SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Economic Recovery Act (stimulus).

PART 1AMENDMENTS RELATED TO INCOME TAX

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

• 2. (1) The portion of subsection 80.3(4) of the Income Tax Act before the formula is replaced by the following:

  • Marginal note:Income deferral for regions of drought, flood or excessive moisture

    (4) If in a taxation year a taxpayer carries on a farming business in a region that is at any time in the year a prescribed drought region or a prescribed region of flood or excessive moisture and the taxpayer’s breeding herd at the end of the year in respect of the business does not exceed 85% of the taxpayer’s breeding herd at the beginning of the year in respect of the business, there may be deducted in computing the taxpayer’s income from the business for the year the amount that the taxpayer claims, not exceeding the amount, if any, determined by the formula

• (2) The portion of subsection 80.3(5) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Inclusion of deferred amount

    (5) The amount deducted under subsection (4) in computing the income of a taxpayer for a particular taxation year from a farming business carried on in a region prescribed under that subsection may, to the extent that the taxpayer so elects, be included in computing the taxpayer’s income from the business for a taxation year ending after the particular taxation year, and is, except to the extent that the amount has been included under this subsection in computing the taxpayer’s income from the business for a preceding taxation year after the particular year, deemed to be income of the taxpayer from the business for the taxation year of the taxpayer that is the earliest of

    • (a) the first taxation year beginning after the end of the period or series of continuous periods, as the case may be, for which the region is prescribed under that subsection,

• (3) Subsections (1) and (2) apply to the 2008 and subsequent taxation years.

• 3. (1) Section 108 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Home renovation tax credit

    (1.1) For the purpose of the definition “testamentary trust” in subsection (1), a contribution to a trust does not include a qualifying expenditure (within the meaning of section 118.04) of a beneficiary under the trust.

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

• 4. (1) The Act is amended by adding the following after section 118.03:

  Marginal note:Definitions

  • 118.04 (1) The following definitions apply in this section.

    “eligible dwelling”

    « logement admissible »

    “eligible dwelling” of an individual, at any time, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of such land that exceeds the greater of 1/2 hectare and the portion of such land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if

    • (a) the individual (or a trust under which the individual is a beneficiary) owns, whether jointly with another person or otherwise, at that time, the housing unit or a share of the capital stock of a co-operative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and

    • (b) the housing unit is ordinarily inhabited at any time during the eligible period by the individual, by the individual’s spouse or common-law partner or former spouse or common-law partner or by a child of the individual.

    “eligible period”

    « période d’admissibilité »

    “eligible period” means the period that begins on January 28, 2009 and that ends on January 31, 2010.

    “individual”

    « particulier »

    “individual” does not include a trust.

    “qualifying expenditure”

    « dépense admissible »

    “qualifying expenditure” of an individual means an outlay or expense that is made or incurred, by the individual or by a qualifying relation in respect of the individual during the eligible period, that is directly attributable to a qualifying renovation by the individual and that is the cost of goods acquired or services received during the eligible period and includes such an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include such an outlay or expense

    • (a) to acquire goods that have been used, or acquired for use or lease, by the individual or by a qualifying relation in respect of the individual, for any purpose whatever before they were acquired by the individual or the qualifying relation in respect of the individual;

    • (b) made or incurred under the terms of an agreement entered into before the eligible period;

    • (c) to acquire a property that can be used independently of the qualifying renovation;

    • (d) that is the cost of annual, recurring or routine repair or maintenance;

    • (e) to acquire a household appliance;

    • (f) to acquire an electronic home-entertainment device;

    • (g) for financing costs in respect of the qualifying renovation;

    • (h) made or incurred for the purpose of gaining or producing income from a business or property; or

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

    “qualifying relation”

    « proche admissible »

    “qualifying relation” in respect of an individual means a person who is the individual’s spouse or common-law partner, or a child of the individual who has not attained the age of 18 years before the end of 2009 (other than a child who was, at any time during the eligible period, a married person, a person who is in a common-law partnership or a person who has a child).

    “qualifying renovation”

    « travaux de rénovation admissibles »

    “qualifying renovation” by an individual, at any time, means a renovation or alteration, of a property that is at that time an eligible dwelling of the individual or of a qualifying relation in respect of the individual, that is of an enduring nature and that is integral to the eligible dwelling.

  • Marginal note:Rules of application

    (2) For the purposes of this section,

    • (a) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a co-operative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that corporation, and that includes an eligible dwelling of the individual, to the extent of the individual’s share of that outlay or expense, if

      • (i) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were a natural person and the property were an eligible dwelling of that natural person, and

      • (ii) the corporation has notified the individual, in writing, of the individual’s share of the outlay or expense; and

    • (b) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes an eligible dwelling of the individual, to the extent of the share of that outlay or expense that is reasonably attributable to the individual, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling of the individual (including, for this purpose, common areas relevant to more than one eligible dwelling), if

      • (i) the outlay or expense would be a qualifying expenditure of the trust if the trust were a natural person and the property were an eligible dwelling of that natural person, and

      • (ii) the trust has notified the individual, in writing, of the individual’s share of the outlay or expense.

  • Marginal note:Home renovation tax credit

    (3) For the purposes of computing the tax payable under this Part by an individual for the individual’s 2009 taxation year, there may be deducted the amount determined by the formula

    A × (B – $1,000)

    where

    A

    is the appropriate percentage for the taxation year; and

    B

    is the lesser of $10,000 and the total of all amounts, each of which is a qualifying expenditure of the individual.

  • Marginal note:Interaction with medical expense credit

    (4) Notwithstanding paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.

  • Marginal note:Apportionment of credit

    (5) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying expenditure of an individual, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying expenditure, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

  Marginal note:Definitions

  • 118.05 (1) The following definitions apply in this section.

    “qualifying home”

    « habitation admissible »

    “qualifying home” in respect of an individual, means a “qualifying home” as defined in subsection 146.01(1) that is acquired, whether jointly or otherwise, after January 27, 2009 if

    • (a) the home is acquired by the individual, or by the individual’s spouse or common-law partner, and

      • (i) the individual intends to inhabit the home as a principal place of residence not later than one year after its acquisition,

      • (ii) the individual did not own, whether jointly or otherwise, a home that was occupied by the individual in the period

        • (A) that began at the beginning of the fourth preceding calendar year that ended before the acquisition, and

        • (B) that ended on the day before the acquisition, and

      • (iii) the individual’s spouse or common-law partner did not, in the period referred to in subparagraph (ii), own, whether jointly or otherwise, a home

        • (A) that was inhabited by the individual during the marriage to or common-law partnership with the individual, or

        • (B) that was a share of the capital stock of a cooperative housing corporation that relates to a housing unit inhabited by the individual during the marriage to or common-law partnership with the individual; or

    • (b) the home is acquired by the individual for the benefit of a specified person in respect of the individual, and

      • (i) the individual intends that the home be inhabited by the specified person as a principal place of residence not later than one year after its acquisition by the individual, and

      • (ii) the purpose of the acquisition of the home by the individual is to enable the specified person to live in

        • (A) a home that is more accessible by the specified person or in which the specified person is more mobile or functional, or

        • (B) an environment better suited to the specified person’s personal needs and care.

    “specified person”

    « personne déterminée »

    “specified person” in respect of an individual, at any time, means a person who

    • (a) is the individual or is related at that time to the individual; and

    • (b) would be entitled to a deduction under subsection 118.3(1) in computing tax payable under this Part for the person’s taxation year that includes that time if that subsection were read without reference to paragraph (c) of that subsection.

  • Marginal note:Rules of application

    (2) For the purposes of this section, an individual is considered to have acquired a qualifying home only if the individual’s interest (or for civil law, right) in it is registered in accordance with the land registration system or other similar system applicable where it is located.

  • Marginal note:First-time home buyers’ tax credit

    (3) In computing the tax payable under this Part by an individual for a taxation year in which a qualifying home in respect of the individual is acquired, there may be deducted the amount determined by multiplying $5,000 by the appropriate percentage for the taxation year.

  • Marginal note:Apportionment of credit

    (4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a particular qualifying home, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying home, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

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

• 5. (1) The portion of subsection 118.3(2) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Personne déficiente à charge

    (2) L’excédent du montant déductible en application du paragraphe (1) dans le calcul de l’impôt payable en vertu de la présente partie pour une année d’imposition par une personne (sauf une personne à l’égard de laquelle l’époux ou le conjoint de fait déduit un montant pour l’année en application des articles 118 ou 118.8) qui réside au Canada à un moment donné de l’année et qui a le droit de déduire un montant pour l’année en application du paragraphe (1) sur l’impôt payable par cette personne en vertu de la présente partie pour l’année calculé avant toute déduction en application de la présente section — à l’exception des articles 118 à 118.05 et 118.7 — est déductible dans le calcul de l’impôt payable par un particulier en vertu de la présente partie pour l’année dans le cas où :

• (2) Paragraph 118.3(2)(d) of the English version of the Act is replaced by the following:

  • (d) the amount of that person’s tax payable under this Part for the year computed before any deductions under this Division (other than under sections 118 to 118.05 and 118.7).

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

• 6. (1) The description of C in subsection 118.61(1) of the Act is replaced by the following:

  C

  is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.05, 118.3 and 118.7);

• (2) Paragraph 118.61(2)(b) of the Act is replaced by the following:

  • (b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.05, 118.3 and 118.7).

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

• 7. (1) Paragraph (a) of the description of C in section 118.8 of the Act is replaced by the following:

  • (a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under subsection 118(1) because of paragraph (c) of the description of B in that subsection, under subsection 118(10) or under any of sections 118.01 to 118.05, 118.3, 118.61 and 118.7).

• (2) Subparagraph (b)(ii) of the description of C in section 118.8 of the Act is replaced by the following:

  • (ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.05, 118.3, 118.61 and 118.7).

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

• 8. (1) The description of B in paragraph 118.81(a) of the Act is replaced by the following:

  B

  is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.05, 118.3, 118.61 and 118.7), and

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

• 9. (1) Paragraph 118.91(b) of the Act is replaced by the following:

  • (b) the individual shall be allowed only

    • (i) such of the deductions permitted under subsections 118(3) and (10) and 118.6(2.1) and sections 118.01 to 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year, and

    • (ii) such part of the deductions permitted under sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the period or periods in the year throughout which the individual is resident in Canada, computed as though that period or those periods were the whole taxation year,

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

• 10. (1) Section 118.92 of the Act is replaced by the following:

  Marginal note:Ordering of credits

  118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.04, 118.05, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

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

• 11. (1) Section 118.94 of the Act is replaced by the following:

  Marginal note:Tax payable by non-residents (credits restricted)

  118.94 Sections 118 to 118.05 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all of the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year.

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

• 12. (1) Paragraphs 118.95(a) and (b) of the Act are replaced by the following:

  • (a) such of the deductions as the individual is entitled to under any of subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.6, 118.62 and 118.7, as can reasonably be considered wholly applicable to the taxation year, and

  • (b) such part of the deductions as the individual is entitled to under any of sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the taxation year,

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

• 13. (1) The descriptions of A and B in subsection 122.7(2) of the Act are replaced by the following:

  A

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $925 and 25% of the amount, if any, by which the individual’s working income for the taxation year exceeds $3,000, or

  • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $1,680 and 25% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $3,000; and

  B

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the adjusted net income of the individual for the taxation year exceeds $10,500, or

  • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $14,500.

• (2) The descriptions of C and D in subsection 122.7(3) of the Act are replaced by the following:

  C

  is the lesser of $462.50 and 25% of the amount, if any, by which the individual’s working income for the taxation year exceeds $1,150; and

  D

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 15% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $16,667,

  • (b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 15% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $25,700, or

  • (c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7.5% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $25,700.

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

• 14. (1) Paragraph 127.531(a) of the Act is replaced by the following:

  • (a) an amount deducted under subsection 118(1), (2) or (10) or 118.3(1) or any of sections 118.01 to 118.05 and 118.5 to 118.7 in computing the individual’s tax payable for the year under this Part; or

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

• 15. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:

  • (A) under any of sections 118 to 118.05, 118.2, 118.3, 118.5, 118.6, 118.8 and 118.9,

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

C.R.C., c. 945Income Tax Regulations

16. Section 7305 of the Income Tax Regulations is amended by striking out “and” at the end of paragraph (i) and by adding the following after paragraph (j):

• 17. (1) The Regulations are amended by adding the following after section 7305.01:

  • 7305.02 (1) For the purposes of subsection 80.3(4) of the Act, the following regions are prescribed regions of flood or excessive moisture:

    • (a) in respect of the 2008 calendar year, in Manitoba,

      • (i) the rural municipalities of Alonsa, Armstrong, Bifrost, Coldwell, Dauphin, Eriksdale, Ethelbert, Fisher, Gimli, Glenella, Grahamdale, Lakeview, Lawrence, McCreary, Mossey River, Mountain South, Ochre River, Rockwood, Siglunes, St. Andrews, St. Laurent, Ste. Rose and Woodlands, and

      • (ii) any reserve that is contiguous to a rural municipality referred to in subparagraph (i), or that is part of a series of contiguous reserves one of which is contiguous to a rural municipality referred to in subparagraph (i), of the bands designated as Dauphin River, Ebb and Flow, Fisher River, Kinonjeoshtegon First Nation, Lake Manitoba First Nation, Lake St. Martin, Little Saskatchewan, O-Chi-Chak-Ko-Sipi First Nation, Peguis, Pinaymootang First Nation, Sandy Bay and Skownan First Nation; and

    • (b) in respect of the 2009 calendar year, in Manitoba, the rural municipalities of Armstrong, Bifrost, Fisher and Gimli.

  • (2) For the purpose of this section, “band” and “reserve” have the same meaning as assigned by the Indian Act.

• (2) Subsection (1) is deemed to have come into force on January 1, 2008.

PART 2MISCELLANEOUS

Payments

Multilateral Debt Relief

Marginal note:Maximum payment of $2,500,000,000

• 18. (1) For the purpose of Canada’s contribution to the Multilateral Debt Relief Initiative, or for making contributions towards multilateral debt relief, there may, in respect of fiscal years in the period that begins on April 1, 2009 and ends on March 31, 2054, be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, sums, not exceeding in the aggregate $200 million in each fiscal year, to international organizations in order to make debt payments on behalf of eligible countries. No more than a total of $2.5 billion may be paid out under this subsection.

• Marginal note:Agreements

  (2) The Minister of Finance may enter into arrangements or agreements with international organizations for the purpose of the payments referred to in subsection (1).

Payment to Nova Scotia — Offshore Petroleum Resources

Marginal note:Payment of $174,500,000

19. Before April 1, 2010, there may be paid to Nova Scotia out of the Consolidated Revenue Fund, on the requisition of the Minister of Natural Resources, $174,500,000.

R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3Bretton Woods and Related Agreements Act

• 20. (1) Paragraph 12(h) of Article V of Schedule I to the Bretton Woods and Related Agreements Act is replaced by the following:

  • (h) Pending uses specified under (f) above, the Fund may use a member’s currency held in the Special Disbursement Account for investment as it may determine, in accordance with rules and regulations adopted by the Fund by a seventy percent majority of the total voting power. The income of investment and interest received under (f)(ii) above shall be placed in the Special Disbursement Account.

• (2) Section 12 of Article V of Schedule I to the Act is amended by adding the following after paragraph (j):

  • (k) Whenever under (c) above the Fund sells gold acquired by it after the date of the second amendment of this Agreement, an amount of the proceeds equivalent to the acquisition price of the gold shall be placed in the General Resources Account, and any excess shall be placed in the Investment Account for use pursuant to the provisions of Article XII, Section 6(f). If any gold acquired by the Fund after the date of the second amendment of this Agreement is sold after April 7, 2008 but prior to the date of entry into force of this provision, then, upon the entry into force of this provision, and notwithstanding the limit set forth in Article XII, Section 6(f)(ii), the Fund shall transfer to the Investment Account from the General Resources Account an amount equal to the proceeds of such sale less

    • (i) the acquisition price of the gold sold, and

    • (ii) any amount of such proceeds in excess of the acquisition price that may have already been transferred to the Investment Account prior to the date of entry into force of this provision.

• 21. (1) Paragraph 3(e) of Article XII of Schedule I to the Act is replaced by the following:

  • (e) Each Executive Director shall appoint an Alternate with full power to act for him when he is not present, provided that the Board of Governors may adopt rules enabling an Executive Director elected by more than a specified number of members to appoint two Alternates. Such rules, if adopted, may only be modified in the context of the regular election of Executive Directors and shall require an Executive Director appointing two Alternates to designate:

    • (i) the Alternate who shall act for the Executive Director when he is not present and both Alternates are present, and

    • (ii) the Alternate who shall exercise the powers of the Executive Director under (f) below.

    When the Executive Directors appointing them are present, Alternates may participate in meetings but may not vote.

• (2) Paragraph 5(a) of Article XII of Schedule I to the Act is replaced by the following:

  • (a) The total votes of each member shall be equal to the sum of its basic votes and its quota-based votes.

    • (i) The basic votes of each member shall be the number of votes that results from the equal distribution among all the members of 5.502 percent of the aggregate sum of the total voting power of all the members, provided that there shall be no fractional basic votes.

    • (ii) The quota-based votes of each member shall be the number of votes that results from the allocation of one vote for each part of its quota equivalent to one hundred thousand special drawing rights.

• (3) Subparagraph 6(f)(iii) of Article XII of Schedule I to the Act is replaced by the following:

  • (iii) The Fund may use a member’s currency held in the Investment Account for investment as it may determine, in accordance with rules and regulations adopted by the Fund by a seventy percent majority of the total voting power. The rules and regulations adopted pursuant to this provision shall be consistent with (vii), (viii), and (ix) below.

• (4) Subparagraph 6(f)(vi) of Article XII of Schedule I to the Act is replaced by the following:

  • (vi) The Investment Account shall be terminated in the event of liquidation of the Fund and may be terminated, or the amount of the investment may be reduced, prior to liquidation of the Fund by a seventy percent majority of the total voting power.

Marginal note:1991, c. 21, s. 5

22. Section 2 of Schedule L of Schedule I to the Act is replaced by the following:

1991, c. 11Broadcasting Act

Marginal note:1994, c. 18, s. 18

23. Paragraph 46.1(3)(a) of the Broadcasting Act is replaced by the following:

2009, c. 2Budget Implementation Act, 2009

• 24. (1) Section 309 of the Budget Implementation Act, 2009 is replaced by the following:

  Marginal note:Maximum payment of $1,000,000,000

  309. 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 for the construction, renovation, refurbishment or repair of buildings and facilities at post-secondary institutions.

• Marginal note:Coming into force

  (2) Subsection (1) is deemed to have come into force on March 12, 2009.

R.S., c. C-8Canada Pension Plan

Amendments to the Act

Marginal note:1991, c. 44, s. 1

25. The portion of subsection 2(2) of the Canada Pension Plan before paragraph (a) is replaced by the following:

• 26. (1) Subsection 12(1) of the Act is amended by striking out “or” at the end of paragraph (b) and by replacing paragraph (c) with the following:

  • (c) after they reach sixty-five years of age if

    • (i) a retirement pension is payable to them under this Act or under a provincial pension plan, and

    • (ii) subject to subsection (1.1), they make an election to exclude the income; or

  • (d) after they reach seventy years of age.

• (2) Section 12 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Election

    (1.1) An election referred to in subparagraph (1)(c)(ii)

    • (a) shall be made or revoked in the prescribed form and manner;

    • (b) shall commence to have effect on the first day of the month following the month in which it is made;

    • (c) shall cease to have effect on the first day of the month following the month in which it is revoked;

    • (d) may be made only once in a year;

    • (e) may not be revoked in the year in which it is made;

    • (f) may not be made in a year in which an election is revoked; and

    • (g) is deemed to be an election in respect of the person’s income from all pensionable employment and in respect of their self-employed earnings.

  • Marginal note:Consequence of not revoking election in prescribed form and manner

    (1.2) If a person does not revoke — in respect of an employer — an election in the prescribed form and manner, the contributory salary and wages referred to in paragraphs 8(1)(a) and 9(1)(a) do not, for the purposes of those paragraphs, include income from that employment. However, they may — in respect of that income — make an election under subsection 13(3) and pay the contribution required under section 10 within one year after their balance-due day.

Marginal note:R.S., c. 30 (2nd Supp.), s. 6

• 27. (1) Subsections 13(1) and (2) of the Act are replaced by the following:

  Marginal note:Amount of contributory self-employed earnings

  • 13. (1) The amount of the contributory self-employed earnings of a person for a year is the amount of the self-employed earnings except that,

    • (a) for a year in which the person reaches eighteen or seventy years of age, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year

      • (i) after

        • (A) they reach eighteen years of age, or

        • (B) the disability pension ceases to be payable, or

      • (ii) before

        • (A) they reach seventy years of age, or

        • (B) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

      is of 12;

    • (b) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they make an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is deemed to be made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12;

    • (c) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they revoke an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is deemed to be revoked — minus the number of months after they reach seventy years of age — is of 12;

    • (d) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

    • (e) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is revoked — minus the number of months after they reach seventy years of age — is of 12.

  • Marginal note:Election

    (1.1) An election referred to in paragraph (1)(b) or (c)

    • (a) shall be made or revoked in the prescribed form and manner;

    • (b) may be made only once for a year;

    • (c) may not be revoked for the year for which it is deemed to be made;

    • (d) may not be made for a year for which an election is revoked;

    • (e) is deemed to be made or revoked on the first day of the month referred to in the election or revocation, as the case may be; and

    • (f) may not be made for a year for which the person has income from pensionable employment.

  • Marginal note:Condition

    (1.2) For the purposes of paragraph (1.1)(e), the month may not be

    • (a) before the one in which the person reaches sixty-five years of age;

    • (b) before the one in which the retirement pension becomes payable; or

    • (c) after the one in which they reach seventy years of age.

  • Marginal note:Excluded earnings

    (2) Subject to subsection (1), the contributory self-employed earnings of a person do not include earnings for

    • (a) any period described in paragraph 12(1)(a), (b), (c) or (d); or

    • (b) any year that

      • (i) follows a year for which the person makes an election to exclude self-employed earnings, and

      • (ii) is not a year for which they revoke the election.

• Marginal note:1997, c. 40, s. 60

  (2) The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Election to include certain earnings

    (3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of section 10 shall, if the person or their representative makes an election in the prescribed manner within one year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under section 38, from the day on which the Minister refunds the amount — include any amount by which

Marginal note:R.S., c. 30 (2nd Supp.), s. 9

28. Section 17 of the Act is replaced by the following:

Marginal note:R.S., c. 30 (2nd Supp.), s. 11

29. Section 19 of the Act is replaced by the following:

• 30. (1) Subsection 38(1) of the Act is replaced by the following:

  Marginal note:Refund of overpayment

  • 38. (1) If an overpayment has been made by an employee on account of the employee’s contribution under this Act for a year, the Minister shall, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year, refund to the employee the amount of the overpayment.

• Marginal note:2004, c. 22, s. 18(1)

  (2) Subsection 38(3) of the Act is replaced by the following:

  • Marginal note:Refund of excess — employee

    (3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contribution for the year required of the employee under subsection 8(1), the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.

• (3) Paragraph 38(4)(b) of the Act is replaced by the following:

  • (b) shall make such a refund after mailing the notice of assessment, if application is made in writing by the contributor not later than four years — or, in the case of a contributor who is notified after the coming into force of this paragraph of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.

Marginal note:1992, c. 1, s. 23

31. Paragraph 42(2)(b) of the Act is replaced by the following:

• 32. (1) Subsection 44(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and’’ at the end of paragraph (f) and by adding the following after paragraph (f):

  • (g) a post-retirement benefit shall be paid to a beneficiary of a retirement pension under this Act or under a provincial pension plan.

• (2) Section 44 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Proration — late applications for disability pensions

    (2.1) For the purposes of determining the minimum qualifying period of a contributor referred to in subparagraph (1)(b)(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12.

Marginal note:R.S., c. 30 (2nd Supp.), s. 15; R.S., c. 18 (3rd Supp.), s. 29; 1991, c. 44, s. 5

33. Subsections 46(3) to (6) of the Act are replaced by the following:

• 34. (1) Paragraph 48(4)(a) of the Act is replaced by the following:

  • (a) from the number of months remaining, a number of months equal to the lesser of

    • (i) subject to subsection (5), if the retirement pension or other benefit becomes payable commencing with a month before January 2012, fifteen per cent of the number remaining — and sixteen per cent commencing with a month after December 2011 and before January 2014 and seventeen per cent commencing with a month after December 2013 — and, if that per cent includes a fraction of a month, the fraction shall be taken to be a complete month, and

    • (ii) the number of months by which the number remaining exceeds one hundred and twenty; and

• (2) Section 48 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Exception — same percentage

    (5) The percentage used in a calculation of the amount of average monthly pensionable earnings under subsection (4) is to be used in the calculation of other benefits based on that amount.

35. Section 53 of the Act is renumbered as subsection 53(1) and is amended by adding the following:

36. The Act is amended by adding the following after section 59:

37. Section 60 of the Act is amended by adding the following after subsection (1):

38. Section 67 of the Act is amended by adding the following after subsection (3):

Marginal note:R.S., c. 30 (2nd Supp.), s. 37

39. Section 68.1 of the Act is repealed.

40. The Act is amended by adding the following after section 76:

• 41. (1) Section 113.1 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Review of adjustment factors

    (2) When the Chief Actuary of the Office of the Superintendent of Financial Institutions specifies adjustment factors in his or her report according to subsection 115(1.11), the Minister of Finance and ministers of the Crown from the included provinces shall, as part of their review, also review the adjustment factors fixed under subsection 46(7) and may make recommendations as to whether they should be changed.

• Marginal note:1997, c. 40, s. 94(3)

  (2) Subsection 113.1(3) of the French version of the Act is replaced by the following:

  • Marginal note:Conclusion de l’examen

    (3) Dans la mesure du possible, l’examen doit s’effectuer dans un délai qui permette au ministre des Finances de faire des recommandations au gouverneur en conseil avant la fin de la deuxième année de la période de trois ans.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 56

  (3) Subsection 113.1(13) of the Act is replaced by the following:

  • Marginal note:Recommendation — adjustment factors

    (13) On the completion of a review required by subsection (2), the Minister of Finance may recommend to the Governor in Council that the Governor in Council amend the regulations made under subsection 46(7) to give effect to any recommendations made under subsection (2). If the recommendations are that no changes be made to the adjustment factors, the Minister of Finance shall cause those recommendations to be published in the Canada Gazette.

  • Marginal note:Changes to adjustment factors — regulations

    (14) The Governor in Council may, on the recommendation of the Minister of Finance made under subsection (13), amend the regulations to change one or more adjustment factors or the methods of calculating them.

  • Marginal note:Provincial consent

    (15) The regulations may only be amended if the lieutenant governor in council of each of at least two thirds of the included provinces, having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the amendment.

  • Marginal note:Definition of “included province”

    (16) In this section, “included province” has the same meaning as in subsection 114(1).

42. Section 115 of the Act is amended by adding the following after subsection (1.1):

Coming into Force

Marginal note:Subsection 114(2) of the Canada Pension Plan does not apply

• 43. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in sections 25 to 42.

• Marginal note:Order in council

  (2) Sections 25 to 42 come into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day or days to be fixed by order of the Governor in Council.

1997, c. 40Canada Pension Plan Investment Board Act

Amendments to the Act

Marginal note:2003, c. 5, s. 15

44. Section 37 of the Canada Pension Plan Investment Board Act is repealed.

• 45. (1) Section 53 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Approval of proposed regulation

    (2.1) For the purpose of subsection (2), the approval of a proposed regulation published in the Canada Gazette is deemed to be the approval of the regulation if the regulation is the same or substantially the same as the proposed regulation.

• (2) Section 53 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Publication of coming into force date

    (4) If the approvals necessary to give force and effect to a regulation are given only after the regulation is made, the Minister shall, as soon as feasible, cause to be published in the Canada Gazette the date that the regulation came into force.

Coming into Force

Marginal note:April 1, 1998

46. Subsection 45(1) is deemed to have come into force on April 1, 1998.

1988, c. 28Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

• 47. (1) The definition “former Act” in subsection 246(1) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act is repealed.

• (2) The definitions “deemed profit”, “fiscal incentive”, “offshore revenue threshold” and “threshold rate of return” in subsection 246(1) of the English version of the Act are repealed.

• 48. (1) Subsection 247(1) of the Act is replaced by the following:

  Marginal note:Adjustment payment

  • 247. (1) Subject to this section, the Federal Minister may, on behalf of Her Majesty in right of Canada, pay an amount to Her Majesty in right of the Province equal to seventy-five per cent of the profit realized on or after April 1, 2010, and determined in the manner prescribed, in respect of a project.

• (2) Subsection 247(2) of the English version of the Act is replaced by the following:

  • Marginal note:Restriction

    (2) No payment shall be made pursuant to subsection (1) in respect of a project unless the Provincial Minister demonstrates to the satisfaction of the Federal Minister that the rate of return in respect of that project that would have been obtained on behalf of Her Majesty in right of the Province, calculated in the manner prescribed, is equal to or greater than an annual rate of return on invested capital that is equal to the lesser of 20% and the aggregate of 7% and the average annual cost to the Province of borrowing money.

• (3) Subsections 247(3) and (4) of the Act are replaced by the following:

  • Marginal note:Exception

    (2.1) Subsection (2) does not apply in respect of the Sable Offshore Energy Project and the Deep Panuke Offshore Gas Development Project.

  • Marginal note:Reduction for fiscal incentives

    (3) The aggregate amount of payments made pursuant to subsection (1) in respect of any project shall be reduced by the aggregate amount, determined in the manner prescribed, of all fiscal incentives and any other benefits that are

    • (a) established by or pursuant to an Act of Parliament;

    • (b) prescribed for the purposes of this Part or approved in the manner prescribed; and

    • (c) received in respect of the project.

  • Marginal note:Exception

    (3.1) Subsection (3) does not apply in respect of fiscal incentives and other benefits generally prevailing in Canada.

  • Marginal note:Time of payments

    (4) Subject to the regulations, a payment made pursuant to subsection (1) shall be made annually, not later than six months after the end of each fiscal year.

• (4) Subsection 247(6) of the Act is repealed.

49. The heading before section 248 of the French version of the Act is replaced by the following:

50. Section 248 of the Act is replaced by the following:

1997, c. 36Customs Tariff

Amendments to the Act

Marginal note:2009, c. 2, s. 122

51. Paragraph 133(c) of the Customs Tariff is replaced by the following:

52. The Description of Goods of tariff item No. 9801.10.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “---Conveyances,” with a reference to “---Conveyances, not including trailers and semi-trailers of subheading 8716.31 or 8716.39,”.

53. The Description of Goods of tariff item No. 9801.10.20 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

• (a) the reference to “30 days” with a reference to “365 days”; and

• (b) the reference to “The containers provided for in this tariff item may engage in the transportation of goods from one point in Canada to another point in Canada where: (a) that transportation is incidental to the international traffic of the goods; (b) the transportation does not occur outside the territorial limits of Canada; and (c) the container has not entered Canada for the purpose of an in-transit movement through Canada to a point outside of Canada” with a reference to “The containers provided for in this tariff item may engage in the transportation of goods from one point in Canada to another point in Canada where: (a) the transportation does not occur outside the territorial limits of Canada; and (b) the container has not entered Canada for the purpose of an in-transit movement through Canada to a point outside of Canada”.

54. 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 “9801.10.20” with a reference to “9801.10.20, 9801.10.30”.

55. 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 provision set out in the schedule to this Act.

56. 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 “9801.10.20” with a reference to “9801.10.20, 9801.10.30”.

Coordinating Amendments

Marginal note:Bill C-23

• 57. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 2nd session of the 40th Parliament and entitled the Canada–Colombia Free Trade Agreement Implementation Act (referred to in this section as the “other Act”), receives royal assent.

• (2) If subsection 48(1) of the other Act comes into force before section 55 of this Act, tariff item No. 9801.10.30 in the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

  • (a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT: Free”, a reference to “COLT: Free”; and

  • (b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT: Free (A)”, a reference to “COLT: Free (A)”.

• (3) If subsection 48(1) of the other Act comes into force on the same day as section 55 of this Act, then that section 55 is deemed to have come into force before that subsection 48(1).

R.S., c. F-11Financial Administration Act

Amendments to the Act

58. The Financial Administration Act is amended by adding the following after section 65:

Marginal note:2006, c. 9, s. 262(1)

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

60. The Act is amended by adding the following after section 131:

Coming into Force

Marginal note:April 1, 2011

61. Sections 58 to 60 come into force on April 1, 2011.

R.S., c. P-36Public Service Superannuation Act

62. Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order:

Amendments Related to the Bankruptcy and Insolvency Act

R.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act

Marginal note:2005, c. 47, s. 44; 2007, c. 36, s. 26

63. Paragraph 65.11(10)(a) of the Bankruptcy and Insolvency Act is replaced by the following:

Marginal note:2005, c. 47, s. 68; 2007, c. 29, ss. 97 and 98

64. Sections 84.1 and 84.2 of the Act are replaced by the following:

65. The Act is amended by adding the following after section 87:

66. Sections 84.1 and 84.2 of the Bankruptcy and Insolvency Act, as enacted by section 64, and section 88 of that Act, as enacted by section 65, apply to proceedings commenced under that Act on or after the day on which this Act receives royal assent.

2007, c. 36Chapter 36 of the Statutes of Canada, 2007

67. Section 25 of chapter 36 of the Statutes of Canada, 2007 is repealed.