »

    “reserve transition amount” of a life insurer, in respect of a life insurance business carried on by it in Canada in its transition year, is the positive or negative amount determined by the formula

    A – B

    where

    A 
    is the maximum amount that the life insurer would be permitted to claim under subparagraph 138(3)(a)(i) (and that would be prescribed by section 1404 of the Regulations for the purpose of subparagraph 138(3)(a)(i)) as a policy reserve for its base year in respect of its life insurance policies in Canada if
    • (a) the generally accepted accounting principles that applied to the life insurer in valuing its assets and liabilities for its transition year had applied to it for its base year, and

    • (b) section 1404 of the Regulations were read in respect of the life insurer’s base year as it reads in respect of its transition year, and

    B 
    is the maximum amount that the life insurer is permitted to claim under subparagraph 138(3)(a)(i) as a policy reserve for its base year;

    “transition year”

    « année transitoire »

    “transition year” of a life insurer means the life insurer’s first taxation year that begins after September 2006;

  • (3) Section 138 of the Act is amended by adding the following after subsection (15):

    • Marginal note:Transition year income inclusion

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

    • Marginal note:Transition year income deduction

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

    • Marginal note:Transition year income inclusion reversal

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

      A × B/1825

      where

      A 
      is the amount included under subsection (16) in computing the life insurer’s income for the transition year from that life insurance business; and
      B 
      is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year.
    • Marginal note:Transition year income deduction reversal

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

      A × B/1825

      where

      A 
      is the amount deducted under subsection (17) in computing the life insurer’s income for the transition year from that life insurance business; and
      B 
      is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year.
    • Marginal note:Winding-up

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

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

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

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

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

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

    • Marginal note:Amalgamations

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

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

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

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

    • Marginal note:Application of subsection (23)

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

      • (a) subsection 138(11.5) or (11.94) applies to the transfer; or

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

    • Marginal note:Transfer of life insurance business

      (23) If this subsection applies in respect of the transfer, at any time, of property

      • (a) the transferee is, at and after that time, deemed to be the same corporation as and a continuation of the transferor in respect of

        • (i) any amount included under subsection (16) or deducted under subsection (17) in computing the transferor’s income for its transition year that can reasonably be attributed to the transferred business,

        • (ii) any amount deducted under subsection (18) or included under subsection (19) in computing the transferor’s income for a taxation year of the transferor that begins before that time that can reasonably be attributed to the transferred business, and

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

      • (b) in determining, in respect of the day that includes that time or any subsequent day, any amount that is required under subsection (18) or (19) to be deducted or included in computing the transferor’s income for each particular taxation year from the transferred business, the description of A in the formulas in those subsections is deemed to be nil.

    • Marginal note:Ceasing to carry on business

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

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

        A – B

        where

        A 
        is the amount included under subsection (16) in computing the life insurer’s income from the discontinued business for its transition year, and
        B 
        is the total of all amounts each of which is an amount deducted under subsection (18) in computing the life insurer’s income from the discontinued business for a taxation year that began before that time; and
      • (b) there shall be included, in computing the life insurer’s income from the discontinued business for the life insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

        C – D

        where

        C 
        is the amount deducted under subsection (17) in computing the life insurer’s income from the discontinued business for its transition year, and
        D 
        is the total of all amounts each of which is an amount included under subsection (19) in computing the life insurer’s income from the discontinued business for a taxation year that began before that time.
    • Marginal note:Ceasing to exist

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

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

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

  • (4) Subsections (1) to (3) apply to taxation years that begin after September 2006.

  •  (1) Paragraph (a) of the definition bien évalué à la valeur du marché in subsection 142.2(1) of the French version of the Act is replaced by the following:

    • a) une action;

  • (2) Paragraph (d) of the definition “mark-to-market property” in subsection 142.2(1) of the Act is replaced by the following:

    • (d) a share of a corporation in which the taxpayer has a significant interest at any time in the year,

    • (d.1) a property that is, at all times in the year at which the taxpayer holds the property, a prescribed payment card corporation share of the taxpayer,

    • (d.2) if the taxpayer is an investment dealer and the year begins after 1998, a property that is, at all times in the year at which the taxpayer holds the property, a prescribed securities exchange investment of the taxpayer,

    • (d.3) a share of a corporation held, at any time in the year, by the taxpayer if

      • (i) control of the corporation is, at any time (referred to in this paragraph as the “acquisition of control time”) that is after 2001 and is in the 24-month period that begins immediately after the end of the year, acquired by

        • (A) the taxpayer,

        • (B) one or more persons related to the taxpayer (otherwise than by reason of a right referred to in paragraph 251(5)(b)), or

        • (C) the taxpayer and one or more persons described in clause (B), and

      • (ii) the taxpayer elects in writing to have subparagraph (i) apply and files the election with the Minister on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the acquisition of control time, or

  • (3) The definition “mark-to-market property” in subsection 142.2(1) of the Act, as amended by subsection (2), is replaced by the following:

    “mark-to-market property”

    « bien évalué à la valeur du marché »

    “mark-to-market property” of a taxpayer for a taxation year means property (other than an excluded property) held at any time in the taxation year by the taxpayer that is

    • (a) a share,

    • (b) if the taxpayer is not an investment dealer, a specified debt obligation that is a fair value property of the taxpayer for the taxation year,

    • (c) if the taxpayer is an investment dealer, a specified debt obligation, or

    • (d) a tracking property of the taxpayer that is a fair value property of the taxpayer for the taxation year;

  • (4) Subsection 142.2(1) of the Act is amended by adding the following in alphabetical order:

    “excluded property”

    « bien exclu »

    “excluded property” of a taxpayer for a taxation year means property, held at any time in the taxation year by the taxpayer, that is

    • (a) a share of the capital stock of a corporation if, at any time in the taxation year, the taxpayer has a significant interest in the corporation,

    • (b) a property that is, at all times in the taxation year at which the taxpayer held the property, a prescribed payment card corporation share of the taxpayer,

    • (c) if the taxpayer is an investment dealer, a property that is, at all times in the taxation year at which the taxpayer held the property, a prescribed securities exchange investment of the taxpayer,

    • (d) a share of the capital stock of a corporation if

      • (i) control of the corporation is, at any time (referred to in this paragraph as the “acquisition of control time”) that is in the 24-month period that begins immediately after the end of the year, acquired by

        • (A) the taxpayer,

        • (B) one or more persons related to the taxpayer (otherwise than by reason of a right referred to in paragraph 251(5)(b)), or

        • (C) the taxpayer and one or more persons described in clause (B), and

      • (ii) the taxpayer elects in writing to have subparagraph (i) apply and files the election with the Minister on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the acquisition of control time, or

    • (e) a prescribed property;

    “fair value property”

    « bien évalué à sa juste valeur »

    “fair value property” of a taxpayer for a taxation year means property, held at any time in the taxation year by the taxpayer, that is — or it is reasonable to expect would, if the taxpayer held the property at the end of the taxation year, be — valued (otherwise than solely because its fair value was less than its cost to the taxpayer or, if the property is a specified debt obligation, because of a default of the debtor) in accordance with generally accepted accounting principles, at its fair value (determined in accordance with those principles) in the taxpayer’s balance sheet as at the end of the taxation year;

    “tracking property”

    « bien à évaluer »

    “tracking property” of a taxpayer means property of the taxpayer the fair market value of which is determined primarily by reference to one or more criteria in respect of property (referred to in this definition as “tracked property”) that, if owned by the taxpayer, would be mark-to-market property of the taxpayer, which criteria are

    • (a) the fair market value of the tracked property,

    • (b) the profits or gains from the disposition of the tracked property,

    • (c) the revenue, income or cash flow from the tracked property, or

    • (d) any other similar criteria in respect of the tracked property;

  • (5) The portion of subsection 142.2(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Significant interest

      (2) For the purposes of the definitions “excluded property”, “mark-to-market property” and “specified debt obligation” in subsection (1) and subsections (5) and 142.6(1.6), a taxpayer has a significant interest in a corporation at any time if

  • (6) Subsections 142.2(4) and (5) of the Act are replaced by the following:

    • Extension of meaning of “related”

      (4) For the purposes of this subsection and subsections (2) and (3), in determining if, at a particular time, a person or partnership is related to another person or partnership, the rules in section 251 are to be applied as if,

      • (a) a partnership (other than a partnership in respect of which any amount of the income or capital of the partnership that any entity may receive directly from the partnership at any time as a member of the partnership depends on the exercise by any entity of, or the failure by any entity to exercise, a discretionary power) were a corporation having capital stock of a single class divided into 100 issued shares and each member of the partnership owned, at the particular time, that proportion of the issued shares of that class that

        • (i) the fair market value of the member’s interest in the partnership at the particular time

        is of

        • (ii) the fair market value of all interests in the partnership at the particular time; and

      • (b) a trust (other than a trust in respect of which any amount of the income or capital of the trust that any entity may receive directly from the trust at any time as a beneficiary under the trust depends on the exercise by any entity of, or the failure by any entity to exercise, a discretionary power) were a corporation having capital stock of a single class divided into 100 issued shares and each beneficiary under the trust owned, at the particular time, that proportion of the issued shares of that class that

        • (i) the fair market value of the beneficiary’s beneficial interest in the trust at the particular time

        is of

        • (ii) the fair market value at that time of all beneficial interests in the trust.

  • (7) Subsections (1) and (2) apply to taxation years that end after February 22, 1994, except that any election made under paragraph (d.3) of the definition “mark-to-market property” in subsection 142.2(1) of the Act, as enacted by subsection (2), is deemed to have been made on a timely basis if it is filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to.

  • (8) Subsection (3) applies to taxation years that begin after September 2006 except that for taxation years that begin before November 7, 2007, the definition “mark-to-market property” in subsection 142.2(1) of the Act, as enacted by subsection (3), is to be read without its paragraph (d).

  • (9) Subsections (4) to (6) apply to taxation years that begin after September 2006 except that any election made under paragraph (d) of the definition “excluded property” in subsection 142.2(1) of the Act, as enacted by subsection (4), is deemed to have been made on a timely basis if it is filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to.

  •  (1) Section 142.5 of the Act is amended by adding the following after subsection (8):

    • Marginal note:Application of subsection (8.2)

      (8.1) Subsection (8.2) applies to a taxpayer for its transition year if

      • (a) subsection (2) deems the taxpayer to have disposed of a particular specified debt obligation immediately before the end of its transition year (in subsection (8.2) referred to as “the particular disposition”); and

      • (b) the particular specified debt obligation was owned by the taxpayer at the end of its base year and was not a mark-to-market property of the taxpayer for its base year.

    • Marginal note:Rules applicable to first deemed disposition of debt obligation

      (8.2) If this subsection applies to a taxpayer for its transition year, the following rules apply to the taxpayer in respect of the particular disposition:

      • (a) subsection 20(21) does not apply to the taxpayer in respect of the particular disposition; and

      • (b) if section 12.4 does not apply to the taxpayer in respect of the particular disposition, there shall be included in computing the taxpayer’s income for its transition year the amount, if any, by which

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

          • (A) an amount deducted under paragraph 20(1)(l) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for its base year, or

          • (B) an amount deducted under paragraph 20(1)(p) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for a taxation year that preceded its transition year,

        exceeds

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

          • (A) an amount included under paragraph 12(1)(d) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for its transition year, or

          • (B) an amount included under paragraph 12(1)(i) in respect of the particular specified debt obligation of the taxpayer in computing the taxpayer’s income for its transition year or a preceding taxation year.

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) The Act is amended by adding the following after section 142.5:

    Marginal note:Definitions
    • 142.51 (1) The following definitions apply for the purposes of this section and subsections 142.5(8.1) and (8.2).

      “base year”

      « année de base »

      “base year” of a taxpayer means the taxpayer’s taxation year that immediately precedes its transition year.

      “transition amount”

      « montant transitoire »

      “transition amount” of a taxpayer for the taxpayer’s transition year is the positive or negative amount determined by the formula

      A – B

      where

      A 
      is the total of all amounts each of which is the fair market value, at the end of the taxpayer’s base year, of a transition property of the taxpayer; and
      B 
      is the total of all amounts each of which is the cost amount to the taxpayer, at the end of the taxpayer’s base year, of a transition property of the taxpayer.

      “transition property”

      « bien transitoire »

      “transition property” of a taxpayer means a property that

      • (a) was a specified debt obligation held by the taxpayer at the end of the taxpayer’s base year;

      • (b) was not a mark-to-market property of the taxpayer for the taxpayer’s base year, but would have been a mark-to-market property of the taxpayer for the taxpayer’s base year if the property had been carried at the property’s fair market value in the taxpayer’s balance sheet as at the end of each taxation year of the taxpayer that ends after the taxpayer last acquired the property (otherwise than by reason of a reacquisition under subsection 142.5(2)) and before the commencement of the taxpayer’s transition year; and

      • (c) was a mark-to-market property of the taxpayer for the transition year of the taxpayer.

      “transition year”

      « année transitoire »

      “transition year” of a taxpayer means the taxpayer’s first taxation year that begins after September 2006.

    • Marginal note:Transition year income inclusion

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

    • Marginal note:Transition year income deduction

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

    • Marginal note:Transition year income inclusion reversal

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

      A × B/1825

      where

      A 
      is the amount included under subsection (2) in computing the taxpayer’s income for the transition year; and
      B 
      is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year.
    • Marginal note:Transition year income deduction reversal

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

      A × B/1825

      where

      A 
      is the amount deducted under subsection (3) in computing the taxpayer’s income for the transition year; and
      B 
      is the number of days in the particular taxation year that are before the day that is 1825 days after the first day of the transition year.
    • Marginal note:Winding-up

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

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

        • (i) any amount included under subsection (2) or deducted under subsection (3) by the taxpayer in computing the taxpayer’s income for its transition year,

        • (ii) any amount deducted under subsection (4) or included under subsection (5) in computing the taxpayer’s income for a taxation year of the taxpayer that begins before the start day, and

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

      • (b) the taxpayer is, in respect of each of its particular taxation years, to determine the value for B in the formulas in subsections (4) and (5) without reference to the start day and days after the start day.

    • Marginal note:Amalgamations

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

      • (a) any amount included under subsection (2) or deducted under subsection (3) in computing the taxpayer’s income for its transition year of the taxpayer;

      • (b) any amount deducted under subsection (4) or included under subsection (5) in computing the taxpayer’s income for a taxation year of the taxpayer that begins before the day on which the amalgamation occurred; and

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

    • Marginal note:Application of subsection (9)

      (8) Subsection (9) applies if, at any time, a taxpayer (referred to in this subsection and subsection (9) as the “transferor”) transfers, to a corporation (referred to in this subsection and subsection (9) as the “transferee”) that is related to the transferor, property in respect of a business carried on by the transferor in Canada (referred to in this subsection and subsection (9) as the “transferred business”) and

      • (a) subsection 138(11.5) or (11.94) applies to the transfer; or

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

    • Marginal note:Transfer of a business

      (9) If this subsection applies in respect of the transfer, at any time, of property

      • (a) the transferee is, at and after that time, deemed to be the same corporation as and a continuation of the transferor in respect of

        • (i) any amount included under subsection (2) or deducted under subsection (3) in computing the transferor’s income for its transition year that can reasonably be attributed to the transferred business,

        • (ii) any amount deducted under subsection (4) or included under subsection (5) in computing the transferor’s income for a taxation year of the transferor that begins before that time that can reasonably be attributed to the transferred business, and

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

      • (b) in determining, in respect of the day that includes that time or any subsequent day, any amount that is required under subsection (4) or (5) to be deducted or included in computing the transferor’s income for each particular taxation year from the transferred business, the description of A in the formulas in those subsections is deemed to be nil.

    • Marginal note:Continuation of a partnership

      (10) If subsection 98(6) deems a partnership (in this subsection referred to as the “new partnership”) to be a continuation of another partnership (in this subsection referred to as the “predecessor partnership”) and, at the time that is immediately after the predecessor partnership ceases to exist, the new partnership is a financial institution, in applying subsections (4) and (5) in computing the income of the new partnership for particular taxation years of the new partnership that begin on or after the day on which it comes into existence, the new partnership is, on and after that day, deemed to be the same partnership as and a continuation of the predecessor partnership in respect of

      • (a) any amount included under subsection (2) or deducted under subsection (3) in computing the predecessor partnership’s income for its transition year;

      • (b) any amount deducted under subsection (4) or included under subsection (5) in computing the predecessor partnership’s income for a taxation year of the predecessor partnership that begins before the day on which the new partnership comes into existence; and

      • (c) any amount that would — in the absence of this subsection and if the predecessor partnership existed and was a financial institution on each day that is the day on which the new partnership comes into existence or a subsequent day and on which the new partnership is a financial institution — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the predecessor partnership’s income.

    • Marginal note:Ceasing to carry on a business

      (11) If at any time, a taxpayer ceases to be a financial institution

      • (a) there shall be deducted, in computing the income of the taxpayer for the taxation year of the taxpayer that includes the time that is immediately before that time, the amount determined by the formula

        A – B

        where

        A 
        is the amount included under subsection (2) in computing the taxpayer’s income for its transition year, and
        B 
        is the total of all amounts each of which is an amount deducted under subsection (4) in computing the income of the taxpayer for a taxation year that began before that time; and
      • (b) there shall be included, in computing the income of the taxpayer for the taxation year of the taxpayer that includes the time that is immediately before that time, the amount determined by the formula

        C – D

        where

        C 
        is the amount deducted under subsection (3) in computing the taxpayer’s income for its transition year, and
        D 
        is the total of all amounts each of which is an amount included under subsection (5) in computing the taxpayer’s income for a taxation year that began before that time.
    • Marginal note:Ceasing to exist

      (12) If at any time a taxpayer ceases to exist (otherwise than as a result of a merger to which subsection 87(2) applies, a winding-up to which subsection 88(1) applies or a continuation to which subsection 98(6) applies), for the purposes of subsection (11), the taxpayer is deemed to have ceased to be a financial institution at the earlier of

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

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

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) Section 142.6 of the Act is amended by adding the following after subsection (1.3):

    • Marginal note:Change in status — prescribed payment card corporation share

      (1.4) If, at any particular time in a taxation year of a taxpayer that is a financial institution for the taxation year, a property becomes a mark-to-market property of the taxpayer for the taxation year because it ceased, at the particular time, to be a prescribed payment card corporation share of the taxpayer,

      • (a) the taxpayer is deemed

        • (i) to have disposed of the property immediately before the particular time for proceeds of disposition equal to its fair market value immediately before the particular time, and

        • (ii) to have acquired the property, at the particular time, at a cost equal to those proceeds; and

      • (b) subsection 142.5(1) does not apply to the disposition under subparagraph (a)(i).

    • Marginal note:Change in status — prescribed securities exchange investment

      (1.5) If, at any particular time in a taxation year of a taxpayer that is a financial institution for the taxation year, a property becomes a mark-to-market property of the taxpayer for the taxation year because it ceased, at the particular time, to be a prescribed securities exchange investment of the taxpayer,

      • (a) the taxpayer is deemed

        • (i) to have disposed of the property immediately before the particular time for proceeds of disposition equal to its fair market value immediately before the particular time, and

        • (ii) to have acquired the property, at the particular time, at a cost equal to those proceeds; and

      • (b) subsection 142.5(1) does not apply to the disposition under subparagraph (a)(i).

    • Marginal note:Change in status — significant interest

      (1.6) If, at the end of a particular taxation year of a taxpayer that is a financial institution for the taxation year, the taxpayer holds a share of the capital stock of a corporation, the taxpayer has a significant interest in that corporation at any time in the particular taxation year and the share is mark-to-market property of the taxpayer for the immediately following taxation year, the taxpayer is deemed to have,

      • (a) disposed of the share immediately before the end of the particular taxation year for proceeds of disposition equal to the fair market value, at that time, of the share; and

      • (b) acquired the share at the end of the particular taxation year at a cost equal to those proceeds.

  • (2) Subsection 142.6(2) of the Act is replaced by the following:

    • Marginal note:Deemed disposition not applicable

      (2) For the purposes of this Act, the determination of when a taxpayer acquired a share shall be made without regard to a disposition or acquisition that occurred because of subsection 142.5(2) or subsection (1), (1.1), (1.2), (1.4), (1.5) or (1.6).

  • (3) Subsection 142.6(1.4) of the Act, as enacted by subsection (1), applies to taxation years that end after February 22, 1994.

  • (4) Subsection 142.6(1.5) of the Act, as enacted by subsection (1), applies to taxation years that begin after 1998.

  • (5) Subsection 142.6(1.6) of the Act, as enacted by subsection (1), applies to taxation years that begin after September 2006.

  • (6) Subsection (2) applies to taxation years that begin after September 2006.

  •  (1) Subsection 143.1(1) of the Act is replaced by the following:

    Marginal note:Definitions
    • 143.1 (1) The definitions in this subsection apply in this section.

      “amateur athlete”

      « athlète amateur »

      “amateur athlete” at any time means an individual (other than a trust) who is, at that time,

      • (a) a member of a registered Canadian amateur athletic association;

      • (b) eligible to compete, in an international sporting event sanctioned by an international sports federation, as a Canadian national team member; and

      • (c) not a professional athlete.

      “professional athlete”

      « athlète professionnel »

      “professional athlete” means an individual who receives income that is compensation for, or is otherwise attributable to, the individual’s activities as a player or athlete in a professional sport.

      “qualifying performance income”

      « revenu de performance admissible »

      “qualifying performance income” of an individual means income that

      • (a) is received by the individual in a taxation year in which

        • (i) the individual was, at any time, an amateur athlete, and

        • (ii) the individual was not, at any time, a professional athlete;

      • (b) may reasonably be considered to be in connection with the individual’s participation as an amateur athlete in one or more international sporting events referred to in the definition “amateur athlete”; and

      • (c) is endorsement income, prize money, or income from public appearances or speeches.

      “third party”

      « tiers »

      “third party” in respect of an arrangement described in paragraph (1.1)(b) means a person who deals at arm’s length with the amateur athlete in respect of the arrangement.

    • Marginal note:Where subsection (1.2) applies

      (1.1) Subsection (1.2) applies where, at any time,

      • (a) a national sport organization that is a registered Canadian amateur athletic association receives an amount for the benefit of an individual under an arrangement made under rules of an international sport federation that require amounts to be held, controlled and administered by the organization in order to preserve the eligibility of the individual to compete in a sporting event sanctioned by the federation; or

      • (b) an individual enters into an arrangement that

        • (i) is an account with an issuer described in paragraph (b) of the definition “qualifying arrangement” in subsection 146.2(1), or that would be so described if that definition applied at that time,

        • (ii) provides that no amount may be deposited, credited or added to the account, other than an amount that is qualifying performance income of the individual or that is interest or other income in respect of the property deposited, credited or added to the account,

        • (iii) provides that a third party is a mandatory signatory on any payment from the account, and

        • (iv) is not a registered retirement savings plan or a TFSA.

    • Marginal note:Amateur athletes’ reserve funds

      (1.2) If this subsection applies in respect of an arrangement referred to in subsection (1.1),

      • (a) an inter vivos trust (in this section referred to as the “amateur athlete trust”) is deemed

        • (i) to be created on the day on which the first amount referred to in paragraph (1.1)(a) or (b) is received by the sport organization or by the issuer, as the case may be, in respect of the arrangement, and

        • (ii) to exist until subsection (3) or (4) applies in respect of the trust;

      • (b) all property held under the arrangement is deemed to be the property of the amateur athlete trust and not property of any other person;

      • (c) if, at any time, the sport organization or the issuer, as the case may be, receives an amount under the arrangement and the amount would, in the absence of this subsection, be included in computing the income of the individual in respect of the arrangement for the taxation year that includes that time, the amount is deemed to be income of the amateur athlete trust for that taxation year and not to be income of the individual;

      • (d) if, at any time, the sport organization or the issuer, as the case may be, pays or transfers an amount under the arrangement to or for the benefit of the individual, the amount is deemed to be an amount distributed at that time to the individual by the amateur athlete trust;

      • (e) the individual is deemed to be the beneficiary under the amateur athlete trust;

      • (f) the sport organization or the third party, as the case may be, in respect of the arrangement is deemed to be the trustee of the amateur athlete trust; and

      • (g) no tax is payable under this Part by the amateur athlete trust on its taxable income for any taxation year.

  • (2) Subsection (1) applies to the 2008 and subsequent taxation years except that, if the individual in respect of an amateur athlete trust elects under this subsection in writing filed with the Minister of National Revenue on or before the individual’s filing-due date for the 2008 taxation year, in its application to the individual and the amateur athlete trust for the 2008 taxation year, paragraph 143.1(1.2)(c) of the Act, as enacted by subsection (1), is to be read as follows:

    • (c) if, at any time before March 3, 2009, the sport organization or the issuer, as the case may be, receives an amount under the arrangement and the amount would, in the absence of this subsection, be included in computing the income of the individual in respect of the arrangement for the 2008 taxation year, the amount is deemed to be income of the amateur athlete trust for its 2009 taxation year and not to be income of the individual;

  •  (1) Paragraph (b) of the definition “earned income” in subsection 146(1) of the Act is replaced by the following:

    • (b) an amount included under paragraph 56(1)(b), (c.2), (g) or (o) or subparagraph 56(1)(r)(v) in computing the taxpayer’s income for a period in the year throughout which the taxpayer was resident in Canada,

  • (2) The description of D in paragraph (b) of the definition “unused RRSP deduction room” in subsection 146(1) of the Act is replaced by the following:

    D 
    is the total of all amounts each of which is an amount deducted by the taxpayer,
    • (i) under subsection (5) or (5.1) or paragraph 60(v), in computing the taxpayer’s income for the year, or

    • (ii)  under  paragraph  10  of  Article XVIII of the Canada-United States Tax Convention signed at Washington on September 26, 1980 or a similar provision in another tax treaty, in computing the taxpayer’s taxable income for the year, and

  • (3) Section 146 of the Act is amended by adding the following after subsection (8.91):

    • Marginal note:Deduction for post-death reduction in value

      (8.92) If the annuitant under a registered retirement savings plan dies before the maturity of the plan, there may be deducted in computing the annuitant’s income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable out of or under the plan have been paid, by the formula

      A – B

      where

      A 
      is the total of all amounts each of which is
      • (a) the amount deemed by subsection (8.8) to have been received by the annuitant as a benefit out of or under the plan,

      • (b) an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer as a benefit out of or under the plan and included, because of subsection (8), in computing the taxpayer’s income, or

      • (c) a tax-paid amount in respect of the plan; and

      B 
      is the total of all amounts paid out of or under the plan after the death of the annuitant.
    • Marginal note:Subsection (8.92) not applicable

      (8.93) Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (8.92) in respect of a registered retirement savings plan, that subsection does not apply if

      • (a) at any time after the death of the annuitant, a trust governed by the plan held a non-qualified investment; or

      • (b) the last payment out of or under the plan was made after the end of the year following the year in which the annuitant died.

  • (4) Subsection (1) applies to the 1997 and subsequent taxation years, except that in its application to the 1997 to 2007 taxation years, paragraph (b) of the definition “earned income” in subsection 146(1) of the Act, as enacted by subsection (1), is to be read without reference to “or subparagraph 56(1)(r)(v)”.

  • (5) Subsection (2) applies to the 2009 and subsequent taxation years.

  • (6) Subsection (3) applies in respect of a registered retirement savings plan in respect of which the last payment out of the plan is made after 2008.

  •  (1) Paragraph (h) of the definition “regular eligible amount” in subsection 146.01(1) of the Act is replaced by the following:

    • (h) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000, and

  • (2) Paragraph (g) of the definition “supplemental eligible amount” in subsection 146.01(1) of the Act is replaced by the following:

    • (g) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $25,000, and

  • (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years in respect of withdrawals made after January 27, 2009.

  •  (1) Subparagraph (b)(ii) of the definition “qualifying arrangement” in subsection 146.2(1) of the Act is replaced by the following:

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

  • (2) Subsections 146.2(3) to (9) of the Act are replaced by the following:

    • Marginal note:Paragraphs (2)(a), (b) and (e) not applicable

      (3) The conditions in paragraphs (2)(a), (b) and (e) do not apply to the extent that they are inconsistent with subsection (4).

    • Marginal note:Using TFSA interest as security for a loan

      (4) A holder of a TFSA may use the holder’s interest or, for civil law, right in the TFSA as security for a loan or other indebtedness if

      • (a) the terms and conditions of the indebtedness are terms and conditions that persons dealing at arm’s length with each other would have entered into; and

      • (b) it can reasonably be concluded that none of the main purposes for that use is to enable a person (other than the holder) or a partnership to benefit from the exemption from tax under this Part of any amount in respect of the TFSA.

    • Marginal note:TFSA

      (5) If the issuer of an arrangement that is, at the time it is entered into, a qualifying arrangement files with the Minister, before March of the calendar year following the calendar year in which the arrangement was entered into, an election in prescribed form and manner to register the arrangement as a TFSA under the Social Insurance Number of the individual with whom the arrangement was entered into, the arrangement becomes a TFSA at the time the arrangement was entered into and ceases to be a TFSA at the earliest of the following times:

      • (a) the time at which the last holder of the arrangement dies;

      • (b) the time at which the arrangement ceases to be a qualifying arrangement; or

      • (c) the earliest time at which the arrangement is not administered in accordance with the conditions in subsection (2).

    • Marginal note:Trust not taxable

      (6) No tax is payable under this Part by a trust that is governed by a TFSA on its taxable income for a taxation year, except that, if at any time in the taxation year, it carries on one or more businesses or holds one or more properties that are non-qualified investments (as defined in subsection 207.01(1)) for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no incomes or losses from sources other than those businesses and properties, and no capital gains or capital losses other than from dispositions of those properties, and for that purpose,

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

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

    • Marginal note:Amount credited to a deposit

      (7) An amount that is credited or added to a deposit that is a TFSA as interest or other income in respect of the TFSA is deemed not to be received by the holder of the TFSA solely because of that crediting or adding.

    • Marginal note:Trust ceasing to be a TFSA

      (8) If an arrangement that governs a trust ceases, at a particular time, to be a TFSA,

      • (a) the trust is deemed

        • (i) to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time, and

        • (ii) to have acquired, at the particular time, each such property at a cost equal to that fair market value;

      • (b) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time; and

      • (c) a taxation year of the trust is deemed to begin at the particular time.

    • Marginal note:Trust ceasing to be a TFSA on death of holder

      (9) If an arrangement that governs a trust ceases to be a TFSA because of the death of the holder of the TFSA,

      • (a) the arrangement is deemed, for the purposes of subsections (6) and (8), any regulations made under subsection (13), the definition “trust” in subsection 108(1), paragraph 149(1)(u.2) and the definitions “qualified investment” and “non-qualified investment” in subsection 207.01(1), to continue to be a TFSA until, and to cease to be a TFSA immediately after, the exemption-end time, being in this subsection the earlier of

        • (i) the time at which the trust ceases to exist, and

        • (ii) the end of the first calendar year that begins after the holder dies;

      • (b) there shall be included in computing a taxpayer’s income for a taxation year the total of all amounts each of which is an amount determined by the formula

        A – B

        where

        A 
        is the amount of a payment made out of or under the trust, in satisfaction of all or part of the taxpayer’s beneficial interest in the trust, in the taxation year, after the holder’s death and at or before the exemption-end time, and
        B 
        is an amount designated by the trust not exceeding the lesser of
        • (i) the amount of the payment, and

        • (ii) the amount by which the fair market value of all of the property held by the trust immediately before the holder’s death exceeds the total of all amounts each of which is the value of B in respect of any other payment made out of or under the trust; and

      • (c) there shall be included in computing the trust’s income for its first taxation year, if any, that begins after the exemption-end time the amount determined by the formula

        A – B

        where

        A 
        is the fair market value of all of the property held by the trust at the exemption-end time, and
        B 
        is the amount by which the fair market value of all of the property held by the trust immediately before the holder’s death exceeds the total of all amounts each of which is the value of B in paragraph (b) in respect of a payment made out of or under the trust.
    • Marginal note:Annuity contract ceasing to be a TFSA

      (10) If an annuity contract ceases, at a particular time, to be a TFSA,

      • (a) the holder of the TFSA is deemed to have disposed of the contract immediately before the particular time for proceeds equal to its fair market value immediately before the particular time;

      • (b) the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a TFSA; and

      • (c) each person who has an interest or, for civil law, a right in the separate annuity contract at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.

    • Marginal note:Deposit ceasing to be a TFSA

      (11) If a deposit ceases, at a particular time, to be a TFSA,

      • (a) the holder of the TFSA is deemed to have disposed of the deposit immediately before the particular time for proceeds equal to its fair market value immediately before the particular time; and

      • (b) each person who has an interest or, for civil law, a right in the deposit at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.

    • Marginal note:Arrangement is TFSA only

      (12) An arrangement that is a qualifying arrangement at the time it is entered into is deemed not to be a retirement savings plan, an education savings plan, a retirement income fund or a disability savings plan.

    • Marginal note:Regulations

      (13) The Governor in Council may make regulations requiring issuers of TFSAs to file information returns in respect of TFSAs.

  • (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

  •  (1) Section 146.3 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Adjusted minimum amount for 2008

      (1.1) The minimum amount under a retirement income fund for 2008 is 75 per cent of the amount that would, in the absence of this subsection, be the minimum amount under the fund for the year.

    • Marginal note:Exceptions

      (1.2) Subsection (1.1) does not apply to a retirement income fund

      • (a) for the purposes of subsections (5.1) and 153(1) and the definition “periodic pension payment” in section 5 of the Income Tax Conventions Interpretation Act; nor

      • (b) if the individual who was the annuitant under the fund on January 1, 2008 attained 70 years of age in 2007.

  • (2) Section 146.3 of the Act is amended by adding the following after subsection (6.2):

    • Marginal note:Deduction for post-death reduction in value

      (6.3) If the last annuitant under a registered retirement income fund dies, there may be deducted in computing the annuitant’s income for the taxation year in which the annuitant dies an amount not exceeding the amount determined, after all amounts payable out of or under the fund have been paid, by the formula

      A – B

      where

      A 
      is the total of all amounts each of which is
      • (a) the amount deemed by subsection (6) to have been received by the annuitant out of or under the fund,

      • (b) an amount (other than an amount described in paragraph (c)) received, after the death of the annuitant, by a taxpayer out of or under the fund and included, because of subsection (5), in computing the taxpayer’s income, or

      • (c) an amount that would, if the fund were a registered retirement savings plan, be a tax-paid amount (within the meaning assigned by subsection 146(1)) in respect of the fund; and

      B 
      is the total of all amounts paid out of or under the fund after the death of the annuitant.
    • Marginal note:Subsection (6.3) not applicable

      (6.4) Except where the Minister has waived in writing the application of this subsection with respect to all or any portion of the amount determined in subsection (6.3) in respect of a registered retirement income fund, that subsection does not apply if

      • (a) at any time after the death of the annuitant, a trust governed by the fund held an investment that is not a qualified investment; or

      • (b) the last payment out of or under the fund was made after the end of the year following the year in which the annuitant died.

  • (3) Subsection (2) applies in respect of a registered retirement income fund in respect of which the last payment out of the fund is made after 2008.

  •  (1) The definition “entrusted shares percentage” in subsection 149.1(1) of the Act is repealed.

  • (2) The definition “divestment obligation percentage” in subsection 149.1(1) of the Act is replaced by the following:

    “divestment obligation percentage”

    « pourcentage de dessaisissement »

    “divestment obligation percentage” of a private foundation for a particular taxation year, in respect of a class of shares of the capital stock of a corporation, is the percentage, if any, that is the lesser of

    • (a) the excess, if any, at the end of the taxation year, of the percentage of issued and outstanding shares of that class that are held by the private foundation over the exempt shares percentage of the private foundation, and

    • (b) the percentage determined by the formula

      A + B – C

      where

      A 
      is the percentage determined under this paragraph in respect of the private foundation in respect of the class for the preceding taxation year,
      B 
      is the total of all percentages, each of which is the portion of a net increase in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(5), and
      C 
      is the total of all percentages, each of which is the portion of a net decrease in the excess corporate holdings percentage of the private foundation in respect of the class for the particular taxation year or for a preceding taxation year that is allocated to the particular taxation year in accordance with subsection 149.2(7);
  • (3) Paragraph (c) of the definition “excess corporate holdings percentage” in subsection 149.1(1) of the Act is replaced by the following:

    • (c) in any other case, the number of percentage points, if any, by which the total corporate holdings percentage of the private foundation in respect of the class, at that time, exceeds the greater of 20% and the exempt shares percentage, at that time, of the private foundation in respect of the class;

  • (4) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:

    “equity percentage”

    « pourcentage d’intérêt »

    “equity percentage” of a person in a corporation has, subject to subsection 149.2(2.1), the same meaning as defined in subsection 95(4);

    “exempt shares”

    « actions exonérées »

    “exempt shares” held by a private foundation at any particular time means shares, of a class of the capital stock of a corporation,

    • (a) that were acquired by the private foundation by way of a gift that was subject to a trust or direction that the shares are to be held by the private foundation for a period ending not earlier than the particular time, if the gift was made

      • (i) before March 19, 2007,

      • (ii) on or after March 19, 2007 and before March 19, 2012

        • (A) under the terms of a will that was executed by a taxpayer before March 19, 2007 and not amended, by codicil or otherwise, on or after March 19, 2007, and

        • (B) in circumstances where no other will of the taxpayer was executed or amended on or after March 19, 2007, or

      • (iii) on or after March 19, 2007, under the terms of a testamentary or inter vivos trust created before March 19, 2007, and not amended on or after March 19, 2007,

    • (b) that were last acquired by the private foundation before March 19, 2007, other than shares that, at the particular time,

      • (i) are described in paragraph (a),

      • (ii) are listed on a designated stock exchange, or

      • (iii) are shares of the capital stock of a particular corporation, which particular corporation has an equity percentage greater than 0% in a public corporation, a class of the shares of the capital stock of which is listed on a designated stock exchange, if

        • (A) a corporation (in this subparagraph referred to as a “controlled corporation” and which may, for greater certainty, be the particular corporation)

          • (I) owns one or more shares of a class of the capital stock of the public corporation, and

          • (II) is controlled, directly or indirectly in any manner whatever, by one or more relevant persons in respect of the private foundation, or by the private foundation alone or together with one or more such relevant persons,

        • (B) the private foundation, if it held directly the shares described in subclause (A)(I), would have an excess corporate holdings percentage (determined without reference to subsection 149.2(8)) in respect of that class of shares that is greater than 0%, and

        • (C) the private foundation, alone or together with all controlled corporations, holds more than an insignificant interest in respect of the class of shares described in subclause (A)(I), or

    • (c) that are substituted shares held by the private foundation;

    “exempt shares percentage”

    « pourcentage d’actions exonérées »

    “exempt shares percentage” of a private foundation at any time, in respect of a class of shares of the capital stock of a corporation, is the total of all amounts, each of which is the percentage of the issued and outstanding shares of that class that are exempt shares held by the private foundation at that time;

    “substituted shares”

    « actions de remplacement »

    “substituted shares” held by a private foundation means shares acquired by the private foundation, in exchange for exempt shares held by the private foundation, in the course of a transaction to which section 51, subsection 85.1(1) or section 86 or 87 applies;

  • (5) Subsection 149.1(15) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and’’ at the end of paragraph (c) and by adding the following after paragraph (c):

    • (d) the Minister, or a Minister referred to in paragraph 110.1(8)(e), may make available to the public in any manner a listing of the registered charities in respect of which an opinion has been formed for the purpose of paragraph 110.1(8)(e) or revoked under subsection 110.1(9).

  • (6) Subsections (1) to (4) apply after March 18, 2007.

  •  (1) Section 149.2 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Ownership

      (2.1) For the purposes of the definition “equity percentage”, and subparagraph (b)(iii) of the definition “exempt shares”, in subsection 149.1(1), a person who, if paragraph 251(5)(b) applied would be deemed by that paragraph to have the same position in relation to the control of a corporation as if the person owned a share, is deemed to own the share.

  • (2) Section 149.2 of the Act is amended by adding the following after subsection (8):

    • Marginal note:Where subsection (10) applies

      (9) Subsection (10) applies for the purposes of applying section 149.1 and subsections (8) and 188.1(3.1) to a private foundation at a particular time if, both on March 18, 2007 and at the particular time,

      • (a) the private foundation was the sole trustee of a trust, or was a majority interest beneficiary (within the meaning assigned by section 251.1) of a trust more than 50% of the trustees of which were the private foundation and one or more relevant persons in respect of the private foundation; and

      • (b) the trust held one or more shares of a class of the capital stock of a corporation.

    • Marginal note:Shares held through a trust on March 18, 2007

      (10) If this subsection applies at a particular time to a private foundation in respect of shares of a class of the capital stock of a corporation held by a trust, the private foundation is deemed to hold at the particular time that number of those shares as is determined by the formula

      A × B/C

      where

      A 
      is the lesser of the number of those shares held by the trust on March 18, 2007 and the number so held at the particular time;
      B 
      is the total fair market value of all interests held by the private foundation in the trust at the particular time; and
      C 
      is the total fair market value of all property held by the trust at the particular time.
    • Marginal note:Discretionary trusts

      (11) For the purpose of subsection (10), if the amount of income or capital of a trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be.

  • (3) Subsection (1) applies after March 18, 2007.

  • (4) Subsection (2) applies to taxation years, of private foundations, that begin on or after February 26, 2008.

  • (5) If a registered charity was on March 19, 2007 a private foundation, in applying paragraphs 149.2(5)(b) and (c) of the Act to the first taxation year of the registered charity that begins after that date, the reference in those paragraphs to “in the current year” shall be read as a reference to “in the period that begins on March 18, 2007 and ends at the end of the current year”.

  •  (1) Section 150.1 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Mandatory filing of return by electronic transmission

      (2.1) If a corporation is, in respect of a taxation year, a prescribed corporation, the corporation shall file its return of income for the taxation year by way of electronic filing.

  • (2) Subsection (1) applies to taxation years that end after 2009.

  •  (1) Subsection 152(4) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after paragraph (b):

    • (c) the taxpayer or person filing the return has filed with the Minister a waiver in prescribed form within the additional 3-year period referred to in paragraph (b); or

    • (d) as a consequence of a change in the allocation of the taxpayer’s taxable income earned in a province as determined under the law of a province that provides rules similar to those prescribed for the purposes of section 124, an assessment, reassessment or additional assessment of tax for a taxation year payable by a corporation under a law of a province that imposes on the corporation a tax similar to the tax imposed under this Part (in this paragraph referred to as a “provincial reassessment”) is made, and as a consequence of the provincial reassessment, an assessment, reassessment or additional assessment is made on or before the day that is one year after the later of

      • (i) the day on which the Minister is advised of the provincial reassessment, and

      • (ii) the day that is 90 days after the day of mailing of a notice of the provincial reassessment.

  • (2) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Assessment to which paragraph 152(4)(a), (b) or (c) applies

      (4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,

  • (3) The portion of paragraph 152(4.01)(b) of the Act before subparagraph (i) is replaced by the following:

    • (b) where paragraph 4(b) or (c) applies to the assessment, reassessment or additional assessment,

  • (4) Subsection 152(6) of the Act is amended by adding the following after paragraph (f.2):

    • (f.3) a deduction (including for the purposes of this subsection a reduction of an amount otherwise required to be included in computing a taxpayer’s income) under subsection 146(8.9) or (8.92) or 146.3(6.2) or (6.3),

  • (5) Section 152 of the Act is amended by adding the following after subsection (6.1):

    • Marginal note:Extended reassessment period

      (6.2) The Minister shall reassess a taxpayer’s tax for a particular taxation year, in order to take into account the application of paragraph (d) of the definition “excluded property” in subsection 142.2(1), or the application of subsection 142.6(1.6), in respect of property held by the taxpayer, if

      • (a) the taxpayer has filed for the particular taxation year the return of income required by section 150; and

      • (b) the taxpayer files with the Minister a prescribed form amending the return, on or before the filing-due date for the taxpayer’s taxation year that

        • (i) if the filing is in respect of paragraph (d) of that definition “excluded property”, includes the acquisition of control time referred to in that paragraph, and

        • (ii) if the filing is in respect of subsection 142.6(1.6), immediately follows the particular taxation year.

  • (6) Subsection (4) applies in respect of a registered retirement income fund or a registered retirement savings plan in respect of which the last payment out of the fund or plan is made after 2008.

  • (7) Subsection (5) applies to taxation years that begin after 2001, except that

    • (a) for taxation years that begin before October 1, 2006, each reference in subsection 152(6.2) of the Act, as enacted by subsection (5), to paragraph (d) of the definition “excluded property” shall be read as a reference to paragraph (d.3) of the definition “mark-to-market property”; and

    • (b) a prescribed form referred to in paragraph 152(6.2)(b) of the Act, as enacted by subsection (5), is deemed to have been filed by a taxpayer on a timely basis if it is filed by the taxpayer on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to.

  •  (1) Paragraph 157(1.2)(a) of the Act is replaced by the following:

    • (a) for which the amount determined under subsection (1.3) for the taxation year, or for the preceding taxation year, does not exceed $500,000;

  • (2) Subsection (1) applies to taxation years ending after 2008, except that for taxation years that end in 2009, paragraph 157(1.2)(a) of the Act, as enacted by subsection (1), shall be read as follows:

    • (a) for which

      • (i) the amount determined under subsection (1.3) for the taxation year does not exceed the amount that is the total of $400,000 and that proportion of $100,000 that the number of days in the taxation year that are in 2009 is of the number of days in the taxation year, or

      • (ii) the amount determined under subsection (1.3) for the preceding taxation year does not exceed $400,000;

  •  (1) Section 162 of the Act is amended by adding the following after subsection (7):

    • Marginal note:Late filing penalty — prescribed information returns

      (7.01) Every person (other than a registered charity) or partnership who fails to file, when required by this Act or the regulations, one or more information returns of a type prescribed for the purpose of this subsection is liable to a penalty equal to the greater of $100 and

      • (a) where the number of those information returns is less than 51, $10 multiplied by the number of days, not exceeding 100, during which the failure continues;

      • (b) where the number of those information returns is greater than 50 and less than 501, $15 multiplied by the number of days, not exceeding 100, during which the failure continues;

      • (c) where the number of those information returns is greater than 500 and less than 2,501, $25 multiplied by the number of days, not exceeding 100, during which the failure continues;

      • (d) where the number of those information returns is greater than 2,500 and less than 10,001, $50 multiplied by the number of days, not exceeding 100, during which the failure continues; and

      • (e) where the number of those information returns is greater than 10,000, $75 multiplied by the number of days, not exceeding 100, during which the failure continues.

    • Marginal note:Failure to file in appropriate manner — prescribed information returns

      (7.02) Every person (other than a registered charity) or partnership who fails to file, in the manner required by the regulations, one or more information returns of a type prescribed for the purpose of this subsection is liable to a penalty equal to

      • (a) where the number of those information returns is greater than 50 and less than 251, $250;

      • (b) where the number of those information returns is greater than 250 and less than 501, $500;

      • (c) where the number of those information returns is greater than 500 and less than 2,501, $1,500;

      • (d) where the number of those information returns is greater than 2,500, $2,500; and

      • (e) in any other case, nil.

  • (2) Section 162 of the Act is amended by adding the following after subsection (7.1):

    • Marginal note:Failure to file in appropriate manner — return of income

      (7.2) Every person who fails to file a return of income for a taxation year as required by subsection 150.1(2.1) is liable to a penalty equal to $1,000.

  • (3) Subsection (1) applies to returns required to be filed after 2009.

  • (4) Subsection (2) applies to taxation years that end after 2010 except that, in its application to the 2011 and 2012 taxation years, the reference to $1,000 in subsection 162(7.2) of the Act, as enacted by subsection (2), is to be read as

    • (a) $250, for the 2011 taxation year; and

    • (b) $500, for the 2012 taxation year.

  •  (1) Clause 181.3(1)(c)(ii)(B) of the Act is repealed.

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) Paragraph 188.1(3.2)(c) of the Act is replaced by the following:

    • (c) each of those shares is deemed to have a fair market value, at the particular time, equal to the fair market value, at the particular time, of a share of the class issued by the corporation, determined without reference to this subsection.

  • (2) Section 188.1 of the Act is amended by adding the following after subsection (3.2):

    • Marginal note:Where subsection (3.5) applies

      (3.3) Subsection (3.5) applies to a private foundation at a particular time in a taxation year if

      • (a) at the particular time, a person (in this subsection and subsection (3.5) referred to as an “insider” of the private foundation) that is the private foundation, or is a relevant person in respect of the private foundation, is a beneficiary under a trust;

      • (b) at or before the particular time

        • (i) the insider acquired an interest in or under the trust, or

        • (ii) the trust acquired a property;

      • (c) it may reasonably be considered that a purpose of the acquisition described in paragraph (b) was to hold, directly or indirectly, shares of a class of the capital stock of a corporation (referred to in subsection (3.5) as the “subject corporation”);

      • (d) the shares described in paragraph (c) would, if they were held by the insider, cause the private foundation to have a divestment obligation percentage for the taxation year; and

      • (e) at the particular time, the insider holds the interest described in subparagraph (b)(i), or the trust holds the property described in subparagraph (b)(ii), as the case may be.

    • Marginal note:Rules applicable

      (3.4) For the purpose of subsections (3.3) and (3.5),

      • (a) interests (or, for civil law, rights), other than shares, of a trust in a corporation that entitle the trust to a right described in paragraph 251(5)(b) in respect of a class of the capital stock of the corporation, are deemed to be converted into shares of that class in the manner described by paragraph (3.2)(a); and

      • (b) if the amount of income or capital of the trust that a person may receive as a beneficiary under the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be.

    • Marginal note:Avoidance of divestiture

      (3.5) If this subsection applies to a private foundation at a particular time in respect of an interest of an insider of the private foundation in a trust, for the purposes of applying this section, subsection 149.1(1) and section 149.2,

      • (a) the insider is deemed to hold at the particular time, in addition to any shares of the capital stock of the subject corporation that it holds otherwise than because of this subsection, the number of shares, of the class of shares referred to in paragraph (3.3)(c), determined by the formula

        A × B/C

        where

        A 
        is the number of shares of that class that are held, directly or indirectly, by the trust at the particular time,
        B 
        is the total fair market value of all interests held by the insider in the trust at the particular time, and
        C 
        is the total fair market value of all property held by the trust at the particular time;
      • (b) each of those shares is deemed to be a share that is issued by the subject corporation and outstanding and to continue to be held by the holder until such time as the holder no longer holds the interest or right; and

      • (c) each of those shares is deemed to have a fair market value, at the particular time, equal to the fair market value, at the particular time, of a share of the class issued by the subject corporation, determined without reference to this subsection.

  • (3) Subsections (1) and (2) apply to taxation years, of private foundations, that begin on or after February 26, 2008.

  •  (1) Subparagraph 190.11(b)(ii) of the Act is repealed.

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) Subparagraph 190.13(c)(iv) of the Act is repealed.

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) The portion of the definition “SIFT partnership” in subsection 197(1) of the Act before paragraph (a) is replaced by the following:

    “SIFT partnership”

    « société de personnes intermédiaire de placement déterminée »

    “SIFT partnership”, being a specified investment flow-through partnership, for any taxation year, means a partnership other than an excluded subsidiary entity (as defined in subsection 122.1(1)) for the taxation year that meets the following conditions at any time during the taxation year:

  • (2) Subsection (1) is deemed to have come into force on October 31, 2006.

  •  (1) Paragraph (c.1) of the definition “qualified investment” in section 204 of the Act is replaced by the following:

    • (c.1) debt obligations that meet the following criteria, namely,

      • (i) any of

        • (A) the debt obligations had, at the time of acquisition by the trust, an investment grade rating with a prescribed credit rating agency,

        • (B) the debt obligations have an investment grade rating with a prescribed credit rating agency, or

        • (C) the debt obligations were acquired by the trust in exchange for debt obligations that satisfied the condition in clause (A) and as part of a proposal to, or an arrangement with, the creditors of the issuer of the debt obligations that has been approved by a court under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act, and

      • (ii) either

        • (A) the debt obligations were issued as part of a single issue of debt of at least $25 million, or

        • (B) in the case of debt obligations that are issued on a continuous basis under a debt issuance program, the issuer of the debt obligations had issued and outstanding debt under the program of at least $25 million,

  • (2) Subsection (1) applies in determining whether a property is, at any time after March 18, 2007, a qualified investment.

  •  (1) The portion of clause 204.81(1)(c)(ii)(A) of the Act before subclause (I) is replaced by the following:

    • (A) Class A shares that are issuable only to individuals (other than trusts), trusts governed by registered retirement savings plans and trusts governed by TFSAs and that entitle their holders

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The definition “restricted property” in subsection 207.01(1) of the Act is repealed.

  • (2) Paragraph (a) of the definition “advantage” in subsection 207.01(1) of the Act is amended by striking out “and” at the end of subparagraphs (i) and (ii) and by adding the following after subparagraph (ii):

    • (iii) a distribution under the TFSA, and

    • (iv) the payment or allocation of any amount to the TFSA by the issuer; and

  • (3) Paragraph (b) of the definition “advantage” in subsection 207.01(1) of the Act is replaced by the following:

    • (b) a benefit that is an increase in the total fair market value of the property held in connection with the TFSA if it is reasonable to consider, having regard to all the circumstances, that the increase is attributable, directly or indirectly, to

      • (i) a transaction or event or a series of transactions or events that

        • (A) would not have occurred in an open market in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, and

        • (B) had as one of its main purposes to enable a person or a partnership to benefit from the exemption from tax under Part I of any amount in respect of the TFSA, or

      • (ii) a payment received as, on account or in lieu of, or in satisfaction of, a payment

        • (A) for services provided by a person who is, or who does not deal at arm’s length with, the holder of the TFSA, or

        • (B) of interest, of a dividend, of rent, of a royalty or of any other return on investment, or of proceeds of disposition, in respect of property (other than property held in connection with the TFSA) held by a person who is, or who does not deal at arm’s length with, the holder of the TFSA; and

    • (c) a prescribed benefit.

  • (4) The description of E in the definition “excess TFSA amount” in subsection 207.01(1) of the Act is replaced by the following:

    E 
    is the total of all amounts each of which is the qualifying portion of a distribution made in the calendar year and at or before the particular time under a TFSA of which the individual was the holder at the time of the distribution and, for this purpose, the qualifying portion of a distribution is
    • (a) nil, if the distribution is a qualifying transfer or a prescribed distribution, and

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

      • (i) the amount of the distribution, and

      • (ii) the amount that would be the individual’s excess TFSA amount at the time of the distribution if the amount of the distribution were nil.

  • (5) The portion of the definition “prohibited investment” in subsection 207.01(1) of the Act before paragraph (a) is replaced by the following:

    “prohibited investment”

    « placement interdit »

    “prohibited investment”, at any time, for a trust governed by a TFSA means property (other than prescribed property) that is at that time

  • (6) Paragraph (d) of the definition “prohibited investment” in subsection 207.01(1) of the Act is replaced by the following:

    • (d) prescribed property.

  • (7) Subsection 207.01(1) of the Act is amended by adding the following in alphabetical order:

    “exempt contribution”

    « cotisation exclue »

    “exempt contribution” means a contribution made in a calendar year under a TFSA by the survivor of an individual if

    • (a) the contribution is made during the period (in this definition referred to as the “rollover period”) that begins when the individual dies and that ends at the end of the first calendar year that begins after the individual dies (or at any later time that is acceptable to the Minister);

    • (b) a payment (in this definition referred to as the “survivor payment”) was made to the survivor during the rollover period, as a consequence of the individual’s death, directly or indirectly out of or under an arrangement that ceased, because of the individual’s death, to be a TFSA;

    • (c) the survivor designates, in prescribed form filed in prescribed manner within 30 days after the day on which the contribution is made, the contribution in relation to the survivor payment; and

    • (d) the amount of the contribution does not exceed the least of

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

        • (A) the amount of the survivor payment

        exceeds

        • (B) the total of all other contributions designated by the survivor in relation to the survivor payment,

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

        • (A) the total proceeds of disposition that would, if section 146.2 were read without reference to subsection 146.2(9), be determined in respect of the arrangement under paragraph 146.2(8)(a), (10)(a) or (11)(a), as the case may be,

        exceeds

        • (B) the total of all other exempt contributions in respect of the arrangement made by the survivor at or before the time of the contribution, and

      • (iii) if the individual had, immediately before the individual’s death, an excess TFSA amount or if payments described in paragraph (b) are made to more than one survivor of the individual, nil or the greater amount, if any, allowed by the Minister in respect of the contribution.

  • (8) Subsection 207.01(2) of the Act is repealed.

  • (9) The portion of subsection 207.01(3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Survivor as successor holder

      (3) If an individual’s survivor becomes the holder of a TFSA as a consequence of the individual’s death and, immediately before the individual’s death, the individual had an excess TFSA amount, the survivor is deemed (other than for the purposes of the definition “exempt contribution”) to have made, at the beginning of the month following the individual’s death, a contribution under a TFSA equal to the amount, if any, by which

  • (10) Subsections (1) to (9) apply to the 2009 and subsequent taxation years.

  •  (1) The portion of section 207.03 of the Act before paragraph (a) is replaced by the following:

    Marginal note:Tax payable on non-resident contributions

    207.03 If, at a particular time, a non-resident individual makes a contribution under a TFSA (other than a contribution that is a qualifying transfer or an exempt contribution), the individual shall pay a tax under this Part equal to 1% of the amount of the contribution in respect of each month that ends after the particular time and before the earlier of

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 207.04(3) of the Act is replaced by the following:

    • Marginal note:Where both prohibited and non-qualified investment

      (3) For the purposes of this section and subsection 146.2(6), if a trust governed by a TFSA holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.

  • (2) The portion of subsection 207.04(7) of the Act before paragraph (b) is replaced by the following:

    • Marginal note:Amount of additional tax payable

      (7) The amount of tax payable under subsection (6) for a calendar year is 150% of the amount of tax that would be payable under Part I by the trust for the taxation year that ends in the calendar year if

      • (a) the Act were read without reference to paragraph 82(1)(b), section 121 and subsection 146.2(6); and

  • (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

  •  (1) The portion of subsection 207.06(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Waiver of tax payable

      (2) If a person would otherwise be liable to pay a tax under this Part because of subsection 207.04(1) or section 207.05, the Minister may waive or cancel all or part of the liability where the Minister considers it just and equitable to do so having regard to all the circumstances, including

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Paragraph (a) of the definition “registered life insurance policy” in subsection 211(1) of the Act is replaced by the following:

    • (a) as a registered retirement savings plan, or

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Paragraph 212(1)(p) of the Act is replaced by the following:

    • Marginal note:Former TFSA

      (p) an amount that would, if the non-resident person had been resident in Canada at the time at which the amount was paid, be required by paragraph 12(1)(z.5) to be included in computing the non-resident person’s income for the taxation year that includes that time;

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The definition “assessable distribution” in subsection 218.3(1) of the Act is replaced by the following:

    “assessable distribution”

    « distribution déterminée »

    “assessable distribution”, in respect of a Canadian property mutual fund investment, means the portion of any amount that is paid or credited (otherwise than as a SIFT trust wind-up event), by the mutual fund that issued the investment, to a non-resident investor who holds the investment, and that is not otherwise subject to tax under Part I or Part XIII.

  • (2) Subsection (1) applies after July 14, 2008.

  •  (1) The portion of subsection 241(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Provision of information
    • 241. (1) Except as authorized by this section, no official or other representative of a government entity shall

  • (2) Subsection 241(2) of the Act is replaced by the following:

    • Marginal note:Evidence relating to taxpayer information

      (2) Notwithstanding any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any taxpayer information.

  • (3) Paragraph 241(4)(l) of the Act is replaced by the following:

    • (l) subject to subsection (9.2), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate information and registration information in respect of, the holder of a business number (other than an excluded individual), if the information is provided solely for the purposes of the administration or enforcement of

      • (i) an Act of Parliament or of a legislature of a province, or

      • (ii) a by-law of a municipality in Canada or a law of an aboriginal government;

  • (4) The portion of subsection 241(5) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Disclosure to taxpayer or on consent

      (5) An official or other representative of a government entity may provide taxpayer information relating to a taxpayer

  • (5) The portion of subsection 241(6) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Appeal from order or direction

      (6) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official, other representative of a government entity or authorized person to give or produce evidence relating to any taxpayer information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to

  • (6) Section 241 of the Act is amended by adding the following after subsection (9.1):

    • Marginal note:Restrictions on information sharing

      (9.2) No information may be provided to a representative of a government entity under paragraph (4)(l) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service.

    • Marginal note:Public disclosure

      (9.3) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number (other than an excluded individual).

    • Marginal note:Public disclosure by representative of government entity

      (9.4) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number (other than an excluded individual), if

      • (a) a representative of the government entity was provided with that information pursuant to paragraph (4)(l); and

      • (b) the government entity uses the business number as an identifier in connection with the program, activity or service.

  • (7) The portion of the definition “taxpayer information” in subsection 241(10) of the Act after paragraph (b) is replaced by the following:

    but does not include information that does not directly or indirectly reveal the identity of the taxpayer to whom it relates and, for the purposes of applying subsections (2), (5) and (6) to a representative of a government entity that is not an official, taxpayer information includes only the information referred to in paragraph (4)(l);

  • (8) Subsection 241(10) of the Act is amended by adding the following in alphabetical order:

    “aboriginal government”

    « gouvernement autochtone »

    “aboriginal government” means an aboriginal government as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act;

    “contact information”

    « coordonnées »

    “contact information”, in respect of a holder of a business number, means the name, address, telephone number, facsimile number and preferred language of communication of the holder, or similar information as specified by the Minister in respect of the holder, and includes such information in respect of one or more

    • (a) trustees of the holder, if the holder is a trust,

    • (b) members of the holder, if the holder is a partnership,

    • (c) officers of the holder, if the holder is a corporation, or

    • (d) officers or members of the holder, if the holder is not described by any of paragraphs (a) to (c);

    “corporate information”

    « renseignements d’entreprise »

    “corporate information”, in respect of a holder of a business number that is a corporation, means the name (including the number assigned by the incorporating authority), date of incorporation, jurisdiction of incorporation and any information on the dissolution, reorganization, amalgamation, winding-up or revival of the corporation;

    “excluded individual”

    « particulier exclu »

    “excluded individual” means an individual who is a holder of a business number solely because the individual is required under this Act to deduct or withhold an amount from an amount paid or credited or deemed to be paid or credited;

    “government entity”

    « entité gouvernementale »

    “government entity” means

    • (a) a department or agency of the government of Canada or of a province,

    • (b) a municipality in Canada,

    • (c) an aboriginal government,

    • (d) a corporation all of the shares (except directors’ qualifying shares) of the capital stock of which are owned by one or more persons each of which is

      • (i) Her Majesty in right of Canada,

      • (ii) Her Majesty in right of a province,

      • (iii) a municipality in Canada, or

      • (iv) a corporation described in this paragraph, or

    • (e) a board or commission, established by Her Majesty in right of Canada or Her Majesty in right of a province, that performs an administrative or regulatory function of government, or by one or more municipalities in Canada, that performs an administrative or regulatory function of a municipality;

    “registration information”

    « renseignements relatifs à l’inscription »

    “registration information”, in respect of a holder of a business number, means

    • (a) any information pertaining to the legal form of the holder,

    • (b) the type of activities carried on or proposed to be carried on by the holder,

    • (c) each date on which

      • (i) the business number was issued to the holder,

      • (ii) the holder began activities,

      • (iii) the holder ceased or resumed activities, or

      • (iv) the business number assigned to the holder was changed, and

    • (d) the reasons for the cessation, resumption or change referred to in subparagraph (c)(iii) or (iv);

    “representative”

    « représentant »

    “representative” of a government entity means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (1), (2), (5) and (6), a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged;

  •  (1) The definition “functional currency” in subsection 248(1) of the Act is repealed.

  • (2) The definitions “amateur athlete trust”, “personal trust” and “TFSA” in subsection 248(1) of the Act are replaced by the following:

    “amateur athlete trust”

    « fiducie au profit d’un athlète amateur »

    “amateur athlete trust” has the meaning assigned by subsection 143.1(1.2);

    “personal trust”

    « fiducie personnelle »

    “personal trust” means a trust (other than a trust that is, or was at any time after 1999, a unit trust) that is

    • (a) a testamentary trust, or

    • (b) an inter vivos trust no beneficial interest in which was acquired for consideration payable directly or indirectly to

      • (i) the trust, or

      • (ii) any person or partnership that has made a contribution to the trust by way of transfer, assignment or other disposition of property;

    “TFSA”

    « compte d’épargne libre d’impôt »

    “TFSA”, being a tax-free savings account, has the meaning assigned by subsection 146.2(5);

  • (3) Paragraph (d) of the definition “Canadian real, immovable or resource property” in subsection 248(1) of the Act is replaced by the following:

    • (d) a share of the capital stock of a corporation, an income or capital interest in a trust or an interest in a partnership (other than a taxable Canadian corporation, a SIFT trust or a SIFT partnership), if more than 50% of the fair market value of the share or interest is derived directly or indirectly from one or any combination of properties described in paragraphs (a) to (c), or

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

    “foreign currency debt”

    « dette en monnaie étrangère »

    “foreign currency debt” has the meaning assigned by subsection 111(8);

    “SIFT trust wind-up event”

    « fait lié à la conversion d’une EIPD-fiducie »

    “SIFT trust wind-up event” means a distribution by a particular trust resident in Canada of property to a taxpayer in respect of which the following conditions are met:

    • (a) the distribution occurs before 2013,

    • (b) there is a resulting disposition of all of the taxpayer’s interest as a beneficiary under the particular trust,

    • (c) the particular trust is

      • (i) a SIFT wind-up entity,

      • (ii) a trust whose only beneficiary throughout the period (referred to in this definition as the “qualifying period”) that begins on July 14, 2008 and that ends at the time of the distribution is another trust that throughout the qualifying period

        • (A) is resident in Canada, and

        • (B) is a SIFT wind-up entity or a trust described by this subparagraph, or

      • (iii) a trust whose only beneficiary at the time of distribution is another trust that throughout the qualifying period

        • (A) is resident in Canada,

        • (B) is a SIFT wind-up entity or a trust described by subparagraph (ii), and

        • (C) is a majority interest beneficiary (within the meaning that would be assigned by section 251.1 if the references in the definition “majority interest beneficiary” in subsection 251.1(3) to “50%” were read as references to “25%”) of the particular trust,

    • (d) the particular trust ceases to exist immediately after the distribution or immediately after the last of a series of SIFT trust wind-up events (determined without reference to this paragraph) of the particular trust that includes the distribution, and

    • (e) the property was not acquired by the particular trust as a result of a transfer or an exchange

      • (i) that is

        • (A) a “qualifying exchange” as defined in subsection 132.2(1) or a “qualifying disposition” as defined in subsection 107.4(1),

        • (B) made after February 2, 2009, and

        • (C) from any person other than a SIFT wind-up entity, or

      • (ii) to which any of sections 51, 85, 85.1, 86, 87, 88, 107.4 or 132.2 applies, of another property acquired as a result of a transfer or an exchange described by subparagraph (i) or this subparagraph;

    “SIFT wind-up corporation”

    « société de conversion d’EIPD »

    “SIFT wind-up corporation”, in respect of a SIFT wind-up entity, means at any particular time a corporation

    • (a) that, at any time that is after July 13, 2008 and before the earlier of the particular time and January 1, 2013, owns all of the equity in the SIFT wind-up entity, or

    • (b) shares of the capital stock of which are at or before the particular time distributed on a SIFT trust wind-up event of the SIFT wind-up entity;

    “SIFT wind-up entity”

    « EIPD convertible »

    “SIFT wind-up entity” means a trust or partnership that at any time in the period that began on October 31, 2006 and that ends on July 14, 2008 is

    • (a) a SIFT trust (determined without reference to subsection 122.1(2)),

    • (b) a SIFT partnership (determined without reference to subsection 197(8)), or

    • (c) a real estate investment trust (as defined in subsection 122.1(1));

    “SIFT wind-up entity equity”

    « intérêt dans une EIPD convertible »

    “SIFT wind-up entity equity”, or equity in a SIFT wind-up entity, means

    • (a) if the SIFT wind-up entity is a trust, a capital interest (determined without reference to subsection (25)) in the trust, and

    • (b) if the SIFT wind-up entity is a partnership, an interest as a member of the partnership where, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited,

    except that if all of the interests described in paragraph (a) or (b), as the case may be, in the SIFT wind-up entity are described by reference to units, it means the part of the interest represented by such a unit;

  • (5) Subsection 248(3) of the Act is replaced by the following:

    • Marginal note:Property subject to certain Quebec institutions and arrangements

      (3) For the purposes of this Act, if property is subject to an institution or arrangement that is described by this subsection and that is governed by the laws of the Province of Quebec, the following rules apply in respect of the property:

      • (a) if at any time property is subject to a usufruct, right of use or habitation, or substitution,

        • (i) the usufruct, right of use or habitation, or substitution, as the case may be, is deemed to be at that time

          • (A) a trust, and

          • (B) where the usufruct, right of use or habitation, or substitution, as the case may be, is created by will, a trust created by will,

        • (ii) the property is deemed

          • (A) where the usufruct, right of use or habitation, or substitution, as the case may be, arises on the death of a testator, to have been transferred to the trust on and as a consequence of the death of the testator, and not otherwise, and

          • (B) where the usufruct, right of use or habitation, or substitution, as the case may be, arises otherwise, to have been transferred (at the time it first became subject to the usufruct, right of use or habitation, or substitution, as the case may be) to the trust by the person that granted the usufruct, right of use or habitation, or substitution, and

        • (iii) the property is deemed to be, throughout the period in which it is subject to the usufruct, right of use or habitation, or substitution, as the case may be, held by the trust, and not otherwise;

      • (b) an arrangement (other than a partnership, a qualifying arrangement or an arrangement that is a trust determined without reference to this paragraph) is deemed to be a trust and property subject to rights and obligations under the arrangement is, if the arrangement is deemed by this paragraph to be a trust, deemed to be held in trust and not otherwise, where the arrangement

        • (i) is established before October 31, 2003 by or under a written contract that

          • (A) is governed by the laws of the Province of Quebec, and

          • (B) provides that, for the purposes of this Act, the arrangement shall be considered to be a trust, and

        • (ii) creates rights and obligations that are substantially similar to the rights and obligations under a trust (determined without reference to this subsection);

      • (c) if the arrangement is a qualifying arrangement,

        • (i) the arrangement is deemed to be a trust,

        • (ii) any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor, and

        • (iii) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise;

      • (d) a person who has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in paragraph (a) or (b) is deemed to be beneficially interested in the trust; and

      • (e) notwithstanding that a property is at any time subject to a servitude, the property is deemed to be beneficially owned by a person at that time if, at that time, the person has in relation to the property

        • (i) the right of ownership,

        • (ii) a right as a lessee under an emphyteusis, or

        • (iii) a right as a beneficiary in a trust.

    • Marginal note:Gift of bare ownership of immovables

      (3.1) Subsection (3) does not apply in respect of a usufruct or a right of use of an immovable in circumstances where a taxpayer disposes of the bare ownership of the immovable by way of a gift to a donee described in the definition “total charitable gifts”, “total Crown gifts” or “total ecological gifts” in subsection 118.1(1) and retains, for life, the usufruct or the right of use.

    • Marginal note:Qualifying arrangement

      (3.2) For the purposes of paragraphs 248(3)(b) and (c), an arrangement is a qualifying arrangement if it is

      • (a) entered into with a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee;

      • (b) established by or under a written contract that is governed by the laws of the Province of Quebec;

      • (c) presented as a declaration of trust or provides that, for the purposes of this Act, it shall be considered to be a trust; and

      • (d) presented as an arrangement in respect of which the corporation is to take action for the arrangement to become a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA.

  • (6) Subsection 248(25.1) of the Act is replaced by the following:

    • Marginal note:Trust-to-trust transfers

      (25.1) Where at any time a particular trust transfers property to another trust (other than a trust governed by a registered retirement savings plan or by a registered retirement income fund) in circumstances to which paragraph (f) of the definition “disposition” in subsection (1) applies, without affecting the personal liabilities under this Act of the trustees of either trust or the application of subsection 104(5.8) and paragraph 122(2)(f), the other trust is deemed to be after that time the same trust as, and a continuation of, the particular trust, and, for greater certainty, if the property was deemed to be taxable Canadian property of the particular trust by paragraph 51(1)(f), 85(1)(i) or 85.1(1)(a) or (8)(b), subsection 85.1(5) or 87(4) or (5) or paragraph 97(2)(c) or 107(2)(d.1) or (3.1)(d), the property is deemed to be taxable Canadian property of the other trust.

  • (7) Subsection (1) applies in respect of taxation years that begin after December 13, 2007.

  • (8) The definition “amateur athlete trust” in subsection 248(1) of the Act, as enacted by subsection (2), applies to the 2008 and subsequent taxation years.

  • (9) The definition “personal trust” in subsection 248(1) of the Act, as enacted by subsection (2), applies after July 14, 2008.

  • (10) The definition “TFSA” in subsection 248(1) of the Act, as enacted by subsection (2), applies to the 2009 and subsequent taxation years.

  • (11) Subsection (3) is deemed to have come into force on October 31, 2006.

  • (12) The definition “foreign currency debt” in subsection 248(1) of the Act, as enacted by subsection (4), applies after 2005.

  • (13) The definitions “SIFT trust wind-up event”, “SIFT wind-up corporation”, “SIFT wind-up entity” and “SIFT wind-up entity equity” in subsection 248(1) of the Act, as enacted by subsection (4), apply after December 19, 2007.

  • (14) Subsections 248(3) and (3.2) of the Act, as enacted by subsection (5), apply to taxation years that begin after October 30, 2003 except that

    • (a) for taxation years that end before 2008,

      • (i) subparagraph 248(3)(c)(ii) of the Act, as enacted by subsection (5), shall be read without reference to the expression “a holder”, and

      • (ii) paragraph 248(3.2)(d) of the Act, as enacted by subsection (5), shall be read without reference to registered disability savings plans and TFSAs; and

    • (b) for taxation years that end in 2008, paragraph 248(3.2)(d) of the Act, as enacted by subsection (5), shall be read without reference to TFSAs.

  • (15) For taxation years that begin after 1988 and before October 31, 2003, paragraph 248(3)(d) of the Act shall, in its application to each arrangement that is entered into between an individual and a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee and that is accepted by the Minister for registration under section 146 or 146.3 of the Act, be read without reference to

    • (a) clause (i)(B) of that paragraph, if the arrangement is presented as a declaration of trust but does not provide that, for the purposes of the Act, the arrangement shall be considered to be a trust; and

    • (b) subparagraph (ii) of that paragraph.

  • (16) Subsection 248(3.1) of the Act, as enacted by subsection (5), applies to dispositions that occur after July 18, 2005.

  • (17) Subsection (6) applies after December 19, 2007.

  •  (1) Section 253.1 of the Act is replaced by the following:

    Marginal note:Investments in limited partnerships

    253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b) and 132(6)(b), subsection 146.2(6), paragraphs 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 256(7) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e):

    • (f) if a particular trust is the only beneficiary of another trust, the particular trust is described in paragraph (c) of the definition “SIFT trust wind-up event”, the particular trust would, in the absence of this paragraph, acquire control of a corporation solely because of a SIFT trust wind-up event that is a distribution of shares of the capital stock of the corporation by the other trust, and the other trust controlled the corporation immediately before the distribution, the particular trust is deemed not to acquire control of the corporation because of the distribution.

  • (2) Subsection 256(9) of the Act is replaced by the following:

    • Marginal note:Date of acquisition of control

      (9) For the purposes of this Act, other than for the purposes of determining if a corporation is, at any time, a small business corporation or a Canadian-controlled private corporation, where control of a corporation is acquired by a person or group of persons at a particular time on a day, control of the corporation shall be deemed to have been acquired by the person or group of persons, as the case may be, at the beginning of that day and not at the particular time unless the corporation elects in its return of income under Part I filed for its taxation year that ends immediately before the acquisition of control not to have this subsection apply.

  • (3) Subsection (1) applies after July 14, 2008.

  • (4) Subsection (2) applies in respect of an acquisition of control of a corporation that occurs after 2005, other than in respect of such an acquisition of control that occurs before January 28, 2009 and in respect of which the taxpayer elects in writing, filed with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s 2009 taxation year, that subsection (2) not apply.

  • (5) A taxpayer is deemed to have made the election described in subsection (4) in respect of an acquisition of control of a corporation that occurs before January 28, 2009 if it can reasonably be considered, having regard to a return of income, notice of objection, or notice of appeal, filed or served by the taxpayer under the Act before January 28, 2009, that the taxpayer has interpreted and applied subsection 256(9) of the Act for the purposes of determining if the corporation was a small business corporation or a Canadian-controlled private corporation at the time of the transfer of shares of the corporation that caused the acquisition of control to occur.

  •  (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Proportional holdings in trust property
    • 259. (1) For the purposes of subsections 146(6), (10) and (10.1), 146.2(6) and 146.3(7), (8) and (9) and Parts X, X.2 and XI to XI.1, if at any time a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Section 261 of the Act is replaced by the following:

    Marginal note:Definitions
    • 261. (1) The following definitions apply in this section.

      “Canadian currency year”

      « année de déclaration en monnaie canadienne »

      “Canadian currency year” of a taxpayer means a taxation year that precedes the first functional currency year of the taxpayer.

      “Canadian tax results”

      « résultats fiscaux canadiens »

      “Canadian tax results” of a taxpayer for a taxation year means

      • (a) the amount of the income, taxable income or taxable income earned in Canada of the taxpayer for the taxation year;

      • (b) the amount (other than an amount payable on behalf of another person under subsection 153(1) or section 215) of tax or other amount payable under this Act by the taxpayer in respect of the taxation year;

      • (c) the amount (other than an amount refundable on behalf of another person in respect of amounts payable on behalf of that person under subsection 153(1) or section 215) of tax or other amount refundable under this Act to the taxpayer in respect of the taxation year; and

      • (d) any amount that is relevant in determining the amounts described in respect of the taxpayer under paragraphs (a) to (c).

      “elected functional currency”

      « monnaie fonctionnelle choisie »

      “elected functional currency” of a taxpayer means the currency of a country other than Canada that was the functional currency of the taxpayer for its first taxation year in respect of which it made an election under paragraph (3)(b).

      “functional currency”

      « monnaie fonctionnelle »

      “functional currency” of a taxpayer for a taxation year means the currency of a country other than Canada if that currency is, throughout the taxation year,

      • (a) a qualifying currency; and

      • (b) the primary currency in which the taxpayer maintains its records and books of account for financial reporting purposes.

      “functional currency year”

      « année de déclaration en monnaie fonctionnelle »

      “functional currency year” of a taxpayer means a taxation year in respect of which subsection (5) applies to the taxpayer.

      “pre-reversion debt”

      « créance pré-rétablissement »

      “pre-reversion debt” of a taxpayer means a debt obligation of the taxpayer that was issued by the taxpayer before the beginning of the taxpayer’s first reversionary year.

      “pre-transition debt”

      « créance pré-transition »

      “pre-transition debt” of a taxpayer means a debt obligation of the taxpayer that was issued by the taxpayer before the beginning of the taxpayer’s first functional currency year.

      “qualifying currency”

      « monnaie admissible »

      “qualifying currency” at any time means each of

      • (a) the currency of the United States of America;

      • (b) the currency of the European Monetary Union;

      • (c) the currency of the United Kingdom;

      • (d) the currency of Australia; and

      • (e) a prescribed currency.

      “relevant spot rate”

      « taux de change au comptant »

      “relevant spot rate” for a particular day means, in respect of a conversion of an amount from a particular currency to another currency,

      • (a) if the particular currency or the other currency is Canadian currency, the rate quoted by the Bank of Canada for noon on the particular day (or, if there is no such rate quoted for the particular day, the closest preceding day for which such a rate is quoted) for the exchange of the particular currency for the other currency, or, in applying paragraphs (2)(b) and (5)(c), another rate of exchange that is acceptable to the Minister; and

      • (b) if neither the particular currency nor the other currency is Canadian currency, the rate — calculated by reference to the rates quoted by the Bank of Canada for noon on the particular day (or, if either of such rates is not quoted for the particular day, the closest preceding day for which both such rates are quoted) for the exchange of Canadian currency for each of those currencies — for the exchange of the particular currency for the other currency, or, in applying paragraphs (2)(b) and (5)(c), another rate of exchange that is acceptable to the Minister.

      “reversionary year”

      « année de rétablissement »

      “reversionary year” of a taxpayer means a taxation year that begins after the last functional currency year of the taxpayer.

      “tax reporting currency”

      « monnaie de déclaration »

      “tax reporting currency” of a taxpayer for a taxation year, and at any time in the taxation year, means the currency in which the taxpayer’s Canadian tax results for the taxation year are to be determined.

    • Marginal note:Canadian currency requirement

      (2) In determining the Canadian tax results of a taxpayer for a particular taxation year,

      • (a) subject to this section, other than this subsection, Canadian currency is to be used; and

      • (b) subject to this section, other than this subsection, subsection 79(7) and paragraphs 80(2)(k) and 142.7(8)(b), if a particular amount that is relevant in computing those Canadian tax results is expressed in a currency other than Canadian currency, the particular amount is to be converted to an amount expressed in Canadian currency using the relevant spot rate for the day on which the particular amount arose.

    • Marginal note:Application of subsection (5)

      (3) Subsection (5) applies to a taxpayer in respect of a particular taxation year if

      • (a) the taxpayer is, throughout the particular taxation year, a corporation (other than an investment corporation, a mortgage investment corporation or a mutual fund corporation) resident in Canada;

      • (b) the taxpayer has elected that subsection (5) apply to the taxpayer and has filed that election with the Minister in prescribed form and manner on or before the day that is six months before the end of the particular taxation year;

      • (c) there is a functional currency of the taxpayer for the first taxation year of the taxpayer in respect of which subsection (5) would, if this subsection were read without reference to this paragraph, apply;

      • (d) the taxpayer has not filed another election under paragraph (b); and

      • (e) a revocation by the taxpayer under subsection (4) does not apply to the particular taxation year.

    • Marginal note:Revocation of election

      (4) A taxpayer may revoke its election under paragraph (3)(b) by filing, on a day that is in a functional currency year of the taxpayer (other than its first functional currency year), a notice of revocation in prescribed form and manner. The revocation applies to each taxation year of the taxpayer that begins on or after the day that is six months after that day.

    • Marginal note:Functional currency tax reporting

      (5) If this subsection applies to a taxpayer in respect of a particular taxation year,

      • (a) the taxpayer’s Canadian tax results for the particular taxation year are to be determined using the taxpayer’s elected functional currency;

      • (b) unless the context otherwise requires, each reference in this Act or the regulations to an amount (other than in respect of a penalty or fine) that is described as a particular number of Canadian dollars is to be read, in respect of the taxpayer and the particular taxation year, as a reference to that amount expressed in the taxpayer’s elected functional currency using the relevant spot rate for the first day of the particular taxation year;

      • (c) subject to paragraph (9)(b), subsection (15), subsection 79(7) and paragraphs 80(2)(k) and 142.7(8)(b), if a particular amount that is relevant in computing the taxpayer’s Canadian tax results for the particular taxation year is expressed in a currency other than the taxpayer’s elected functional currency, the particular amount is to be converted to an amount expressed in the taxpayer’s elected functional currency using the relevant spot rate for the day on which the particular amount arose;

      • (d) the definition “exchange rate” in subsection 111(8) is, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, to be read as follows:

        “exchange rate” at any time in respect of a particular currency other than the taxpayer’s elected functional currency means the relevant spot rate, for the day that includes that time, in respect of the conversion of an amount from the particular currency to the taxpayer’s elected functional currency, or a rate of exchange acceptable to the Minister;

      • (e) except in applying paragraph 95(2)(f.15) in respect of a taxation year, of a foreign affiliate of the taxpayer, that is a functional currency year of the foreign affiliate within the meaning of subsection (6.1), each reference in subsection 39(2)

        • (i) to “the value of the currency or currencies of one or more countries other than Canada relative to Canadian currency, a taxpayer” is to be read, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, as a reference to “the value of the currency or currencies of one or more countries (other than the taxpayer’s elected functional currency) relative to a taxpayer’s elected functional currency, the taxpayer”, and

        • (ii) to “currency of a country other than Canada” is to be read, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, as a reference to “currency other than the taxpayer’s elected functional currency”;

      • (f) each reference in

        • (i) section 76.1, subsection 79(7), paragraph 80(2)(k), subsections 80.01(11), 80.1(8), 142.4(1) and 142.7(8) and the definition “amortized cost” in subsection 248(1), and subparagraph 231(6)(a)(iv) of the Regulations, to “Canadian currency” is, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, to be read as a reference to “the taxpayer’s elected functional currency”, and

        • (ii) subparagraph 94.1(1)(b)(vii), the definition “foreign currency debt” in subsection 111(8), subsection 142.4(1), and the definition “amortized cost” in subsection 248(1) to “currency of a country other than Canada” is, in respect of the taxpayer and the particular taxation year, and with such modifications as the context requires, to be read as a reference to “currency other than the taxpayer’s elected functional currency”;

      • (g) the definition “foreign currency” in subsection 248(1) is, in respect of the taxpayer and the taxation year, and with such modifications as the context requires, to be read as follows:

        “foreign currency” in respect of a taxpayer, at any time in a taxation year, means a currency other than the taxpayer’s elected functional currency;

      • (h) where a taxation year, of a foreign affiliate of the taxpayer, is a functional currency year of the foreign affiliate within the meaning of subsection (6.1),

        • (i) the references in section 95 (other than paragraph 95(2)(f.15)) and the references in regulations made for the purposes of section 95 or 113 (other than subsection 5907(6) of the Regulations) to

          • (A) “Canadian currency” are to be read, in respect of the foreign affiliate and the taxation year, and with such modifications as the context requires, as references to “the taxpayer’s elected functional currency”, and

          • (B) “currency of a country other than Canada” are to be read, in respect of the foreign affiliate and the taxation year, and with such modifications as the context requires, as references to “currency other than the taxpayer’s elected functional currency”, and

        • (ii) the reference in paragraph 95(2)(f.13) to “the rate of exchange quoted by the Bank of Canada at noon on” is to be read, in respect of the foreign affiliate and the taxation year, and with such modifications as the context requires, as a reference to “the relevant spot rate for”.

    • Marginal note:Partnerships

      (6) For the purposes of computing the Canadian tax results of a particular taxpayer for each taxation year that is a functional currency year or a reversionary year of the particular taxpayer, this section is to be applied as if each partnership of which the particular taxpayer is a member at any time in the taxation year were a taxpayer that

      • (a) had as its first functional currency year its first fiscal period, if any, that

        • (i) is a fiscal period at any time during which the particular taxpayer is a member of the partnership,

        • (ii) begins after December 13, 2007, and

        • (iii) ends at least six months after the day that is six months before the end of the particular taxpayer’s first functional currency year;

      • (b) had as its last Canadian currency year its last fiscal period, if any, that ends before its first functional currency year;

      • (c) had as its first reversionary year its first fiscal period, if any, that begins after the particular taxpayer’s last functional currency year;

      • (d) is subject to subsection (5) for each of its fiscal periods that is, or begins after, its first functional currency year and that ends before its first reversionary year;

      • (e) had as its elected functional currency in respect of each fiscal period described in paragraph (d) the elected functional currency of the particular taxpayer; and

      • (f) had as its last functional currency year its last fiscal period, if any, that ends before its first reversionary year.

    • Marginal note:Foreign affiliates

      (6.1) For the purposes of computing the foreign accrual property income of a foreign affiliate of a particular taxpayer, in respect of the particular taxpayer, for each taxation year that is a functional currency year or a reversionary year of the particular taxpayer, this section is to be applied as if

      • (a) the foreign affiliate were a taxpayer that

        • (i) had, as its first functional currency year, its first taxation year that

          • (A) is a taxation year at any time during which the foreign affiliate is a foreign affiliate of the particular taxpayer,

          • (B) begins after December 13, 2007, and

          • (C) ends at least six months after the day that is six months before the end of the particular taxpayer’s first functional currency year,

        • (ii) had as its last Canadian currency year its last taxation year, if any, that ends before its first functional currency year,

        • (iii) had as its first reversionary year its first taxation year, if any, that begins after the particular taxpayer’s last functional currency year,

        • (iv) is subject to subsection (5) for each of its taxation years that is, or begins after, its first functional currency year and that ends before its first reversionary year,

        • (v) had as its elected functional currency in respect of each taxation year described in subparagraph (iv) the elected functional currency of the particular taxpayer, and

        • (vi) had as its last functional currency year its last taxation year, if any, that ends before its first reversionary year; and

      • (b) the Canadian tax results of the foreign affiliate for each taxation year that is a functional currency year or a reversionary year of the foreign affiliate, within the meaning of paragraph (a), were its foreign accrual property income, in respect of the particular taxpayer, for that taxation year and any amount that is relevant in determining such foreign accrual property income.

    • Marginal note:Converting Canadian currency amounts

      (7) In applying this Act to a taxpayer for a particular functional currency year of the taxpayer, the following amounts are to be converted from Canadian currency to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year:

      • (a) each particular amount that

        • (i) is, or is relevant to the determination of, an amount that may be deducted under subsection 37(1) or 66(4), element F in the definition “foreign accrual property income” in subsection 95(1), section 110.1 or 111 or subsection 126(2), 127(5), 129(1), 181.1(4) or 190.1(3), in the particular functional currency year, and

        • (ii) was determined for a Canadian currency year of the taxpayer;

      • (b) the cost to the taxpayer of a property that was acquired by the taxpayer in a Canadian currency year of the taxpayer;

      • (c) an amount that was required by section 53 to be added or deducted in computing, at any time in a Canadian currency year of the taxpayer, the adjusted cost base to the taxpayer of a capital property that was acquired by the taxpayer in such a year;

      • (d) an amount that

        • (i) is in respect of the taxpayer’s undepreciated capital cost of depreciable property of a prescribed class, cumulative eligible capital in respect of a business, cumulative Canadian exploration expense (within the meaning assigned by subsection 66.1(6)), cumulative Canadian development expense (within the meaning assigned by subsection 66.2(5)), cumulative foreign resource expense in respect of a country other than Canada (within the meaning assigned by subsection 66.21(1)) or cumulative Canadian oil and gas property expense (within the meaning assigned by subsection 66.4(5)) (each of which is referred to in this paragraph as a “pool amount”), and

        • (ii) was added to or deducted from a pool amount of the taxpayer in respect of a Canadian currency year of the taxpayer;

      • (e) an amount that has been deducted or claimed as a reserve in computing the income of the taxpayer for its last Canadian currency year;

      • (f) an outlay or expense referred to in subsection 18(9) that was made or incurred by the taxpayer in respect of a Canadian currency year of the taxpayer, and any amount that was deducted in respect of the outlay or expense in computing the income of the taxpayer for such a year;

      • (g) an amount that was added or deducted in computing the taxpayer’s paid-up capital in respect of a class of shares of its capital stock in a Canadian currency year of the taxpayer; and

      • (h) any amount (other than an amount referred to in any of paragraphs (a) to (g) or any of subsections (6), (6.1) and (8)) determined under the provisions of this Act in or in respect of a Canadian currency year of the taxpayer that is relevant in determining the Canadian tax results of the taxpayer for the particular functional currency year.

    • Marginal note:Converting pre-transition debts

      (8) In determining, at any time in a particular functional currency year of a taxpayer, the amount for which a pre-transition debt of the taxpayer (other than a pre-transition debt denominated in the taxpayer’s elected functional currency) was issued and its principal amount at the beginning of the taxpayer’s first functional currency year,

      • (a) where the pre-transition debt is denominated in Canadian currency, those amounts are to be converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year; and

      • (b) where the pre-transition debt is denominated in a currency (referred to in this paragraph as the “debt currency”) that is neither Canadian currency nor the taxpayer’s elected functional currency, those amounts are to be converted from the debt currency to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year.

    • Marginal note:Pre-transition debts

      (9) A pre-transition debt of a taxpayer that is denominated in a currency other than the taxpayer’s elected functional currency is deemed to have been issued immediately before the taxpayer’s first functional currency year for the purposes of

      • (a) determining the amount of the taxpayer’s income, gain or loss, for a functional currency year of the taxpayer (other than an amount that subsection (10) deems to arise), that is attributable to a fluctuation in the value of a currency; and

      • (b) applying paragraph 80(2)(k) in respect of a functional currency year of the taxpayer.

    • Marginal note:Deferred amounts relating to pre-transition debts

      (10) If a taxpayer has, at any time in a taxation year that is a functional currency year or a reversionary year of the taxpayer, made a particular payment on account of the principal amount of a pre-transition debt of the taxpayer:

      • (a) where the taxpayer would have made a gain — or, if the pre-transition debt was not on account of capital, would have had income — (referred to in this paragraph as the “hypothetical gain or income”) attributable to a fluctuation in the value of a currency if the pre-transition debt had been settled by the taxpayer’s having paid, immediately before the end of its last Canadian currency year, an amount equal to the principal amount (expressed in the currency in which the pre-transition debt is denominated, which currency is referred to in this subsection as the “debt currency”) at that time, the taxpayer is deemed to make a gain or to have income, as the case may be, for the taxation year equal to the amount determined by the formula

        A × B/C

        where

        A 
        is
        • (i) if the taxation year is a functional currency year of the taxpayer, the amount of the hypothetical gain or income converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year, and

        • (ii) if the taxation year is a reversionary year of the taxpayer, the amount determined under subparagraph (i) converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last functional currency year,

        B 
        is the amount of the particular payment (expressed in the debt currency), and
        C 
        is the principal amount of the pre-transition debt at the beginning of the taxpayer’s first functional currency year (expressed in the debt currency); and
      • (b) where the taxpayer would have sustained a loss — or, if the pre-transition debt was not on account of capital, would have had a loss — (referred to in this paragraph as the “hypothetical loss”) attributable to a fluctuation in the value of a currency if the pre-transition debt had been settled by the taxpayer’s having paid, immediately before the end of its last Canadian currency year, an amount equal to the principal amount (expressed in the debt currency) at that time, the taxpayer is deemed to sustain or to have a loss in respect of the particular payment for the taxation year equal to the amount that would be determined by the formula in paragraph (a) if the reference in the description of A in that paragraph to “hypothetical gain or income” were read as a reference to “hypothetical loss”.

    • Marginal note:Determination of amounts payable

      (11) Notwithstanding subsections (5) and (7), for the purposes of applying this Act in respect of a functional currency year (referred to in this subsection as the “particular taxation year”) of a taxpayer,

      • (a) for the purposes of determining the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a),

        • (i) the estimated amounts, each of which is described in subparagraph 157(1)(a)(i) or (1.1)(a)(i), that are payable by the taxpayer for the particular taxation year are to be determined by converting those amounts, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on which those amounts are due,

        • (ii) the taxpayer’s first instalment base (within the meaning assigned by subsection 157(4)) for the particular taxation year is to be determined

          • (A) if the particular taxation year is the taxpayer’s first functional currency year, without reference to this section, and

          • (B) in any other case, as if the taxes payable by the taxpayer for the taxpayer’s functional currency year (referred to in this paragraph as the “first base year”) immediately preceding the particular taxation year were the total of

            • (I) the total of the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a), as determined with reference to this subparagraph or subparagraph (i) or (iii), as the case may be, in respect of the first base year, and

            • (II) the amount, if any, of the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b), as determined under paragraph (b), in respect of the first base year, and

        • (iii) the taxpayer’s second instalment base (within the meaning assigned by subsection 157(4)) for the particular taxation year is to be determined

          • (A) if the particular taxation year is the taxpayer’s first functional currency year or its taxation year that immediately follows its first functional currency year, without reference to this section, and

          • (B) in any other case, as if the taxes payable by the taxpayer for the taxpayer’s functional currency year (referred to in this subparagraph as the “second base year”) immediately preceding the first base year were the total of

            • (I) the total of the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a), as determined with reference to this subparagraph or subparagraph (i) or (ii), as the case may be, in respect of the second base year, and

            • (II) the amount, if any, of the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b), as determined under paragraph (b), in respect of the second base year;

      • (b) the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b) for the particular taxation year is the amount, if any, determined by

        • (i) computing the amount, if any, by which

          • (A) the total of the taxes payable by the taxpayer under this Part and Parts VI, VI.1 and XIII.1 for the particular taxation year, as determined in the taxpayer’s elected functional currency

          exceeds

          • (B) the total of all amounts each of which is the amount determined by converting the amount of a payment obligation — determined by paragraph 157(1)(a) or (1.1)(a), as the case may be, with reference to subparagraph (a)(i), (ii) or (iii), as the case may be — of the taxpayer in respect of the particular taxation year to the taxpayer’s elected functional currency using the relevant spot rate for the day on which the payment obligation was due, and

        • (ii) converting the amount, if any, determined by subparagraph (i) to Canadian currency using the relevant spot rate for the taxpayer’s balance-due day for the partic-ular taxation year;

      • (c) for the purposes of determining any amount (other than tax) that is payable by the taxpayer under this Part or Part VI, VI.1 or XIII.1 for the particular taxation year, the taxpayer’s tax payable under the Part for the particular taxation year is deemed to be equal to the total of

        • (i) the total of the taxpayer’s payment obligations under paragraph 157(1)(a) or (1.1)(a), in respect of the Part, as determined with reference to subparagraph (a)(i), (ii) or (iii), as the case may be, in respect of the particular taxation year, and

        • (ii) the amount, if any, of the remainder of the taxes payable by the taxpayer under paragraph 157(1)(b) or (1.1)(b), in respect of the Part, as determined under paragraph (b), in respect of the particular taxation year;

      • (d) amounts of tax that are payable under this Act (except under this Part and Parts VI, VI.1 and XIII.1) by the taxpayer for the particular taxation year are to be determined by converting those amounts, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on which those amounts are due;

      • (e) if a particular amount that is determined in the taxpayer’s elected functional currency is deemed to be paid at any time on account of an amount payable by the taxpayer under this Act for the particular taxation year, the particular amount is to be converted to Canadian currency using the relevant spot rate for the day that includes that time;

      • (f) the following amounts are to be determined in the taxpayer’s elected functional currency and converted to Canadian currency using the relevant spot rate for the taxpayer’s balance-due day for the particular taxation year:

        • (i) amounts described in paragraph 163(1)(a) in respect of the particular taxation year, and

        • (ii) the amount of the taxpayer’s taxable capital employed in Canada, for the purpose of applying section 235; and

      • (g) for greater certainty, all amounts payable by the taxpayer under this Act in respect of the particular taxation year are to be paid in Canadian currency.

    • Marginal note:Application of subsections (7) and (8) to reversionary years

      (12) In applying this Act to a reversionary year of a taxpayer, subsections (7) and (8) are to be read as if the references in those subsections to

      • (a) “Canadian currency” were references to “the taxpayer’s elected functional currency”;

      • (b) “Canadian currency year” were references to “functional currency year”;

      • (c) “functional currency year” were references to “reversionary year”;

      • (d) “first functional currency year” were references to “first reversionary year”;

      • (e) “last Canadian currency year” were references to “last functional currency year”;

      • (f) “pre-transition debt” were references to “pre-reversion debt”; and

      • (g) “the taxpayer’s elected functional currency” were references to “Canadian currency”.

    • Marginal note:Pre-reversion debts

      (13) A pre-reversion debt of a taxpayer that is denominated in a currency other than Canadian currency is deemed to have been issued immediately before the taxpayer’s first reversionary year for the purposes of

      • (a) determining the amount of the taxpayer’s income, gain or loss, for a reversionary year of the taxpayer (other than an amount that subsection (14) deems to arise), that is attributable to a fluctuation in the value of a currency; and

      • (b) applying paragraph 80(2)(k) in respect of a reversionary year of the taxpayer.

    • Marginal note:Deferred amounts relating to pre-reversion debts

      (14) If a taxpayer has, at any time in a reversionary year of the taxpayer, made a particular payment on account of the principal amount of a pre-reversion debt of the taxpayer:

      • (a) where the taxpayer would have made a gain — or, if the pre-reversion debt was not on account of capital, would have had income — (referred to in this paragraph as the “hypothetical gain or income”) attributable to a fluctuation in the value of a currency if the pre-reversion debt had been settled by the taxpayer’s having paid, immediately before the end of its last functional currency year, an amount equal to the principal amount (expressed in the currency in which the pre-reversion debt is denominated, which currency is referred to in this subsection as the “debt currency”) at that time, the taxpayer is deemed to make a gain or to have income, as the case may be, for the reversionary year equal to the amount determined by the formula

        A × B/C

        where

        A 
        is the amount of the hypothetical gain or income converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last functional currency year,
        B 
        is the amount of the particular payment (expressed in the debt currency), and
        C 
        is the principal amount of the pre-reversion debt at the beginning of the taxpayer’s first reversionary year (expressed in the debt currency); and
      • (b) where the taxpayer would have sustained a loss — or, if the pre-reversion debt was not on account of capital, would have had a loss — (referred to in this paragraph as the “hypothetical loss”) attributable to a fluctuation in the value of a currency if the pre-reversion debt had been settled by the taxpayer’s having paid, immediately before the end of its last functional currency year, an amount equal to the principal amount (expressed in the debt currency) at that time, the taxpayer is deemed to sustain or to have a loss in respect of the particular payment for the reversionary year equal to the amount that would be determined by the formula in paragraph (a) if the reference in the description of A in that paragraph to “hypothetical gain or income” were read as a reference to “hypothetical loss”.

    • Marginal note:Amounts carried back

      (15) For the purposes of determining the amount that may be deducted, in respect of a particular amount that arises in a taxation year (referred to in this subsection as the “later year”) of a taxpayer, under section 111 or subsection 126(2), 127(5), 181.1(4) or 190.1(3) in computing the taxpayer’s Canadian tax results for a taxation year (referred to in this subsection as the “current year”) that ended before the later year,

      • (a) if the later year is a functional currency year of the taxpayer and the current year is a Canadian currency year of the taxpayer, the following amounts (expressed in the taxpayer’s elected functional currency) are to be converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year:

        • (i) the particular amount, and

        • (ii) any amount so deducted in computing the taxpayer’s Canadian tax results for another functional currency year of the taxpayer;

      • (b) if the later year is a reversionary year of the taxpayer and the current year is a functional currency year of the taxpayer,

        • (i) the following amounts (expressed in Canadian currency) are to be converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last functional currency year:

          • (A) the particular amount, and

          • (B) any amount so deducted in computing the taxpayer’s Canadian tax results for another reversionary year of the taxpayer, and

        • (ii) any amount (expressed in Canadian currency) so deducted in computing the taxpayer’s Canadian tax results for a Canadian currency year of the taxpayer is to be converted to the taxpayer’s elected functional currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year;

      • (c) if the later year is a reversionary year of the taxpayer and the current year is a Canadian currency year of the taxpayer, the following amounts (expressed in the taxpayer’s elected functional currency) are to be converted to Canadian currency using the relevant spot rate for the last day of the taxpayer’s last Canadian currency year:

        • (i) the amount that would be determined under clause (b)(i)(A) in respect of the particular amount if the current year were a functional currency year of the taxpayer, and

        • (ii) any amount so deducted in computing the taxpayer’s Canadian tax results for a functional currency year of the taxpayer; and

      • (d) in any other case, this subsection does not apply.

    • Marginal note:Windings-up

      (16) If a winding-up described in subsection 88(1) commences at any time (referred to in this subsection as the “commencement time”) and the parent and the subsidiary referred to in that subsection would, in the absence of this subsection, have different tax reporting currencies at the commencement time, the following rules apply for the purposes of determining the subsidiary’s Canadian tax results for its taxation years that end after the commencement time:

      • (a) where the subsidiary’s tax reporting currency is Canadian currency,

        • (i) notwithstanding subsection (3), subsection (5) is deemed to apply to the subsidiary in respect of its taxation year that includes the commencement time and each of its subsequent taxation years, if any,

        • (ii) the subsidiary is deemed to have as its elected functional currency the parent’s tax reporting currency, and

        • (iii) if the subsidiary’s taxation year that includes the commencement time would, in the absence of this subsection, be a reversionary year of the subsidiary, this section is to be read with any modifications that the circumstances require; and

      • (b) where the subsidiary’s tax reporting currency is not Canadian currency,

        • (i) the subsidiary is deemed to have filed, at the time that is six months and one day before the beginning of its taxation year that includes the commencement time, in prescribed form and manner, a notice of revocation described in subsection (4), and

        • (ii) if the parent’s tax reporting currency is not Canadian currency,

          • (A) the subsidiary’s first reversionary year is deemed to have ended at the particular time that is immediately after the time at which it began,

          • (B) a new taxation year of the subsidiary is deemed to have begun immediately after the particular time,

          • (C) notwithstanding subsection (3), subsection (5) is deemed to apply to the subsidiary in respect of its taxation year that includes the commencement time and each of its subsequent taxation years, if any, and

          • (D) the subsidiary is deemed to have as its elected functional currency the parent’s tax reporting currency.

    • Marginal note:Amalgamations

      (17) If a predecessor corporation and the new corporation, in respect of an amalgamation within the meaning of subsection 87(1), have different tax reporting currencies for their last and first taxation years, respectively, paragraphs (16)(a) and (b) apply, for the purposes of determining the predecessor corporation’s Canadian tax results for its last taxation year, as if the tax reporting currencies referred to in those paragraphs were the tax reporting currencies referred to in this subsection and as if the references in those paragraphs to

      • (a) “subsidiary” were references to “predecessor corporation”;

      • (b) “parent” were references to “new corporation”; and

      • (c) “taxation year that includes the commencement time” were references to “last taxation year”.

    • Marginal note:Anti-avoidance

      (18) The Canadian tax results of a corporation for any one or more taxation years shall be determined using a particular currency if

      • (a) at any time (referred to in this subsection as the “transfer time”) one or more properties are directly or indirectly transferred

        • (i) by the corporation to another corporation (referred to in this subsection as the “transferor” and the “transferee”, respectively), or

        • (ii) by another corporation to the corporation (referred to in this subsection as the “transferor” and the “transferee”, respectively);

      • (b) the transferor and the transferee are related at the transfer time or become related in the course of a series of transactions or events that includes the transfer;

      • (c) the transfer time

        • (i) is, or would in the absence of subsections (16) and (17) be, in a functional currency year of the transferor and the transferor and the transferee have, or would in the absence of those subsections have, different tax reporting currencies at the transfer time, or

        • (ii) is, or would in the absence of those subsections be, in a reversionary year of the transferor and is not in a reversionary year of the transferee;

      • (d) it can reasonably be considered that one of the main purposes of the transfer or of any portion of a series of transactions or events that includes the transfer is to change, or to enable the changing of, the currency in which the Canadian tax results in respect of the property, or property substituted for it, for a taxation year would otherwise be determined; and

      • (e) the Minister directs that those Canadian tax results be determined in the particular currency.

    • Marginal note:Mergers

      (19) For the purposes of subsection (18), if one corporate entity (referred to in this subsection as the “new corporation”) is formed at a particular time by the amalgamation or other merger of two or more corporations (each of which is referred to in this subsection as a “predecessor corporation”),

      • (a) the predecessor corporation is deemed to have transferred to the new corporation at the time (referred to in this subsection as the “merger transfer time”) that is immediately before the particular time each property that was held at the merger transfer time by the predecessor corporation and at the particular time by the new corporation;

      • (b) the new corporation is deemed to exist, and to be related to the predecessor corporation, at the merger transfer time; and

      • (c) the new corporation is deemed to have as its tax reporting currency at the merger transfer time its tax reporting currency at the particular time.

    • Marginal note:Application of subsection (21)

      (20) Subsection (21) applies in determining a taxpayer’s income, gain or loss for a taxation year in respect of a transaction (referred to in this subsection and subsection (21) as a “specified transaction”) if

      • (a) the specified transaction was entered into, directly or indirectly, at any time by the taxpayer and a corporation (referred to in this subsection as the “related corporation”) to which the taxpayer is at that time related;

      • (b) the taxpayer and the related corporation had different tax reporting currencies at any time during the period (referred to in this subsection as the “accrual period”) in which the income, gain or loss accrued; and

      • (c) it would, in the absence of this subsection and subsection (21), be reasonable to consider that a fluctuation at any time in the accrual period in the value of the taxpayer’s tax reporting currency relative to the value of the related corporation’s tax reporting currency

        • (i) increased the taxpayer’s loss in respect of the specified transaction,

        • (ii) reduced the taxpayer’s income or gain in respect of the specified transaction, or

        • (iii) caused the taxpayer to have a loss, instead of income or a gain, in respect of the specified transaction.

    • Marginal note:Income, gain or loss determinations

      (21) If this subsection applies, each fluctuation in value referred to in paragraph (20)(c) is, for the purposes of determining the taxpayer’s income, gain or loss in respect of the specified transaction and notwithstanding any other provision of this Act, deemed not to have occurred.

    • Marginal note:Partnership transactions

      (22) For the purposes of this subsection and subsections (18) to (21),

      • (a) if a property is directly or indirectly transferred to or by a partnership, the property is deemed to have been transferred to or by (as the case may be) each member of the partnership; and

      • (b) if a partnership is a party to a transaction, each member of the partnership is deemed to be that party to that transaction.

  • (2) The definitions in subsection 261(1) (other than the definition “Canadian tax results”) and subsections 261(3) to (14) and (16) to (22) of the Act, as enacted by subsection (1), apply in respect of taxation years that begin after December 13, 2007, except that

    • (a) where a taxpayer has, on or before June 27, 2008, made an election under paragraph 261(3)(b) of the Act,

      • (i) if the taxpayer makes a further election in writing, and files it with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year that includes the day on which this Act is assented to, the relevant spot rate for a particular day is deemed, for the purposes of subsections 261(7) to (10) of the Act, as enacted by subsection (1), to be the average of the rates that would, in the absence of this subparagraph, be the relevant spot rates for each day in the 12-month period that ends on the particular day, and

      • (ii) subsections 261(20) and (21) of the Act, as enacted by subsection (1), apply in respect of taxation years that begin after June 27, 2008; and

    • (b) in applying paragraph 261(3)(b) of the Act, as enacted by subsection (1), if the day that is six months before the end of the particular taxation year referred to in that paragraph is before December 15, 2008, the reference in that paragraph to “the day that is six months before the end of the particular taxation year” is, in respect of that particular taxation year, to be read as a reference to “December 15, 2008”.

  • (3) The definition “Canadian tax results” in subsection 261(1) of the Act, and subsection 261(2) of the Act, as enacted by subsection (1), apply for all taxation years.

  • (4) Subsection 261(15) of the Act, as enacted by subsection (1), applies after December 13, 2007.

  •  (1) For the purposes of the Income Tax Act and the Canada Disability Savings Act, specified RDSP events are deemed to have occurred, in the order that they actually occurred, on December 31, 2008 and not on the day or days that they actually occurred.

  • (2) For the purposes of subsection (1), “specified RDSP event” means an event occurring after 2008 and before March 3, 2009 that

    • (a) establishes a “disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act;

    • (b) satisfies conditions in subsection 146.4(2) of the Income Tax Act;

    • (c) establishes a “registered disability savings plan” as defined in subsection 146.4(1) of the Income Tax Act for a beneficiary who is, in respect of the 2008 taxation year, a “DTC-eligible individual” as defined in subsection 146.4(1) of the Income Tax Act and who was resident in Canada at the end of that year;

    • (d) is the making of any contribution to the registered disability savings plan;

    • (e) satisfies the requirement in paragraph 3(b) of the Canada Disability Savings Regulations; or

    • (f) is the taking of any other action to ensure that the registered disability savings plan is validly established and contributions to the plan are validly made.

2008, c. 28Budget Implementation Act, 2008

 The descriptions of A and B in subsection 19(5) of the Budget Implementation Act, 2008 are replaced by the following:

A 
is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Income Tax Act as that subsection read in its application to a taxation year that ended immediately before February 26, 2008;
B 
is the expenditure limit of the corporation for the taxation year determined in accordance with the formula in subsection 127(10.2) of the Income Tax Act, as that subsection would apply to a taxation year that ended on February 26, 2008;

C.R.C., c. 945Income Tax Regulations

  •  (1) Paragraph 202(2)(h) of the Income Tax Regulations is replaced by the following:

    • (h) a payment to which paragraph 212(1)(p) of the Act applies,

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 204(3) of the Regulations is amended by striking out “or” at the end of paragraph (d.1), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e):

    • (f) governed by a TFSA or by an arrangement that is deemed by paragraph 146.2(9)(a) of the Act to be a TFSA.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 209(1) of the Regulations is replaced by the following:

    • 209. (1) A person who is required by section 200, 201, 202, 204, 208, 212, 214, 215, 217 or 218, subsection 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Section 214 of the Regulations is amended by adding the following after subsection (5):

    • (6) Where an amount may be deducted under subsection 146(8.92) of the Act in computing the income of a deceased annuitant under a registered retirement savings plan, the issuer of the plan shall make an information return in prescribed form in respect of the amount.

  • (2) Subsection (1) applies after 2008.

  •  (1) Section 215 of the Regulations is amended by adding the following after subsection (5):

    • (6) Where an amount may be deducted under subsection 146.3(6.3) of the Act in computing the income of a deceased annuitant under a registered retirement income fund, the carrier of the fund shall make an information return in prescribed form in respect of the amount.

  • (2) Subsection (1) applies after 2008.

  •  (1) Subsection 221(2) of the Regulations is replaced by the following:

    • (2) Where in any taxation year a reporting person (other than a registered investment) claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 146, 146.1, 146.3, 204, 205 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Section 223 of the Regulations and the heading before it are replaced by the following:

    TFSAs

    • 223. (1) An issuer of a TFSA shall make an information return for each calendar year in prescribed form in respect of the TFSA.

    • (2) An issuer of a TFSA who makes a payment of an amount that is required because of paragraph 146.2(9)(b) of the Act to be included in computing the income of a taxpayer for a taxation year shall make an information return in prescribed form.

    • (3) An issuer of a TFSA that governs a trust shall notify the holder of the TFSA in prescribed form and manner before March of a calendar year if, at any time during the preceding calendar year,

      • (a) the trust acquires or disposes of property that is a non-qualified investment for the trust; or

      • (b) property held by the trust becomes or ceases to be a non-qualified investment for the trust.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Paragraph 304(1)(a) of the Regulations is replaced by the following:

    • (a) an annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to (b.2) and (d) of the Act;

  • (2) Subsection (1) applies to annuity contracts issued after 2008.

  •  (1) Subsection 400(1) of the Regulations is replaced by the following:

    • 400. (1) In applying the definition “taxable income earned in the year in a province” in subsection 124(4) of the Act for a corporation’s taxation year

      • (a) the prescribed rules referred to in that definition are the rules in this Part; and

      • (b) the amount determined under those prescribed rules means the total of all amounts each of which is the taxable income of the corporation earned in the taxation year in a particular province as determined under this Part.

    • (1.1) In this Part, a corporation’s taxable income for a taxation year is equal to the total of

      • (a) the corporation’s taxable income for the taxation year (determined without reference to this subsection) or the corporation’s taxable income earned in Canada for the taxation year, as the case may be, and

      • (b) the positive or negative amount determined by the formula

        A – B

        where

        A 
        is the total of all amounts that are, because of the application of section 33.1 of the Act, not required to be added in computing the corporation’s income for the taxation year, and
        B 
        is the total of all amounts that are, because of the application of section 33.1 of the Act, not allowed to be deducted in computing the corporation’s income for the taxation year.
  • (2) Subsection 400(2) of the Regulations is amended by adding the following after paragraph (e):

    • (e.1) if, but for this paragraph, a corporation would not have a permanent establishment, the corporation is deemed to have a permanent establishment at the place designated in its incorporating documents or bylaws as its head office or registered office;

  • (3) Subsections (1) and (2) apply to the 2009 and subsequent taxation years.

  •  (1) Section 401 of the Regulations is replaced by the following:

    401. This Part applies to determine the amount of taxable income of a corporation earned in a taxation year in a particular province.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The heading before section 402.1 and sections 402.1 and 402.2 of the Regulations are replaced by the following:

    Central Paymaster

    • 402.1 (1) In this Part, if an individual (referred to in this section as the “employee”) is employed by a person (referred to in this section as the “employer”) and performs a service in a particular province for the benefit of or on behalf of a corporation that is not the employer, an amount that may reasonably be regarded as equal to the amount of salary or wages earned by the employee for the service (referred to in this section as the “particular salary”) is deemed to be salary paid by the corporation to an employee of the corporation in the corporation’s taxation year in which the particular salary is paid if

      • (a) at the time the service is performed,

        • (i) the corporation and the employer do not deal at arm’s length, and

        • (ii) the corporation has a permanent establishment in the particular province;

      • (b) the service

        • (i) is performed by the employee in the normal course of the employee’s employment by the employer,

        • (ii) is performed for the benefit of or on behalf of the corporation in the ordinary course of a business carried on by the corporation, and

        • (iii) is of a type that could reasonably be expected to be performed by employees of the corporation in the ordinary course of the business referred to in subparagraph (ii); and

      • (c) the amount is not otherwise included in the aggregate, determined for the purposes of this Part, of the salaries and wages paid by the corporation.

    • (2) In this Part, an amount deemed under subsection (1) to be salary paid by a corporation to an employee of the corporation for a service performed in a particular province is deemed to have been paid,

      • (a) if the service was performed at one or more permanent establishments of the corporation in the particular province, to an employee of the permanent establishment or establishments; or

      • (b) if paragraph (a) does not apply, to an employee of any other permanent establishment (as is reasonably determined in the circumstances) of the corporation in the particular province.

    • (3) In determining under this Part the amount of salaries and wages paid in a year by an employer, there shall be deducted the total of all amounts each of which is a particular salary paid by the employer in the year.

    • (4) Despite subparagraph (1)(a)(i), this section applies to a corporation and an employer that deal at arm’s length if the Minister determines that the corporation and the employer have entered into an arrangement the purpose of which is to reduce, through the provision of services as described in subsection (1), the total amount of income tax payable by the corporation under a law of the particular province referred to in subsection (1).

    • (5) For the purposes of this section, a partnership is deemed to be a corporation and the corporation’s taxation year is deemed to be the partnership’s fiscal period.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Section 403 of the Regulations is amended by adding the following after subsection (3):

    • (4) For the purposes of subsection (1), if in a taxation year an insurance corporation has no permanent establishment in a particular country other than Canada, but provides insurance on property in the particular country or has a contract for insurance, other than on property, with a person resident in the particular country, each net premium for the taxation year in respect of the insurance is deemed to be a net premium in respect of insurance on property situated in, or from contracts with persons resident in, as the case may be, the province in Canada or country other than Canada in which is situated the permanent establishment of the corporation to which the net premium is reasonably attributable in the circumstances.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 413(1) of the Regulations is replaced by the following:

    • 413. (1) In this Part, if a corporation is not resident in Canada, “salaries and wages paid in the year” by the corporation does not include salaries and wages paid to employees of a permanent establishment outside Canada.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The Regulations are amended by adding the following after section 413:

    International Banking Centre Exception

    413.1 Despite any other provision in this Part, a corporation’s taxable income earned in a taxation year in a particular province is equal to the total of

    • (a) the corporation’s taxable income earned in the taxation year in the particular province (determined without reference to this section), and

    • (b) the positive or negative amount determined by the formula

      A – B

      where

      A 
      is the total of all amounts that are, because of the application of section 33.1 of the Act to a business carried on in a branch or office situated in the particular province, not allowed to be deducted in computing the corporation’s income for the taxation year, and
      B 
      is the total of all amounts that are, because of the application of section 33.1 of the Act to a business carried on in a branch or office situated in the particular province, not required to be added in computing the corporation’s income for the taxation year.
  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The heading before section 414 and sections 414 and 415 of the Regulations are replaced by the following:

    Provincial SIFT Tax Rate

    • 414. (1) The following definitions apply in this section.

      “general corporate income tax rate”

      “general corporate income tax rate”, in a province for a taxation year, means

      • (a) for Quebec, 0%;

      • (b) for the Newfoundland offshore area, the highest percentage rate of tax imposed under the laws of Newfoundland and Labrador on the taxable income of a public corporation earned in the taxation year in Newfoundland and Labrador;

      • (c) for the Nova Scotia offshore area, the highest percentage rate of tax imposed under the laws of Nova Scotia on the taxable income of a public corporation earned in the taxation year in Nova Scotia; and

      • (d) for each other province, the highest percentage rate of tax imposed under the laws of the province on the taxable income of a public corporation earned in the taxation year in the province. (taux général d’imposition du revenu des sociétés)

      “province”

      “province” includes the Newfoundland offshore area and the Nova Scotia offshore area. (province)

      “taxable SIFT distributions”

      “taxable SIFT distributions”, for a taxation year, means

      • (a) in the case of a SIFT trust, its non-deductible distributions amount for the taxation year; and

      • (b) in the case of a SIFT partnership, its taxable non-portfolio earnings for the taxation year. (montant des distributions imposables)

    • (2) In determining the amount of a SIFT trust’s or SIFT partnership’s taxable SIFT distributions for a taxation year earned in a province

      • (a) except as provided in paragraph (b), this Part applies in respect of the SIFT trust or SIFT partnership as though

        • (i) each reference to “corporation” (other than in the expression “subsidiary controlled corporation”) were read as a reference to “SIFT trust” or “SIFT partnership”, as the case may be,

        • (ii) each reference to “taxable income” were read as a reference to “taxable SIFT distributions”,

        • (iii) each reference to “its incorporating documents or bylaws” were read as a reference to “the agreement governing the SIFT trust” or “the agreement governing the SIFT partnership”, as the case may be, and

        • (iv) “subsidiary controlled corporation” in respect of a SIFT trust or a SIFT partnership meant a corporation more than 50% of the issued share capital of which (having full voting rights under all circumstances) belongs to the SIFT trust or SIFT partnership, as the case may be; and

      • (b) subsection 400(1), section 401, subsections 402(1) and (2) and sections 403 to 413 do not apply.

    • (3) Subject to subsection (4), in applying the definition “provincial SIFT tax rate” in subsection 248(1) of the Act in respect of a SIFT trust or SIFT partnership for a taxation year, the prescribed amount determined in respect of the SIFT trust or SIFT partnership for the taxation year is

      • (a) if the SIFT trust or SIFT partnership has no permanent establishment in a province in the taxation year, 0.10;

      • (b) if the SIFT trust or SIFT partnership has a permanent establishment in a province in the taxation year and has no permanent establishment outside that province in the taxation year, the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year; and

      • (c) if the SIFT trust or SIFT partnership has a permanent establishment in the taxation year in a province, and has a permanent establishment outside that province in the taxation year, the amount, expressed as a decimal fraction, determined by the formula

        A + B

        where

        A 
        is the total of all amounts, if any, each of which is in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year and is determined by the formula

        C/D × E

        where

        C 
        is its taxable SIFT distributions for the taxation year earned in the province,
        D 
        is its total taxable SIFT distributions for the taxation year, and
        E 
        is the decimal fraction equivalent of the general corporate income tax rate in the province for the taxation year, and
        B 
        is the amount determined by the formula

        (1 – F/D) × 0.1

        where

        F 
        is the total of all amounts each of which is an amount determined under the description of C in the description of A in respect of a province in which the SIFT trust or SIFT partnership has a permanent establishment in the taxation year.
    • (4) If a SIFT trust or a SIFT partnership has a permanent establishment in Quebec in a taxation year, paragraph (a) of the definition “general corporate income tax rate” in subsection (1) does not apply in determining the prescribed amount under subsection (3) in respect of the SIFT trust or the SIFT partnership for the taxation year for the purposes of applying the definition “provincial SIFT tax rate” in determining:

      • (a) in the case of the SIFT partnership, the amount of a dividend deemed by paragraph 96(1.11)(b) of the Act to have been received by it in the taxation year; and

      • (b) in the case of the SIFT trust, the amount of its taxable SIFT trust distributions for the taxation year.

  • (2) Subsection (1) applies to the 2007 and subsequent taxation years, except that paragraph 414(4)(b), as enacted by subsection (1), shall not apply for the taxation years of a SIFT trust that end before February 3, 2009.

  •  (1) The heading “Policy Reserves for Pre-1996 Policies” before section 1401 of the Regulations is replaced by the following:

    Amounts Determined
  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) The portion of subsection 1401(1) of the Regulations before subparagraph (c)(i) is replaced by the following:

    • 1401. (1) For the purposes of section 307 of the Regulations and subsection 211.1(3) of the Act, the amounts determined under this subsection are,

      • (a) in respect of deposit administration fund policies, the aggregate of the insurer’s liabilities under those policies calculated in the manner required for the purposes of the insurer’s annual report to the relevant authority for the year or, where the insurer was throughout the year subject to the supervision of the relevant authority but was not required to file an annual report with the relevant authority for the year, in its financial statements for the year;

      • (b) in respect of a group term life insurance policy that provides coverage for a period not exceeding 12 months, the unearned portion of the premium paid by the policyholder for the policy at the end of the year determined by apportioning the premium paid by the policyholder equally over the period to which that premium pertains;

      • (c) in respect of a life insurance policy, other than a policy referred to in paragraph (a) or (b), the greater of

  • (2) The portion of paragraph 1401(1)(c.1) of the Regulations before subparagraph (i) is replaced by the following:

    • (c.1) in respect of a group life insurance policy, the amount (other than an amount in respect of which a deduction may be claimed by the insurer pursuant to subsection 140(1) of the Act because of subparagraph 138(3)(a)(v) of the Act in computing its income for the year) in respect of a dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy that will be used by the insurer to reduce or eliminate a future adverse claims experience under the policy or that will be paid or unconditionally credited to the policyholder by the insurer or applied in discharge, in whole or in part, of a liability of the policyholder to pay premiums to the insurer, which is the least of

  • (3) The portion of paragraph 1401(1)(d) of the Regulations before subparagraph (i) is replaced by the following:

    • (d) in respect of a policy, other than a policy referred to in paragraph (a), in respect of a benefit, risk or guarantee that is

  • (4) The portion of paragraph 1401(1)(d) of the Regulations after subparagraph (ix) and before subparagraph (x) is replaced by the following:

    equal to the lesser of

  • (5) Subsection 1401(1) of the Regulations is amended by adding “and” at the end of paragraph (c.1) and by repealing paragraphs (d.1) to (e).

  • (6) Subsection 1401(1.1) of the Regulations is repealed.

  • (7) Subsections 1401(3) and (4) of the Regulations are repealed.

  • (8) Subsections (1) to (7) apply to taxation years that begin after September 2006.

  •  (1) The headings before section 1404 and sections 1404 and 1405 of the Regulations are replaced by the following:

    Division 4Life Insurance Policy Reserves

    • 1404. (1) For the purpose of subparagraph 138(3)(a)(i) of the Act, there may be deducted, in computing a life insurer’s income from carrying on its life insurance business in Canada for a taxation year in respect of its life insurance policies in Canada, the amount the insurer claims, not exceeding

      • (a) the amount determined under subsection (3) in respect of the insurer for the year, where that amount is greater than nil; and

      • (b) nil, in any other case.

    • (2) For the purpose of paragraph 138(4)(b) of the Act, the amount prescribed in respect of an insurer for a taxation year, in respect of its life insurance policies in Canada, is

      • (a) the absolute value of the amount determined under subsection (3) in respect of the insurer for the year, where that amount is less than nil; and

      • (b) nil, in any other case.

    • (3) For the purposes of paragraphs (1)(a) and (2)(a), the amount determined under this subsection in respect of an insurer for a taxation year, in respect of its life insurance policies in Canada, is the amount, which may be positive or negative, determined by the formula

      A + B + C + D – M

      where

      A 
      is the amount (except to the extent the amount is determined in respect of a claim, premium, dividend or refund in respect of which an amount is included in determining the value of B, C or D), in respect of the insurer’s life insurance policies in Canada, equal to the lesser of
      • (a) the total of the reported reserves of the insurer at the end of the year in respect of those policies, and

      • (b) the total of the policy liabilities of the insurer at the end of the year in respect of those policies;

      B 
      is the amount, in respect of the insurer’s life insurance policies in Canada under which there may be claims incurred before the end of the year that have not been reported to the insurer before the end of the year, equal to 95% of the lesser of
      • (a) the total of the reported reserves of the insurer at the end of the year in respect of the possibility that there are such claims, and

      • (b) the total of the policy liabilities of the insurer at the end of the year in respect of the possibility that there are such claims;

      C 
      is the total of all amounts each of which is the unearned portion at the end of the year of the premium paid by the policyholder for the policy, determined by apportioning the premium paid by the policyholder equally over the period to which that premium relates, where the policy is a group term life insurance policy that
      • (a) provides coverage for a period that does not exceed 12 months, and

      • (b) is a life insurance policy in Canada;

      D 
      is the total of all amounts (other than an amount deductible under subparagraph 138(3)(a)(v) of the Act) each of which is the amount, which is the least of P, Q and R, in respect of a dividend, refund of premiums or refund of premium deposits provided for under the terms of a group life insurance policy that is a life insurance policy in Canada that will be
      • (a) used by the insurer to reduce or eliminate a future adverse claims experience under the policy,

      • (b) paid or unconditionally credited to the policyholder by the insurer, or

      • (c) applied in discharge, in whole or in part, of a liability of the policyholder to pay premiums to the insurer under the policy,

      where

      P 
      is a reasonable amount as a reserve determined as at the end of the year in respect of the dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy,
      Q 
      is 25% of the amount of the premium under the terms of the policy for the 12-month period ending
      • (a) on the day the policy is terminated, if the policy is terminated in the year, and

      • (b) at the end of the year, in any other case, and

      R 
      is the amount of the reported reserve of the insurer at the end of the year in respect of the dividend, refund of premiums or refund of premium deposits provided for under the terms of the policy; and
      M 
      is the total of all amounts determined in respect of a life insurance policy in Canada each of which is
      • (a) an amount payable in respect of a policy loan under the policy, or

      • (b) interest that has accrued to the insurer to the end of the year in respect of a policy loan under the policy.

    1405. For the purpose of subparagraph 138(3)(a)(ii) of the Act, there may be deducted, in computing a life insurer’s income for a taxation year, the amount it claims as a reserve in respect of an unpaid claim received by the insurer before the end of the year under a life insurance policy in Canada, not exceeding the lesser of

    • (a) the reported reserve of the insurer at the end of the year in respect of the claim, and

    • (b) the policy liability of the insurer at the end of the year in respect of the claim.

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) The definition “life insurance policy in Canada” in subsection 1408(1) of the Regulations is replaced by the following:

    “life insurance policy in Canada”

    “life insurance policy in Canada” has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie au Canada)

  • (2) Subsection 1408(1) of the Regulations is amended by adding the following in alphabetical order:

    “life insurance policy”

    “life insurance policy” has the same meaning as defined in subsection 138(12) of the Act. (police d’assurance-vie)

  • (3) Subsections (1) and (2) apply to taxation years that begin after November 7, 2007.

  •  (1) Section 2400 of the Regulations is amended by adding the following after subsection (7):

    Transition Year

    • (8) A computation that is required to be made under this Part in respect of an insurer’s taxation year that included September 30, 2006 and that is relevant to a computation (in this subsection referred to as the “transition year computation”) that is required to be made under this Part in respect of the insurer’s first taxation year that begins after that date shall, for the purposes only of the transition year computation, be made using the same definitions, rules and methodologies that are used in the transition year computation.

  • (2) Subsection (1) applies to taxation years that begin after September 2006.

  •  (1) Subsection 2600(1) of the Regulations is replaced by the following:

    • 2600. (1) In applying the definition “income earned in the year in a province” in subsection 120(4) of the Act for an individual’s taxation year

      • (a) the prescribed rules referred to in that definition are the rules in this Part; and

      • (b) the amount determined under those prescribed rules means the total of all amounts each of which is the individual’s income earned in the taxation year in a particular province as determined under this Part.

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The Regulations are amended by adding the following after section 3504:

    Conditions

    • 3505. (1) The following conditions are prescribed in respect of a donee for the purposes of paragraph 110.1(8)(e) of the Act:

      • (a) the donee has applied to the Minister for International Cooperation (or, if there is no such Minister, the Minister responsible for the Canadian International Development Agency) for a determination that the conditions described in this section have been met;

      • (b) medicines received by the donee for use in charitable activities outside Canada are

        • (i) delivered outside Canada by the donee for use in its charitable activities, or

        • (ii) transferred to another registered charity that would meet the conditions contained in this section if that registered charity were a donee described in subsection 110.1(8) of the Act;

      • (c) in the course of delivering medicines outside Canada for use in its charitable activities, the donee acts in a manner consistent with the principles and objectives of the inter-agency Guidelines for Drug Donations issued by the World Health Organization, as amended from time to time, (referred to in this section as “the WHO Guidelines”);

      • (d) the donee has sufficient expertise in delivering medicines for use in charitable activities carried on outside Canada;

      • (e) the donee carries on a program that includes delivering medicines for use in charitable activities carried on outside Canada and that is

        • (i) an international development assistance program, or

        • (ii) an international humanitarian assistance program, responding to situations of international humanitarian crisis (resulting from either natural disaster or complex emergency); and

      • (f) the donee has sufficient expertise to design, implement and monitor each program described in subparagraph (e)(i) or (ii) that it carries on, unless the donee has declared that it will not deliver medicines in that program.

    • (2) Without limiting the application of the WHO Guidelines, for the purposes of paragraph (1)(c), a donee does not act in a manner consistent with the principles and objectives of those guidelines if the donee’s directors, trustees, officers or like officials have not

      • (a) approved a policy and procedural framework, under which the donee is required to act in a manner consistent with the WHO Guidelines; and

      • (b) declared that the donee acts in compliance with that policy and procedural framework.

    • (3) A donee is considered not to have sufficient expertise for the purpose of a program to which paragraph (1)(d) or (e) applies if

      • (a) the program does not address the specific and differentiated needs, interests and vulnerabilities of affected women and men, girls and boys;

      • (b) the program does not incorporate, in the design of projects under the program, consideration for environmental effects of those projects; or

      • (c) the donee does not have policies and practices for the design, implementation and monitoring of the program.

    • (4) The Minister referred to in subsection (1) may

      • (a) rely on any information or evidence in making a determination under subsection (1); and

      • (b) require the donee to provide any other information or evidence that that Minister considers relevant and sufficient for the purpose of this section.

  • (2) Subsection (1) applies in respect of applications made at any time by donees for determinations in respect of gifts made after June 2008.

  •  (1) The portion of subsection 4900(1) of the Regulations before paragraph (a) is replaced by the following:

    • 4900. (1) For the purposes of paragraph (d) of the definition “qualified investment” in subsection 146(1) of the Act, paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (c) of the definition “qualified investment” in subsection 146.3(1) of the Act, paragraph (h) of the definition “qualified investment” in section 204 of the Act, paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act and paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a plan trust at a particular time if at that time it is

  • (2) Paragraph 4900(1)(i.3) of the Regulations is repealed.

  • (3) Subparagraph 4900(1)(j.2)(ii) of the Regulations is replaced by the following:

    • (ii) the certificate has, at the time of acquisition by the plan trust, an investment grade rating with a credit rating agency referred to in subsection (2), and

  • (4) Paragraphs 4900(1)(k) and (l) of the Regulations are repealed.

  • (5) Paragraph 4900(1)(o) of the Regulations is repealed.

  • (6) Paragraph 4900(1)(s) of the Regulations is repealed.

  • (7) Subsection 4900(1) of the Regulations is amended by striking out “or” at the end of paragraph (u), by adding “or” at the end of paragraph (v) and by adding the following after paragraph (v):

    • (w) an American Depositary Receipt where the property represented by the receipt is listed on a designated stock exchange.

  • (8) Subsection 4900(5) of the Regulations is replaced by the following:

    • (5) For the purposes of paragraph (e) of the definition “qualified investment” in subsection 146.1(1) of the Act, paragraph (d) of the definition “qualified investment” in subsection 205(1) of the Act and paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a registered disability savings plan, a registered education savings plan or a TFSA at any time if at that time the property is an interest in a trust or a share of the capital stock of a corporation that was a registered investment for a trust governed by a registered retirement savings plan during the calendar year in which that time occurs or during the preceding year.

  • (9) Paragraph 4900(12)(a) of the Regulations is replaced by the following:

    • (a) the property was a share of the capital stock of a specified small business corporation,

  • (10) Section 4900 of the Regulations is amended by adding the following after subsection (13):

    • (14) For the purposes of paragraph (c) of the definition “qualified investment” in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a TFSA at any time if, at the time the property was acquired by the trust, the property

      • (a) was

        • (i) a share of the capital stock of a specified small business corporation,

        • (ii) a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2, or

        • (iii) a qualifying share in respect of a specified cooperative  corporation  and  the TFSA; and

      • (b) was not a prohibited investment for the trust.

  • (11) Subsections (1) and (8) to (10) apply to the 2009 and subsequent taxation years.

  • (12) Subsections (2) to (6) apply to property acquired after the day on which this Act is assented to.

  • (13) Subsection (7) applies in determining whether a property is, at any time after 2005, a qualified investment, except that in applying paragraph 4900(1)(w) of the Regulations, as enacted by subsection (7), before December 14, 2007, it is to be read as follows:

    • (w) an American Depositary Receipt where the property represented by the receipt is listed on a stock exchange referred to in section 3200 or 3201.

  •  (1) The definitions “governing plan” and “qualifying share” in subsection 4901(2) of the Regulations are replaced by the following:

    “governing plan”

    “governing plan” means a deferred profit sharing plan or a revoked plan, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; (régime d’encadrement)

    “qualifying share”

    “qualifying share”, in respect of a specified cooperative corporation and a governing plan, means a share of the capital or capital stock of the corporation where

    • (a) ownership of the share or a share identical to the share is not a condition of membership in the corporation, or

    • (b) a connected person under the governing plan

      • (i) has not received a payment from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services, and

      • (ii) can reasonably be expected not to receive a payment, after the acquisition of the share by the plan trust, from the corporation pursuant to an allocation in proportion to patronage in respect of consumer goods or services; (part admissible)

  • (2) The definition “connected person” in subsection 4901(2) of the English version of the Regulations is replaced by the following:

    “connected person”

    “connected person” under a governing plan of a plan trust means a person who is an annuitant, a beneficiary, an employer or a subscriber under, or a holder of, the governing plan and any person who does not deal at arm’s length with that person; (personne rattachée)

  • (3) Subsection 4901(2) of the Regulations is amended by adding the following in alphabetical order:

    “specified small business corporation”

    “specified small business corporation”, at any time, means a corporation (other than a cooperative corporation) that would, at that time or at the end of the last taxation year of the corporation that ended before that time, be a small business corporation if the expression “Canadian-controlled private corporation” in the definition “small business corporation” in subsection 248(1) of the Act were read as “Canadian corporation (other than a corporation controlled at that time, directly or indirectly in any manner whatever, by one or more non-resident persons)”. (société déterminée exploitant une petite entreprise)

  • (4) Subsections (1) to (3) apply to the 2009 and subsequent taxation years.

  •  (1) The Regulations are amended by adding the following after Part XLIX:

    PART LTAX-FREE SAVINGS ACCOUNTS — PROHIBITED INVESTMENTS

    Marginal note:Investment not prohibited

    5000. For the purpose of the portion of the definition “prohibited investment” in subsection 207.01(1) of the Act before paragraph (a), property described in paragraph 4900(1)(j.1) is prescribed property.

    Marginal note:Prohibited investment

    5001. For the purpose of paragraph (d) of the definition “prohibited investment” in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a TFSA solely because of subsection 4900(14) is prescribed property for the trust at any time if, at that time, it is not described in any of subparagraphs 4900(14)(a)(i) to (iii).

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) The headings before section 5700 of Regulations are replaced by the following:

    PART LVIIMEDICAL EXPENSE TAX CREDIT

  • (2) Subsection (1) is deemed to have come into force on February 27, 2008.

  •  (1) Section 5700 of the Regulations is amended by striking out “and” at the end of paragraph (y) and by adding the following after paragraph (z):

    • (z.1) altered auditory feedback device designed to be used by an individual who has a speech impairment;

    • (z.2) electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment;

    • (z.3) standing device designed to be used by an individual who has a severe mobility impairment to undertake standing therapy; and

    • (z.4) pressure pulse therapy device designed to be used by an individual who has a balance disorder.

  • (2) Subsection (1) applies to the 2008 and subsequent taxation years.

  •  (1) The Regulations are amended by adding the following after section 5700:

    5701. For the purpose of subparagraph 118.2(2)(n)(ii) of the Act, a drug, medicament or other preparation or substance is prescribed if it

    • (a) is manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function;

    • (b) is prescribed for a patient by a medical practitioner; and

    • (c) may, in the jurisdiction in which it is acquired, be lawfully acquired for use by the patient only with the intervention of a medical practitioner.

  • (2) Subsection (1) is deemed to have come into force on February 27, 2008.

  •  (1) Subsection 5906(2) of the Regulations is replaced by the following:

    • (2) For the purposes of subsection (1), the expression “permanent establishment” has:

      • (a) if the expression is given a particular meaning in a tax treaty with a country, the meaning assigned by that tax treaty with respect to a business carried on in that country; and

      • (b) in any other case, the meaning that would be assigned by subsection 400(2) if that subsection were read without reference to its paragraph (e.1).

  • (2) Subsection (1) applies to the 2009 and subsequent taxation years.

  •  (1) Subsection 5907(11) of the Regulations is replaced by the following:

    • (11) For the purposes of this Part, a sovereign state or other jurisdiction is a “designated treaty country” for a taxation year of a foreign affiliate of a corporation if Canada has entered into a comprehensive agreement or convention for the elimination of double taxation on income, or a comprehensive tax information exchange agreement, in respect of that sovereign state or jurisdiction, that has entered into force and has effect for that taxation year, but any territory, possession, department, dependency or area of that sovereign state or jurisdiction to which that agreement or convention does not apply is not considered to be part of that sovereign state or jurisdiction for the purpose of determining whether it is a designated treaty country.

  • (2) Section 5907 of the Regulations is further amended by adding the following after subsection (11.1):

    • (11.11) For the purpose of applying subsection (11) in respect of a foreign affiliate of a corporation, where a comprehensive tax information exchange agreement enters into force on a particular day, the agreement is deemed to enter into force and to come into effect on the first day of the foreign affiliate’s taxation year that includes the particular day.

  • (3) Subsections (1) and (2) apply after 2007.

  •  (1) Paragraphs 7305.1(a) and (b) of the Regulations are replaced by the following:

    • (a) if a taxpayer is employed in a taxation year by a particular person principally in selling or leasing automobiles and an automobile is made available in the year to the taxpayer or a person related to the taxpayer by the particular person or a person related to the particular person, 21 cents; and

    • (b) in any other case, 24 cents.

  • (2) Subsection (1) applies to taxation years that end after 2007.

  •  (1) Paragraph 7306(a) of the Regulations is replaced by the following:

    • (a) the product of 46 cents multiplied by the number of those kilometres;

  • (2) Subsection (1) applies to kilometres driven after 2007.

  •  (1) Section 8308.1 of the Regulations is amended by adding the following after subsection (2):

    Pension Credit — Tax Treaty

    •  (2.1) For the purposes of applying subsection (2) in determining an individual’s pension credit for a calendar year with respect to an employer under a foreign plan, if any contributions made to, or benefits accruing under, the plan in respect of the individual and the calendar year benefit from the application of paragraph 8 of Article XVIII of the Canada-United States Tax Convention signed at Washington on September 26, 1980, or from the application of a similar provision in another tax treaty,

      • (a) subparagraph (2)(b)(ii) shall be read without reference to the words “was resident in Canada and”; and

      • (b) the portion of subsection (2) after subparagraph (b)(iv) shall be read as “the lesser of the money purchase limit for the year and 18% of the individual’s resident compensation from the employer for the year”.

  • (2) Subsection (1) applies in determining pension credits for the 2009 and subsequent calendar years.

  •  (1) Section 8308.2 of the Regulations is replaced by the following:

    • 8308.2 (1) For the purposes of the descriptions of B in the definitions “RRSP deduction limit” and “unused RRSP deduction room” in subsection 146(1) of the Act and the description of B in paragraph 204.2(1.1)(b) of the Act, there is prescribed in respect of an individual for a calendar year the lesser of the money purchase limit for the preceding calendar year (in this section referred to as the “service year”) and the amount determined by subsection (2), if the individual

      • (a) rendered services to an employer (excluding services that were primarily services rendered in Canada or services rendered in connection with a business carried on by the employer in Canada, or a combination of those services) throughout a period in the service year in which the individual was resident in Canada;

      • (b) became entitled, either absolutely or contingently, in the service year to benefits under a foreign plan (as defined in subsection 8308.1(1)) in respect of the services; and

      • (c) continued to be entitled at the end of the service year, either absolutely or contingently, to all or part of the benefits.

    • (2) The amount determined for the purpose of subsection (1) is,

      • (a) if the only benefits to which the individual became entitled in the service year under the foreign plan were provided under one or more money purchase provisions of the foreign plan, the total of all amounts each of which is the individual’s pension credit for the service year with respect to the employer under a money purchase provision of the foreign plan, determined

        • (i) as though the foreign plan were a registered pension plan,

        • (ii) without regard to any contributions made by the individual, and

        • (iii) if, under the laws of the country in which the foreign plan is established, any contributions made after the end of the service year are treated as having been made in the service year, as though those contributions were made in the service year and not when the contributions were actually made; and

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

        • (i) the total that would be determined under paragraph (a) if the individual had not become entitled in the service year to any benefits under a defined benefit provision of the foreign plan, and

        • (ii) 10% of the portion of the individual’s resident compensation from the employer for the service year that is attributable to services rendered to the employer and included under paragraph (1)(a).

  • (2) Subsection (1) applies in determining prescribed amounts for the 2009 and subsequent calendar years except that in determining prescribed amounts for 2009, the amount of the money purchase limit for 2008 is deemed to be reduced by $600.

  •  (1) Subsection 8506(7) of the Regulations and the heading before it are replaced by the following:

    Special Rules for Minimum Amount

    • (7) The minimum amount for a member’s account under a money purchase provision of a registered pension plan for a calendar year is

      • (a) nil, if an individual who is either the member or the specified beneficiary of the member for the year in relation to the provision

        • (i) is alive at the beginning of the year, and

        • (ii) had not attained 71 years of age at the end of the preceding calendar year; and

      • (b) if paragraph (a) does not apply and the year is 2008, 75 per cent of the amount that would, in the absence of this subsection, be the minimum amount for the account for the year.

  • (2) Section 8506 of the Regulations is amended by adding the following after subsection (8):

    Recontribution — Adjusted Minimum Amount for 2008

    • (9) If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (10), the contribution

      • (a) is deemed to have been made in accordance with the plan as registered;

      • (b) is to be disregarded for the purposes of paragraph (2)(c.1); and

      • (c) is deemed to be an excluded contribution for the purposes of paragraph 8301(4)(a).

    Conditions Referred to in Subsection (9)

    • (10) The conditions referred to in subsection (9) are as follows:

      • (a) the contribution is made in 2008;

      • (b) the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; and

      • (c) the amount of the contribution does not exceed the amount determined by the formula

        A – B – C

        where

        A 
        is the lesser of
        • (i) the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(a) to (e)) paid from the plan in 2008 in respect of the account and included, because of paragraph 56(1)(a) of the Act, in computing the taxpayer’s income for the taxation year, and

        • (ii) the amount that would, in the absence of paragraph (7)(b), be the minimum amount for the account for 2008,

        B 
        is the minimum amount for the account for 2008, and
        C 
        is the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection.
  • (3) Contributions described in subsections 8506(9) and (10) of the Regulations, as enacted by subsection (2), that are made during the period that begins after 2008 and ends on the day that is 30 days after the day on which this Act is assented to (or such longer period as is acceptable to the Minister of National Revenue) are deemed for the purpose of subsection 8506(10) of the Regulations, as enacted by subsection (2), to have been made on December 31, 2008 and not when they were actually made, except that the amounts so deemed shall not exceed the amount that would be determined in respect of the account under paragraph 8506(10)(c) of the Regulations, as enacted by subsection (2), if the value of C in the formula in that paragraph were nil.

  •  (1) Part XC of the Regulations is replaced by the following:

    PART XCFINANCIAL INSTITUTIONS — PRESCRIBED ENTITIES AND PROPERTIES

    Prescribed Trust not a Financial Institution

    9000. For the purpose of paragraph (e) of the definition “financial institution” in subsection 142.2(1) of the Act, a trust is, at any particular time, a prescribed person if the following conditions are satisfied at that particular time:

    • (a) the trust is a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a) of the Act);

    • (b) the trust is deemed, under paragraph 138.1(1)(a) of the Act, to have been created at a time that is not more than two years before that particular time; and

    • (c) the cost of the trustee’s interest (as determined by paragraph 138.1(1)(c) and (d) of the Act) in the trust does not exceed $5,000,000.

    Prescribed Property not Mark-to-Market Property

    • 9001. (1) In this section, “qualified small business corporation”, at any time, means a corporation in respect of which the following conditions are satisfied at that time:

      • (a) the corporation is a Canadian-controlled private corporation;

      • (b) the corporation either is an eligible corporation (as defined in subsection 5100(1)) or would be an eligible corporation if the definition “eligible corporation” in subsection 5100(1) were read without reference to its paragraph (e);

      • (c) the carrying value of the total assets of the corporation and all corporations related to it (determined in accordance with generally accepted accounting principles on a consolidated or combined basis, where applicable) does not exceed $50,000,000; and

      • (d) the number of employees of the corporation and all corporations related to it does not exceed 500.

    • (2) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share of the capital stock of a corporation is a prescribed property of a taxpayer if

      • (a) immediately after the time at which the taxpayer acquired the share, the corporation was a qualified small business corporation, and

        • (i) the corporation continued to be a qualified small business corporation for one year after that time, or

        • (ii) the taxpayer could not reasonably expect at that time that the corporation would cease to be a qualified small business corporation within one year after that time; or

      • (b) the share was issued to the taxpayer in exchange for one or more shares of the capital stock of the corporation that were, at the time of the exchange, prescribed property of the taxpayer under this subsection.

    Prescribed Property not Mark-to-Market Property

    • 9002. (1) For the purposes of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, and of subparagraph 142.6(4)(a)(ii) of the Act, a debt obligation held by a bank is a prescribed property of the bank if the obligation is

      • (a) an exposure to a designated country (within the meaning assigned by section 8006);

      • (b) a United Mexican States Collateralized Par Bond due 2019; or

      • (c) a United Mexican States Collateralized Discount Bond due 2019.

    • (2) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share is a prescribed property of a taxpayer for a taxation year if

      • (a) the share is a lending asset of the taxpayer in the year; or

      • (b) the share was, immediately after its issuance, a share described in paragraph (e) of the definition “term preferred share” in subsection 248(1) of the Act, and the share would, at any time in the year, be a term preferred share if

        • (i) that definition were read without reference to the portion following paragraph (b), and

        • (ii) where the share was issued or acquired on or before June 28, 1982, it were issued or acquired after that day.

    • (3) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share of the capital stock of a corporation that is held by a credit union is a prescribed property of the credit union for a taxation year if, throughout that taxation year,

      • (a) the corporation is a credit union; or

      • (b) credit unions hold

        • (i) shares of the corporation that give the credit unions more than 50% of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation, and

        • (ii) shares of the corporation having a fair market value of more than 50% of the fair market value of all the issued shares of the corporation.

    Prescribed Payment Card Corporation Share not Mark-to-Market Property

    9002.1 For the purpose of paragraph (b) of the definition “excluded property” in subsection 142.2(1) of the Act, a prescribed payment card corporation share of a taxpayer at any time means a share of the capital stock of a particular corporation if, at that time,

    • (a) the particular corporation is any one of the following

      • (i) MasterCard International Incorporated,

      • (ii) MasterCard Incorporated, or

      • (iii) Visa Inc.; and

    • (b) the share

      • (i) is of a class of shares that is not listed on a stock exchange,

      • (ii) is not convertible into or exchangeable for a share of the class of the capital stock of a corporation that is listed on a stock exchange, and

      • (iii) was issued by the particular corporation to the taxpayer or to a person related to the taxpayer.

    Prescribed Securities Exchange Investment not Mark-to-Market Property

    9002.2 For the purpose of paragraph (c) of the definition “excluded property” in subsection 142.2(1) of the Act, a prescribed securities exchange investment of a taxpayer at any time means a share of the capital stock of a corporation if, at that time, the corporation is not a public corporation and is

    • (a) The Toronto Stock Exchange Inc.;

    • (b) TSX Inc.;

    • (c) TSX Group Inc.;

    • (d) Bourse de Montréal Inc.; or

    • (e) Canadian Venture Exchange Inc.

    Significant Interest in a Corporation

    9003. For the purpose of paragraph 142.2(3)(c) of the Act, a share described in paragraph 9002(2)(b) is prescribed in respect of all taxpayers.

    Financing Arrangement not a Specified Debt Obligation

    9004. For the purpose of paragraph (c) of the definition “specified debt obligation” in subsection 142.2(1) of the Act, a property is a prescribed property throughout a taxation year if

    • (a) the property is a direct financing lease, or any other financing arrangement, of a taxpayer that is reported as a loan in the taxpayer’s financial statements for the year prepared in accordance with generally accepted accounting principles; and

    • (b) in computing the taxpayer’s income for the year, an amount is deductible under paragraph 20(1)(a) of the Act in respect of the property that is the subject of the arrangement.

  • (2) Subsection 9002(3) of the Regulations is replaced by the following:

    • (3) For the purpose of paragraph (e) of the definition “excluded property” in subsection 142.2(1) of the Act, a share of the capital stock of a corporation that is held by a credit union is a prescribed property of the credit union for a taxation year if, throughout the period (referred to in this subsection as the “holding period”) in that taxation year during which the credit union holds the share

      • (a) the corporation is a credit union; or

      • (b) the following conditions are satisfied:

        • (i) credit unions hold shares of the corporation that

          • (A) give those credit unions at least 50% of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation, and

          • (B) have a fair market value of at least 50% of the fair market value of all the issued shares of the corporation,

        • (ii) the corporation is not controlled, directly or indirectly in any manner whatever, by any person that is not a credit union, and

        • (iii) the corporation would not be controlled by a person that is not a credit union if each share of the corporation that is not owned at any time in the holding period by a credit union were owned, at that time, by the person.

  • (3) Section 9002.2 of the Regulations is repealed.

  • (4) The portion of Part XC before section 9002.2 and section 9003 of the Regulations, as enacted by subsection (1), apply to taxation years that end after February 22, 1994, except that

    • (a) in applying sections 9001 and 9002 of the Regulations, as enacted by subsection (1), to taxation years that begin before October 2006, the references in those sections to “excluded property” are to be read as references to “mark-to-market property”; and

    • (b) in applying section 9002.1 of the Regulations, as enacted by subsection (1), to taxation years that begin before October 2006, the reference in that section to “paragraph (b) of the definition “excluded property”” is to be read as a reference to “paragraph (d.1) of the definition “mark-to-market property””.

  • (5) Section 9002.2 of the Regulations, as enacted by subsection (1), applies to taxation years that begin after 1998 and before 2008, except that in applying that section to taxation years that begin before October 2006, the reference in that section to “paragraph (c) of the definition “excluded property”” is to be read as a reference to “paragraph (d.2) of the definition “mark-to-market property””.

  • (6) Section 9004 of the Regulations, as enacted by subsection (1), applies to taxation years that begin after February 2, 2009.

  • (7) Subsection 9002(3) of the Regulations, as enacted by subsection (2), applies to taxation years that begin after February 2, 2009, except that

    • (a) it also applies to taxation years, of a taxpayer, that end after 2002 and begin before February 3, 2009, if the taxpayer so elects in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxpayer’s taxation year in which this Act is assented to; and

    • (b) if a taxpayer makes an election under paragraph (a), in applying subsection 9002(3) of the Regulations, as enacted by subsection (2), for taxation years of the taxpayer that begin before October 2006, the reference in that subsection to “excluded property” is to be read as a reference to “mark-to-market property”.

  • (8) Subsection (3) applies to taxation years that begin after 2007.

PART 2AMENDMENTS IN RESPECT OF SALES AND EXCISE TAXES

2002, c. 22Excise Act, 2001

Marginal note:2005, c. 38, s. 92

 The portion of the definition “officer” in section 2 of the English version of the Excise Act, 2001 before paragraph (a) is replaced by the following:

“officer”

« préposé »

“officer” means, except in section 167, in the definition “contact information” in subsection 211(1) and in sections 226 and 296,

  •  (1) The portion of the definition “confidential information” in subsection 211(1) of the Act after paragraph (b) is replaced by the following:

    It excludes information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (8) and (9) to a representative of a government entity that is not an official, it includes only the information referred to in paragraph (6)(j).

  • (2) Subsection 211(1) of the Act is amended by adding the following in alphabetical order:

    “aboriginal government”

    « gouvernement autochtone »

    “aboriginal government” means an aboriginal government as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act.

    “contact information”

    « coordonnées »

    “contact information”, in respect of a holder of a business number, means the name, address, telephone number, facsimile number and preferred language of communication of the holder, or similar information as specified by the Minister in respect of the holder, and includes such information in respect of one or more

    • (a) trustees of the holder, if the holder is a trust;

    • (b) members of the holder, if the holder is a partnership;

    • (c) officers of the holder, if the holder is a corporation; or

    • (d) officers or members of the holder, in any other case.

    “corporate information”

    « renseignements d’entreprise »

    “corporate information”, in respect of a holder of a business number that is a corporation, means the name (including the number assigned by the incorporating authority), date of incorporation, jurisdiction of incorporation and any information on the dissolution, reorganization, amalgamation, winding-up or revival of the corporation.

    “government entity”

    « entité gouvernementale »

    “government entity” means

    • (a) a department or agency of the government of Canada or of a province;

    • (b) a municipality;

    • (c) an aboriginal government;

    • (d) a corporation all of the shares (except directors’ qualifying shares) of the capital stock of which are owned by one or more persons each of which is

      • (i) Her Majesty,

      • (ii) Her Majesty in right of a province,

      • (iii) a municipality, or

      • (iv) a corporation described in this paragraph; or

    • (e) a board or commission, established by Her Majesty or Her Majesty in right of a province, that performs an administrative or regulatory function of government, or by a municipality, that performs an administrative or regulatory function of a municipality.

    “municipality”

    « municipalité »

    “municipality” means an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated.

    “registration information”

    « renseignements relatifs à l’inscription »

    “registration information”, in respect of a holder of a business number, means

    • (a) any information pertaining to the legal form of the holder;

    • (b) the type of activities carried on or proposed to be carried on by the holder;

    • (c) each date on which

      • (i) the business number was issued to the holder,

      • (ii) the holder began activities,

      • (iii) the holder ceased or resumed activities, or

      • (iv) the business number assigned to the holder was changed; and

    • (d) the reasons for the cessation, resumption or change referred to in subparagraph (c)(iii) or (iv).

    “representative”

    « représentant »

    “representative” of a government entity means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (2), (3), (8) and (9), a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged.

  • (3) The portion of subsection 211(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Provision of information

      (2) Except as authorized under this section, no official or other representative of a government entity shall knowingly

  • (4) Subsection 211(3) of the Act is replaced by the following:

    • Marginal note:Confidential information evidence not compellable

      (3) Despite any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information.

  • (5) Paragraph 211(6)(j) of the Act is replaced by the following:

    • (j) subject to subsection (6.1), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate information and registration information in respect of, the holder of a business number, if the information is provided solely for the purpose of the administration or enforcement of

      • (i) an Act of Parliament or of a legislature of a province, or

      • (ii) a by-law of a municipality or a law of an aboriginal government;

  • (6) Section 211 of the Act is amended by adding the following after subsection (6):

    • Marginal note:Restrictions on information sharing

      (6.1) No information may be provided to a representative of a government entity under paragraph (6)(j) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service.

    • Marginal note:Public disclosure

      (6.2) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number.

    • Marginal note:Public disclosure by representative of government entity

      (6.3) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number, if

      • (a) a representative of the government entity was provided with that information pursuant to paragraph (6)(j); and

      • (b) the government entity uses the business number as an identifier in connection with the program, activity or service.

  • (7) The portion of subsection 211(8) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Disclosure to person or on consent

      (8) An official or other representative of a government entity may provide confidential information relating to a person

  • (8) The portion of subsection 211(9) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Appeal from order or direction

      (9) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official or other representative of a government entity to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed immediately by the Minister or by the person against whom it is made to

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

Marginal note:1993, c. 27, s. 128(2)
  •  (1) The portion of the definition “confidential information” in subsection 295(1) of the Excise Tax Act after paragraph (b) is replaced by the following:

    but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (6) and (7) to a representative of a government entity who is not an official, includes only the information described in paragraph (5)(j);

  • (2) Subsection 295(1) of the Act is amended by adding the following in alphabetical order:

    “aboriginal government”

    « gouvernement autochtone »

    “aboriginal government” means an aboriginal government as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act;

    “contact information”

    « coordonnées »

    “contact information”, in respect of a holder of a business number, means the name, address, telephone number, facsimile number and preferred language of communication of the holder, or similar information as specified by the Minister in respect of the holder, and includes such information in respect of one or more

    • (a) trustees of the holder, if the holder is a trust,

    • (b) members of the holder, if the holder is a partnership,

    • (c) officers of the holder, if the holder is a corporation, or

    • (d) officers or members of the holder, in any other case;

    “corporate information”

    « renseignements d’entreprise »

    “corporate information”, in respect of a holder of a business number that is a corporation, means the name (including the number assigned by the incorporating authority), date of incorporation, jurisdiction of incorporation and any information on the dissolution, reorganization, amalgamation, winding-up or revival of the corporation;

    “government entity”

    « entité gouvernementale »

    “government entity” means

    • (a) a department or agency of the government of Canada or of a province,

    • (b) a municipality,

    • (c) an aboriginal government,

    • (d) a corporation all of the shares (except directors’ qualifying shares) of the capital stock of which are owned by one or more persons each of which is

      • (i) Her Majesty in right of Canada,

      • (ii) Her Majesty in right of a province,

      • (iii) a municipality, or

      • (iv) a corporation described in this paragraph, or

    • (e) a board or commission, established by Her Majesty in right of Canada or Her Majesty in right of a province, that performs an administrative or regulatory function of government, or by a municipality, that performs an administrative or regulatory function of a municipality;

    “municipality”

    « municipalité »

    “municipality” does not include a local authority determined by the Minister to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1);

    “registration information”

    « renseignements relatifs à l’inscription »

    “registration information”, in respect of a holder of a business number, means

    • (a) any information pertaining to the legal form of the holder,

    • (b) the type of activities carried on or proposed to be carried on by the holder,

    • (c) each date on which

      • (i) the business number was issued to the holder,

      • (ii) the holder began activities,

      • (iii) the holder ceased or resumed activities, or

      • (iv) the business number assigned to the holder was changed, and

    • (d) the reasons for the cessation, resumption or change referred to in subparagraph (c)(iii) or (iv);

    “representative”

    « représentant »

    “representative” of a government entity means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (2), (3), (6) and (7), a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged.

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

    (3) The portion of subsection 295(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Provision of information

      (2) Except as authorized under this section, no official or other representative of a government entity shall knowingly

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

    (4) Subsection 295(3) of the Act is replaced by the following:

    • Marginal note:Evidence relating to confidential information

      (3) Despite any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information.

  • Marginal note:2003, c. 15, s. 68(1)

    (5) Subparagraph 295(5)(d)(i) of the Act is replaced by the following:

  • Marginal note:1996, c. 21, s. 67(2)

    (6) Paragraph 295(5)(j) of the Act is replaced by the following:

    • (j) subject to subsection (5.01), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate information and registration information in respect of, the holder of a business number, if the information is provided solely for the purpose of the administration or enforcement of

      • (i) an Act of Parliament or of a legislature of a province, or

      • (ii) a by-law of a municipality or a law of an aboriginal government;

  • (7) Section 295 of the Act is amended by adding the following after subsection (5):

    • Marginal note:Restrictions on information sharing

      (5.01) No information may be provided to a representative of a government entity under paragraph (5)(j) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service.

    • Marginal note:Public disclosure

      (5.02) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number.

    • Marginal note:Public disclosure by representative of government entity

      (5.03) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number, if

      • (a) a representative of the government entity was provided with that information pursuant to paragraph (5)(j); and

      • (b) the government entity uses the business number as an identifier in connection with the program, activity or service.

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

    (8) The portion of subsection 295(6) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Disclosure to person or on consent

      (6) An official or other representative of a government entity may provide confidential information relating to a person

  • Marginal note:1993, c. 27, s. 128(4)

    (9) The portion of subsection 295(7) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Appeal from order or direction

      (7) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official or other representative of a government entity to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to

PART 3AMENDMENTS TO THE CUSTOMS TARIFF

1997, c. 36Customs Tariff

 Paragraph 133(c) of the Customs Tariff is replaced by the following:

  • (c) for the purposes of tariff item No. 9801.10.10, 9801.10.20, 9801.20.00, 9808.00.00 or 9810.00.00, prescribing conditions under which goods may be imported;

 Chapter 4 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding the following after Supplementary Note 2:

  • 3. 
    Milk protein substances with a milk protein content of less than 85% by weight, calculated on the dry matter, are classified in tariff item No. 0404.90.10 or 0404.90.20. Milk protein substances with a milk protein content of 85% or more by weight, calculated on the dry matter, are classified in Chapter 35 (subheading 3504.00).

 Tariff item No. 0404.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured Nation Tariff / Final Rate” the reference to “6.5% (B)” with a reference to “3% (F)”.

 Chapter 35 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding the following after Note 2:

Supplementary Note.

  • 1. 
    Milk protein substances with a milk protein content of 85% or more by weight, calculated on the dry matter, are classified in tariff item No. 3504.00.11 or 3504.00.12. Milk protein substances with a milk protein content of less than 85% by weight, calculated on the dry matter, are classified in Chapter 4 (subheading 0404.90).

 Tariff item No. 3504.00.00 in the List of Tariff Provisions set out in the schedule to the Act is repealed.

 Chapter 35 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 1 to this Act.

 The following tariff provisions of the List of Tariff Provisions set out in the schedule to the Act are repealed:

The preamble preceding subheading 8406.81, subheading 8406.81, tariff item Nos. 8406.81.10, 8406.81.90, subheading 8406.82, the preamble preceding tariff item No. 8406.82.11, tariff item Nos. 8406.82.11, 8406.82.19, 8406.82.90, subheading 8413.50, tariff item Nos. 8413.50.10, 8413.50.90, subheading 8413.60, tariff item Nos. 8413.60.10, 8413.60.90, 8413.70.90, subheading 8413.81, tariff item Nos. 8413.81.10, 8413.81.90, subheading 8414.10, tariff item No. 8414.10.10, the preamble preceding tariff item No. 8414.10.91, tariff item Nos. 8414.10.91, 8414.10.99, subheading 8416.10, tariff item Nos. 8416.10.10, 8416.10.90, subheading 8417.10, tariff item No. 8417.10.10, the preamble preceding tariff item No. 8417.10.91, tariff item Nos. 8417.10.91, 8417.10.99, subheading 8417.80, tariff item Nos. 8417.80.10, 8417.80.90, subheading 8417.90, tariff item Nos. 8417.90.10, 8417.90.20, subheading 8418.69, tariff item Nos. 8418.69.10, 8418.69.90, the preamble preceding subheading 8419.31, subheading 8419.31, tariff item Nos. 8419.31.10, 8419.31.90, subheading 8419.32, tariff item Nos. 8419.32.10, 8419.32.20, subheading 8419.39, tariff item No. 8419.39.10, the preamble preceding tariff item No. 8419.39.91, tariff item Nos. 8419.39.91, 8419.39.99, subheading 8419.40, tariff item Nos. 8419.40.10, 8419.40.90, subheading 8419.81, tariff item Nos. 8419.81.10, 8419.81.90, subheading 8420.10, tariff item Nos. 8420.10.10, 8420.10.90, subheading 8421.21, tariff item Nos. 8421.21.10, 8421.21.90, subheading 8421.22, tariff item Nos. 8421.22.10, 8421.22.90, subheading 8421.29, tariff item Nos. 8421.29.10, 8421.29.90, subheading 8422.20, tariff item No. 8422.20.10, the preamble preceding tariff item No. 8422.20.91, tariff item Nos. 8422.20.91, 8422.20.99, subheading 8422.30, tariff item No. 8422.30.10, the preamble preceding tariff item No. 8422.30.91, tariff item Nos. 8422.30.91, 8422.30.99, subheading 8422.40, tariff item No. 8422.40.10, the preamble preceding tariff item No. 8422.40.91, tariff item Nos. 8422.40.91, 8422.40.99, subheading 8424.20, tariff item Nos. 8424.20.10, 8424.20.90, subheading 8424.30, tariff item Nos. 8424.30.10, 8424.30.90, subheading 8424.89, tariff item Nos. 8424.89.10, 8424.89.90, subheading 8424.90, tariff item Nos. 8424.90.10, 8424.90.90, the preamble preceding tariff item No. 8427.10.91, tariff item Nos. 8427.10.91, 8427.10.99, the preamble preceding tariff item No. 8427.20.91, tariff item Nos. 8427.20.91, 8427.20.99, subheading 8427.90, tariff item Nos. 8427.90.10, 8427.90.90, subheading 8438.10, tariff item Nos. 8438.10.10, 8438.10.90, subheading 8438.50, tariff item No. 8438.50.10, the preamble preceding tariff item No. 8438.50.91, tariff item Nos. 8438.50.91, 8438.50.99, subheading 8438.80, tariff item No. 8438.80.10, the preamble preceding tariff item No. 8438.80.91, tariff item Nos. 8438.80.91, 8438.80.99, subheading 8438.90, tariff item Nos. 8438.90.10, 8438.90.20, subheading 8440.10, tariff item Nos. 8440.10.10, 8440.10.90, subheading 8441.10, tariff item Nos. 8441.10.10, 8441.10.90, subheading 8442.50, tariff item Nos. 8442.50.10, 8442.50.20, 8442.50.90, subheading 8443.11, tariff item Nos. 8443.11.10, 8443.11.20, subheading 8443.14, tariff item Nos. 8443.14.10, 8443.14.20, subheading 8443.15, tariff item Nos. 8443.15.10, 8443.15.20, subheading 8443.16, tariff item Nos. 8443.16.10, 8443.16.20, subheading 8443.19, tariff item Nos. 8443.19.10, 8443.19.20, subheading 8443.32, tariff item Nos. 8443.32.10, 8443.32.90, subheading 8443.39, tariff item Nos. 8443.39.10, 8443.39.90, the preamble preceding subheading 8443.91, subheading 8443.91, tariff item Nos. 8443.91.10, 8443.91.90, subheading 8443.99, tariff item Nos. 8443.99.10, 8443.99.90, subheading 8452.21, tariff item Nos. 8452.21.10, 8452.21.90, subheading 8453.10, tariff item No. 8453.10.10, the preamble preceding tariff item No. 8453.10.91, tariff item Nos. 8453.10.91, 8453.10.99, subheading 8454.20, tariff item Nos. 8454.20.10, 8454.20.20, 8454.20.30, subheading 8454.30, tariff item Nos. 8454.30.10, 8454.30.90, subheading 8456.10, tariff item Nos. 8456.10.10, 8456.10.90, subheading 8456.20, tariff item Nos. 8456.20.10, 8456.20.90, subheading 8456.90, tariff item Nos. 8456.90.10, 8456.90.90, the preamble preceding tariff item No. 8462.99.91, tariff item Nos. 8462.99.91, 8462.99.99, subheading 8464.20, tariff item Nos. 8464.20.10, 8464.20.90, the preamble preceding subheading 8465.91, subheading 8465.91, tariff item Nos. 8465.91.10, 8465.91.90, subheading 8465.92, tariff item Nos. 8465.92.10, 8465.92.90, subheading 8465.93, tariff item Nos. 8465.93.10, 8465.93.90, subheading 8465.94, tariff item Nos. 8465.94.10, 8465.94.90, subheading 8465.95, tariff item Nos. 8465.95.10, 8465.95.90, subheading 8465.96, tariff item Nos. 8465.96.10, 8465.96.90, subheading 8465.99, tariff item Nos. 8465.99.10, 8465.99.90, subheading 8472.90, tariff item Nos. 8472.90.10, 8472.90.90, subheading 8479.20, tariff item Nos. 8479.20.10, 8479.20.90, subheading 8479.30, tariff item Nos. 8479.30.10, 8479.30.90, subheading 8479.40, tariff item Nos. 8479.40.10, 8479.40.90, subheading 8479.81, tariff item Nos. 8479.81.10, 8479.81.90, subheading 8479.82, tariff item Nos. 8479.82.10, 8479.82.90, the preamble preceding tariff item No. 8479.89.91, tariff item Nos. 8479.89.91, 8479.89.99, subheading 8480.41, tariff item Nos. 8480.41.10, 8480.41.90, subheading 8482.20, tariff item Nos. 8482.20.10, 8482.20.90, subheading 8482.91, tariff item No. 8482.91.10, the preamble preceding tariff item No. 8482.91.91, tariff item Nos. 8482.91.91, 8482.91.99, the preamble preceding tariff item No. 8482.99.91, tariff item Nos. 8482.99.91, 8482.99.99, subheading 8484.10, tariff item Nos. 8484.10.10, 8484.10.90, subheading 8484.20, tariff item Nos. 8484.20.10, 8484.20.90, subheading 8484.90, tariff item Nos. 8484.90.10, 8484.90.90, subheading 8487.90, tariff item Nos. 8487.90.10, 8487.90.90, subheading 8504.10, tariff item Nos. 8504.10.10, 8504.10.90, the preamble preceding subheading 8504.21, subheading 8504.21, tariff item Nos. 8504.21.10, 8504.21.90, subheading 8504.22, tariff item Nos. 8504.22.10, 8504.22.90, subheading 8504.23, tariff item Nos. 8504.23.10, 8504.23.90, the preamble preceding subheading 8504.31, subheading 8504.31, tariff item Nos. 8504.31.10, 8504.31.90, subheading 8504.32, tariff item Nos. 8504.32.10, 8504.32.90, subheading 8504.33, tariff item Nos. 8504.33.10, 8504.33.90, subheading 8504.34, tariff item Nos. 8504.34.10, 8504.34.90, subheading 8504.50, tariff item Nos. 8504.50.10, 8504.50.20, 8504.50.90, subheading 8505.19, tariff item Nos. 8505.19.10, 8505.19.90, subheading 8505.20, tariff item Nos. 8505.20.10, 8505.20.90, subheading 8512.20, tariff item Nos. 8512.20.10, 8512.20.90, subheading 8512.90, tariff item Nos. 8512.90.10, 8512.90.90, subheading 8514.10, the preamble preceding tariff item No. 8514.10.11, tariff item Nos. 8514.10.11, 8514.10.19, 8514.10.90, subheading 8514.20, the preamble preceding tariff item No. 8514.20.11, tariff item Nos. 8514.20.11, 8514.20.19, 8514.20.90, subheading 8514.30, the preamble preceding tariff item No. 8514.30.11, tariff item Nos. 8514.30.11, 8514.30.19, 8514.30.90, subheading 8514.40, tariff item Nos. 8514.40.10, 8514.40.90, subheading 8515.19, tariff item Nos. 8515.19.10, 8515.19.90, the preamble preceding subheading 8515.21, subheading 8515.21, tariff item Nos. 8515.21.10, 8515.21.90, subheading 8515.29, tariff item Nos. 8515.29.10, 8515.29.90, subheading 8535.10, tariff item Nos. 8535.10.10, 8535.10.90, subheading 8535.21, tariff item Nos. 8535.21.10, 8535.21.90, subheading 8535.30, tariff item Nos. 8535.30.10, 8535.30.90, subheading 8536.10, tariff item Nos. 8536.10.10, 8536.10.90, the preamble preceding subheading 8536.41, subheading 8536.41, tariff item Nos. 8536.41.10, 8536.41.20, 8536.41.90, subheading 8536.49, tariff item Nos. 8536.49.10, 8536.49.90, subheading 8536.69, tariff item Nos. 8536.69.10, 8536.69.20, 8536.69.90, 8537.10.92, subheading 8537.20, tariff item Nos. 8537.20.10, 8537.20.90, subheading 8538.10, tariff item Nos. 8538.10.10, 8538.10.90, the preamble preceding tariff item No. 8538.90.91, tariff item Nos. 8538.90.91, 8538.90.99, subheading 8540.81, tariff item Nos. 8540.81.10, 8540.81.90, subheading 8543.10, tariff item Nos. 8543.10.10, 8543.10.90, subheading 8543.30, tariff item No. 8543.30.10, the preamble preceding tariff item No. 8543.30.91, tariff item Nos. 8543.30.91, 8543.30.99, subheading 8543.70, tariff item No. 8543.70.10, the preamble preceding tariff item No. 8543.70.21, tariff item Nos. 8543.70.21, 8543.70.29, the preamble preceding tariff item No. 8543.70.91, tariff item Nos. 8543.70.91, 8543.70.99, subheading 8543.90, tariff item Nos. 8543.90.20, 8543.90.90, subheading 8544.20, tariff item Nos. 8544.20.10, 8544.20.90, subheading 8544.42, tariff item Nos. 8544.42.10, 8544.42.20, 8544.42.90, subheading 8547.10, tariff item Nos. 8547.10.10, 8547.10.90, subheading 8547.90, tariff item Nos. 8547.90.10, 8547.90.90 and 9801.10.00.

 The Description of Goods in the preamble preceding tariff item No. 8406.90.31 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

---Other parts of the goods of tariff item No. 8406.81.00 or 8406.82.00:

 Tariff item No. 8406.90.32 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8406.90.34 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8406.90.37 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8406.90.39 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8413.91.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8413.91.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the Description of Goods, the reference to “8413.50.90, 8413.60.90, 8413.70.90 or 8413.81.90” with a reference to “8413.50.00, 8413.60.00, 8413.70.91, 8413.70.99 or 8413.81.00”; and

  • (b) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”.

 The Description of Goods of tariff item No. 8413.91.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “8413.50.10, 8413.60.10, 8413.70.10 or 8413.81.10” with a reference to “8413.50.00, 8413.60.00, 8413.70.10 or 8413.81.00”.

 Tariff item No. 8417.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “7% (A)” with a reference to “Free (F)”.

 Tariff item No. 8418.61.91 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 The Description of Goods of tariff item No. 8418.91.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “8418.69.90” with a reference to “8418.69.00”.

 The Description of Goods of tariff item No. 8418.91.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “8418.69.10” with a reference to “8418.69.00”.

 Tariff item No. 8419.89.21 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8419.89.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”;

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “6% (A)” after the abbreviation “AUT” with a reference to “Free (F)”; and

  • (c) in the column “Preferential Tariff / Final Rate”, the reference to “6% (A)” after the abbreviation “NZT” with a reference to “Free (F)”.

 Tariff item No. 8421.39.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8422.19.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8423.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8423.30.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8423.81.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8423.82.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8423.89.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8423.90.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8427.20.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8439.10.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8439.20.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8439.30.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8443.12.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8462.99.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8464.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8468.10.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8468.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8472.10.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8479.50.91 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8479.89.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “4.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8479.89.41 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8482.99.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the Description of Goods, the reference to “8482.20.10” with a reference to “8482.20.00”; and

  • (b) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “5.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8483.50.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8483.50.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8483.60.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8483.90.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8483.90.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “2.5% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “2.5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Chapter 84 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 2 to this Act.

 Tariff item No. 8504.40.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8504.40.40 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6.5% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8505.11.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2% (A)” with a reference to “Free (F)”.

 Tariff item No. 8515.11.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8515.31.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8515.39.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 Tariff item No. 8515.80.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6% (A)” with a reference to “Free (F)”.

 The Description of Goods of tariff item No. 8518.30.91 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

----Headphones, including earphones, and telephone headsets

 Tariff item No. 8535.29.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2% (A)” with a reference to “Free (F)”.

 Tariff item No. 8535.40.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8535.90.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “7% (A)” with a reference to “Free (F)”.

 Tariff item No. 8535.90.30 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “6.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8535.90.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8536.30.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8536.30.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8536.50.12 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8536.50.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8536.90.99 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8537.10.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8537.10.29 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 The Description of Goods of tariff item No. 8537.10.31 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

----Automated industrial control systems, excluding panels for anode formers

 Tariff item No. 8537.10.91 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8537.10.99 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8538.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8538.90.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8538.90.39 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.11.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8540.11.12 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8540.11.21 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8540.11.22 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8540.11.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) in the column “Most-Favoured-Nation Tariff / Final Rate”, the reference to “6% (A)” with a reference to “Free (F)”; and

  • (b) in the column “Preferential Tariff / Final Rate”, the reference to “5% (A)” after the abbreviation “GPT” with a reference to “Free (F)”.

 Tariff item No. 8540.12.19 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.12.99 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.40.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.50.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.60.90 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.72.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.79.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8540.89.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8543.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8546.10.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “2.5% (A)” with a reference to “Free (F)”.

 Tariff item No. 8546.20.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing in the column “Most-Favoured-Nation Tariff / Final Rate” the reference to “3% (A)” with a reference to “Free (F)”.

 Chapter 85 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 3 to this Act.

 The Description of Goods of tariff item No. 9897.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “9801.10.00” with a reference to “9801.10.10, 9801.10.20”.

 Chapter 98 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 4 to this Act.

 The Description of Goods of tariff item No. 9945.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by deleting the reference to “Gas turbines or parts thereof;”.

 The Description of Goods of tariff item No. 9993.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “9801.10.00” with a reference to “9801.10.10, 9801.10.20”.

 Chapter 99 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff item set out in Schedule 5 to this Act.

 Tariff item Nos. 8504.50.20 and 8536.69.20 in the List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act are repealed.

  •  (1) The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff item set out in Schedule 6 to this Act.

  • (2) The List of Intermediate and Final Rates for the Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in Schedule 7 to this Act.

Coming into Force

Marginal note:September 8, 2008
  •  (1) Sections 123 to 127 and subsection 220(1) are deemed to have come into force on September 8, 2008.

  • Marginal note:January 28, 2009

    (2) Sections 122 and 128 to 219 and subsection 220(2) are deemed to have come into force on January 28, 2009.

PART 4EMPLOYMENT INSURANCE

1996, c. 23Employment Insurance Act

 Section 66 of the Employment Insurance Act is amended by adding the following after subsection (3):

  • Marginal note:Premium rate for 2010

    (4) Despite subsections (1) to (3), the premium rate for the year 2010 is 1.73%.

 The Act is amended by adding the following after section 73:

Marginal note:Benefit enhancements under this Act

73.1 There shall be credited to the Employment Insurance Account on August 1, 2010 the amount determined by the Minister of Finance that corresponds to the cost of the benefit enhancement measures under this Act, provided for in the budget tabled in Parliament on January 27, 2009 in which the cost is estimated to be $2,900,000,000.

  •  (1) Schedule I to the Act is replaced by the Schedule I set out in Schedule 8 to this Act.

  • (2) Schedule I to the Act is replaced by the Schedule I set out in Schedule 9 to this Act.

Claimants Not in Canada

Marginal note:Subsection 55(7)

 The maximum number of weeks for which benefits may be paid to a claimant referred to in subsection 55(7) of the Employment Insurance Regulations whose benefit period has not ended before the second Sunday before the day on which this Act receives royal assent and does not begin after September 11, 2010 is to be determined in accordance with Schedule 10.

Pilot Project Relating To Extended Benefits

Marginal note:Pilot Project No. 10
  •  (1) Section 77.6 of the Employment Insurance Regulations is deemed to cease to have effect on the second Saturday before the day on which this Act receives royal assent.

  • Marginal note:Transitional

    (2) The maximum number of weeks for which benefits may be paid in a benefit period that is established for a claimant who is included in Pilot Project No. 10 and whose benefit period has not ended before the second Sunday before the day on which this Act receives royal assent is to be determined in accordance with Schedule I to the Employment Insurance Act, as enacted by subsection 224(1).

Premium Rates Provided for Under the Employment Insurance Act

Marginal note:Deeming provision

 Section 66.1 of the Employment Insurance Act, as enacted by section 9 of chapter 5 of the Statutes of Canada, 2001, is deemed to have read as follows:

Marginal note:Premium rates for 2002 and 2003

66.1 Notwithstanding section 66, the premium rates for the years 2002 and 2003 are 2.2% and 2.1%, respectively.

Marginal note:Deeming provision

 Section 66.3 of the Employment Insurance Act, as enacted by section 25 of chapter 22 of the Statutes of Canada, 2004, is deemed to have read as follows:

Marginal note:Premium rate for 2005

66.3 Notwithstanding section 66, the premium rate for the year 2005 is 1.95%.

Transitional Provision

Marginal note:Application

 Subsection 224(1) applies with respect to every claimant whose benefit period has not ended before the day on which that subsection comes into force and whose benefit period does not begin after September 11, 2010.

Coordinating Amendments

Marginal note:2008, c. 28
  •  (1) In this section, “other Act” means the Budget Implementation Act, 2008.

  • (2) If section 127 of the other Act comes into force before section 222 of this Act, then

    • (a) that section 222 is deemed never to have come into force and is repealed; and

    • (b) section 66 of the Employment Insurance Act is amended by adding the following after subsection (1):

      • Marginal note:Premium rate for 2010

        (1.1) Despite subsection (1), the premium rate for the year 2010 is 1.73%.

  • (3) If section 222 of this Act comes into force before section 127 of the other Act, then, on the day on which that section 127 comes into force, section 66 of the Employment Insurance Act is amended by adding the following after subsection (1):

    • Marginal note:Premium rate for 2010

      (1.1) Despite subsection (1), the premium rate for the year 2010 is 1.73%.

  • (4) If section 127 of the other Act comes into force on the same day as section 222 of this Act, then that section 222 is deemed to have come into force before that section 127 and subsection (3) applies as a consequence.

Coming into Force

Marginal note:Retroactive effect
  •  (1) Subsection 224(1) is deemed to have come into force on the second Sunday before the day on which this Act receives royal assent.

  • Marginal note:September 12, 2010

    (2) Subsection 224(2) comes into force on September 12, 2010.

PART 5STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM

Division 1R.S., c. F-11Financial Administration Act

 The Financial Administration Act is amended by adding the following after section 60.1:

PART IV.1STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM

Marginal note:Definitions
  • 60.2 (1) The following definitions apply in this section.

    “debt obligation”

    « titre de créance »

    “debt obligation” means a bond, debenture, note or other evidence of indebtedness of an entity, whether secured or unsecured.

    “entity”

    « entité »

    “entity” means an entity that, in the Minister’s opinion, is operating in Canada.

    “financial markets”

    « marchés financiers »

    “financial markets” includes markets for money, bonds, equities, derivatives, foreign exchange and commodities.

    “financial system”

    « système financier »

    “financial system” includes financial institutions, financial markets and payment systems as defined in section 36 of the Canadian Payments Act.

    “security”

    « titre »

    “security” means

    • (a) in relation to a corporation, a share, a class of shares or a debt obligation of the corporation, and includes any conversion or exchange privilege, option or other right to acquire a share of the corporation; and

    • (b) in relation to any other entity, any ownership interest in or debt obligation of the entity.

  • Marginal note:Contracts

    (2) Subject to subsection (3), the Minister may, with the Governor in Council’s authorization, enter into, on behalf of Her Majesty in right of Canada, any contract that in the Minister’s opinion is necessary to promote the stability or maintain the efficiency of the financial system in Canada, including such a contract to

    • (a) purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity;

    • (b) create a charge on, or right or interest in, securities of an entity held by the Minister;

    • (c) make a loan to an entity;

    • (d) provide a line of credit to an entity;

    • (e) guarantee any debt, obligation or financial asset of an entity; or

    • (f) provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity.

  • Marginal note:Non-application to certain entities

    (3) Paragraph (2)(a) does not apply to

    • (a) shares, as defined in subsection 973.2(15) of the Bank Act, of a bank or bank holding company, as defined in section 2 of that Act;

    • (b) shares, as defined in subsection 459.9(14) of the Cooperative Credit Associations Act, of an association as defined in section 2 of that Act;

    • (c) shares, as defined in subsection 1016.7(15) of the Insurance Companies Act, of a company or insurance holding company, as defined in subsection 2(1) of that Act; or

    • (d) shares, as defined in subsection 527.9(15) of the Trust and Loan Companies Act, of a company as defined in section 2 of that Act.

  • Marginal note:Section 90 does not apply

    (4) Section 90 does not apply if the Minister purchases, acquires or sells or otherwise disposes, under paragraph (2)(a), of shares within the meaning of that section.

  • Marginal note:Section 61 and Surplus Crown Assets Act do not apply

    (5) Section 61 and the Surplus Crown Assets Act do not apply if the Minister holds, loans or sells or otherwise disposes of securities under paragraph (2)(a).

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

    (6) Any amount payable under or in connection with a contract entered into under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner that the Minister considers appropriate.

  • Marginal note:Retroactive effect

    (7) This section applies to any contract entered into on or after November 30, 2008.

Division 2R.S., c. C-3Canada Deposit Insurance Corporation Act

Amendments to the Act

 Section 2 of the Canada Deposit Insurance Corporation Act is amended by adding the following in alphabetical order:

“bridge institution”

« institution-relais »

“bridge institution” means a federal institution that is designated as a bridge institution by an order made under paragraph 39.13(1)(c);

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

Marginal note:Power of Governor in Council
  • 7.1 (1) The Governor in Council may, by order, exempt the Corporation from the requirement that it pursue its objects in a manner that will minimize its exposure to loss when it takes any action to address a situation that is specified in the order.

  • Marginal note:Condition precedent

    (2) The Governor in Council may make the order only if the Minister is of the opinion, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of a situation that will be specified in the order, might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

  • Marginal note:Repeal

    (3) The Governor in Council may repeal the order only if the Minister is of the opinion that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of the situation specified in the order, will no longer have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Marginal note:Coming into force
  • 7.2 (1) An order made under subsection 7.1(1) has effect from the time that it is made.

  • Marginal note:Statutory Instruments Act

    (2) The Statutory Instruments Act does not apply to the order.

  • Marginal note:Publication

    (3) The Minister shall cause a notice to be published in the Canada Gazette that the order has been made or repealed as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Marginal note:Recovery of loss

7.3 After the publication of a notice in the Canada Gazette that an order was made under subsection 7.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class of member institutions in order to recover the loss that the Corporation determines it incurred as a result of pursuing its objects without regard to the requirement that it do so in a manner that minimizes its exposure to loss.

 The Act is amended by adding the following after section 10:

Marginal note:Exemption — shares of member institution
  • 10.01 (1) To enable the Corporation to acquire, hold or dispose of shares under paragraph 10(1)(f.1), the Minister may, by order, exempt any person or share specified in the order from any of the following provisions:

    • (a) sections 372, 373, 374, 375, 376, 376.1, 376.2, 377, 377.1,  379, 385, 401.2 and 401.3 of the Bank Act;

    • (b) sections 407, 407.01, 407.02, 407.03, 407.1, 407.2, 408, 411, 428 and 430 of the Insurance Companies Act; and

    • (c) sections 375, 375.1, 376, 379, 396 and 399 of the Trust and Loan Companies Act.

  • Marginal note:Conditions

    (2) The exemption may be subject to conditions.

  • Marginal note:Duration of exemption

    (3) The exemption ceases to have effect five years after the day on which it comes into force.

  • Marginal note:Extension

    (4) The Minister may, by order, extend the duration of the exemption if general market conditions so warrant.

  • Marginal note:Statutory Instruments Act

    (5) The Statutory Instruments Act does not apply to an order made under this section.

Marginal note:1996, c. 6, s. 24; 1997, c. 15, s. 111(E)
  •  (1) The portion of subsection 10.1(3) of the Act before paragraph (b) is replaced by the following:

    • Marginal note:Total indebtedness

      (3) The total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed

      • (a) $15,000,000,000 or, if it is greater, the amount determined in accordance with subsections (3.1) to (3.5); or

  • (2) Section 10.1 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Increase

      (3.1) Subject to subsections (3.3) and (3.4), the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed is increased each year to the amount determined by the formula

      A + (A × B)

      where

      A 
      is the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed on January 1 of the current year; and
      B 
      is the rate determined by the formula set out in subsection (3.2).
    • Marginal note:Rate

      (3.2) The rate referred to in the description of B in subsection (3.1) is determined by the formula

      (C – D) / D

      where

      C 
      is the total amount of deposits insured by the Corporation on April 30 of the current year; and
      D 
      is the total amount of deposits insured by the Corporation on April 30 of the previous year.
    • Marginal note:Rounding

      (3.3) The amount determined under subsection (3.1) shall be rounded to the nearest billion dollars or, if the amount is equidistant from two consecutive multiples of one billion dollars, it shall be rounded to the higher of those two multiples.

    • Marginal note:No change

      (3.4) The amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed does not change if the amount determined for D in subsection (3.2) is greater than the amount determined for C in that subsection.

    • Marginal note:Date effective

      (3.5) The new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed comes into effect on December 31 of the current year.

    • Marginal note:Publication

      (3.6) The Corporation shall publish the new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed in its annual report following the day on which the new amount comes into effect.

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

Marginal note:Minister’s direction
  • 11.1 (1) The Minister may, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, give a written direction to the Corporation if the Minister is of the opinion that not giving the direction might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

  • Marginal note:Compliance without regard to minimizing loss

    (2) The Corporation shall comply with the direction without regard to the requirement referred to in paragraph 7(c) that it pursue its objects in a manner that will minimize its exposure to loss.

  • Marginal note:Implementation

    (3) The Corporation’s directors shall ensure that the direction is implemented in a prompt and efficient manner and, if in so doing they act in accordance with section 115 of the Financial Administration Act, they are not accountable for any consequences arising from the implementation of the direction.

  • Marginal note:Notification of implementation

    (4) After implementing the direction, the Corporation shall notify the Minister without delay that the direction has been implemented.

  • Marginal note:Best interests

    (5) The Corporation’s compliance with a direction is deemed to be in its best interests.

Marginal note:Statutory Instruments Act
  • 11.2 (1) The Statutory Instruments Act does not apply to a direction given under subsection 11.1(1).

  • Marginal note:Publication

    (2) The Minister shall cause a notice to be published in the Canada Gazette that a direction was given under subsection 11.1(1) as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Marginal note:Recovery of loss

11.3 After the publication of a notice in the Canada Gazette that a direction was given under subsection 11.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class of member institutions in order to recover the loss that the Corporation determines it incurred as a result of complying with the direction.

Marginal note:R.S., c. 18 (3rd Supp.), s. 52(1)

 Subsection 14(2.7) of the Act is replaced by the following:

  • Marginal note:Preparatory examination

    (2.7) If the Corporation believes that it would be in the best interests of both the depositors with the member institution and the Corporation that preparations be made to make a payment under this Act in respect of a deposit held by a member institution, the Corporation may make or cause to be made by any person designated by the Corporation, an examination of the books, records and accounts of the member institution relating to its deposit liabilities. For the purposes of the examination, the Corporation and the person designated by it have a right of access to those books, records and accounts and are entitled to require the member institution’s directors, officers, auditors and any receiver or liquidator of the member institution to furnish any information and explanations regarding the deposits held by the member institution that the Corporation or person may require.

Marginal note:R.S., c. 18 (3rd Supp.), s. 58

 Section 24 of the Act is replaced by the following:

Marginal note:Where premiums payable

24. All premiums payable shall be paid to the Corporation at its head office.

 The Act is amended by adding the following after section 25.1:

Marginal note:Non-application to special premium

25.2 Section 21, subsection 22(2), section 23 and subsection 37(5) do not apply to a special premium.

Marginal note:By-laws — special premium
  • 25.3 (1) In respect of each order made under subsection 7.1(1) or each direction given under subsection 11.1(1), the Board may make by-laws respecting the recovery from member institutions or any class of member institutions of the loss referred to in section 7.3 or 11.3, as the case may be, including by-laws

    • (a) fixing the special premium payable by member institutions or any class of member institutions or providing for the manner of fixing the special premium;

    • (b) establishing a system of classifying member institutions in different classes;

    • (c) establishing the criteria or factors to be taken into account or procedures to be followed by the Corporation in determining the class in which a member institution is classified; or

    • (d) respecting the time and manner in which a special premium shall be paid.

  • Marginal note:When by-law not effective

    (2) A by-law made under subsection (1) is not effective unless it has been approved in writing by the Minister.

Marginal note:1992, c. 26, s. 11

 The heading before section 39.1 of the Act is replaced by the following:

Vesting in Corporation and Appointing Corporation as Receiver

 Section 39.1 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Urgency

    (4) Despite subsections (1) and (3), the Superintendent may report to the Corporation orally if he or she is of the opinion that the federal member institution’s circumstances must be considered without delay.

Marginal note:1996, c. 6, s. 41
  •  (1) Subsection 39.13(1) of the Act is replaced by the following:

    Marginal note:Order
    • 39.13 (1) The Governor in Council may, on the recommendation of the Minister made under section 39.12, by order,

      • (a) vest the shares and subordinated debt of the federal member institution in the Corporation;

      • (b) appoint the Corporation as receiver in respect of the federal member institution; or

      • (c) direct the Minister to incorporate a federal institution designated in the order as a bridge institution.

    • Marginal note:Condition precedent

      (1.1) The making of an order, under paragraph (1)(b), appointing the Corporation as receiver of the federal member institution is a condition precedent to the making of an order under paragraph (1)(c) in respect of the federal member institution.

  • Marginal note:1996, c. 6, s. 41

    (2) The portion of subsection 39.13(2) of the French version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:But du décret portant dévolution

      (2) Le décret portant dévolution :

  • Marginal note:1996, c. 6, s. 41

    (3) The portion of subsection 39.13(3) of the French version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Décret nommant séquestre

      (3) Le décret pris en vertu de l’alinéa (1)b) fait de la Société le séquestre unique de tout ou partie de l’actif et de l’entreprise de l’institution fédérale membre, selon les termes du décret, et lui donne le pouvoir, entre autres :

 The Act is amended by adding the following after section 39.13:

Marginal note:Order to exempt or adapt
  • 39.131 (1) The Governor in Council may, by order,

  • Marginal note:Scope or conditions

    (2) The exemption may be limited in scope or duration or made subject to conditions.

Marginal note:Coming into force
  • 39.132 (1) An order made under subsection 39.131(1) has effect from the time that it is made.

  • Marginal note:Statutory Instruments Act

    (2) The Statutory Instruments Act does not apply to the order.

  • Marginal note:Publication

    (3) The Minister shall cause the order to be published in the Canada Gazette as soon as the Minister considers appropriate.

Marginal note:1996, c. 6, s. 41
  •  (1) Paragraph 39.15(1)(a) of the Act is replaced by the following:

    • (a) no action or other civil proceeding may be commenced or continued against the federal member institution or in respect of its assets other than a proceeding under the Winding-up and Restructuring Act commenced by the Corporation or the Attorney General of Canada;

  • Marginal note:1996, c. 6, s. 41

    (2) Subsection 39.15(1) of the Act is amended by striking out “and” at the end of paragraph (d) and by replacing paragraph (e) with the following:

    • (e) no person may terminate or amend any agreement with the federal member institution or claim an accelerated payment, or forfeiture of the term, under any such agreement with the federal member institution by reason only of

      • (i) the federal member institution’s insolvency,

      • (ii) a default, before the order was made, by the federal member institution in the performance of its obligations under the agreement,

      • (iii) the making of the order, or

      • (iv) the agreement being assigned to or assumed by the bridge institution; and

    • (f) no person may terminate the federal member institution’s membership in an organization by reason only of

      • (i) the default by the federal member institution in the performance of its obligations under the rules of the organization,

      • (ii) the making of the order, or

      • (iii) the federal member institution’s membership being transferred to the bridge institution.

  • Marginal note:1996, c. 6, s. 41

    (3) Paragraph 39.15(2)(b) of the Act is replaced by the following:

    • (b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have, on

      • (i) the federal member institution’s insolvency,

      • (ii) the default by the federal member institution in the performance of its obligations,

      • (iii) the making of the order, or

      • (iv) the agreement being assigned to or assumed by the bridge institutions.

  • (4) Section 39.15 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Organization’s rules — no force or effect

      (2.1) If an order is made under subsection 39.13(1), any stipulation in the rules of an organization is of no force or effect if it

      • (a) has the effect of providing for or permitting anything that, in substance, is contrary to paragraph (1)(f) or 39.13(3)(b); or

      • (b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of the bridge institution, does not have the rights — of a member of the organization, that the federal member institution or the bridge institution would otherwise have, on

        • (i) the federal member institution’s insolvency,

        • (ii) the default by the federal member institution in the performance of its obligations,

        • (iii) the making of the order, or

        • (iv) the federal member institution’s membership being transferred to the bridge institution.

  • (5) Section 39.15 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Clearing agent

      (3.1) A member of the Canadian Payments Association that acts as a clearing agent for a federal member institution at the time an order directing the incorporation of a bridge institution is made with respect to the federal member institution shall act as a clearing agent for the bridge institution, if the Corporation undertakes to

      • (a) unconditionally guarantee the federal member institution’s obligations to the clearing agent as clearing agent; or

      • (b) ensure that the federal member institution’s obligations to the clearing agent as clearing agent are assumed by the bridge institution.

  • Marginal note:2001, c. 9, s. 212(2)

    (6) Paragraph 39.15(6)(b) of the Act is replaced by the following:

    • (b) the Superintendent, on the application of the federal member institution, exempted the security agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1) and, in the case of an order directing the incorporation of a bridge institution, the Corporation does not undertake to ensure that the obligations secured by the security interest will be assumed by the bridge institution and does not undertake to unconditionally guarantee payment of the obligations secured by the security interest.

  • (7) Section 39.15 of the Act is amended by adding the following after subsection (7):

    • Marginal note:Corporation’s undertaking — eligible financial contracts

      (7.1) If an order directing the incorporation of a bridge institution is made, the actions referred to in subsection (7) may not be taken by reason only that the order or an order appointing the Corporation as receiver is made in respect of the federal member institution or that the eligible financial contract is assigned to the bridge institution if the Corporation undertakes to

      • (a) unconditionally guarantee the payment of any amount due or that may become due — in accordance with the provisions of the eligible financial contract — by the federal member institution; or

      • (b) ensure that all obligations arising from the eligible financial contract will be assumed by the bridge institution.

 The Act is amended by adding the following after section 39.15:

Marginal note:Stay of proceedings — bridge institution

39.151 Any action or other civil proceeding to which a bridge institution becomes a party by virtue of acquiring assets or assuming liabilities of a federal member institution shall be stayed for a period of 90 days at the bridge institution’s request.

Marginal note:1996, c. 6, s. 41

 Subsections 39.2(5) and (6) of the Act are replaced by the following:

  • Marginal note:Approval by Minister

    (5) A transaction referred to in subsection (1) or (2) has no force or effect until it is approved by the Minister, unless it is between the Corporation, as receiver for a federal member institution, and a bridge institution.

  • Marginal note:Novation

    (6) Any person who assumes a liability of the federal member institution under a transaction referred to in subsection (1) or (2) becomes liable — instead of the federal member institution — to discharge the liability, on approval of the transaction by the Minister or as soon as the person assumes the liability if the transaction does not require the Minister’s approval.

  • Marginal note:Exception

    (7) Subsection (6) does not apply to the bridge institution’s assumption of any portion of the federal member institution’s liability that is not insured by the Corporation.

  • Marginal note:Novation — trust

    (8) A trust company within the meaning of subsection 57(2) of the Trust and Loan Companies Act that is designated as a bridge institution may become a trustee in substitution for the federal member institution without formality or the consent of any beneficiary of the trust.

 The Act is amended by adding the following after section 39.2:

Marginal note:Terms and conditions of transactions
  • 39.201 (1) If the Corporation as receiver for a federal member institution carries out a transaction with a bridge institution, the Corporation shall establish the terms and conditions of the transaction, including

    • (a) which assets the bridge institution shall acquire and the consideration to be paid for the assets acquired; and

    • (b) which liabilities the bridge institution shall assume and the consideration to be paid for the liabilities assumed.

  • Marginal note:Reasonable consideration

    (2) The consideration referred to in paragraph (1)(a) shall be reasonable in the circumstances.

  • Marginal note:Compensation

    (3) Nothing in subsections (1) and (2) prevents the federal member institution from seeking compensation under subsections 39.24(2) and (3) and sections 39.25 to 39.361.

Marginal note:Deposit liabilities
  • 39.202 (1) A bridge institution shall assume all of the liabilities with respect to a federal member institution’s deposits that are insured by the Corporation.

  • Marginal note:Subrogation

    (2) If the bridge institution assumes any portion of a federal member institution’s liability that is not insured by the Corporation, the bridge institution is subrogated to all the rights and interests of the creditor against the federal member institution in relation to the entire liability and may maintain an action in respect of those rights and interests in its own name or in the name of the creditor.

  • Marginal note:Creditor’s rights and interests

    (3) As soon as the bridge institution receives an amount equal to the liabilities that are not insured by the Corporation that it assumed, the rights and interests in respect of the balance remaining revert to the creditor.

Marginal note:Liquidator bound
  • 39.203 (1) The liquidator of a federal member institution appointed under the Winding-up and Restructuring Act is bound by the terms and conditions of any transaction that involves the sale or other disposition of the federal member institution’s assets or the assumption by a bridge institution of any portion of the federal member institution’s liabilities and shall carry out those transactions or cause them to be carried out.

  • Marginal note:Expenses

    (2) All costs, charges and expenses properly incurred by the liquidator in complying with the terms and conditions of any transaction referred to in subsection (1), including the liquidator’s remuneration, are payable by the bridge institution.

Marginal note:1996, c. 6, s. 41

 Section 39.21 of the Act is replaced by the following:

Marginal note:Right transferable

39.21 If the assets that are sold under a transaction described in section 39.2 or by a bank designated as a bridge institution include any outstanding security under section 426 or 427 of the Bank Act, the buyer of the assets may hold the security for the life of the loan to which the security relates and all the provisions of that Act relating to the security and its enforcement continue to apply to the buyer as though the buyer were a bank.

 Section 39.24 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Period

    (2.1) The period referred to in subsection (2) is 180 days if an order directing the incorporation of a bridge institution is made in respect of a federal member institution that is the subject of an order made under paragraph 39.13(1)(b).

 The Act is amended by adding the following after section 39.37:

Creation and Operation of Bridge Institutions

Marginal note:Incorporation
  • 39.371 (1) The Minister shall, without delay after an order is made under paragraph 39.13(1)(c), issue letters patent incorporating a federal institution.

  • Marginal note:Incorporating Act

    (2) The letters patent are issued under whichever of the following Acts regulates the federal member institution that is the subject of the Superintendent’s report under subsection 39.1(1) or (3):

  • Marginal note:Order to commence and carry on business

    (3) The Superintendent shall, without delay after the letters patent are issued, make an order approving the commencement and carrying on of business by the federal institution referred to in subsection (1).

  • Marginal note:Content of Superintendent’s order — limitation

    (4) The Superintendent’s order shall not prohibit the federal institution, during the period that it is designated as a bridge institution, from accepting deposits in Canada and shall not make the federal institution, during that period, subject to subsection 413(3) of the Bank Act, subsection 378.1(2) of the Cooperative Credit Associations Act or subsection 413(2) of the Trust and Loan Companies Act.

Marginal note:Duration
  • 39.3711 (1) Subject to section 39.3715, the federal institution referred to in subsection 39.371(1) is designated as a bridge institution for a period of two years.

  • Marginal note:Extensions

    (2) The Governor in Council may, by order, on the recommendation of the Minister, grant up to three extensions — of one year each — of the period referred to in subsection (1).

Marginal note:Bridge institution not an agent

39.3712 A bridge institution is not an agent of the Corporation or Her Majesty in right of Canada.

Marginal note:Financial assistance

39.3713 The Corporation shall provide the financial assistance that a bridge institution needs in order to discharge its obligations, except for its obligations to the Corporation, as they become due.

Marginal note:Shares held by Corporation

39.3714 The Corporation may hold shares in a bridge institution only if the Corporation is the sole shareholder.

Marginal note:Termination of designation

39.3715 A federal institution’s designation as a bridge institution terminates if

  • (a) the Corporation is no longer the sole shareholder; or

  • (b) the federal institution is amalgamated with a body corporate that is not a bridge institution.

Marginal note:Mandatory dissolution of bridge institution

39.3716 If a bridge institution’s designation has not terminated under section 39.3715, the federal institution’s board of directors shall take all necessary steps to dissolve the federal institution if

  • (a) all or substantially all of the federal institution’s assets have been sold or otherwise disposed of; and

  • (b) all or substantially all of its liabilities have been assumed or discharged.

Marginal note:Winding-up of federal member institution
  • 39.3717 (1) If the Corporation considers that substantially all of the transfers of assets and liabilities of a federal member institution to a bridge institution have been substantially completed, the Corporation shall apply for a winding-up order under the Winding-up and Restructuring Act in respect of the federal member institution.

  • Marginal note:Creditor

    (2) For the purposes of the Winding-up and Restructuring Act, the Corporation is deemed to be a creditor of the federal member institution.

  • Marginal note:Exception

    (3) If the Superintendent has taken control of the federal member institution or its assets and has requested the Attorney General of Canada to apply for a winding-up order or informs the Corporation that he or she intends to request that the Attorney General of Canada apply for that order, the Corporation is not required to apply for a winding-up order.

Marginal note:Power of the Corporation
  • 39.3718 (1) The Corporation may hold any federal institution’s shares that the Corporation acquires in the course of a sale or other disposition of its shares of the bridge institution or that a bridge institution acquires in the course of a sale or other disposition of its assets.

  • Marginal note:Maximum period

    (2) The Corporation may hold the shares for a period of no more than five years from the day on which they are acquired and may dispose of them.

  • Marginal note:Extension

    (3) The Minister may, by order, extend the period referred to in subsection (2) if general market conditions so warrant.

  • Marginal note:Provisions inapplicable

    (4) The following provisions do not apply with respect to the shares referred to in subsection (1):

Marginal note:Remuneration and benefits

39.3719 An employee or officer of the Corporation shall not receive remuneration or benefits from a bridge institution for being a director or officer of that institution.

Marginal note:Not a successor employer

39.372 If a bridge institution becomes the employer of the federal member institution’s employees, it is not a successor employer to the federal member institution and is not liable for the obligations that the federal member institution has as employer or former employer.

Marginal note:Corporation’s directions
  • 39.3721 (1) The Corporation may give directions to the board of directors of a bridge institution.

  • Marginal note:Notification of implementation

    (2) After implementing a direction, the board of directors of the bridge institution shall notify the Corporation without delay that the direction has been implemented.

Marginal note:By-laws — Corporation
  • 39.3722 (1) The Corporation may give directions to the board of directors of a bridge institution to make, amend or repeal any by-law.

  • Marginal note:By-laws — board of directors

    (2) The board of directors of a bridge institution may, with the approval of the Corporation, make, amend or repeal any by-law.

  • Meaning of “by-law”

    (3) For the purposes of subsections (1) and (2), “by-law” means a by-law of the bridge institution.

Marginal note:Regulation to exempt or adapt
  • 39.3723 (1) The Governor in Council may, by regulation,

    • (a) exempt federal member institutions in respect of which an order directing the incorporation of a bridge institution is made, bridge institutions or subsidiaries of any of those institutions, or any class of those institutions or class of their subsidiaries, from the application of any provision of this Act or the regulations or of the following Acts or regulations made under them:

    • (b) provide that any provision of this Act or the regulations or of the Acts referred to in paragraph (a) or regulations made under them applies to federal member institutions in respect of which an order directing the incorporation of a bridge institution is made, bridge institutions or subsidiaries of any of those institutions, or any class of those institutions or class of their subsidiaries, only in the manner and to the extent provided for in the regulation and adapt that provision for the purpose of that application.

  • Marginal note:Scope or conditions

    (2) The exemption may be limited in scope or duration or subject to conditions.

 The Act is amended by adding the following after section 45.1:

Marginal note:Directors and officers of bridge institution

45.11 Directors and officers of a bridge institution are not liable for any damages, payment, compensation or indemnity that any person may suffer or claim by reason of anything done or omitted to be done, in good faith, in the exercise, execution or performance of any powers, duties and functions as directors or officers of the bridge institution.

 The Act is amended by adding the following after section 45.2:

Marginal note:Disclosures prohibited — bridge institution
  • 45.3 (1) Subject to subsection 12(1) of the Privacy Act, any information with respect to the affairs of a federal institution designated as a bridge institution or of any person dealing with it is confidential, shall be treated accordingly and shall not be disclosed.

  • Marginal note:Duration of prohibition

    (2) The prohibition applies only during the period that the federal institution is designated as a bridge institution.

  • Marginal note:Exception — entity or person

    (3) The prohibition does not apply if the information is disclosed

    • (a) to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision;

    • (b) to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision;

    • (c) to the Financial Transactions and Reports Analysis Centre of Canada established by section 41 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, for the purpose of complying with that Act;

    • (d) to the Corporation for the purposes of fulfilling its functions under this Act or as a shareholder of the federal institution designated as a bridge institution;

    • (e) to the Minister of Finance, the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance;

    • (f) to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions;

    • (g) to the Canada Revenue Agency solely for the purpose of the Income Tax Act or the Excise Tax Act; or

    • (h) to any other entity or person that is prescribed by regulation, in any circumstance or condition prescribed by regulation.

  • Marginal note:Other exceptions

    (4) The prohibition does not apply if the information is disclosed

    • (a) in the normal conduct of the business of the federal institution designated as a bridge institution;

    • (b) for the purposes of selling the shares or assets of the federal institution designated as a bridge institution;

    • (c) for the purpose of any legal proceedings;

    • (d) for the purpose of preparing the Corporation’s annual report and its corporate plan or if the information is disclosed in those documents;

    • (e) in any circumstance that is prescribed by regulation; or

    • (f) in any other circumstance that the board of directors of the federal institution designated as a bridge institution considers necessary.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) specifying the circumstances in which the prohibition does not apply; or

    • (b) specifying, for the purpose of paragraph (3)(h), the entity to which or person to whom information may be disclosed and the circumstances and conditions under which the information may be disclosed to that entity or person.

 Section 3 of the schedule to the Act is amended by adding the following after subsection (6):

  • Marginal note:Tax-free savings account

    (6.1) Despite subsection (2), for the purposes of deposit insurance with the Corporation, if moneys received by a member institution from a depositor in accordance with a tax-free savings account, within the meaning assigned by section 146.2 of the Income Tax Act, constitute a deposit or part of a deposit by or for the benefit of an individual, the aggregate of those moneys and any other moneys received from the same depositor in accordance with any other tax-free savings account that constitute a deposit or part of a deposit by or for the benefit of the same individual is deemed to be a single deposit separate from any other deposit of or for the benefit of that individual.

Consequential Amendments

R.S., c. A-1Access to Information Act

 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

  • Canada Deposit Insurance Corporation Act

    Loi sur la Société d’assurance-dépôts du Canada

and a corresponding reference to “subsection 45.3(1)”.

R.S., c. C-21; 2001, c. 9, s. 218Canadian Payments Act

 Subsection 4(1) of the Canadian Payments Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after that paragraph:

R.S., c. F-11Financial Administration Act

  •  (1) Section 85 of the Financial Administration Act is amended by adding the following after subsection (2):

    • Marginal note:Exemption for federal member institution

      (2.1) Divisions I to IV do not apply to a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, any shares of which are held by the Canada Deposit Insurance Corporation as the result of the granting of an exemption referred to in section 10.01 of that Act.

  • (2) Section 85 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Exemption — bridge institution

      (4) Sections 88 and 89.2 to 104 and Divisions II to IV do not apply to

      • (a) a bridge institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act; or

      • (b) the Canada Deposit Insurance Corporation, as a parent Crown corporation in respect of a wholly-owned subsidiary that is a bridge institution.

R.S., c. W-11; 1996, c. 6, s. 134Winding-up and Restructuring Act

 Section 3 of the Winding-up and Restructuring Act is amended by striking out “or” at the end of paragraph (i), by adding “or” at the end of paragraph (j) and by adding the following after paragraph (j):

  • (k) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which the Canada Deposit Insurance Corporation has been appointed as receiver, a transfer of part of the business of the federal member institution to a bridge institution has been substantially completed.

Coming into Force

Marginal note:Order in council
  •  (1) The provisions of this Division, except for sections 235 and 254 and subsection 257(1), come into force on a day or days to be fixed by order of the Governor in Council.

  • Marginal note:Retroactivity

    (2) Section 254 is deemed to have come into force on January 27, 2009.

Division 3R.S., c. E-20; 2001, c. 33, s. 2(F)Export Development Act

Marginal note:1993, c. 26, s. 4(1)
  •  (1) Subsection 10(1) of the Export Development Act is replaced by the following:

    Marginal note:Purposes
    • 10. (1) The Corporation is established for the purposes of supporting and developing, directly or indirectly,

      • (a) domestic trade and Canadian capacity to engage in that trade and to respond to domestic business opportunities; and

      • (b) Canada’s export trade and Canadian capacity to engage in that trade and to respond to international business opportunities.

    • Marginal note:Complementary to commercial products and services

      (1.01) The Corporation shall carry out its purposes, with respect to domestic trade and domestic business, in a manner that complements the products and services available from commercial financial institutions and commercial insurance providers.

  • Marginal note:2001, c. 33, s. 8

    (2) Paragraph 10(3)(b) of the Act is replaced by the following:

    • (b) $45,000,000,000.

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

Marginal note:Authorized capital
  • 11. (1) The authorized capital of the Corporation is $3,000,000,000 divided into 30 million shares of the par value of $100 each.

Marginal note:1993, c. 26, s. 8
  •  (1) The portion of subsection 24(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Limit of liability
    • 24. (1) Subject to subsection (2), in respect of transactions entered into under section 23, the total of the following shall at no time exceed $20,000,000,000:

  • Marginal note:1993, c. 26, s. 8

    (2) The portion of subsection 24(1) of the English version of the Act after paragraph (c) is repealed.

Marginal note:Repeal
  •  (1) Paragraph 10(1)(a) and subsection 10(1.01) of the Act, as enacted by subsection 260(1), are repealed two years after the day on which they come into force.

  • Marginal note:Extension

    (2) The Governor in Council may, by order, extend the period referred to in subsection (1).

  • Marginal note:Arrangement entered into before repeal

    (3) The repeal of paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), has no effect on any arrangement Export Development Canada entered into in order to carry out its purpose referred to in that paragraph. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the arrangement or that it considers related to the arrangement.

  • Marginal note:Application suspended

    (4) Subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply for the period beginning on the day on which paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), comes into force and ending on the day on which that paragraph is repealed.

  • Marginal note:Transactions entered into before repeal

    (5) Despite subsection (4), subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply to a new transaction that Export Development Canada enters into during the period that paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), is in force, even after that paragraph is repealed. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the transaction or that it considers related to the transaction.

Division 41995, c. 28Business Development Bank of Canada Act

 Subsection 23(1) of the Business Development Bank of Canada Act is replaced by the following:

Marginal note:Authorized capital
  • 23. (1) The authorized capital of the Bank consists of an unlimited number of common shares with a par value of $100 each and an unlimited number of preferred shares without par value, but the paid-in capital of the Bank, together with any contributed surplus relating to it and any proceeds referred to in paragraph 30(2)(d) that have been prescribed as equity, must not at any time exceed $3,000,000,000.

Division 51998, c. 36Canada Small Business Financing Act

Amendments to the Act

  •  (1) Subsection 4(2) of the Canada Small Business Financing Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

    • (b) in the case of a loan made before April 1, 2009, the outstanding loan amount in relation to the borrower does not exceed $250,000 or any prescribed lesser amount; and

    • (c) in the case of a loan made after March 31, 2009, the outstanding loan amount in relation to the borrower does not exceed $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.

  • (2) Subsection 4(3) of the Act is replaced by the following:

    • Marginal note:Meaning of outstanding loan amount

      (3) The outstanding loan amount referred to in paragraph (2)(b) or (c) is the aggregate of the amount of the proposed loan and the principal amount outstanding, in respect of the borrower and all borrowers that are related to that borrower within the meaning of the regulations, of all loans made under this Act and guaranteed business improvement loans made under the Small Business Loans Act.

 Subsection 6(2) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

  • (c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it before April 1, 2009 that exceeds $500,000, and

  • (d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it after March 31, 2009 that exceeds $500,000.

 Subsection 7(1) of the Act is replaced by the following:

Marginal note:Maximum loan size
  • 7. (1) The Minister is not liable to make any payment to a lender, in respect of any loss sustained by it as a result of a loan made to a borrower, if the borrower has disclosed to the lender the outstanding amount of the loan or the lender has actual knowledge of that amount and if the outstanding loan amount in relation to the borrower is more than

    • (a) in the case of a loan made before April 1, 2009, $250,000 or any prescribed lesser amount; and

    • (b) in the case of a loan made after March 31, 2009, $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.

Coming into Force

Marginal note:Coming into force

 This Division comes into force on April 1, 2009 or, if it is later, on the day on which this Act receives royal assent.

Division 6Legislation Governing Financial Institutions

1991, c. 46Bank Act

 Paragraph 409(2)(d) of the French version of the Bank Act is replaced by the following:

  • d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.

 The Act is amended by adding the following after section 418:

Marginal note:Restriction on charges to borrowers
  • 418.1 (1) Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to a bank for the purposes of subsection (1);

    • (b) respecting the circumstances in which a bank is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property,

      • (i) the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and

      • (ii) the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by a bank of information relating to insurance or a guarantee against default on a loan made by the bank in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between

        • (A) the bank or any affiliates that it controls, or the representatives or the employees of each, and

        • (B) the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which a bank is not required to disclose information.

 The Act is amended by adding the following after section 458.2:

Marginal note:Regulations — activities

458.3 The Governor in Council may make regulations respecting any matters involving a bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what a bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

Marginal note:1999, c. 28, s. 35(1)

 Paragraph 538(2)(d) of the French version of the Act is replaced by the following:

  • d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.

 The Act is amended by adding the following after section 551:

Marginal note:Restriction on charges to borrowers
  • 552. (1) Subject to any regulations made under subsection (2), an authorized foreign bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the authorized foreign bank of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to an authorized foreign bank for the purposes of subsection (1);

    • (b) respecting the circumstances in which an authorized foreign bank is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by an authorized foreign bank in Canada on the security of residential property,

      • (i) the arrangements into which the authorized foreign bank, its representatives and its employees may or may not enter, and

      • (ii) the payments or benefits that the authorized foreign bank, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by an authorized foreign bank of information relating to insurance or a guarantee against default on a loan made by the authorized foreign bank in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between the authorized foreign bank, its representatives or its employees and the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the authorized foreign bank, its representatives and its employees accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which an authorized foreign bank is not required to disclose information.

 The Act is amended by adding the following after section 575:

Marginal note:Regulations — activities

575.1 The Governor in Council may make regulations respecting any matters involving an authorized foreign bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what an authorized foreign bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 538 and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

 The Act is amended by adding the following after section 973.1:

Orders to Exempt or Adapt

Marginal note:Order
  • 973.2 (1) On the recommendation of the Minister, the Governor in Council may, by order,

    • (a) provide that any provision of this Act or the regulations shall not apply to a bank, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

    • (b) provide that any provision of this Act or the regulations applies to a bank, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

  • Marginal note:Minister’s recommendation

    (2) The Minister may make a recommendation under subsection (1) only if the Minister

    • (a) is of the opinion that the order would relate to

      • (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a bank by, or the transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

      • (ii) the management of the business and affairs or the regulation and supervision of a bank during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the bank, or during the time that shares of the bank are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

    • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

  • Marginal note:Terms and conditions

    (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a bank by, or transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

  • Marginal note:Repeal of order under subsection (1)

    (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

  • Marginal note:Terms, conditions and undertakings

    (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a bank to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the bank that the Minister considers appropriate, including any terms and conditions or undertakings relating to

    • (a) the remuneration of the bank’s senior officers, as defined in section 646.1, and directors;

    • (b) the appointment or removal of the bank’s senior officers, as defined in section 646.1, and directors;

    • (c) the payment of dividends by the bank; and

    • (d) the bank’s lending policies and practices.

  • Marginal note:Acquisition

    (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a bank on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the bank may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.

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

    (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

  • Marginal note:Registration of shares

    (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the bank’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

  • Marginal note:Disposition by Minister

    (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Disposition by agent or agency

    (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Consideration by Minister

    (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a bank on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

  • Marginal note:Mandatory disposition

    (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Not a Crown corporation

    (13) Even if the acquisition of a bank’s shares under subsection (6) would otherwise cause the bank to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the bank is not a Crown corporation for the purposes of that Act.

  • Marginal note:Statutory Instruments Act

    (14) The Statutory Instruments Act does not apply to an order made under this section.

  • Definition of “shares”

    (15) For the purposes of this section, “shares” includes any conversion or exchange privilege, option or right to acquire shares.

  • Marginal note:Bank holding company

    (16) For the purposes of this section, a reference to a “bank” includes a reference to a “bank holding company”, and the references to “section 646.1” in paragraphs (5)(a) and (b) are to be read, in relation to a bank holding company, as references to “section 962”.

1991, c. 48Cooperative Credit Associations Act

 Subparagraph 376(1)(i)(iii) of the French version of the Cooperative Credit Associations Act is replaced by the following:

  • (iii) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes,

 The Act is amended by adding the following after section 382.1:

Marginal note:Restriction on charges to borrowers
  • 382.2 (1) Subject to any regulations made under subsection (2), a retail association that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the retail association of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to a retail association for the purposes of subsection (1);

    • (b) respecting the circumstances in which a retail association is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a retail association in Canada on the security of residential property,

      • (i) the arrangements into which the retail association, its representatives and its employees may or may not enter, and

      • (ii) the payments or benefits that the retail association, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by a retail association of information relating to insurance or a guarantee against default on a loan made by the retail association in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between the retail association, its representatives or its employees and the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the retail association, its representatives and its employees accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which a retail association is not required to disclose information.

 The Act is amended by adding the following after section 385.251:

Marginal note:Regulations — activities

385.252 The Governor in Council may make regulations respecting any matters involving a retail association’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what a retail association may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under paragraph 375.1(1)(a) and subparagraphs 376(1)(i)(i) to (iii) and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

 The Act is amended by adding the following after section 459.8:

Orders to Exempt or Adapt

Marginal note:Order
  • 459.9 (1) On the recommendation of the Minister, the Governor in Council may, by order,

    • (a) provide that any provision of this Act or the regulations shall not apply to an association, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

    • (b) provide that any provision of this Act or the regulations applies to an association, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

  • Marginal note:Minister’s recommendation

    (2) The Minister may make a recommendation under subsection (1) only if the Minister

    • (a) is of the opinion that the order would relate to

      • (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of an association by, or the transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

      • (ii) the management of the business and affairs or the regulation and supervision of an association during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the association, or during the time that shares of the association are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

    • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

  • Marginal note:Terms and conditions

    (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of an association by, or transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

  • Marginal note:Repeal of order under subsection (1)

    (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

  • Marginal note:Terms, conditions and undertakings

    (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of an association to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the association that the Minister considers appropriate, including any terms and conditions or undertakings relating to

    • (a) the remuneration of the association’s senior officers, as defined in section 441.01, and directors;

    • (b) the appointment or removal of the association’s senior officers, as defined in section 441.01, and directors;

    • (c) the payment of dividends by the association; and

    • (d) the association’s lending policies and practices.

  • Marginal note:Acquisition

    (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of an association on behalf of or in trust for Her Majesty if an order is made under subsection (1).

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

    (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

  • Marginal note:Registration of shares

    (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the association’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

  • Marginal note:Disposition by Minister

    (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Disposition by agent or agency

    (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Consideration by Minister

    (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of an association on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

  • Marginal note:Mandatory disposition

    (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Statutory Instruments Act

    (13) The Statutory Instruments Act does not apply to an order made under this section.

  • Definition of “shares”

    (14) For the purposes of this section, “shares” includes membership shares and any conversion or exchange privilege, option or right to acquire shares or membership shares.

2001, c. 9Financial Consumer Agency of Canada Act

 The definition “consumer provision” in section 2 of the Financial Consumer Agency of Canada Act is replaced by the following:

“consumer provision”

« disposition visant les consomma­teurs »

“consumer provision” means

  • (a) paragraphs 157(2)(e) and (f), section 413.1, subsection 418.1(3), sections 439.1 to 459.5, subsections 540(2) and (3) and 545(4) and (5), paragraphs 545(6)(b) and (c), subsection 552(3) and sections 559 to 576.2 of the Bank Act together with any regulations made under or for the purposes of those provisions;

  • (b) paragraphs 167(2)(f) and (g), subsection 382.2(3) and sections 385.05 to 385.28 of the Cooperative Credit Associations Act together with any regulations made under or for the purposes of those provisions;

  • (c) paragraphs 165(2)(f) and (g), subsection 469.1(3), sections 479 to 489.3, subsection 542.061(3) and sections 598 to 607.2 of the Insurance Companies Act together with any regulations made under or for the purposes of those provisions;

  • (d) paragraphs 161(2)(e) and (f), subsection 418.1(3) and sections 425.1 to 444.3 of the Trust and Loan Companies Act together with any regulations made under or for the purposes of those provisions; and

  • (e) subsection 469.1(3) as set out in paragraph 17(1)(f) of the Green Shield Canada Act and the provisions referred to in paragraph 17(1)(f.1) of that Act as they apply to Green Shield Canada in accordance with section 17 of that Act together with any regulations made under or for the purposes of those provisions.

1992, c. 56Green Shield Canada Act

Marginal note:2001, c. 9, s. 343(1)

 Paragraph 17(1)(i) of the Green Shield Canada Act is replaced by the following:

  • (i) Part XI, except sections 528.1 to 528.3, Parts XV and XVI, Part XVIII, except section 1016.7, and Part XIX.

1991, c. 47Insurance Companies Act

 Paragraph 440(2)(c) of the French version of the Insurance Companies Act is replaced by the following:

  • c) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes.

 The Act is amended by adding the following after section 469:

Marginal note:Restriction on charges to borrowers
  • 469.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to a company for the purposes of subsection (1);

    • (b) respecting the circumstances in which a company is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property,

      • (i) the arrangements into which the company, its representatives and its employees may or may not enter, and

      • (ii) the payments or benefits that the company, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which a company is not required to disclose information.

 The Act is amended by adding the following after section 488:

Marginal note:Regulations — activities

488.1 The Governor in Council may make regulations respecting any matters involving a company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what a company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 440 and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

 The Act is amended by adding the following after section 542.06:

Marginal note:Restriction on charges to borrowers
  • 542.061 (1) Subject to any regulations made under subsection (2), a society that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the society of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to a society for the purposes of subsection (1);

    • (b) respecting the circumstances in which a society is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a society in Canada on the security of residential property,

      • (i) the arrangements into which the society, its representatives and its employees may or may not enter, and

      • (ii) the payments or benefits that the society, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by a society of information relating to insurance or a guarantee against default on a loan made by the society in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between the society, its representatives or its employees and the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the society, its representatives and its employees accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which a society is not required to disclose information.

 The Act is amended by adding the following after section 606:

Marginal note:Regulations — activities

606.1 The Governor in Council may make regulations respecting any matters involving a foreign company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what a foreign company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under this Act and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

 The Act is amended by adding the following after section 1016.6:

Orders to Exempt or Adapt

Marginal note:Order
  • 1016.7 (1) On the recommendation of the Minister, the Governor in Council may, by order,

    • (a) provide that any provision of this Act or the regulations shall not apply to a company, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

    • (b) provide that any provision of this Act or the regulations applies to a company, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

  • Marginal note:Minister’s recommendation

    (2) The Minister may make a recommendation under subsection (1) only if the Minister

    • (a) is of the opinion that the order would relate to

      • (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a company by, or the transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

      • (ii) the management of the business and affairs or the regulation and supervision of a company during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the company, or during the time that shares of the company are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

    • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

  • Marginal note:Terms and conditions

    (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a company by, or transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

  • Marginal note:Repeal of order under subsection (1)

    (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

  • Marginal note:Terms, conditions and undertakings

    (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a company to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the company that the Minister considers appropriate, including any terms and conditions or undertakings relating to

    • (a) the remuneration of the company’s senior officers, as defined in section 678.01, and directors;

    • (b) the appointment or removal of the company’s senior officers, as defined in section 678.01, and directors;

    • (c) the payment of dividends by the company; and

    • (d) the company’s lending policies and practices.

  • Marginal note:Acquisition

    (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a company on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the company may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.

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

    (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

  • Marginal note:Registration of shares

    (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the company’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

  • Marginal note:Disposition by Minister

    (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Disposition by agent or agency

    (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Consideration by Minister

    (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a company on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

  • Marginal note:Mandatory disposition

    (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Not a Crown corporation

    (13) Even if the acquisition of a company’s shares under subsection (6) would otherwise cause the company to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the company is not a Crown corporation for the purposes of that Act.

  • Marginal note:Statutory Instruments Act

    (14) The Statutory Instruments Act does not apply to an order made under this section.

  • Definition of “shares”

    (15) For the purposes of this section, “shares” includes

    • (a) any conversion or exchange privilege, option or right to acquire shares; and

    • (b) in reference to a company, participating shares, as defined in section 83.01.

  • Marginal note:Insurance holding company

    (16) For the purposes of this section other than paragraph (15)(b), a reference to a “company” includes a reference to an “insurance holding company”, and the references to “section 678.01” in paragraphs (5)(a) and (b) are to be read, in relation to an insurance holding company, as references to “section 1005”.

1991, c. 45Trust and Loan Companies Act

 Section 37 of the Trust and Loan Companies Act is amended by adding the following after subsection (2):

  • Marginal note:Non-application

    (2.1) Paragraph (2)(a) does not apply to a company if the body corporate continued as the company was, at any time before the coming into force of this subsection, engaged in any personal property leasing activity in which a financial leasing entity, as defined in subsection 449(1), is not permitted to engage.

 Paragraph 409(2)(d) of the French version of the Act is replaced by the following:

  • d) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes.

 The Act is amended by adding the following after section 418:

Marginal note:Restriction on charges to borrowers
  • 418.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to a company for the purposes of subsection (1);

    • (b) respecting the circumstances in which a company is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property,

      • (i) the arrangements into which the company, its representatives and its employees may or may not enter, and

      • (ii) the payments or benefits that the company, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which a company is not required to disclose information.

 The Act is amended by adding the following after section 443.1:

Marginal note:Regulations — activities

443.2 The Governor in Council may make regulations respecting any matters involving a company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what a company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

 The Act is amended by adding the following after section 527.8:

Orders to Exempt or Adapt

Marginal note:Order
  • 527.9 (1) On the recommendation of the Minister, the Governor in Council may, by order,

    • (a) provide that any provision of this Act or the regulations shall not apply to a company, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

    • (b) provide that any provision of this Act or the regulations applies to a company, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

  • Marginal note:Minister’s recommendation

    (2) The Minister may make a recommendation under subsection (1) only if the Minister

    • (a) is of the opinion that the order would relate to

      • (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a company by, or the transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

      • (ii) the management of the business and affairs or the regulation and supervision of a company during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the company, or during the time that shares of the company are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

    • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

  • Marginal note:Terms and conditions

    (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a company by, or transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

  • Marginal note:Repeal of order under subsection (1)

    (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

  • Marginal note:Terms, conditions and undertakings

    (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a company to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the company that the Minister considers appropriate, including any terms and conditions or undertakings relating to

    • (a) the remuneration of the company’s senior officers, as defined in section 509.01, and directors;

    • (b) the appointment or removal of the company’s senior officers, as defined in section 509.01, and directors;

    • (c) the payment of dividends by the company; and

    • (d) the company’s lending policies and practices.

  • Marginal note:Acquisition

    (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a company on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the company may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.

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

    (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

  • Marginal note:Registration of shares

    (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the company’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

  • Marginal note:Disposition by Minister

    (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Disposition by agent or agency

    (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Consideration by Minister

    (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a company on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

  • Marginal note:Mandatory disposition

    (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

  • Marginal note:Not a Crown corporation

    (13) Even if the acquisition of a company’s shares under subsection (6) would otherwise cause the company to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the company is not a Crown corporation for the purposes of that Act.

  • Marginal note:Statutory Instruments Act

    (14) The Statutory Instruments Act does not apply to an order made under this section.

  • Definition of “shares”

    (15) For the purposes of this section, “shares” includes any conversion or exchange privilege, option or right to acquire shares.

Coordinating Amendment

Marginal note:2005, c. 54

 On the first day on which both subsection 213(3) of An Act to amend certain Acts in relation to financial institutions, chapter 54 of the Statutes of Canada, 2005, and section 281 of this Act are in force, paragraph 17(1)(i) of the Green Shield Canada Act is replaced by the following:

  • (i) Part XI, except sections 528.1 to 528.3, Parts XV and XVI, Part XVIII, except section 1016.7, and Parts XIX and XX.

Coming into Force

Marginal note:Order in council

 Sections 270, 273, 277, 280, 283, 285, and 290 come into force on a day or days to be fixed by order of the Governor in Council.

Division 7Securities

Securities Regulation

Marginal note:Maximum payment of $150,000,000
  •  (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding $150,000,000, to provinces and territories for matters relating to the establishment of a Canadian securities regulation regime and a Canadian regulatory authority.

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

    (2) Any amount payable under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, at the times and in the manner, and on any terms and conditions, that the Minister of Finance considers appropriate.

Marginal note:Agreements

 The Minister of Finance may enter into any agreement respecting securities regulation with any province or territory.

Canadian Securities Regulation Regime Transition Office Act

Marginal note:Enactment of Act

 The Canadian Securities Regulation Regime Transition Office Act is enacted as follows:

An Act to establish the Canadian Securities Regulation Regime Transition Office

SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Canadian Securities Regulation Regime Transition Office Act.

INTERPRETATION

Marginal note:Definitions

2. The following definitions apply in this Act.

“Advisory Committee”

« comité consultatif »

“Advisory Committee” means the advisory committee of participating provinces and territories established under section 5.

“Minister”

« ministre »

“Minister” means the Minister of Finance.

“participating province or territory”

« province ou territoire participant »

“participating province or territory” means any province or territory that informs the Minister of its willingness to participate in the establishment of a Canadian securities regulation regime and a Canadian regulatory authority.

“Transition Office”

« Bureau de transition »

“Transition Office” means the Canadian Securities Regulation Regime Transition Office established under section 3.

ESTABLISHMENT

Marginal note:Transition Office
  • 3. (1) The Canadian Securities Regulation Regime Transition Office is established.

  • Marginal note:Status

    (2) The Transition Office is not an agent of Her Majesty nor is it an entity governed by the Financial Administration Act, and its president, officers, employees, agents and mandataries, advisers and experts and the members of the Advisory Committee are not part of the federal public administration.

Marginal note:President
  • 4. (1) The Governor in Council shall, on the recommendation of the Minister, appoint a president, or two co-presidents acting jointly, of the Transition Office, to hold office during pleasure.

  • Marginal note:Powers, duties and functions

    (2) The president is the chief executive officer of the Transition Office and has control and supervision over the work, officers and employees of that office.

  • Marginal note:Acting president

    (3) In the event of the absence or incapacity of the president or a vacancy in that office, the Minister may designate a person to act as president, which person may not act for a period exceeding 90 days without the Governor in Council’s approval.

  • Marginal note:Acting co-president

    (4) In the event of the absence or incapacity of a co-president or a vacancy in that office, the Minister may designate a person to act as co-president, which person may not act for a period exceeding 90 days without the Governor in Council’s approval. The other co-president may act alone until another co-president is designated or appointed.

  • Marginal note:Interpretation

    (5) In this Act, other than in subsections (1) and (3), “president” includes two co-presidents who hold office, or a co-president who acts alone under subsection (4), as the case may be.

Marginal note:Advisory Committee
  • 5. (1) An advisory committee of participating provinces and territories is established within the Transition Office and consists of not more than 13 members.

  • Marginal note:Members

    (2) The Governor in Council shall appoint, on the recommendation of the Minister, a member for each participating province and territory, from persons nominated by that province or territory, to hold office during pleasure.

  • Marginal note:Role

    (3) The Advisory Committee’s role is to provide the president with advice on matters related to the Transition Office’s purpose.

Marginal note:Staff

6. The Transition Office may employ any officers and employees and engage the services of any agents and mandataries, advisers and experts that it considers necessary to carry out its purpose.

Marginal note:Conditions of employment — president and members
  • 7. (1) The Governor in Council, on the recommendation of the Minister, shall determine the remuneration and allowances to be paid to the president and members of the Advisory Committee and any other conditions of their employment.

  • Marginal note:Conditions of employment — staff

    (2) The Transition Office shall determine the remuneration and allowances to be paid to its officers, employees, agents and mandataries, advisers and experts and any other conditions of their employment or engagement, as the case may be.

  • Marginal note:Remuneration

    (3) The Transition Office shall pay the remuneration and allowances determined under subsections (1) and (2).

Marginal note:Conflict of interest — president and members
  • 8. (1) The president and the members of the Advisory Committee shall not accept or hold any office or employment, or carry on any activity, that, in the Minister’s opinion, is inconsistent with the performance of their duties.

  • Marginal note:Conflict of interest — officers and employees

    (2) The officers and employees of the Transition Office shall not accept or hold any office or employment, or carry on any activity, that, in the president’s opinion, is inconsistent with the performance of their duties.

Marginal note:Immunity

9. No criminal or civil proceedings lie against the president, a member of the Advisory Committee or an officer or employee of the Transition Office for anything done or omitted to be done by that person in good faith under this Act.

PURPOSE AND POWERS

Marginal note:Purpose

10. The purpose of the Transition Office is to assist in the establishment of a Canadian securities regulation regime and a Canadian regulatory authority.

Marginal note:Duties
  • 11. (1) In carrying out its purpose, the Transition Office shall

    • (a) develop a transition plan with respect to administrative and organizational matters, including those relating to human, financial, material and informational resources;

    • (b) consult with stakeholders, including Canadian capital market participants; and

    • (c) undertake any other activity that the Minister may direct.

  • Marginal note:Copy

    (2) The Transition Office shall provide the Minister and each participating province and territory with a copy of the transition plan no later than one year after the day on which section 3 comes into force.

Marginal note:Capacity and powers

12. In order to carry out its purpose, the Transition Office has the capacity and the rights, powers and privileges of a natural person and, in particular, it may

  • (a) initiate, finance and administer programs and activities;

  • (b) expend any money it receives for its activities, subject to any terms and conditions on which it is provided;

  • (c) enter into contracts; and

  • (d) with the Minister’s approval, enter into any agreement with the government of a province or territory that the president considers necessary or advisable.

Marginal note:Information

13. The Transition Office shall inform the Minister regularly of its activities and its progress in carrying out its purpose.

FINANCIAL PROVISIONS

Marginal note:Maximum payment of $33,000,000
  • 14. (1) The Minister may make direct payments, in an aggregate amount not exceeding $33,000,000, to the Transition Office for its use.

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

    (2) Any amount payable under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner, and on any terms and conditions, that the Minister considers appropriate.

Marginal note:Audit

15. The accounts and financial transactions of the Transition Office shall be audited annually by the Auditor General of Canada, and a report of the audit shall be made to the Transition Office and the Minister.

ANNUAL REPORT

Marginal note:Submission to Minister
  • 16. (1) The president shall, within four months after the end of each fiscal year, submit a report of all of the Transition Office’s activities for that fiscal year, including its financial statements and the report referred to in section 15, to the Minister.

  • Marginal note:Tabling report

    (2) The Minister shall cause a copy of the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report.

  • Marginal note:Report available to public

    (3) After the report is tabled in Parliament, the Transition Office shall make it available to the public.

DISSOLUTION

Marginal note:Date of dissolution
  • 17. (1) The Transition Office is dissolved three years after the day on which section 3 comes into force.

  • Marginal note:Change in date of dissolution

    (2) Despite subsection (1), the Governor in Council may, by order and on the recommendation of the Minister, set a different date of dissolution, and that date is to be no later than four years after the day on which section 3 comes into force. The order shall be published in the Canada Gazette at least three months before the date of dissolution referred to in the order or if it is earlier, the date determined under subsection (1).

  • Marginal note:Statutory Instruments Act

    (3) The Statutory Instruments Act does not apply to an order made under subsection (2).

  • Marginal note:Assets transferred

    (4) On the Transition Office’s dissolution, any of its property that remains after the payment of its debts and liabilities, or after the making of adequate provision for the payment of its debts and liabilities, shall be transferred to Her Majesty in right of Canada or to any body that the Governor in Council may specify.

Transitional Provision

Marginal note:Initial annual report

 If section 297 comes into force less than three months before the end of a fiscal year, the president shall submit the first report required under section 16 of the Canadian Securities Regulation Regime Transition Office Act no later than four months after the end of the following fiscal year, and that report shall cover the period starting on the day on which section 297 comes into force and ending on the last day of that following fiscal year.

Coming into Force

Marginal note:Order in council

 Section 297 comes into force on a day to be fixed by order of the Governor in Council.

PART 6PAYMENTS

Infrastructure Stimulus Fund

Marginal note:Maximum payment of $2,000,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two billion dollars to provide funding for infrastructure projects primarily related to infrastructure rehabilitation.

Provincial-Territorial Infrastructure Base Funding Program

Marginal note:Maximum payment of $495,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding four hundred and ninety-five million dollars to provide payments to provinces and territories under the Provincial-Territorial Infrastructure Base Funding Program for infrastructure projects.

Communities Component of the Building Canada Fund

Marginal note:Maximum payment of $250,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two hundred and fifty million dollars to provide funding for infrastructure projects in communities that have a population of less than 100,000.

Green Infrastructure Fund

Marginal note:Maximum payment of $200,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Transport, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two hundred million dollars to support infrastructure projects that promote a clean environment.

Community Adjustment Fund

Marginal note:Maximum payment of $51,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of State (Atlantic Canada Opportunities Agency), in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding fifty-one million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in Atlantic Canada.

Marginal note:Maximum payment of $106,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of State (Economic Development Agency of Canada for the Regions of Quebec), in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and six million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in the regions of Quebec.

Marginal note:Maximum payment of $175,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and seventy-five million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in Ontario.

Marginal note:Maximum payment of $17,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Indian Affairs and Northern Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding seventeen million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in the territories.

Marginal note:Maximum payment of $154,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of State (Western Economic Diversification), in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and fifty-four million dollars to foster economic development, science and technology initiatives and other measures to promote economic diversification in communities in Western Canada.

Improving Infrastructure at Universities and Colleges

Marginal note:Maximum payment of $1,000,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one billion dollars to accelerate repairs and maintenance at post-secondary institutions.

First Nations Housing

Marginal note:Maximum payment of $75,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Indian Affairs and Northern Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding seventy-five million dollars to support on-reserve housing.

Marginal note:Maximum payment of $125,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred and twenty-five million dollars to the Canada Mortgage and Housing Corporation to support on-reserve housing.

Renovation and Retrofit of Social Housing

Marginal note:Maximum payment of $500,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding five hundred million dollars to the Canada Mortgage and Housing Corporation to provide funding to the provinces and territories to address the backlog in demand for renovation and energy retrofits of social housing.

Housing for Low-income Seniors

Marginal note:Maximum payment of $200,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding two hundred million dollars to the Canada Mortgage and Housing Corporation to provide funding to the provinces and territories through the Affordable Housing Initiative for the construction of housing units for low-income seniors.

Housing for Persons with Disabilities

Marginal note:Maximum payment of $25,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding twenty-five million dollars to the Canada Mortgage and Housing Corporation to provide funding to the provinces and territories through the Affordable Housing Initiative for the construction of housing units for persons with disabilities.

Northern Housing

Marginal note:Maximum payment of $100,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Human Resources and Skills Development, in accordance with terms and conditions approved by the Treasury Board, a sum not exceeding one hundred million dollars to the Canada Mortgage and Housing Corporation to provide funding to the territories for the renovation and construction of social housing units.

Canada Health Infoway Inc.

Marginal note:Maximum payment of $500,000,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding five hundred million dollars to Canada Health Infoway Inc. for the development of electronic health records and related systems.

PART 7R.S., c. N-22NAVIGABLE WATERS PROTECTION ACT

Amendments to the Act

 Section 2 of the Navigable Waters Protection Act is amended by adding the following in alphabetical order:

“ferry cable”

« câble de traille »

“ferry cable” includes any ferry cable, rod, chain or other device put across, over, in or under any navigable water for working a ferry;

“vessel”

« bateau »

“vessel” includes every description of ship, boat or craft of any kind, without regard to method or lack of propulsion and to whether it is used as a sea-going vessel or on inland waters only, including everything forming part of its machinery, tackle, equipment, cargo, stores or ballast;

“work”

« ouvrage »

“work” includes

  • (a) any man-made structure, device or thing, whether temporary or permanent, that may interfere with navigation; and

  • (b) any dumping of fill in any navigable water, or any excavation of materials from the bed of any navigable water, that may interfere with navigation.

 The Act is amended by adding the following after section 2:

HER MAJESTY

Marginal note:Binding on Her Majesty

2.1 This Act is binding on Her Majesty in right of Canada or a province.

 The heading of Part I of the Act is replaced by the following:

APPROVAL OF WORKS

  •  (1) The definition “work” in section 3 of the Act is repealed.

  • (2) Section 3 of the Act is renumbered as subsection 3(1) and is amended by adding the following:

    • Marginal note:Related works

      (2) If the Minister considers that two or more works are related, the Minister may, for the purposes of this Part, deem them to be a single work.

 Sections 4 and 5 of the Act are replaced by the following:

Marginal note:Application — works under Acts or orders
  • 4. (1) Except for this section and the provisions of this Part that relate to rebuilding, repairing or altering any lawful work, nothing in this Part applies to any work constructed under the authority of

    • (a) an Act of Parliament or an order of the Governor in Council, if the work was constructed before the coming into force of this subsection;

    • (b) an Act of the legislature of a province or an order of the lieutenant governor in council of a province, if the work was constructed before the coming into force of this subsection;

    • (c) an Act of the legislature of a colony of Great Britain of which at least some portion now forms part of Canada; or

    • (d) Her Majesty in respect of such a colony.

  • Marginal note:Application — works owned or transferred

    (2) Except for this section and the provisions of this Part that relate to rebuilding, repairing or altering any lawful work, nothing in this Part applies to

    • (a) works that are owned by Her Majesty in right of Canada or a province on the day on which this subsection comes into force; or

    • (b) works whose ownership was transferred before the day on which this subsection comes into force to another person by Her Majesty in right of Canada or a province or in respect of a colony of Great Britain of which at least some portion now forms part of Canada.

  • Marginal note:Ministerial order

    (3) The Minister may order an owner of a work referred to in subsection (1) or (2) to alter or remove the work or to comply with any terms and conditions that the Minister, as he or she considers appropriate, may impose if the Minister is satisfied that

    • (a) the work has become a danger to or an interference with navigation by reason of the passage of time and changing conditions in navigation of the navigable waters concerned; or

    • (b) the alteration or removal or the terms and conditions are in the public interest.

  • Marginal note:Minister’s powers

    (4) If the owner of the work fails to comply with an order given under subsection (3), the Minister may remove and destroy the work and sell, give away or otherwise dispose of the materials contained in the work.

  • Marginal note:Costs of removal, destruction or disposal

    (5) If the Minister removes, destroys or disposes of a work under subsection (4), the costs of and incidental to the removal, destruction or disposal, after deducting any sum that may be realized by sale or otherwise, are recoverable with costs in the name of Her Majesty in right of Canada from the owner.

General

Marginal note:Approval of works
  • 5. (1) No work shall be built or placed in, on, over, under, through or across any navigable water without the Minister’s prior approval of the work, its site and the plans for it.

  • Marginal note:Terms and conditions — substantial interference

    (2) If the Minister considers that the work would substantially interfere with navigation, the Minister may impose any terms and conditions on the approval that the Minister considers appropriate, including requiring that construction of the work be started within six months and finished within three years of the day on which approval is granted or within any other period that the Minister may fix.

  • Marginal note:Terms and conditions — other interference

    (3) If the Minister considers that the work would interfere, other than substantially, with navigation, the Minister may impose any terms and conditions on the approval that the Minister considers appropriate, including requiring that construction of the work be started and finished within the period fixed by the Minister.

  • Marginal note:Extension of period

    (4) The Minister may, at any time, extend the period by changing the day on which construction of the work shall be started or finished.

  • Marginal note:Compliance with plans, regulations and terms and conditions

    (5) The work shall be built, placed, maintained, operated, used and removed in accordance with the plans and the regulations and with the terms and conditions in the approval.

Marginal note:Classes of works and navigable waters
  • 5.1 (1) Despite section 5, a work may be built or placed in, on, over, under, through or across any navigable water without meeting the requirements of that section if the work falls within a class of works, or the navigable water falls within a class of navigable waters, established by regulation or under section 13.

  • Marginal note:Compliance

    (2) The work shall be built, placed, maintained, operated, used and removed in accordance with the regulations or with the terms and conditions imposed under section 13.

  • Marginal note:Non-application

    (3) Sections 6 to 11.1 do not apply to works referred to in subsection (1) unless there is a contravention of subsection (2).

  •  (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Ministerial orders respecting unauthorized works
    • 6. (1) If any work to which this Part applies is built or placed without having been approved under this Act, is built or placed on a site not approved under this Act, is not built or placed in accordance with the approved plans and terms and conditions and with the regulations or, having been built or placed as approved, is not maintained, operated, used or removed in accordance with those plans, those terms and conditions and the regulations, the Minister may

  • (2) Subsection 6(2) of the Act is repealed.

  • (3) Subsection 6(4) of the Act is replaced by the following:

    • Marginal note:Approval after construction started

      (4) The Minister may, subject to deposit and notice as in the case of a proposed work, approve a work, its site and the plans for it and impose any terms and conditions on the approval that the Minister considers appropriate after the start of its construction. The approval has the same effect as if it was given before the start of construction.

 Section 7 of the Act is replaced by the following:

Marginal note:Fee payable by person applying for approval
  • 7. (1) A person who applies for approval of a work referred to in subsection 5(2) or 6(4) shall pay the fee prescribed by the regulations.

  • Marginal note:Approval valid for period prescribed by regulations

    (2) The approval of a work under section 5 is valid for the period prescribed by the regulations.

Marginal note:1993, c. 41, s. 8

 Section 9 of the Act is replaced by the following:

Marginal note:Notice and deposit of plans
  • 9. (1) A local authority, company or individual proposing to construct any work in navigable waters may apply to the Minister for approval by depositing the plans for its design and construction and a description of the proposed site with the Minister.

  • Marginal note:Plans for management and operation

    (2) If the Minister considers that the work would substantially interfere with navigation, the Minister may also require that the local authority, company or individual deposit the plans for the management and operation related to the work.

  • Marginal note:Deposit and notice — substantial interference

    (3) If the Minister considers that the work would substantially interfere with navigation, the Minister shall direct the local authority, company or individual to

    • (a) deposit all plans in the local land registry or land titles office or any other place specified by the Minister; and

    • (b) provide notice of the proposed construction and the deposit of the plans by advertising in the Canada Gazette and in one or more newspapers that are published in or near the place where the work is to be constructed.

    The plans shall be deposited and notice shall be provided in the form and manner specified by the Minister.

  • Marginal note:Deposit and notice — other interference

    (4) If the Minister considers that the work would interfere, other than substantially, with navigation, the Minister may direct the local authority, company or individual to deposit the plans in the local land registry or land titles office or any other place specified by the Minister, and to provide notice of the proposed construction and the deposit of the plans as the Minister considers appropriate.

  • Marginal note:Comments

    (5) Interested persons may provide written comments to the Minister within 30 days after the publication of the last notice referred to in subsection (3) or (4).

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

Marginal note:Approval lapses
  • 11. (1) When an approval of a work lapses, the Minister may grant a new approval of that work for any period that the Minister considers appropriate, having regard to changing conditions in navigation and the condition of the work.

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

Marginal note:Amendment of approval
  • 11.1 (1) Subject to subsection (3), the Minister may amend an approval of a work if he or she is satisfied that

    • (a) the work has become a danger to or an interference with navigation by reason of the passage of time and changing conditions in navigation of the navigable waters concerned; or

    • (b) the amendment is in the public interest.

  • Marginal note:Suspension or cancellation

    (2) Subject to subsection (3), the Minister may suspend or cancel an approval if he or she is satisfied that

    • (a) the work is not being or has not been built, placed, maintained, operated, used or removed in accordance with the plans, the regulations or with any terms and conditions in the approval;

    • (b) the approval was obtained by a fraudulent or improper means or a misrepresentation of a material fact;

    • (c) the owner of the work has not paid a fine imposed under this Act;

    • (d) the owner of the work has contravened a provision of this Act or the regulations; or

    • (e) the suspension or cancellation is in the public interest, including that it is warranted by the record of compliance of the owner or of a principal of the owner under this Act.

  • Marginal note:Notice

    (3) Before amending, suspending or cancelling an approval of a work, the Minister shall give the owner 30 days’ notice setting out the grounds on which the Minister relies for the amendment, suspension or cancellation.

Marginal note:Not a statutory instrument

11.2 For greater certainty, an order given under subsection 4(3) or paragraph 6(1)(a) or (c) is not a statutory instrument within the meaning of the Statutory Instruments Act.

 Subsections 12(1) and (2) of the Act are replaced by the following:

Marginal note:Orders and regulations by Governor in Council
  • 12. (1) The Governor in Council may make any orders or regulations that the Governor in Council deems expedient for navigation purposes respecting any work to which this Part applies or that is approved or the plans and site of which are approved under any Act of Parliament or order of the Governor in Council, and may make regulations

    • (a) prescribing the fees payable to the Minister on an application for an approval under this Part;

    • (b) respecting the grant, amendment, renewal, suspension and cancellation of approvals under this Part;

    • (c) prescribing the period for which an approval under this Part is valid;

    • (d) respecting notification requirements for a change in ownership in a work;

    • (e) establishing classes of works or navigable waters for the purposes of subsection 5.1(1);

    • (f) respecting the placement, construction, maintenance, operation, safety, use and removal of works; and

    • (g) for carrying out the purposes and provisions of this Part.

  • Marginal note:Related works

    (2) If the Governor in Council considers that two or more works are related, the Governor in Council may, for the purposes of subsection (1), deem them to be a single work.

  • Marginal note:Incorporation by reference

    (2.1) The regulations may incorporate any material by reference, regardless of its source, either as it exists on a particular date or as amended from time to time.

  • Marginal note:Incorporated material not a regulation

    (2.2) Material does not become a regulation for the purposes of the Statutory Instruments Act because it is incorporated by reference.

 Section 13 of the Act is replaced by the following:

Ministerial Orders

Marginal note:Orders
  • 13. (1) For the purposes of section 5.1, the Minister may, by order,

    • (a) establish classes of works or navigable waters; and

    • (b) impose any terms and conditions with respect to the placement, construction, maintenance, operation, safety, use and removal of those classes of works or works that are built or placed in, on, over, under, through or across those classes of navigable waters.

  • Marginal note:Exemption from Statutory Instruments Act

    (2) An order under subsection (1)

  • Marginal note:Incorporation by reference

    (3) An order may incorporate any material by reference, regardless of its source, either as it exists on a particular date or as amended from time to time.

 The heading “Définitions” before section 14 of the French version of the Act is replaced by the following:

Définition et interprétation

 Section 14 of the Act is replaced by the following:

Definition of “owner”

  • 14. (1) In this Part, “owner” means the registered or other owner at the time any wreck, obstruction or obstacle referred to in this Part was occasioned, and includes a subsequent purchaser.

  • Marginal note:Interpretation

    (2) A reference to a “thing” in sections 15 to 18 and 20, with respect to a thing that is or is likely to become an obstruction or obstacle to navigation, does not include a reference to a thing of natural origin unless the obstruction or obstacle, or likely obstruction or obstacle, is caused by a person.

Application

Marginal note:Non-application

14.1 This Part, other than sections 21 to 25, does not apply to navigable waters falling within a class of navigable waters established by regulation or under section 13.

 The portion of subsection 15(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Notice and indication of obstruction or obstacle
  • 15. (1) If the navigation of any navigable water over which Parliament has jurisdiction is obstructed, impeded or rendered more difficult or dangerous by the wrecking, sinking, partial sinking, lying ashore or grounding of any vessel or part of one or by any other thing, the owner, master or person in charge of the vessel or thing by which any obstruction or obstacle is caused shall

 Section 16 of the Act is replaced by the following:

Marginal note:Minister’s powers

16. The Minister may cause any wreck, vessel or part of a vessel resulting from the wrecking, sinking, partial sinking, lying ashore or grounding of a vessel, or may cause any other thing, to be secured, removed or destroyed in the manner that the Minister considers appropriate if, in the Minister’s opinion,

  • (a) the navigation of any navigable water over which Parliament has jurisdiction is obstructed, impeded or rendered more difficult or dangerous for more than 24 hours by the wreck, vessel, part of a vessel or thing;

  • (b) the wreck, vessel, part of a vessel or thing has been in a position for more than 24 hours that is likely to obstruct, impede or render more difficult or dangerous the navigation of any such navigable water; or

  • (c) the wreck, vessel, part of a vessel or thing is cast ashore, stranded or left on any property belonging to Her Majesty in right of Canada and has been an obstruction or obstacle, for more than 24 hours, to the use of that property as may be required for the public purposes of Canada.

 Subsection 17(1) of the Act is replaced by the following:

Marginal note:Conveyance from site and sale
  • 17. (1) The Minister may cause the vessel referred to in section 16 or its cargo, or any other thing causing or forming part of the obstruction or obstacle to be conveyed to the place that the Minister considers appropriate and to be sold by auction or otherwise as the Minister considers appropriate. The Minister may apply the proceeds of the sale to make good the expenses incurred by the Minister in placing and maintaining any signal or light to indicate the position of the obstruction or obstacle, or in securing, removing, destroying or selling the vessel, cargo or thing.

 Subsection 18(1) of the Act is replaced by the following:

Marginal note:Costs constituting debt
  • 18. (1) The amount of the costs incurred by the Minister while acting under subsection 15(2) or section 16 — whether or not a sale has been held under section 17 — constitutes a debt to which subsection (2) applies if the costs have been defrayed out of the public moneys of Canada.

 Sections 19 and 20 of the Act are replaced by the following:

Marginal note:Order to remove vessel left anchored
  • 19. (1) If a vessel has been left anchored, moored or adrift in any navigable water so that, in the Minister’s opinion, it obstructs or is likely to obstruct navigation, the Minister may order the owner, managing owner, master or person in charge of the vessel to secure it or remove it to a place that the Minister considers appropriate.

  • Marginal note:Failure to comply with order

    (2) If a person to whom an order is given under subsection (1) fails to comply without delay with the order, the Minister may order the vessel to be secured or removed to the place that the Minister considers appropriate, and the costs of securing or removing the vessel are recoverable against the person as a debt due to Her Majesty.

  • Marginal note:Not a statutory instrument

    (3) For greater certainty, an order given under this section is not a statutory instrument within the meaning of the Statutory Instruments Act.

Marginal note:Abandoned vessel

20. If any vessel or other thing is wrecked, sunk, partially sunk, lying ashore or grounded in any navigable water in Canada, the vessel, part of the vessel, its cargo or thing is deemed to be abandoned on the day that is two years from the day of the casualty. On or after that later day the Minister may, under the restrictions that the Minister considers appropriate, authorize any person to take possession of and remove the vessel, part of the vessel or thing for that person’s own benefit, on giving to the owner, if known, one month’s notice, or if the owner is unknown, public notice for the same period in a local newspaper published in or near to the location of the vessel or thing.

Marginal note:R.S., c. 1 (2nd Supp.), s. 213(1) (Sch. I, subitems 9(2) and (3))

 Sections 26 to 28 of the Act are repealed.

 Section 29 of the Act and the heading “Interpretation” before it are repealed.

 Section 30 of the Act is renumbered as subsection 30(1) and is amended by adding the following:

  • Marginal note:Incorporation by reference

    (2) The regulations may incorporate any material by reference, regardless of its source, either as it exists on a particular date or as amended from time to time.

  • Marginal note:Incorporated material not a regulation

    (3) Material does not become a regulation for the purposes of the Statutory Instruments Act because it is incorporated by reference.

 Section 31 of the Act is repealed.

 The Act is amended by adding the following after section 32:

PART IVADMINISTRATION AND ENFORCEMENT

Designation

Marginal note:Designation

33. For the purposes of the administration and enforcement of this Act and any regulation or order, the Minister may designate persons or classes of persons to exercise powers in relation to any matter referred to in the designation.

Powers

Marginal note:Authority to enter
  • 34. (1) A person who is designated to verify compliance or prevent non-compliance with this Act and any regulation or order may, for that purpose, at any reasonable time, enter a work, vessel or swing or draw bridge, or enter any other place in which they have reasonable grounds to believe the following items are located:

    • (a) a work or anything related to a work;

    • (b) a wreck, vessel, part of a vessel or other thing that obstructs or impedes navigation or renders it more difficult or dangerous, or that is likely to do so;

    • (c) a ferry cable or swing or draw bridge, or anything related to one.

  • Marginal note:Certification

    (2) On entering a place, the designated person shall, on request, produce to the person in charge of the place a certification in the form established by the Minister attesting to the designation.

  • Marginal note:Powers

    (3) The designated person may, for the purposes referred to in subsection (1),

    • (a) examine anything that is found in the place;

    • (b) remove any document or other thing from the place for examination or, in the case of a document, copying;

    • (c) direct any person to put into operation or cease operating any work, vessel or other conveyance, machinery or equipment in the place;

    • (d) prohibit or limit access to the place for as long as specified;

    • (e) take photographs and make video recordings and sketches;

    • (f) use or cause to be used any computer system or data processing system at the place to examine any data contained in, or available to, the system;

    • (g) reproduce any record, or cause it to be reproduced from the data, in the form of a printout or other intelligible output and remove the printout or other output for examination or copying; and

    • (h) use or cause to be used any copying equipment at the place to make copies of any books, records, electronic data or other documents.

  • Marginal note:Entry — private property

    (4) The designated person, in carrying out their functions under this section, and a person accompanying them may enter on and pass through or over private property without being liable for doing so.

Marginal note:Duty to assist

35. The owner or person who is in charge of a place that is entered under subsection 34(1) and every person who is in the place shall

  • (a) give a designated person who is carrying out their functions under section 34 all reasonable assistance; and

  • (b) provide them with any information that they may reasonably require.

Marginal note:Warrant for dwelling-house
  • 36. (1) If any place referred to in subsection 34(1) is a dwelling-house, the designated person may not enter it without the consent of the occupant except under the authority of a warrant issued under subsection (2).

  • Marginal note:Authority to issue warrant

    (2) On ex parte application, a justice of the peace may issue a warrant authorizing the person who is named in it to enter a dwelling-house, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that

    • (a) the dwelling-house is a place referred to in subsection 34(1);

    • (b) entry to the dwelling-house is necessary for the purpose of verifying compliance or preventing non-compliance with the Act and any regulation or order; and

    • (c) entry to the dwelling-house was refused by the occupant or there are reasonable grounds to believe that entry will be refused or consent to entry cannot be obtained from the occupant.

Prohibitions

Marginal note:False statements or information
  • 37. (1) No person shall knowingly, orally or in writing, make a false or misleading statement or provide false or misleading information, in connection with any matter under this Act, to a designated person who is carrying out their functions under section 34.

  • Marginal note:Obstruction

    (2) No person shall knowingly obstruct or hinder a designated person who is carrying out their functions under section 34.

Injunction

Marginal note:Injunction
  • 38. (1) If, on the application of the Minister, it appears to a court of competent jurisdiction that a person has done, is about to do or is likely to do any act constituting or directed toward the commission of an offence under this Act, the court may issue an injunction ordering a person named in the application

    • (a) to refrain from doing an act that, in the opinion of the court, may constitute or be directed toward the commission of the offence; or

    • (b) to do an act that, in the opinion of the court, may prevent the commission of the offence.

  • Marginal note:Notice

    (2) No injunction may be issued under subsection (1) unless 48 hours’ notice is served on the party or parties named in the application or the urgency of the situation is such that service would not be in the public interest.

Immunity

Marginal note:Not personally liable
  • 39. (1) Servants of the Crown, as those terms are defined in section 2 of the Crown Liability and Proceedings Act, are not personally liable for anything they do or omit to do in good faith under this Act.

  • Marginal note:Crown not relieved

    (2) Subsection (1) does not, by reason of section 10 of the Crown Liability and Proceedings Act, relieve the Crown of liability for a tort or extracontractual civil liability to which the Crown would otherwise be subject.

Offences and Punishment

Marginal note:Offence
  • 40. (1) Every person is guilty of an offence and is liable on summary conviction to imprisonment for a term of not more than six months or to a fine of not more than $50,000, or to both, if the person contravenes

    • (a) an order given under subsection 4(3), paragraph 6(1)(a) or (c) or subsection 19(1);

    • (b) an interim order made under section 13.1 or 32;

    • (c) an order or regulation made under section 12 or 30; or

    • (d) subsection 15(1) or section 21, 22, 35 or subsection 37(1) or (2).

  • Marginal note:Vessel liable for fine

    (2) If any materials referred to in section 22 are thrown from or deposited by a vessel and a conviction is obtained for that activity, the vessel is liable for any fine that is imposed and may be detained by any port warden or the chief officer of customs at any port until the fine is paid.

  • Marginal note:Continuing offence

    (3) If the offence under subsection (1) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.

PART VREVIEW

Marginal note:Review of Act
  • 41. (1) A review of the provisions and the operation of this Act must be completed by the Minister before the end of the fifth year after the day on which this section comes into force.

  • Marginal note:Tabling of report

    (2) The Minister shall cause a report of the review to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report has been completed.

2007, c. 1Consequential Amendment to the International Bridges and Tunnels Act

 Subsections 4(3) and (4) of the International Bridges and Tunnels Act are replaced by the following:

  • Marginal note:Application of other Acts

    (3) Nothing in this Act or any regulations made under it affects the application of any other Act of Parliament, including any requirement for a person to obtain a licence, permit or other authorization in respect of an international bridge or tunnel.

PART 8MISCELLANEOUS PROVISIONS

Division 1Wage Earner Protection Program

2005, c. 47, s. 1Wage Earner Protection Program Act

Marginal note:2007, c. 36, s. 83

 Subsection 2(1) of the Wage Earner Protection Program Act is replaced by the following:

Marginal note:Definitions
  • 2. (1) The following definitions apply in this Act.

    “eligible wages”

    « salaire admissible »

    “eligible wages” means

    • (a) wages other than severance pay and termination pay that were earned during the six-month period ending on the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer; and

    • (b) severance pay and termination pay that relate to employment that ended during the period referred to in paragraph (a).

    “wages”

    « salaire »

    “wages” includes salaries, commissions, compensation for services rendered, vacation pay, severance pay, termination pay and any other amounts prescribed by regulation.

Marginal note:2007, c. 36, s. 84
  •  (1) Paragraph 5(a) of the Act is replaced by the following:

    • (a) the individual’s employment ended for a reason prescribed by regulation;

  • (2) Section 5 is amended by adding “and” after paragraph (b) and by replacing paragraphs (c) and (d) with the following:

    • (c) the individual is owed eligible wages by the former employer.

Marginal note:2007, c. 36, s. 85

 The portion of section 6 of the Act before paragraph (a) is replaced by the following:

Marginal note:Exceptions

6. An individual is not eligible to receive a payment in respect of any wages earned during, or that otherwise relate to, a period in which the individual

Marginal note:2007, c. 36, s. 86

 Section 7 of the Act is replaced by the following:

Marginal note:Amount of payment
  • 7. (1) The amount that may be paid under this Act to an individual is the amount of eligible wages owing to the individual up to a maximum of the greater of the following amounts, less any amount prescribed by regulation:

    • (a) $3,000; and

    • (b) an amount equal to four times the maximum weekly insurable earnings under the Employment Insurance Act.

  • Marginal note:Bankruptcy and receivership

    (2) If the former employer is both bankrupt and subject to a receivership, the amount that may be paid is the greater of the amount determined in respect of the bankruptcy and the amount determined in respect of the receivership.

Marginal note:2007, c. 36, s. 89
  •  (1) Paragraphs 21(1)(a) and (b) of the Act are replaced by the following:

    • (a) identify each individual who is owed eligible wages;

    • (b) determine the amount of eligible wages owing to each individual;

  • Marginal note:2007, c. 36, s. 89

    (2) Paragraph 21(1)(d) of the Act is replaced by the following:

    • (d) provide the Minister and each individual other than one who is in a class prescribed by regulation with the information prescribed by regulation in relation to the individual and with the amount of eligible wages owing to the individual; and

Marginal note:2007, c. 36, s. 94
  •  (1) Paragraph 41(b) of the Act is replaced by the following:

    • (b) prescribing reasons for the purposes of paragraph 5(a);

  • Marginal note:2007, c. 36, s. 94

    (2) Paragraphs 41(d) and (e) of the Act are replaced by the following:

    • (d) prescribing an amount for the purposes of subsection 7(1);

    • (e) respecting the allocation of payments to the different components of wages;

  • Marginal note:2007, c. 36, s. 94

    (3) Paragraph 41(i) of the Act is replaced by the following:

    • (i) respecting the information that is to be provided by trustees and receivers to the Minister and to individuals for the purposes of paragraph 21(1)(d) and respecting the period during which and the manner in which that information is to be provided;

SOR/2008-222Wage Earner Protection Program Regulations

 Section 3 of the Wage Earner Protection Program Regulations is replaced by the following:

3. An individual’s employment has ended for the purposes of paragraph 5(a) of the Act if it has ended for any of the following reasons:

  • (a) the individual resigned or retired;

  • (b) the individual’s employment has terminated; or

  • (c) the term of the individual’s employment has expired.

  •  (1) The portion of section 6 of the French version of the Regulations before paragraph (a) is replaced by the following:

    6. Pour l’application du paragraphe 7(1) de la Loi, les sommes ci-après sont à défalquer :

  • (2) Paragraphs 6(a) and (b) of the Regulations are replaced by the following:

    • (a) any amount that the individual has received after the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer by virtue of his or her rights in respect of the eligible wages; and

    • (b) an amount equal to 6.82% of the amount determined under that subsection.

 Section 7 of the Regulations is repealed.

  •  (1) Paragraph 8(a) of the Regulations is replaced by the following:

    • (a) firstly, to wages other than those referred to in paragraphs (b) to (e);

  • (2) Paragraph 8(c) of the French version of the Regulations is replaced by the following:

    • c) l’indemnité de vacances;

  • (3) Section 8 of the Regulations is amended by striking out “and” after paragraph (b) and by adding the following after paragraph (c):

    • (d) fourthly, to termination pay; and

    • (e) lastly, to severance pay.

 Paragraph 9(b) of the Regulations is replaced by the following:

  • (b) on which the applicant’s employment ends for any of the reasons referred to in section 3; and

  •  (1) Paragraph 15(1)(c) of the Regulations is replaced by the following:

    • (c) the dates on which wages, other than severance pay or termination pay, were earned and the basis upon which they were calculated;

    • (c.1) the date on which any employment in respect of which severance pay or termination pay is owing ended;

  • (2) Paragraph 15(2)(a) of the Regulations is replaced by the following:

    • (a) 45 days from the date of bankruptcy or from the first day on which there was a receiver in relation to the former employer, as the case may be, unless circumstances beyond the control of the trustee or receiver necessitate a longer period; or

 Subsection 16(2) of the Regulations is replaced by the following:

  • (2) The trustee or receiver shall provide the information within 45 days from the date of bankruptcy or from the first day on which there was a receiver in relation to the former employer, as the case may be, unless circumstances beyond the control of the trustee or receiver necessitate a longer period.

R.S., c. B-3Consequential Amendments to the Bankruptcy and Insolvency Act

Marginal note:2005, c. 47, s. 67; 2007, c. 36, s. 38

 The definition rémunération in subsection 81.3(9) of the French version of the Bankruptcy and Insolvency Act is replaced by the following:

« rémunération »

“compensation”

rémunération S’entend notamment de l’indemnité de vacances, mais non de l’indemnité de départ ou de préavis.

Marginal note:2005, c. 47, s. 67; 2007, c. 36, s. 38

 The definition rémunération in subsection 81.4(9) of the French version of the Act is replaced by the following:

« rémunération »

“compensation”

rémunération S’entend notamment de l’indemnité de vacances, mais non de l’indemnité de départ ou de préavis.

Transitional Provision

Marginal note:Application

 The provisions of the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations as amended by sections 342 to 354 apply

  • (a) in respect of wages owing to an individual by an employer who becomes bankrupt after January 26, 2009; and

  • (b) in respect of wages owing to an individual by an employer any of whose property comes under the possession or control of a receiver within the meaning of subsection 243(2) of the Bankruptcy and Insolvency Act after January 26, 2009.

Division 2Federal Financial Assistance for Students

1994, c. 28Canada Student Financial Assistance Act

 Subparagraph 5(a)(iii) of the English version of the Canada Student Financial Assistance Act is replaced by the following:

  • (iii) principal and interest on a student loan made by the lender to a borrower whose obligations in respect of the loan are terminated in the circumstances set out in section 10 or 11,

Marginal note:2000, c. 14, s. 17

 Subsection 6.1(2) of the Act is replaced by the following:

  • Marginal note:Financial terms and conditions

    (2) Any terms and conditions in the agreement that could have a financial impact on Her Majesty in right of Canada are subject to approval by the Governor in Council, on the recommendation of the Minister with the concurrence of the Minister of Finance.

 The Act is amended by adding the following after section 6.3:

Marginal note:Suspension or denial of financial assistance

6.4 The Minister may suspend or deny the provision of financial assistance to all those who are qualifying students in relation to a designated educational institution if the Minister is satisfied that there are compelling reasons to believe that the provision of the financial assistance would

  • (a) facilitate the commission by the designated educational institution of an offence under this Act or any other Act of Parliament; or

  • (b) expose the qualifying students or Her Majesty in right of Canada to significant financial risk.

 Section 10 of the Act is replaced by the following:

Marginal note:Death of borrower
  • 10. (1) All obligations of a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the borrower dies, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

  • Marginal note:Death of borrower before this subsection in force

    (2) If a borrower dies before this subsection comes into force, then all obligations of that borrower in respect of such a student loan terminate on the day on which this subsection comes into force.

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

Marginal note:Requirement to provide information or documents
  • 16.3 (1) For the purpose of verifying compliance or preventing non-compliance with this Act, the Minister may, by notice served personally or by confirmed delivery service, require any person who has received financial assistance to provide to the Minister, within the time and in the manner that are stipulated in the notice, any information or document that is in their possession or to which they could reasonably be expected to have access.

  • Marginal note:Copies as evidence

    (2) When a document is provided in accordance with subsection (1), the Minister may make, or cause to be made, one or more certified copies of it and any such copy is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.

 Section 17 of the Act is replaced by adding the following:

Marginal note:False statement or information
  • 17. (1) Every person who, in respect of a student loan or other financial assistance to a student, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, is guilty of an offence and liable on summary conviction to a fine not exceeding $1,000.

  • Marginal note:Limitation period

    (2) A prosecution for an offence under this Act may not be instituted later than six years after the time when the subject matter of the complaint arose.

Marginal note:Administrative measures
  • 17.1 (1) If a person, in respect of a student loan or other financial assistance to a student, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, the Minister may

    • (a) deny the person financial assistance or a certificate of eligibility for a prescribed period;

    • (b) deny the person an interest-free period referred to in subsection 7(1) for a prescribed period, or terminate the interest-free period;

    • (c) deny the person the deferral of payments of principal or interest under section 8 for a prescribed period, or terminate the deferral;

    • (d) deny the person payments of interest under subsection 9(2) for a prescribed period, or terminate the payments;

    • (e) deny the person a gratuitous payment referred to in paragraph 15(1)(l);

    • (f) deny the person special interest-free or interest-reduced periods referred to in paragraph 15(1)(n) for a prescribed period, or terminate the interest-free period or the interest-reduced period;

    • (g) deny the person repayment of a student loan on an income-contingent basis referred to in paragraph 15(1)(o) for a prescribed period, or terminate repayment on an income-contingent basis;

    • (h) require the person to immediately repay any outstanding amount of a student loan that they obtained by reason of the false statement or misrepresentation or the false or misleading information; or

    • (i) require the person to immediately repay any grant that they obtained by reason of the false statement or misrepresentation or the false or misleading information.

  • Marginal note:Outstanding student loans

    (2) If, before the day on which this section comes into force, a person knowingly made any false statement or misrepresentation, including by omission, in an application or other document or knowingly provided any false or misleading information, including by omission, in respect of a student loan that is outstanding on that day, the Minister may take any measure set out in paragraphs (1)(a) to (h).

  • Marginal note:Notice

    (3) The Minister may not take any measure under subsection (1) or (2) without having given the person 60 days’ notice of the Minister’s intention to take the measure.

  • Marginal note:Submissions

    (4) The person may make submissions to the Minister in respect of the measure at any time.

  • Marginal note:Rescission or modification of measure

    (5) The Minister may rescind or modify a measure taken under subsection (1) or (2) if new facts are presented or the Minister considers that the measure was taken without knowledge of some material fact or on the basis of a mistake concerning one.

  • Marginal note:Limitation

    (6) The Minister may not take any measure under subsection (1) or (2) later than five years after the day on which the Minister becomes aware of the false statement or misrepresentation or the false or misleading information.

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

Marginal note:Chief Actuary to report
  • 19.1 (1) The Chief Actuary of the Office of the Superintendent of Financial Institutions shall, no later than July 31, 2009, prepare and submit to the Minister a report on financial assistance provided under this Act in the loan year that ended on July 31, 2008.

  • Marginal note:Subsequent reports

    (2) The Chief Actuary shall, no later than three years after the end of the loan year during which he or she previously submitted a report to the Minister under subsection (1) or under this subsection, prepare and submit to the Minister a subsequent report on financial assistance provided under this Act in the loan year or years since the last loan year covered by the previous report. The report shall cover a period that ends on the end of the loan year that precedes the submission of the report.

  • Marginal note:Contents of report

    (3) The Chief Actuary shall include the following in a report made under this section:

    • (a) an actuarial estimate of the current costs of financial assistance provided under this Act, and of revenues from that assistance;

    • (b) an actuarial forecast of the costs of financial assistance that is to be provided under this Act for the 25 years that follow the last loan year that is covered by the report, and of revenues from that assistance; and

    • (c) an explanation of all of the actuarial and economic assumptions and the actuarial methodology used in the preparation of the report.

  • Marginal note:Report to be laid before Parliament

    (4) The Minister shall cause the report to be laid before the Senate and the House of Commons on the day after the day on which the report is submitted or, if that House is not then sitting, on any of the first 15 days afterwards that it is sitting.

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

 Section 12 of the Canada Student Loans Act is replaced by the following:

Marginal note:Death of borrower
  • 12. (1) All obligations of a borrower in respect of a guaranteed student loan terminate if the borrower dies, and the Minister shall pay to any lender whose rights against the borrower are terminated under this section the amount of principal and interest determined in the prescribed manner to have been payable by the borrower on the day of the borrower’s death.

  • Marginal note:Undisclosed death of borrower

    (2) If the borrower dies and notice of the borrower’s death is not received by the lender within 30 days after the day of death, then, despite subsection (1), the day on which the amount is determined in the prescribed manner to have been payable is a day that is fixed by the Minister in accordance with the regulations.

  • Marginal note:Disappearance of borrower

    (3) If a borrower disappears under circumstances that, in the opinion of the Minister, raise a presumption that the borrower is dead, then all the borrower’s obligations in respect of a guaranteed student loan terminate on the day on which the Minister forms that opinion, and the Minister shall pay to any lender whose rights against the borrower are terminated under this subsection the amount of principal and interest determined in the prescribed manner to have been payable by the borrower on a day that is fixed by the Minister in accordance with the regulations.

  • Marginal note:Death of borrower before this subsection comes into force

    (4) If, before the day on which this subsection comes into force, a borrower dies or the Minister forms an opinion under paragraph (2)(b) as it read immediately before that day, then all the borrower’s obligations in respect of a guaranteed student loan terminate on that day.

  • Marginal note:Date fixed is after this subsection comes into force

    (5) However, if the Minister fixes a day under subsection (2) — as it read immediately before this subsection comes into force — that is later than the day on which this subsection comes into force, then the day that is fixed is the day on which the amount of principal and interest is determined in the prescribed manner to be payable under subsection (2) or (3).

 Section 18 of the Act is replaced by the following:

Marginal note:False statement or information
  • 18. (1) Every person who, in respect of a guaranteed student loan, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, is guilty of an offence under this Act and liable on summary conviction to a fine not exceeding $1,000.

  • Marginal note:Limitation period

    (2) A prosecution for an offence under this Act may not be instituted later than six years after the time when the subject matter of the complaint arose.

ADMINISTRATIVE MEASURES

Marginal note:Administrative measures
  • 18.1 (1) If a person, in respect of a guaranteed student loan, knowingly makes any false statement or misrepresentation, including by omission, in an application or other document or knowingly provides any false or misleading information, including by omission, the Minister may

    • (a) deny the person an interest-free period under section 4 or a special interest-free period under section 10 for a prescribed period, or terminate the interest-free period or the special interest-free period;

    • (b) deny the person the deferral of payments of principal or interest under section 5 for a prescribed period, or terminate the deferral;

    • (c) deny the person payments of interest under subsection 5.1(2) for a prescribed period, or terminate the payments;

    • (d) deny the person repayment of a guaranteed student loan on an income-contingent basis referred to in paragraph 17(q) for a prescribed period, or terminate repayment on an income-contingent basis;

    • (e) deny the person a gratuitous payment referred to in paragraph 17(q.1); or

    • (f) require the person to immediately repay any outstanding amount of a guaranteed student loan that they obtained by reason of the false statement or misrepresentation or the false or misleading information.

  • Marginal note:Outstanding student loans

    (2) If, before the day on which this section comes into force, a person knowingly made any false statement or misrepresentation, including by omission, in an application or other document or knowingly provided any false or misleading information, including by omission, in respect of a guaranteed student loan that is outstanding on that day, the Minister may take any measure set out in paragraphs (1)(a) to (f).

  • Marginal note:Notice

    (3) The Minister may not take any measure under subsection (1) or (2) without having given the person 60 days’ notice of the Minister’s intention to take the measure.

  • Marginal note:Submissions

    (4) The person may make submissions to the Minister in respect of the measure at any time.

  • Marginal note:Rescission or modification of measure

    (5) The Minister may rescind or modify a measure taken under subsection (1) or (2) if new facts are presented or the Minister considers that the measure was taken without knowledge of some material fact or on the basis of a mistake concerning one.

  • Marginal note:Limitation

    (6) The Minister may not take any measure under subsection (1) or (2) later than five years after the day on which the Minister becomes aware of the false statement or misrepresentation or the false or misleading information.

 The Act is amended by adding the following after section 19.2:

Marginal note:Requirement to provide information or documents
  • 19.3 (1) For the purpose of verifying compliance or preventing non-compliance with this Act, the Minister may, by notice served personally or by confirmed delivery service, require any person who has received a guaranteed student loan to provide to the Minister, within the time and in the manner that are stipulated in the notice, any information or document that is in their possession or to which they could reasonably be expected to have access.

  • Marginal note:Copies as evidence

    (2) When a document is provided in accordance with subsection (1), the Minister may make, or cause to be made, one or more certified copies of it and any such copy is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.

2008, c. 28Consequential Amendment to the Budget Implementation Act, 2008

 Section 105 of the Budget Implementation Act, 2008 is repealed.

Division 3Crown Corporations

R.S., c. F-11Financial Administration Act

Marginal note:2006, c. 9, s. 262(3)

 Subsections 85(1.1) and (1.2) of the Financial Administration Act are replaced by the following:

  • Marginal note:Exempted Crown corporations

    (1.1) Divisions I to IV, except for subsection 105(2) and sections 113.1, 119, 131 to 148 and 154.01, do not apply to the Canada Council for the Arts, the Canadian Broadcasting Corporation, the International Development Research Centre or the National Arts Centre Corporation.

  • Marginal note:Exemption for Telefilm Canada

    (1.2) Divisions I to IV, except for subsection 105(2) and sections 113.1, 119, 131 to 148 and 154.01 and subject to subsection 21(2) of the Telefilm Canada Act, do not apply to Telefilm Canada.

  •  (1) The portion of subsection 99(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Disposal of property

      (2) Subject to this section and sections 90, 91 and 130, an agent corporation may sell or otherwise dispose of or lease any property held by the corporation and may retain and use the proceeds of the disposal or lease, but only

  • (2) The portion of subsection 99(3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Exception

      (3) Subsection (2) does not apply in respect of any sale or other disposal or lease of property by an agent corporation established by an Act of Parliament, if the corporation is specifically empowered by that Act or any other Act of Parliament

  • (3) Paragraphs 99(3)(a) and (b) of the English version of the Act are replaced by the following:

    • (a) to sell or otherwise dispose of or lease property; or

    • (b) to sell or otherwise dispose of or lease property for consideration not exceeding a specified amount and the sale or other disposal or lease of the property is for consideration equal to or less than the specified amount.

  • (4) Paragraphs 99(4)(a) and (b) of the Act are replaced by the following:

    • (a) prescribing the terms and conditions on which an agent corporation may sell or otherwise dispose of or lease property;

    • (b) prescribing the circumstances in which an agent corporation may retain and use all or any part of the proceeds of any disposal or lease of property; and

  • (5) Subsection 99(5) of the Act is replaced by the following:

    • Marginal note:Terms and conditions

      (5) The Governor in Council may, in any authorizing order under subsection (2), specify any terms and conditions that the Governor in Council considers appropriate, including terms and conditions respecting the retention and use of all or any part of the proceeds of the disposal or lease by the agent corporation.

 Subsection 105(2) of the Act is replaced by the following:

  • Marginal note:Officer or employee not to be director

    (2) No officer or employee of a Crown corporation or any of its affiliates, other than the chief executive officer of a parent Crown corporation, shall be a director of the parent Crown corporation.

  • Marginal note:Transitional provision

    (2.1) Any officer or employee of a Crown corporation or any of its affiliates, other than the chief executive officer of a parent Crown corporation, who was a director of the parent Crown corporation immediately before the day on which this subsection comes into force may continue as a director of that corporation for six months after that day or, if it is shorter, the remainder of his or her term.

 The Act is amended by adding the following after section 113:

Marginal note:Public meeting
  • 113.1 (1) The board of directors of a parent Crown corporation shall hold a public meeting within 18 months after the day on which the board holds its first meeting or, if it is later, the day on which this section comes into force and, subsequently, within 15 months after the day on which the last preceding public meeting was held.

  • Marginal note:By-laws

    (2) The meeting shall be held in Canada in the manner provided for in the by-laws or, if no manner is provided for, in the manner determined by the board of directors.

  • Marginal note:Notice of meeting

    (3) The corporation shall publish a notice of the meeting at least 30 days before the day on which the meeting is to be held. The notice shall indicate the location, if any, and the date and time of the meeting, the means of participating in the meeting and how copies of the corporation’s most recent annual report may be obtained.

  • Marginal note:Director and chief executive officer to attend

    (4) One or more directors of the corporation and its chief executive officer, whether or not he or she is a director of the corporation, shall participate in the meeting to answer questions from the public.

Marginal note:1991, c. 24, s. 34
  •  (1) The portion of subsection 119(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Obligation to indemnify
    • 119. (1) The Treasury Board shall, in accordance with the regulations, if any, indemnify a present or former director or officer of a Crown corporation or a person who acts or acted at the request of a Minister or a Crown corporation as a director or officer of another corporation, and his or her heirs and legal representatives, against the costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, that are reasonably incurred by him or her in respect of any civil, criminal, administrative or investigative action or proceeding to which he or she is a party by reason of being or having been such a director or officer, if he or she

  • (2) Section 119 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Advance of costs

      (1.1) The Treasury Board shall, in accordance with the regulations, if any, advance moneys to any individual referred to in subsection (1) for the costs, charges and expenses of an action or proceeding referred to in that subsection unless there are reasonable grounds to believe that the individual does not fulfil the conditions set out in paragraph (1)(a) or (b). The individual shall repay the moneys if he or she does not fulfil those conditions.

  • Marginal note:1991, c. 24, s. 34

    (3) The portion of subsection 119(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Entitlement to indemnification

      (2) Despite anything in this section, a director or officer referred to in subsection (1) is, and his or her heirs and legal representatives are, entitled to indemnity, in accordance with the regulations, if any, from the Treasury Board in respect of the costs, charges and expenses reasonably incurred by him or her in connection with the defence of any civil, criminal, administrative or investigative action or proceeding to which he or she was made a party by reason of being or having been such a director or officer, if he or she

  • Marginal note:1991, c. 24, s. 34

    (4) Subsection 119(3) of the Act is replaced by the following:

    • Marginal note:Regulations

      (3) The Treasury Board may make regulations

      • (a) respecting indemnification and advances under this section, including terms and conditions governing them;

      • (b) defining, for the purposes of this section, the meaning of any word or expression used in it that is not defined in this Act;

      • (c) prescribing circumstances in which a director or officer is presumed not to have fulfilled the condition set out in paragraph (1)(a); and

      • (d) respecting the determination of the amounts to be paid as indemnification or advances under this section.

 Subsection 138(2) of the Act is replaced by the following:

  • Marginal note:Time for examination

    (2) A special examination shall be carried out at least once every 10 years and at any additional times that the Governor in Council, the appropriate Minister, the board of directors of the corporation to be examined or the Auditor General of Canada may require.

 Section 139 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Report to Minister and President of the Treasury Board

    (3) The board of directors shall, within 30 days after the day on which it receives the report, submit the report to the appropriate Minister and the President of the Treasury Board.

  • Marginal note:Report available to public

    (4) The board of directors shall, within 60 days after the day on which it receives the report, make the report available to the public.

Consequential Amendments

R.S., c. C-2; 2001, c. 34, s. 14(E)Canada Council for the Arts Act

 Section 5 of the Canada Council for the Arts Act is renumbered as subsection 5(1) and is amended by adding the following:

  • Marginal note:Chief executive officer

    (2) The Director is the chief executive officer of the Council.

2008, c. 28, s. 121Canada Employment Insurance Financing Board Act

 Subsection 9(6) of the Canada Employment Insurance Financing Board Act is amended by adding the following after paragraph (e):

  • (e.1) a person who is an employee of the Board;

R.S., c. C-10Canada Post Corporation Act

 Section 8 of the Canada Post Corporation Act is amended by adding the following after subsection (1):

  • Marginal note:Chief executive officer

    (1.1) The President is the chief executive officer of the Corporation.

R.S., c. C-15Canadian Dairy Commission Act

 Subsection 3(3) of the Canadian Dairy Commission Act is repealed.

1991, c. 8Canadian Race Relations Foundation Act

Marginal note:2006, c. 9, s. 244

 Subsection 17(3) of the Canadian Race Relations Foundation Act is replaced by the following:

1999, c. 34Public Sector Pension Investment Board Act

Marginal note:2006, c. 9, s. 295

 Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following:

  • Marginal note:Financial Administration Act

    (6) Part X of the Financial Administration Act, except for sections 113.1, 132 to 147 and 154.01, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act.

 Subsection 6(2) of the Act is amended by adding the following after paragraph (d):

  • (d.1) a person who is an employee of the Board;

PART 9PAYMENTS TO PROVINCES

R.S., c. F-8; 1995, c. 17, s. 45(1)Federal-Provincial Fiscal Arrangements Act

 The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 3.1:

Marginal note:Fiscal year 2009–2010

3.11 Subject to subsection 3.7(3), the fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2009 is equal to,

  • (a) for Ontario, $347,029,000;

  • (b) for Quebec, $8,354,501,000;

  • (c) for Nova Scotia, $1,390,747,000;

  • (d) for New Brunswick, $1,689,410,000;

  • (e) for Manitoba, $2,063,394,000;

  • (f) for British Columbia, $0;

  • (g) for Prince Edward Island, $339,919,000;

  • (h) for Saskatchewan, $0;

  • (i) for Alberta, $0; and

  • (j) for Newfoundland and Labrador, $0.

 Section 3.2 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Fiscal year 2009–2010

    (4) Despite subsections (1) and (2), for the fiscal year beginning on April 1, 2009, the fiscal equalization payment that would be received by Nova Scotia or Newfoundland and Labrador, as the case may be, if the amount of that payment were determined in accordance with this section is $1,645,198,000 for Nova Scotia and $856,986,000 for Newfoundland and Labrador.

Marginal note:2007, c. 29, s. 62

 Section 3.4 of the Act is replaced by the following:

Marginal note:Less than 50% of population
  • 3.4 (1) If the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is less than 50% of the aggregate of the average annual population of all provinces for that fiscal year and if the amount that may be paid to a province for that fiscal year under section 3.2 would, if paid, result in that province having, in that fiscal year, a total per capita fiscal capacity that is greater than the per capita equalized fiscal capacity of any province that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a), the fiscal equalization payment that may be paid to that province for that fiscal year determined under section 3.2 shall be reduced by the amount determined by the formula

    (A – B) × C

    where

    A 
    is the total per capita fiscal capacity of that province for that fiscal year;
    B 
    is the per capita equalized fiscal capacity for that fiscal year of the province that has the lowest per capita equalized fiscal capacity for that fiscal year and that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a); and
    C 
    is the average annual population of that province for that fiscal year.
  • Marginal note:50% or more of population

    (2) If the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is 50% or more of the aggregate of the average annual population of all provinces for that fiscal year, the fiscal equalization payment that may be paid to a province for that fiscal year determined under section 3.2 shall be reduced by the greater of the following amounts:

    • (a) zero, and

    • (b) the amount determined by the formula

      (A – B) × C

      where

      A 
      is the total per capita fiscal capacity of that province for that fiscal year,
      B 
      is the quotient obtained by dividing the aggregate of the equalized fiscal capacity of all provinces to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), by the aggregate of the average annual population of all of those provinces for that fiscal year, and
      C 
      is the average annual population of that province for that fiscal year.
  • Marginal note:Re-calculation

    (3) If, as a result of the application of subsection (2), the amount of the fiscal equalization payment that may be paid to any province for a fiscal year is reduced to zero, that subsection applies again, but the description of B in that subsection does not include, for that fiscal year, the equalized fiscal capacity and the average annual population of any province to which the amount of the fiscal equalization payment is reduced to zero.

  • Marginal note:Multiple applications

    (4) For greater certainty, subsection (3) applies after each application of subsection (2).

  • Marginal note:Aggregate payment

    (5) The aggregate of the fiscal equalization payments that would be paid for a fiscal year beginning after March 31, 2010, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), shall be equal to the amount determined by the formula

    A × (1 + B)

    where

    A 
    is, for the fiscal year beginning on April 1, 2010, $14,185,000,000 and, for a fiscal year beginning after March 31, 2011, the amount determined under this subsection for the previous fiscal year; and
    B 
    is the average of the annual rates of growth of the nominal gross domestic product of Canada, as determined by the Minister, for the calendar year that ends during the fiscal year in question and for the two previous calendar years.
  • Marginal note:Calculation

    (6) If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), exceeds the amount determined under subsection (5), the fiscal equalization payment that may be paid to a province for that fiscal year determined under subsections (1) to (4) and section 3.2 shall be reduced by the amount determined by the formula

    A × B

    where

    A 
    is the lesser of the per capita equalization payment for that province for that fiscal year and the per capita reduction; and
    B 
    is the average annual population of that province for that fiscal year.
  • Marginal note:Per capita calculation

    (7) For the purposes of subsection (6), the Minister shall determine the per capita reduction for a fiscal year and shall, in making that determination, ensure that the aggregate of the reductions referred to in that subsection is equal to the amount determined by the formula

    A – B

    where

    A 
    is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2); and
    B 
    is the amount determined under subsection (5).
  • Marginal note:Adjustment payment

    (8) If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), is less than the amount determined under subsection (5), there may be paid to a province for that fiscal year an adjustment payment that is,

    • (a) in the case of a province to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under subsections (1) to (4) and section 3.2, the amount determined by the formula

      A × B

      where

      A 
      is the per capita adjustment for that fiscal year, and
      B 
      is the average annual population of that province for that fiscal year; and
    • (b) in any other case, the greater of zero and the amount determined by the formula

      (C + D – E) × F

      where

      C 
      is the per capita pre-adjustment equalized fiscal capacity for that fiscal year of the province that has the greatest per capita pre-adjustment equalized fiscal capacity for that fiscal year of the provinces referred to in paragraph (a),
      D 
      is the per capita adjustment for that fiscal year,
      E 
      is the per capita pre-adjustment equalized fiscal capacity of the province in question for that fiscal year, and
      F 
      is the average annual population of the province in question for that fiscal year.
  • Marginal note:Per capita adjustment

    (9) For the purposes of subsection (8), the Minister shall determine the per capita adjustment for a fiscal year and shall, in making that determination, ensure that the aggregate of the adjustment payments referred to in that subsection is equal to the amount determined by the formula

    A – B

    where

    A 
    is the amount determined under subsection (5); and
    B 
    is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2).
  • Marginal note:Section 3.6

    (10) No adjustment payment shall be paid for a fiscal year to a province to which section 3.6 applies for that fiscal year.

 Subsection 3.5(1) of the Act is amended by adding the following in alphabetical order:

“equalized fiscal capacity”

« capacité fiscale après péréquation »

“equalized fiscal capacity” means, in respect of a province for a fiscal year, the product obtained by multiplying the per capita equalized fiscal capacity of that province for that fiscal year by the average annual population of that province for that fiscal year.

“per capita equalization payment”

« paiement de péréquation par habitant »

“per capita equalization payment” means, in respect of a province for a fiscal year, the quotient obtained by dividing the fiscal equalization payment that would be paid to that province for that fiscal year, if the amount of that payment were determined under section 3.2 and subsections 3.4(1) to (4) as if that province had not made an election under subsection 3.2(2), by the average annual population of that province for that fiscal year.

“per capita equalized fiscal capacity”

« capacité fiscale par habitant après péréquation »

“per capita equalized fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula

A + B + (C / F)

where

A, 
B and F have the same meaning as the descriptions of A, B and F, respectively, in the definition “total per capita fiscal capacity”; and
C 
is any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a).

“per capita pre-adjustment equalized fiscal capacity”

« capacité fiscale par habitant après péréquation et avant rajustement »

“per capita pre-adjustment equalized fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula

A + B + C + [(D + E) / F]

where

A, 
B, D, E and F have the same meaning as the descriptions of A, B, D, E and F, respectively, in the definition “total per capita fiscal capacity”; and
C 
is the per capita equalization payment for that province for that fiscal year.
Marginal note:2007, c. 29, s. 62

 Subsection 3.7(3) of the Act is replaced by the following:

  • Marginal note:Election for subsequent fiscal years

    (3) Nova Scotia or Newfoundland and Labrador, as the case may be, may elect, at the prescribed time and in the prescribed manner, that the amount of the fiscal equalization payment that may be paid to that province

    • (a) for the fiscal year beginning on April 1, 2008, be determined under sections 3.2 and 3.4 as they read immediately before the day on which this subsection comes into force, rather than under subsection 3.6(1);

    • (b) for the fiscal year beginning on April 1, 2009, be the amount set out in section 3.11, rather than the amount determined under subsection 3.6(1); or

    • (c) for any fiscal year beginning after March 31, 2010, be determined under sections 3.2 and 3.4, rather than under subsection 3.6(1).

 Section 24.2 of the Act is renumbered as subsection 24.2(1) and is amended by adding the following:

  • Marginal note:Fiscal year 2009–2010

    (2) Despite subsection (1), the cash contribution established under paragraph 24.1(1)(a) that may be provided to a province for the fiscal year beginning on April 1, 2009 is

    • (a) for Ontario, $9,233,217,000;

    • (b) for Quebec, $5,798,516,000;

    • (c) for Nova Scotia, $700,137,000;

    • (d) for New Brunswick, $557,488,000;

    • (e) for Manitoba, $903,325,000;

    • (f) for British Columbia, $3,353,843,000;

    • (g) for Prince Edward Island, $104,364,000;

    • (h) for Saskatchewan, $843,451,000;

    • (i) for Alberta, $1,961,782,000;

    • (j) for Newfoundland and Labrador, $450,450,000;

    • (k) for Yukon, $26,457,000;

    • (l) for the Northwest Territories, $26,824,000; and

    • (m) for Nunavut, $27,208,000.

Marginal note:2007, c. 29, s. 71
  •  (1) Subsections 24.7(1.2) and (1.3) of the Act are replaced by the following:

    • Marginal note:Total equalized tax transfer — fiscal years 2007–2008 to 2010–2011

      (1.2) The total equalized tax transfer applicable to a province for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2011 is the aggregate of

      • (a) the total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year, and

      • (b) in the case of a territory, zero, and in the case of a province, the amount equal to the lesser of

        • (i) the equalization payment payable to that province for that fiscal year under Part I, and

        • (ii) an amount equal to the greater of

          • (A) the product obtained by multiplying

            • (I) the aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition “revenue source” in subsection 3.9(1), the per capita yield of the federal income tax reduction for that province for that fiscal year from the per capita national yield of the federal income tax reduction for that fiscal year

            by

            • (II) the population of that province for that fiscal year, and

          • (B) zero.

    • Marginal note:Total equalized tax transfer — fiscal year 2009–2010

      (1.21) Despite subsection (1.2), the total equalized tax transfer applicable to a province for the fiscal year beginning on April 1, 2009 is

      • (a) for Ontario, $5,531,594,000;

      • (b) for Quebec, $3,007,447,000;

      • (c) for Nova Scotia, $363,132,000;

      • (d) for New Brunswick, $289,145,000;

      • (e) for Manitoba, $468,518,000;

      • (f) for British Columbia, $1,649,531,000;

      • (g) for Prince Edward Island, $54,129,000;

      • (h) for Saskatchewan, $302,432,000;

      • (i) for Alberta, $2,129,928,000;

      • (j) for Newfoundland and Labrador, $123,276,000;

      • (k) for Yukon, $11,131,000;

      • (l) for the Northwest Territories, $22,794,000; and

      • (m) for Nunavut, $8,510,000.

    • Marginal note:Total equalized tax transfer — fiscal year 2011-2012 and later

      (1.22) The total equalized tax transfer applicable to a province for each fiscal year beginning after March 31, 2011 is the aggregate of the total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year and

      • (a) in the case of a province that receives an equalization payment for that fiscal year under Part I and in the case of Ontario, an amount equal to the lesser of

        • (i) the equalization payment payable to that province for that fiscal year under Part I, and

        • (ii) the amount equal to the product obtained by multiplying

          • (A) the aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition “revenue source” in subsection 3.9(1), the per capita yield of the federal income tax reduction for that province for that fiscal year from the per capita national yield of the federal income tax reduction for that fiscal year

          by

          • (B) the population of that province for that fiscal year; or

      • (b) in any other case, zero.

    • Marginal note:Revenue sources

      (1.3) For the purposes of the calculation under subparagraph (1.2)(b)(ii) and paragraph (1.22)(a), the relevant revenue bases, per capita yield of the federal income tax reduction and per capita national yield of the federal income tax reduction are to be determined in the prescribed manner.

  • Marginal note:2007, c. 29, s. 71(7)

    (2) The portion of subsection 24.7(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Federal income tax reduction

      (2) For the purposes of subsections (1), (1.2) and (1.22), the amount represented by the federal income tax reduction in a province in respect of the Canada Health Transfer and the Canada Social Transfer for a fiscal year is an amount equal to the aggregate of

 The Act is amended by adding the following after section 24.701:

Marginal note:Payments to Ontario

24.702 The Minister may pay to Ontario an additional cash payment equal to

  • (a) for the fiscal year beginning on April 1, 2009, the amount of $489,058,000; and

  • (b) for the fiscal year beginning on April 1, 2010, the amount determined by the formula

    -1 × A × B

    where

    A 
    is the amount determined for Ontario under subparagraph 24.7(1.2)(b)(i) for that fiscal year, and
    B 
    is the population of Ontario for that fiscal year.
Marginal note:2007, c. 29, s. 73

 Paragraph 40(a.1) of the Act is replaced by the following:

  • (a.1) respecting the information that must be prepared and submitted by the Chief Statistician of Canada for the purposes of Parts I, I.1, V and V.1;

Payment to Nova Scotia

Marginal note:Payment of $74,188,000

 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of seventy-four million and one hundred and eighty-eight thousand dollars to Nova Scotia.

PART 10EXPENDITURE RESTRAINT ACT

Marginal note:Enactment of Act

 The Expenditure Restraint Act, whose text is as follows and whose Schedules 1 and 2 are set out in Schedule 11 to this Act, is hereby enacted:

An Act to restrain the Government of Canada’s expenditures in relation to employment

SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Expenditure Restraint Act.

INTERPRETATION

Marginal note:Definitions

2. The following definitions apply in this Act.

“additional remuneration”

« rémunération additionnelle »

“additional remuneration” means any allowance, bonus, differential or premium or any payment to employees that is similar to any of those payments.

“arbitral award”

« décision arbitrale »

“arbitral award” means an arbitral award governing employees to whom this Act applies.

“bargaining agent”

« agent négociateur »

“bargaining agent” has the same meaning

“collective agreement”

« convention collective »

“collective agreement” means a collective agreement governing employees to whom this Act applies.

“Her Majesty”

« Sa Majesté »

“Her Majesty” means Her Majesty in right of Canada.

“National Joint Council”

« Conseil national mixte »

“National Joint Council” has the same meaning as in subsection 4(1) of the Public Service Labour Relations Act.

“rate of pay”

« taux de salaire »

“rate of pay” means a base rate of pay, whether expressed as a single rate of pay or a range of rates of pay — or, if no such rate or range exists, any fixed or ascertainable amount of base pay — but does not include any additional remuneration.

“restraint period”

« période de contrôle »

“restraint period” means the period that begins on April 1, 2006 and ends on March 31, 2011.

Marginal note:Deemed bonus

3. For the purpose of this Act, any lump sum that an employer is required by an arbitral award to pay to employees is deemed to be a bonus.

Marginal note:National Joint Council recommendations

4. Any reference in this Act to additional remuneration does not include any additional remuneration that is provided for by a directive, policy, regulation, agreement or other instrument issued or made

  • (a) on the recommendation of the National Joint Council and with the employer’s approval; or

  • (b) unilaterally by an employer in respect of a subject matter that, in the opinion of the Treasury Board, is the same as or is related to the subject matter of any instrument made in accordance with paragraph (a).

Marginal note:When certain collective agreements are deemed to have been entered into
  • 5. (1) For the purpose of this Act, a collective agreement is deemed to have been entered into before December 8, 2008 if it was actually entered into on or after that date but its parties had, before that date, agreed in writing to enter into it with effect on the expiry of a previous collective agreement and they entered into it without alteration.

  • Marginal note:When provisions of certain terms and conditions of employment are deemed to have been established

    (2) If subsection (1) applies in respect of a collective agreement and terms and conditions of employment were established on or after December 8, 2008, the provisions of those terms and conditions of employment that are identical in all material respects to those of the collective agreement and that are applicable to non-represented and excluded employees that normally have terms and conditions of employment that are similar to those of the employees governed by the collective agreement are, for the purposes of this Act, deemed to have been made before December 8, 2008.

EFFECTS OF ACT

Marginal note:Right to bargain collectively

6. Subject to the other provisions of this Act, the right to bargain collectively under the Canada Labour Code, the Parliamentary Employment and Staff Relations Act and the Public Service Labour Relations Act is continued.

Marginal note:Right to strike

7. Nothing in this Act affects the right to strike under the Canada Labour Code or the Public Service Labour Relations Act.

Marginal note:Amendments permitted

8. Nothing in this Act precludes the bargaining agent for employees governed by a collective agreement or arbitral award and the employer of those employees from amending, by agreement in writing, any provision of the collective agreement or arbitral award, other than a provision relating to its term, so long as the amendment is not contrary to any provision of this Act.

Marginal note:Workplace improvements

9. Nothing in this Act precludes the co-development of workplace improvements by bargaining agents and employers under the auspices of the National Joint Council or any other body that they may agree on.

Marginal note:Incremental and merit increases

10. Nothing in this Act is to be construed as precluding the entitlement of any employee to incremental increases — including any based on the attainment of further qualifications or the acquisition of further skills — or to merit or performance increases, in-range increases, performance bonuses or similar forms of compensation.

Marginal note:Conflicts with other Acts

11. In the event of a conflict between a provision of this Act and a provision of any other Act of Parliament, including a provision in Part X of the Financial Administration Act, the provision of this Act prevails to the extent of the conflict, unless the other Act expressly declares that it or any of its provisions apply despite this Act.

APPLICATION

Marginal note:Members of Parliament

12. This Act applies to members of the Senate and the House of Commons.

Marginal note:Employees
  • 13. (1) This Act applies to employees who are employed in or by

    • (a) the departments and other portions of the federal public administration named in Schedules I and IV, respectively, to the Financial Administration Act and the separate agencies named in Schedule V to that Act, other than the Financial Consumer Agency of Canada and the Staff of the Non-Public Funds, Canadian Forces;

    • (b) the Crown corporations and public bodies named in Schedule 1; and

    • (c) the Senate, the House of Commons, the Library of Parliament, the office of the Senate Ethics Officer and the office of the Conflict of Interest and Ethics Commissioner.

  • Marginal note:Members of the Royal Canadian Mounted Police

    (2) For greater certainty, members of the Royal Canadian Mounted Police are employees.

  • Marginal note:Deemed employees

    (3) This Act applies to the following persons, who are deemed to be employees for the purposes of this Act:

    • (a) the staff of members of the Senate and the House of Commons;

    • (b) directors of the Crown corporations and public bodies named in Schedule 1;

    • (c) officers and non-commissioned members of the Canadian Forces; and

    • (d) the Chief Electoral Officer.

  • Marginal note:Persons appointed by Governor in Council

    (4) This Act applies to persons who are appointed by the Governor in Council, and those persons are deemed to be employees for the purposes of this Act. Despite this subsection, this Act does not apply to lieutenant governors, judges who are paid a salary under the Judges Act, military judges appointed under section 165.21 of the National Defence Act and prothonotaries appointed under section 12 of the Federal Courts Act.

Marginal note:Persons designated by Governor in Council

14. The Governor in Council may, by order, designate any person or class of persons as persons to whom this Act applies, and those persons are deemed to be employees for the purposes of this Act.

Marginal note:Locally engaged persons and independent contractors

15. This Act does not apply to a person who is locally engaged outside Canada or, for greater certainty, to a person who is engaged as an independent contractor.

RESTRAINT MEASURES

Increases to Rates of Pay

Marginal note:Increases to rates of pay

16. Despite any collective agreement, arbitral award or terms and conditions of employment to the contrary, but subject to the other provisions of this Act, the rates of pay for employees are to be increased, or are deemed to have been increased, as the case may be, by the following percentages for any 12-month period that begins during any of the following fiscal years:

  • (a) the 2006–2007 fiscal year, 2.5%;

  • (b) the 2007–2008 fiscal year, 2.3%;

  • (c) the 2008–2009 fiscal year, 1.5%;

  • (d) the 2009–2010 fiscal year, 1.5%; and

  • (e) the 2010–2011 fiscal year, 1.5%.

Employees Represented by a Bargaining Agent

Marginal note:Increases to rates of pay — collective agreements or arbitral awards after coming into force
  • 17. (1) The provisions of any collective agreement that is entered into, or arbitral award that is made, after the day on which this Act comes into force may not provide for increases to rates of pay that are greater than those set out in section 16, but they may provide for increases that are lower.

  • Marginal note:12-month periods

    (2) For greater certainty, any collective agreement that is entered into, or any arbitral award that is made, after the day on which this Act comes into force and that provides for increases to rates of pay for any period that begins during the restraint period must do so on the basis of a 12-month period.

Marginal note:Increases to rates of pay — collective agreements and arbitral awards — December 8, 2008 until coming into force

18. The provisions of any collective agreement that is entered into, or any arbitral award that is made, during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provide, for any particular period, for increases to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide for the increases referred to in section 16.

Marginal note:Increases to rates of pay — collective agreements and arbitral awards — before December 8, 2008

19. With respect to a collective agreement that is entered into, or an arbitral award that is made, before December 8, 2008,

  • (a) section 16 does not apply in respect of any period that began during the 2006–2007 or 2007–2008 fiscal year; and

  • (b) for any 12-month period that begins during any of the 2008–2009, 2009–2010 and 2010–2011 fiscal years, section 16 applies only in respect of periods that begin on or after December 8, 2008 and any provisions of those agreements or awards that provide, for any particular period, for increases to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide for the increases referred to in section 16.

Marginal note:Other than 12-month periods — section 18

20. If a collective agreement or arbitral award to which section 18 applies provides for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year in the restraint period, that increase is of no effect or is deemed never to have had effect, as the case may be, and is deemed to be an increase for that period of other than 12 months, determined on an annualized basis to the nearest 1/100%, that provides for the increase referred to in section 16 for a period that begins during that particular fiscal year.

Marginal note:Other than 12-month periods — section 19

21. If a collective agreement or arbitral award to which section 19 applies provides for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year that begins during the period that begins on December 8, 2008 and ends on March 31, 2011, that increase is of no effect or is deemed never to have had effect, as the case may be, and is deemed to be an increase for that period of other than 12 months, determined on an annualized basis to the nearest 1/100%, that provides for the increase referred to in section 16 for a period that begins during that particular fiscal year.

Marginal note:Lower percentages not affected

22. If a collective agreement or arbitral award to which section 18 or 19 applies provides for an increase to the rates of pay for any particular period that is lower than the increase referred to in section 16 for that period, section 16 does not apply in respect of that increase.

Marginal note:Restructuring prohibited

23. Subject to sections 31 to 34,

  • (a) no provision of a collective agreement that is entered into, or of an arbitral award that is made, after the day on which this Act comes into force may provide for the restructuring of rates of pay during any period that begins during the restraint period;

  • (b) any provision of a collective agreement that is entered into, or of an arbitral award that is made, during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provides for the restructuring of rates of pay during any period that begins during the restraint period is of no effect or is deemed never to have had effect, as the case may be; and

  • (c) any provision of a collective agreement that is entered into, or of an arbitral award that is made, before December 8, 2008 that provides for the restructuring of rates of pay during any period that begins during the period that begins on December 8, 2008 and ends on March 31, 2011 is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:No increases to additional remuneration — after coming into force

24. No collective agreement that is entered into, or arbitral award that is made, after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any increase to the amount or rate of any additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the collective agreement, or the arbitral award, as the case may be, becomes effective.

Marginal note:No increases to additional remuneration — December 8, 2008 until coming into force

25. If a collective agreement that is entered into, or arbitral award that is made, at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contains provisions that provide, for any period that begins during the restraint period, for an increase to the amount or rate of any additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the collective agreement, or the arbitral award, as the case may be, became effective, those provisions are of no effect or are deemed never to have had effect, as the case may be.

Marginal note:No increases to additional remuneration — before December 8, 2008

26. If a collective agreement that is entered into, or an arbitral award that is made, before December 8, 2008 contains provisions that, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, provide for an increase to the amount or rate of any additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the first period that began on or after December 8, 2008, those provisions are of no effect or are deemed never to have had effect, as the case may be.

Marginal note:No new additional remuneration — after coming into force

27. No collective agreement that is entered into, or arbitral award that is made, after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any additional remuneration that is new in relation to the additional remuneration that applied to the employees governed by the collective agreement or the arbitral award immediately before the collective agreement or the arbitral award, as the case may be, becomes effective.

Marginal note:No new additional remuneration — December 8, 2008 to coming into force

28. If a collective agreement that is entered into, or an arbitral award that is made, at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contains a provision that provides, for any period that begins during the restraint period, for any additional remuneration to the employees governed by the collective agreement or the arbitral award that is new in relation to the additional remuneration that applied to the employees governed by the collective agreement or the arbitral award, as the case may be, immediately before it became effective, that provision is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:No new additional remuneration — before December 8, 2008

29. If a collective agreement that is entered into, or an arbitral award that is made, before December 8, 2008 contains a provision that provides, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, for any additional remuneration to the employees governed by the collective agreement or the arbitral award that is new in relation to the additional remuneration that applied to the employees governed by the collective agreement or arbitral award, as the case may be, immediately before the first period that began on or after December 8, 2008, that provision is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:Canada Border Services Agency

30. Sections 24 to 26 do not apply in respect of pay notes applicable only to employees in the Canada Border Services Agency who were transferred to the Agency on its creation, but the rates of those pay notes may not be increased during any period that begins in any of the fiscal years referred to in section 16 by a percentage that is higher than the percentage set out in that section for that fiscal year.

Marginal note:Border Services Group

31. The following rules apply in respect of collective agreements that govern employees in the Border Services Group whose employer is Her Majesty as represented by the Treasury Board:

  • (a) paragraph 23(a) does not prevent any collective agreement that is entered into after the day on which this Act comes into force from restructuring, as a result of a classification conversion, the rates of pay during the 2007–2008 or 2009–2010 fiscal year, and the increases set out in section 16 apply in respect of the restructured rates of pay;

  • (b) if a collective agreement is entered into during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, as a result of a classification conversion, it contains provisions for the restructuring of rates of pay during the 2007–2008 or 2009–2010 fiscal year, paragraph 23(b) does not apply in respect of those provisions, and the increases set out in section 16 apply in respect of the restructured rates of pay; and

  • (c) if a collective agreement is entered into before December 8, 2008 and, as a result of a classification conversion, it contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year, paragraph 23(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay.

Marginal note:Groups subject to national rates of pay

32. The following rules apply in respect of collective agreements that govern employees in the Operational Services Group whose employer is Her Majesty as represented by the Treasury Board and employees in the General Labour and Trades Group and the General Services Group whose employer is Her Majesty as represented by the Parks Canada Agency or Her Majesty as represented by the Canadian Food Inspection Agency:

  • (a) paragraph 23(a) does not prevent any collective agreement that is entered into after the day on which this Act comes into force from restructuring the rates of pay during the 2009–2010 fiscal year in order to create national rates of pay, and the increase set out in section 16 applies in respect of the restructured rates of pay;

  • (b) if a collective agreement is entered into during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, in order to create national rates of pay, it contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year, paragraph 23(b) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay; and

  • (c) if a collective agreement is entered into before December 8, 2008 and, in order to create national rates of pay, it contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year, paragraph 23(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay.

Marginal note:Ships’ Officers Group

33. The following rules apply in respect of any arbitral award that is made before December 8, 2008 and that governs employees in the Ships’ Officers Group whose employer is Her Majesty as represented by the Treasury Board:

  • (a) paragraph 23(c) does not apply in respect of the provisions of any arbitral award that provide for the restructuring of rates of pay during the 2010–2011 fiscal year, and the increase set out in section 16 applies in respect of the restructured rates of pay; and

  • (b) section 29 does not apply in respect of the provisions of any arbitral award that provide for the payment, during the 2010–2011 fiscal year, of a sum in lieu of vacation leave factors.

Marginal note:Law Group
  • 34. (1) The following rules apply in respect of any collective agreement or arbitral award that governs employees in the Law Group whose employer is Her Majesty as represented by the Treasury Board, and in respect of any period that begins during the restraint period:

    • (a) in the case of a collective agreement entered into — or an arbitral award made — after the day on which this Act comes into force,

      • (i) it may not have retroactive effect in respect of a day that is earlier than May 10, 2006,

      • (ii) any increase to rates of pay that it provides for in respect of any period that begins during the 2006–2007 fiscal year must be based on the rates of pay set out in Schedule 2,

      • (iii) it must provide, for all employees in the Law Group, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group and, in relation to any particular position level, those plans must be at the same amounts or rates that were in effect for that position level on that date, but those plans may not have retroactive effect,

      • (iv) it may provide for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, but the amount or rate of that additional remuneration for a particular position level may not be greater than the highest amount or rate that applied to employees of that position level on that date, and

      • (v) it may not provide for additional remuneration if that additional remuneration applied to no employee in the Law Group on May 9, 2006; and

    • (b) in the case of a collective agreement entered into — or an arbitral award made — on or before the day on which this Act comes into force,

      • (i) if any of its provisions has retroactive effect in respect of a day that is earlier than May 10, 2006, that retroactive effect is deemed never to have had effect, the provision is deemed to have had retroactive effect as of May 10, 2006 and the first day of every other period that is related to that provision is deemed to be moved forward by the number of days that is equal to the number of days between the first day the provision was expressed to have retroactive effect and May 10, 2006,

      • (ii) if the increase provided to rates of pay for any period that begins during the 2006–2007 fiscal year is based on rates of pay that are greater than those set out in Schedule 2, those greater rates of pay are of no effect or are deemed never to have had effect, as the case may be, and the increase is deemed to be based on the rates of pay set out in Schedule 2,

      • (iii) if subparagraph (ii) applies, its provision that provides for the rates of pay for any other period that begins on or before March 31, 2011 is of no effect or is deemed never to have had effect, as the case may be, and the rates of pay in that provision are deemed to be the rates of pay that applied immediately before the beginning of that period as a result of this Act,

      • (iv) if it provides for performance pay plans and those plans are not the same as those that were in effect on May 9, 2006 for any employees in the Law Group or the amounts or rates provided for in those plans in relation to any particular position level are not the same as those of the performance pay plans that were in effect on that date — or the plans were expressed to be retroactive — the provisions that provide for those plans are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide, for all employees in the Law Group, as of the day that the agreement was entered into or the award was made, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date,

      • (v) if it does not provide for performance pay plans, it is deemed to provide, for all employees in the Law Group, as of the day that the agreement was entered into or the award was made, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date,

      • (vi) if it provides for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, and the amount or rate of that additional remuneration for a particular position level is greater than the highest amount or rate that applied to any employees of that position level on that date, the provision that provides for that payment is deemed to be of no effect or is deemed never to have had effect, as the case may be, and is deemed to provide for the highest amount or rate, as the case may be, that applied in respect of any of those employees on that date, and

      • (vii) if it provides for any additional remuneration, and that additional remuneration applied to no employee in the Law Group on May 9, 2006, the provision that provides for that payment is of no effect or is deemed never to have had effect, as the case may be.

  • Marginal note:Other provisions apply

    (2) For greater certainty, the provisions of this Act that are not inconsistent with subsection (1) apply to collective agreements and arbitral awards that govern employees in the Law Group.

Non-represented and Excluded Employees

Marginal note:Definitions
  • 35. (1) The following definitions apply in sections 36 to 54.

    “employee”

    « employé »

    “employee” means an employee who is not represented by a bargaining agent or who is excluded from a bargaining unit.

    “terms and conditions of employment”

    « condition d’emploi »

    “terms and conditions of employment” means terms and conditions of employment that apply to employees.

  • Marginal note:When terms and conditions of employment are considered to be established

    (2) For the purposes of sections 36 to 54, terms and conditions of employment are considered to be established if they are established by an employer acting alone or agreed to by an employer and employees.

Marginal note:Increases to rates of pay — terms and conditions established after coming into force
  • 36. (1) Terms and conditions of employment established after the day on which this Act comes into force may not provide for increases to rates of pay that are greater than those set out in section 16, but they may provide for increases that are lower.

  • Marginal note:12-month periods

    (2) For greater certainty, terms and conditions of employment established after the day on which this Act comes into force that provide for increases to rates of pay for any period that begins during the restraint period must do so on the basis of a 12-month period.

Marginal note:Increases to rates of pay — terms and conditions of employment — December 8, 2008 until coming into force

37. The provisions of any terms and conditions of employment established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provide, for any particular period, for an increase to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide for the increases referred to in section 16.

Marginal note:Increases to rates of pay — terms and conditions of employment — before December 8, 2008

38. With respect to any terms and conditions of employment established before December 8, 2008 that provide for increases to rates of pay

  • (a) section 16 does not apply in respect of any period that began during the 2006–2007 or 2007–2008 fiscal year; and

  • (b) for any 12-month period that begins during any of the 2008–2009, 2009–2010 and 2010–2011 fiscal years, section 16 applies only in respect of periods that begin on or after December 8, 2008 and any provisions of those terms and conditions of employment that provide, for any particular period, for increases to rates of pay that are greater than those referred to in section 16 for that particular period are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide for the increases referred to in section 16.

Marginal note:Other than 12-month periods — section 37

39. If any terms and conditions of employment to which section 37 applies provide for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year in the restraint period, that increase is of no effect or is deemed never to have had effect, as the case may be, and the increase is deemed to be an increase for that period of other than 12 months, determined on an annualized basis to the nearest 1/100%, that provides for the increase referred to in section 16 for a period that begins during that particular fiscal year.

Marginal note:Other than 12-month periods — section 38

40. If any terms and conditions of employment to which section 38 applies provide for an increase to rates of pay for a period of other than 12 months that begins during any particular fiscal year that begins during the period that begins on December 8, 2008 and ends on March 31, 2011, that increase is of no effect or is deemed never to have had effect, as the case may be, and is deemed to be an increase for that period of other than 12 months, determined on an annualized basis to the nearest 1/100%, that provides for the increases referred to in section 16 in respect of a period that begins during that particular fiscal year.

Marginal note:Lower percentages not affected

41. If any terms and conditions of employment to which section 37 or 38 apply provide for an increase to the rates of pay for any particular period that is lower than the increase referred to in section 16 for that period, section 16 does not apply in respect of that increase.

Marginal note:Section 16 does not create authority to increase

42. If any terms and conditions of employment established before, on or after the day on which this Act comes into force do not provide for an increase to the rates of pay for any particular period that begins during the restraint period, section 16 is not to be construed as authorizing any increase to those rates of pay.

Marginal note:Restructuring prohibited

43. Subject to sections 51 to 54,

  • (a) no provision of terms and conditions of employment established after the day on which this Act comes into force may provide for the restructuring of rates of pay during any period that begins during the restraint period;

  • (b) any provision of terms and conditions of employment established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force that provides for the restructuring of rates of pay during any period that begins during the restraint period is of no effect or is deemed never to have had effect, as the case may be; and

  • (c) any provision of terms and conditions of employment established before December 8, 2008 that provides for the restructuring of rates of pay during any period that begins during the period that begins on December 8, 2008 and ends on March 31, 2011 is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:No increases to additional remuneration — after coming into force

44. No terms and conditions of employment established after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any increase to the amount or rate of any additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before those terms and conditions of employment become effective.

Marginal note:No increases to additional remuneration — December 8, 2008 until coming into force

45. If any terms and conditions of employment established at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contain provisions that provide, for any period that begins during the restraint period, for an increase to the amount or rate of any additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before those provisions became effective, those provisions are of no effect or are deemed never to have had effect, as the case may be.

Marginal note:No increases to additional remuneration — before December 8, 2008

46. If any terms and conditions of employment established before December 8, 2008 contain provisions that, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, provide for an increase to the amount or rate of any additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the first period that began on or after December, 8, 2008, those provisions are of no effect or are deemed never to have had effect, as the case may be.

Marginal note:No new additional remuneration — after coming into force

47. No terms and conditions of employment established after the day on which this Act comes into force may provide, for any period that begins during the restraint period, for any additional remuneration that is new in relation to the additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the terms and conditions of employment become effective.

Marginal note:No new additional remuneration — December 8, 2008 until coming into force

48. If any terms and conditions of employment established at any time during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force contain, in relation to any employees, a provision that provides, for any period that begins during the restraint period, for any additional remuneration that is new in relation to the additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the effective date of the provisions, that provision is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:No new additional remuneration — before December 8, 2008

49. If any terms and conditions of employment established before December 8, 2008 contain, in relation to any employees, a provision that provides, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, for any additional remuneration that is new in relation to the additional remuneration that applied to the employees governed by those terms and conditions of employment immediately before the first period that began on or after December 8, 2008, that provision is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:Canada Border Services Agency

50. Sections 44 to 46 do not apply in respect of pay notes applicable only to employees in the Canada Border Services Agency who were transferred to the Agency on its creation, but the rates of those pay notes may not be increased during any period that begins in any of the fiscal years referred to in section 16 by a percentage that is higher than the percentage set out in that section for that fiscal year.

Marginal note:Border Services Group

51. The following rules apply in respect of terms and conditions of employment governing employees in the Border Services Group whose employer is Her Majesty as represented by the Treasury Board:

  • (a) if the restructuring permitted by paragraph 31(a) occurs, paragraph 43(a) does not prevent terms and conditions of employment established after the day on which this Act comes into force from restructuring, as a result of a classification conversion, the rates of pay during the 2007–2008 or 2009–2010 fiscal year, and the increases set out in section 16 apply in respect of the restructured rates of pay;

  • (b) if any terms and conditions of employment were established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, as a result of a classification conversion, they contain provisions for the restructuring of rates of pay during the 2007–2008 or 2009–2010 fiscal year and the restructuring permitted by paragraph 31(b) occurs, paragraph 43(b) does not apply in respect of those provisions, and the increases set out in section 16 apply in respect of the restructured rates of pay; and

  • (c) if any terms and conditions of employment were established before December 8, 2008 and, as a result of a classification conversion, they contain provisions for the restructuring of rates of pay during the 2009–2010 fiscal year and the restructuring permitted by paragraph 31(c) occurs, paragraph 43(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay.

Marginal note:Groups subject to national rates of pay

52. The following rules apply in respect of terms and conditions of employment governing employees in the Operational Services Group whose employer is Her Majesty as represented by the Treasury Board and employees in the General Labour and Trades Group and the General Services Group whose employer is Her Majesty as represented by the Parks Canada Agency or Her Majesty as represented by the Canadian Food Inspection Agency:

  • (a) if the restructuring permitted by paragraph 32(a) occurs, paragraph 43(a) does not prevent terms and conditions of employment established after the day on which this Act comes into force from restructuring rates of pay during the 2009–2010 fiscal year in order to create national rates of pay, and the increase set out in section 16 applies in respect of the restructured rates of pay;

  • (b) if any terms and conditions of employment were established during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force and, in order to create national rates of pay, they contain provisions for the restructuring of rates of pay during the 2009–2010 fiscal year and the restructuring permitted by paragraph 32(b) occurs, paragraph 43(b) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay; and

  • (c) if any terms and conditions of employment were established before December 8, 2008 and, in order to create national rates of pay, they contains provisions for the restructuring of rates of pay during the 2009–2010 fiscal year and the restructuring permitted by paragraph 32(c) occurs, paragraph 43(c) does not apply in respect of those provisions, and the increase set out in section 16 applies in respect of the restructured rates of pay.

Marginal note:Ships’ Officers Group

53. The following rules apply in respect of terms and conditions of employment established before December 8, 2008 that govern employees in the Ships’ Officers Group whose employer is Her Majesty as represented by the Treasury Board:

  • (a) paragraph 43(c) does not apply in respect of the provisions of those terms and conditions of employment that provide for the restructuring of rates of pay during the 2010–2011 fiscal year, and the increase set out in section 16 applies in respect of the restructured rates of pay; and

  • (b) section 49 does not apply in respect of the provisions of those terms and conditions of employment that provide for the payment, during the 2010–2011 fiscal year, of a sum in lieu of vacation leave factors.

Marginal note:Law Group
  • 54. (1) The following rules apply in respect of terms and conditions of employment governing employees in the Law Group whose employer is Her Majesty as represented by the Treasury Board, and in respect of any period that begins during the restraint period:

    • (a) in the case where the terms and conditions of employment are established after the day on which this Act comes into force,

      • (i) the provisions of those terms and conditions of employment that provide for increases to rates of pay may not have retroactive effect in respect of a day that is earlier than May 10, 2006,

      • (ii) any increase to rates of pay that the terms and conditions of employment provide for in respect of any period that begins during the 2006–2007 fiscal year must be based on the rates of pay set out in Schedule 2,

      • (iii) the provisions of those terms and conditions of employment must provide, for all employees of the Law Group, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group and, in relation to any particular position level, those plans must be at the same amounts or rates that were in effect for that position level on that date but those plans may not have retroactive effect, and

      • (iv) the provisions of those terms and conditions of employment may provide for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, but the amount or rate of that additional remuneration for a particular position level may not be greater than the highest amount or rate that applied to employees of that position level on that date, and

      • (v) those terms and conditions of employment may not provide for additional remuneration if that additional remuneration applied to no employee in the Law Group on May 9, 2006; and

    • (b) in the case where the terms and conditions of employment were established on or before the day on which this Act comes into force,

      • (i) if any of their provisions have retroactive effect in respect of a day that is earlier than May 10, 2006, that retroactive effect is deemed never to have had effect, the provision is deemed to have had retroactive effect as of May 10, 2006 and the first day of every other period referred to in that provision is deemed to be moved forward by the number of days that is equal to the number of days between the first day the provision was expressed to have retroactive effect and May 10, 2006,

      • (ii) if the increase provided to rates of pay for any period that begins during the 2006–2007 fiscal year is based on rates of pay that are greater than those set out in Schedule 2, those greater rates of pay are of no effect or are deemed never to have had effect, as the case may be, and the increase is deemed to be based on the rates of pay set out in Schedule 2,

      • (iii) if subparagraph (ii) applies, the provisions of the terms and conditions of employment that provide for rates of pay for every other period that begins on or before March 31, 2011 are of no effect or are deemed never to have had effect, as the case may be, and the rates of pay in those provisions are deemed to be the rates of pay that applied immediately before the beginning of that period as a result of this Act,

      • (iv) if those terms and conditions of employment provide for performance pay plans and those plans are not the same as those that were in effect on May 9, 2006 for any employees in the Law Group or the amounts or rates provided for in those plans in relation to any particular position level are not the same as those of the performance pay plans that were in effect on that date — or the plans were expressed to be retroactive — the provisions that provide for those plans are of no effect or are deemed never to have had effect, as the case may be, and are deemed to be provisions that provide, for all employees in the Law Group, as of the day that the terms and conditions of employment were established, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date,

      • (v) if those terms and conditions of employment do not provide for performance pay plans, they are deemed to provide, for all employees in the Law Group, as of the day that they were established, for the same performance pay plans that were in effect on May 9, 2006 for any employees in the Law Group at the same amounts or rates, in relation to any particular position level, that were in effect on that date,

      • (vi) if those terms and conditions of employment provide for any additional remuneration — other than a performance bonus — that applied to any position level in the Law Group on May 9, 2006, and the amount or rate of that additional remuneration for a particular position level is greater than the highest amount or rate that applied to any employees of that position level on that date, the provisions that provide for that payment are deemed to be of no effect or are deemed never to have had effect, as the case may be, and are deemed to provide for the highest amount or rate, as the case may be, that applied in respect of any of those employees on that date, and

      • (vii) if those terms and conditions of employment provide for any additional remuneration, and that additional remuneration applied to no employee in the Law Group on May 9, 2006, the provision that provides for that payment is of no effect or is deemed never to have had effect, as the case may be.

  • Marginal note:Other provisions apply

    (2) For greater certainty, the provisions of this Act that are not inconsistent with subsection (1) apply to terms and conditions of employment governing employees in the Law Group.

Members of Parliament

Marginal note:Members of Parliament
  • 55. (1) Despite subsections 55.1(2), 62.1(2), 62.2(2) and 62.3(2) of the Parliament of Canada Act and subsections 4.1(2), (4) and (6) of the Salaries Act, the increases in respect of allowances and salaries to be paid to members of the Senate and the House of Commons for the 2009–2010 and 2010–2011 fiscal years are to be 1.5% for each of those fiscal years.

  • Marginal note:2011–2012 fiscal year

    (2) The indexing referred to in the provisions referred to in subsection (1) with respect to the 2011–2012 fiscal year is to be applied to the allowances and salaries determined under subsection (1) in respect of the 2010–2011 fiscal year.

General

Marginal note:Inconsistent provisions

56. Any provision of any collective agreement that is entered into — or of any arbitral award that is made, or of any terms and conditions of employment that are established — after the day on which this Act comes into force that is inconsistent with this Act is of no effect.

Marginal note:Compensating for restraint measures prohibited

57. No provision of any collective agreement that is entered into — or of any arbitral award that is made, or of any terms and conditions of employment that are established — after the day on which this Act comes into force may provide for compensation for amounts that employees did not receive as a result of the restraint measures in this Act.

Marginal note:Provisions compensating for restraint measures of no effect

58. If a provision of a collective agreement that is entered into — or of an arbitral award that is made, or of terms and conditions of employment that are established — on or before the day on which this Act comes into force provides for compensation for amounts that employees did not receive as a result of the restraint measures in this Act, that provision is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:No changes to performance pay plans — new collective agreements, etc.

59. No provision of any collective agreement that is entered into — or of any arbitral award that is made, or of any terms and conditions of employment that are established — after the day on which this Act comes into force may, for any period that begins during the restraint period, change the performance pay plans, including the amounts or rates, that apply to any employees governed by the agreement, award or terms and conditions of employment.

Marginal note:No changes to performance pay plans — existing collective agreements, etc.

60. If a provision of a collective agreement that is entered into — or of an arbitral award that is made, or of terms and conditions of employment that are established — during the period that begins on December 8, 2008 and ends on the day on which this Act comes into force changes, for any period that begins during the restraint period, the performance pay plans, including the amounts or rates, that apply to any employees governed by the agreement, award or terms and conditions of employment, the change is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:No changes to performance pay plans — existing collective agreements, etc.

61. If a provision of a collective agreement that is entered into — or of an arbitral award that is made, or of terms and conditions of employment that are established — before December 8, 2008 changes, for any period that begins in the period that begins on December 8, 2008 and ends on March 31, 2011, the performance pay plans, including the amounts or rates, that apply to any employees governed by the agreement, award or terms and conditions of employment, the change is of no effect or is deemed never to have had effect, as the case may be.

Marginal note:Royal Canadian Mounted Police

62. Despite sections 44 to 49, the Treasury Board may change the amount or rate of any allowance, or make any new allowance, applicable to members of the Royal Canadian Mounted Police if the Treasury Board is of the opinion that the change or the new allowance, as the case may be, is critical to support transformation initiatives relating to the Royal Canadian Mounted Police.

ADMINISTRATION

Marginal note:Powers and duties of Treasury Board
  • 63. (1) The Treasury Board may exercise the powers and shall perform the duties in relation to this Act that are necessary to enable it to determine whether an employer of employees, other than employees referred to in paragraph 13(1)(c) or (3)(a), is complying with this Act.

  • Marginal note:Information and documentation

    (2) The Treasury Board may require from the employer any information and documentation that it considers necessary to enable it to determine whether the employer is complying with this Act.

  • Marginal note:Treasury Board directive

    (3) If the Treasury Board determines under this section that the employer is not complying with this Act, it may issue any directives that it considers appropriate to ensure the compliance.

Marginal note:Debt due to Her Majesty
  • 64. (1) Every amount paid — including amounts paid before the day on which this Act comes into force — to any person in excess of the amount that should have been paid as a result of this Act is a debt due to Her Majesty and may be recovered as such.

  • Marginal note:Overpayment

    (2) Any amount that is a debt due to Her Majesty as a result of subsection (1) is deemed to be an overpayment to which subsection 155(3) of the Financial Administration Act applies.

  • Marginal note:Application

    (3) For greater certainty, subsection (1) applies to, but is not limited to, the following amounts:

    • (a) amounts paid under a provision that by the operation of this Act is of no effect or is deemed never to have had effect; and

    • (b) amounts paid as a result of the payment of any amount referred to in paragraph (a).

Marginal note:Orders

65. The Governor in Council may, on the recommendation of the Treasury Board, by order, amend Schedule 1 by adding to or deleting from it the name of any Crown corporation or public body.

PART 11EQUITABLE COMPENSATION

Public Sector Equitable Compensation Act

Marginal note:Enactment of Act

 The Public Sector Equitable Compensation Act is enacted as follows:

An Act respecting the provision of equitable compensation in the public sector of Canada

Preamble

Whereas Parliament affirms that women in the public sector of Canada should receive equal pay for work of equal value;

Whereas Parliament affirms that it is desirable to accomplish that goal through proactive means;

And whereas employers in the public sector of Canada operate in a market-driven economy;

Now, therefore, 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 Public Sector Equitable Compensation Act.

INTERPRETATION

Marginal note:Definitions
  • 2. (1) The following definitions apply in this Act.

    “bargaining agent”

    « agent négociateur »

    “bargaining agent” means an employee organization that is certified by the Board as the bargaining agent for the employees in a bargaining unit.

    “bargaining unit”

    « unité de négociation »

    “bargaining unit” means a group of two or more employees that is determined by the Board to constitute a unit of employees appropriate for collective bargaining.

    “Board”

    « Commission »

    “Board” means the Public Service Labour Relations Board.

    “collective agreement”

    « convention collective »

    “collective agreement” means an agreement in writing, entered into under Part 1 of the Public Service Labour Relations Act between the employer and a bargaining agent, containing provisions respecting terms and conditions of employment and related matters.

    “compensation”

    « rémunération »

    “compensation” means any form of remuneration payable for work performed by an employee and includes

    • (a) salaries, commissions, vacation pay, severance pay and bonuses;

    • (b) payments in kind;

    • (c) employer contributions to pension funds or plans, long-term disability plans and all forms of health insurance plans; and

    • (d) any other advantage received directly or indirectly from the employer.

    “employee”

    « employé »

    “employee” means a person who is employed by an employer, other than a person who is

    • (a) appointed by the Governor in Council under an Act of Parliament to a statutory position described in that Act; or

    • (b) locally engaged outside Canada.

    “employer”

    « employeur »

    “employer” means Her Majesty in right of Canada as represented by

    • (a) the Treasury Board, in the case of a department named in Schedule I to the Financial Administration Act or another portion of the federal public administration named in Schedule IV to that Act; and

    • (b) the separate agency, in the case of a portion of the federal public administration named in Schedule V to the Financial Administration Act.

    “female predominant”

    « à prédominance féminine »

    “female predominant”, in relation to a job group or a job class, means a job group or job class, as the case may be, composed of at least 70% female employees.

    “job class”

    « catégorie d’emplois »

    “job class” means two or more positions in the same job group that have similar duties and responsibilities, require similar qualifications, are part of the same compensation plan and are within the same range of salary rates.

    “job group”

    « groupe d’emplois »

    “job group” has the meaning assigned by the regulations.

    “non-unionized employee”

    « employé non syndiqué »

    “non-unionized employee” means an employee who is not a member of a bargaining unit that is represented by a bargaining agent.

    “prescribed”

    « Version anglaise seulement »

    “prescribed” means prescribed by regulation.

    “unionized employee”

    « employé syndiqué »

    “unionized employee” means an employee who is a member of a bargaining unit that is represented by a bargaining agent.

  • Marginal note:Royal Canadian Mounted Police

    (2) For greater certainty, members of the Royal Canadian Mounted Police are employees for the purposes of this Act.

  • Marginal note:Canadian Forces

    (3) For the purposes of this Act,

    • (a) officers and non-commissioned members of the Canadian Forces are deemed to be employees; and

    • (b) Her Majesty in right of Canada, as represented by the Treasury Board, is deemed to be the employer of those officers and members.

OBLIGATION TO PROVIDE EQUITABLE COMPENSATION

Marginal note:Obligations of employers and bargaining agents
  • 3. (1) An employer shall, in respect of its non-unionized employees, take measures to provide them with equitable compensation in accordance with this Act. In the case of unionized employees, the employer and the bargaining agent shall take measures to provide those employees with equitable compensation in accordance with this Act.

  • Marginal note:Notice to employees

    (2) Every employer shall post, in the prescribed manner, a notice setting out the text of subsection (1) and describing the rights employees have under this Act.

EQUITABLE COMPENSATION ASSESSMENT

Marginal note:Equitable compensation assessment
  • 4. (1) An equitable compensation assessment under this Act assesses, without gender bias, the value of work performed by employees in a job group or a job class and identifies, by taking into account the prescribed factors, whether an equitable compensation matter exists.

  • Marginal note:Determining value

    (2) The criteria to be applied in assessing the value of the work performed by employees in a job group or a job class are

    • (a) the composite of the skill, effort and responsibility required in the performance of the work and the conditions under which the work is performed; and

    • (b) the employer’s recruitment and retention needs in respect of employees in that job group or job class, taking into account the qualifications required to perform the work and the market forces operating in respect of employees with those qualifications.

  • Marginal note:Precision

    (3) Subject to the regulations, an equitable compensation assessment in respect of a job group or job class is to be conducted having regard to

    • (a) with the exception of a job group or job class described in paragraph (d), in the case of a job group or job class within a portion of the federal public administration, including a department, described in paragraph (a) of the definition “employer” in subsection 2(1), only job groups or job classes, as the case may be, within any of those portions of the federal public administration, other than job groups or job classes described in paragraph (d);

    • (b) in the case of a job group or job class within a separate agency named in Schedule V to the Financial Administration Act, only job groups or job classes, as the case may be, within the separate agency;

    • (c) in the case of a job group or job class within the Canadian Forces, only job groups or job classes, as the case may be, within the Canadian Forces that consist of officers and non-commissioned members of the Canadian Forces; and

    • (d) in the case of a job group or job class within the Royal Canadian Mounted Police that consists of members of that organization, only job groups or job classes, as the case may be, within that organization that consist of such members.

  • Marginal note:Equitable compensation matter

    (4) An equitable compensation matter exists in respect of a job group or a job class if an equitable compensation assessment determines, after taking into account the prescribed factors referred to in subsection (1), that equitable compensation is not being provided to employees in that job group or job class.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) respecting, for the purposes of subsection (1), the conducting of an equitable compensation assessment;

    • (b) respecting, for the purposes of paragraph (2)(a), what constitutes the skill, effort and responsibility required in the performance of work and the conditions under which the work is performed;

    • (c) respecting, for the purposes of paragraph (2)(b), what constitutes qualifications, and how an employer’s recruitment and retention needs are to be determined; and

    • (d) restricting, for the purposes of subsection (3), the job groups or job classes to which an equitable compensation assessment is to have regard.

EMPLOYERS WITH NON-UNIONIZED EMPLOYEES

Obligations

Marginal note:Determining whether each job group is female predominant

5. Within each of the periods that is prescribed in respect of a job group, every employer that has non-unionized employees in that job group shall determine whether that job group is female predominant and, depending on the determination, comply with section 6 or 7.

Marginal note:Determination — no female predominant job groups
  • 6. (1) If an employer that has non-unionized employees determines that there are no female predominant job groups that contain at least the prescribed number of employees, the employer shall post, in the prescribed manner, for at least 90 days, a notice to that effect setting out the prescribed information.

  • Marginal note:Dissatisfaction with employer’s determination

    (2) A non-unionized employee who is dissatisfied with his or her employer’s determination in the notice because the employee believes that he or she is part of a job group that contains at least the prescribed number of employees that is female predominant may, in the prescribed manner, so notify the employer within the prescribed period after the day on which the notice referred to in subsection (1) is first posted.

  • Marginal note:Employer’s response

    (3) Within the prescribed period after the day on which the notice under subsection (2) is given, the employer shall consider the issues raised in the notice and provide the employee with a response in writing.

Marginal note:Determination — existence of female predominant job group
  • 7. (1) If an employer that has non-unionized employees determines that a job group that contains at least the prescribed number of employees is female predominant, the employer shall

    • (a) determine, by conducting an equitable compensation assessment, whether any equitable compensation matters exist involving non-unionized employees in that job group and, if there are, prepare a plan to resolve them within a reasonable time; and

    • (b) provide non-unionized employees in that job group, in the prescribed manner, with a report that

      • (i) sets out a summary of the activities conducted by the employer under paragraph (a) and of consultations, if any, carried out under that paragraph,

      • (ii) describes how the equitable compensation assessment in respect of that job group was conducted,

      • (iii) states whether or not the employer has determined that an equitable compensation matter exists involving non-unionized employees in that job group and, if there is, describing the matter, and

      • (iv) sets out the plan prepared under paragraph (a), if one was prepared.

  • Marginal note:Right of non-unionized employee

    (2) A non-unionized employee of that job group may, in the prescribed manner, within the prescribed period after the day on which the employer provides the employee with the report, request that the employer take appropriate steps to provide him or her with equitable compensation within a reasonable time if the employee is of the opinion that he or she will not receive equitable compensation because his or her employer has not prepared a plan under paragraph (1)(a) or, if one was prepared, the plan, in the employee’s opinion, does not provide for equitable compensation within a reasonable time.

  • Marginal note:Response

    (3) Within the prescribed period after the day on which the request is made, the employer shall consider the matters raised in it and respond to the employee in writing. The employer shall indicate in the response whether it intends to take any measure as a result of the request and

    • (a) if so, the period during which that measure is to be implemented; or

    • (b) if not, the reasons for not doing so.

Marginal note:Implementation of plan
  • 8. (1) An employer that has non-unionized employees and that provides a report under paragraph 7(1)(b) or as a result of an order made under this Act — or under a response given under subsection 7(3) or 9(3) — that contains a plan shall implement the plan in accordance with its terms.

  • Marginal note:When obligation ceases

    (2) Subsection (1) ceases to apply in respect of a plan if the employer subsequently provides another plan under this Act that deals with the same job group or job class, as the case may be.

Marginal note:Request concerning equitable compensation — job class
  • 9. (1) A non-unionized employee of an employer may, in the prescribed manner, within the prescribed period, request that the employer take appropriate steps to provide him or her with equitable compensation within a reasonable time if the employee has reasonable grounds to believe

    • (a) that he or she is a member of a female predominant job class; and

    • (b) that an equitable compensation assessment conducted in respect of that job class would lead to the identification of an equitable compensation matter.

  • Marginal note:Information that must be provided

    (2) The employee who makes the request shall, in the prescribed manner, provide the employer with a statement that

    • (a) describes the female predominant job class of which the employee alleges he or she is a member; and

    • (b) sets out the reasonable grounds that the employee has to believe the matters referred to in paragraphs (1)(a) and (b).

  • Marginal note:Response

    (3) Within the prescribed period after the day on which the request is made, the employer shall consider the matters raised in it and respond to the employee in writing. The employer shall indicate in the response whether it intends to take any measure as a result of the request and

    • (a) if so, the period during which that measure is to be implemented; or

    • (b) if not, the reasons for not doing so.

Complaints

Marginal note:Failure to comply

10. A non-unionized employee may, in a form acceptable to the Board, file a complaint with the Board if the employee is of the opinion that his or her employer has failed to comply with section 5 or subsection 6(1) or (3), 7(1) or (3), 8(1) or 9(3).

Marginal note:Dissatisfaction with employer’s response
  • 11. (1) A non-unionized employee who is provided with a response under subsection 9(3) may, in a form acceptable to the Board, within the prescribed period after the response is provided, file a complaint with the Board if

    • (a) the employee is dissatisfied with any matter in the response; and

    • (b) the employee has reasonable grounds to believe

      • (i) that he or she is a member of a female predominant job class, and

      • (ii) that an equitable compensation assessment conducted in respect of that job class would lead to the identification of an equitable compensation matter.

  • Marginal note:Information that must be provided

    (2) The complaint must

    • (a) describe the female predominant job class of which the employee alleges he or she is a member; and

    • (b) set out the reasonable grounds that the employee has to believe the matters referred to in subparagraphs (1)(b)(i) and (ii).

  • Marginal note:Accompanying documents

    (3) The complaint must be accompanied by a copy of

    • (a) the employee’s request made under subsection 9(1); and

    • (b) the employer’s response given under subsection 9(3).

EMPLOYERS WITH UNIONIZED EMPLOYEES

Obligations

Marginal note:Provision of statement setting out number of employees — collective agreement in force
  • 12. (1) Within the prescribed period before the expiry of the term of a collective agreement between an employer and a bargaining agent and in the prescribed manner, the employer shall provide the bargaining agent with a statement that sets out, in respect of each job group that consists in whole or in part of members of bargaining units that are represented by the bargaining agent, the number of employees that form part of that job group and the number of employees in that job group that are males and the number that are females. If the bargaining agent has not already made the statement available to all those employees, the bargaining agent shall make a copy of it available to any of them who request it.

  • Marginal note:Provision of statement setting out number of employees — no collective agreement

    (2) If there is no collective agreement between an employer and a bargaining agent but that bargaining agent has been certified to represent employees in a bargaining unit that consists in whole or in part of the employer’s employees, the employer shall, at the request of the bargaining agent, provide the bargaining agent with a statement that sets out, in respect of each job group that consists in whole or in part of employees who are members of that bargaining unit, the number of the employees that form part of that job group and the number of employees in that job group that are males and the number that are females. If the bargaining agent has not already made available any statement that it has received to all those employees, the bargaining agent shall make a copy of it available to any of them who request it.

Marginal note:Preparatory work

13. An employer and a bargaining agent shall, before collective bargaining begins, each conduct preparatory work to enable it, during collective bargaining, to raise or to respond to questions concerning the provision of equitable compensation to employees in female predominant job groups.

Marginal note:Notice describing female predominant job group

14. An employer or a bargaining agent that intends to negotiate collectively in respect of the provision of equitable compensation to employees in a female predominant job group shall, without delay, provide the other party with a notice that identifies the female predominant job group concerned.