8. Subsection 150(2) of the Act is replaced by the following:

• 9. (1) Section 150.1 of the Act is amended by adding the following after subsection (2.1):

  • Definition of “tax preparer”

    (2.2) In this section and subsection 162(7.3), “tax preparer”, for a calendar year, means a person or partnership who, in the year, accepts consideration to prepare more than 10 returns of income of corporations or more than 10 returns of income of individuals (other than trusts), but does not include an employee who prepares returns of income in the course of performing their duties of employment.

  • Marginal note:Electronic filing — tax preparer

    (2.3) A tax preparer shall file any return of income prepared by the tax preparer for consideration by way of electronic filing, except that 10 of the returns of corporations and 10 of the returns of individuals may be filed other than by way of electronic filing.

  • Marginal note:Exceptions

    (2.4) Subsection (2.3) does not apply to a tax preparer for a calendar year in respect of a return of income

    • (a) of a type for which the tax preparer has applied to the Minister for authority to file by way of electronic filing for the year and for which that authority has not been granted because the tax preparer does not meet the criteria referred to in subsection (2);

    • (b) of a corporation described in any of paragraphs 205.1(2)(a) to (c) of the Income Tax Regulations; or

    • (c) of a type that the Minister does not accept by way of electronic filing.

• (2) Subsection (1) applies in respect of returns of income for the 2012 and subsequent taxation years that are filed after 2012.

10. Section 152 of the Act is amended by adding the following after subsection (1.8):

11. Subsection 161(5) of the Act is repealed.

• 12. (1) Paragraph 162(2)(b) of the English version of the Act is replaced by the following:

  • (b) to whom a demand for a return for the year has been sent under subsection 150(2), and

• (2) Section 162 of the Act is amended by adding the following after subsection (7.2):

  • Marginal note:Failure to file in appropriate manner — tax preparer

    (7.3) Every tax preparer who fails to file a return of income as required by subsection 150.1(2.3) is liable to a penalty equal to

    • (a) $25 for each such failure in respect of a return of an individual; and

    • (b) $100 for each such failure in respect of a return of a corporation.

• (3) Subsection 162(8.1) of the Act is replaced by the following:

  • Marginal note:Rules — partnership liable to a penalty

    (8.1) If a partnership is liable to a penalty under any of subsections (5) to (7.1), (7.3), (8) and (10), then sections 152, 158 to 160.1, 161 and 164 to 167 and Division J apply, with any modifications that the circumstances require, to the penalty as if the partnership were a corporation.

• (4) Subsections (2) and (3) come into force, or are deemed to have come into force, on January 1, 2013.

• 13. (1) Subsection 188.2(2) of the Act is amended by striking out “or” at the end of paragraph (c) and by adding the following after paragraph (d):

  • (e) in the case of a registered charity that is a charitable foundation, if the foundation devotes resources to political activities that are not considered under subsection 149.1(6.1) to be devoted to charitable purposes;

  • (f) in the case of a registered charity that is a charitable organization, if the organization devotes resources to political activities that are not considered under subsection 149.1(6.2) to be devoted to charitable activities; or

  • (g) in the case of a registered Canadian amateur athletic association, if the association devotes resources to political activities that are not considered under subsection 149.1(6.201) to be devoted to its exclusive purpose and exclusive function.

• (2) Section 188.2 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Suspension – failure to report

    (2.1) If a registered charity or a registered Canadian amateur athletic association fails to report information that is required to be included in a return filed under subsection 149.1(14), the Minister may give notice by registered mail to the charity or association that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended from the day that is seven days after the day on which the notice is mailed until such time as the Minister notifies the charity or association that the Minister has received the required information in prescribed form.

• (3) The portion of subsection 188.2(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Effect of suspension

    (3) If the Minister has issued a notice to a qualified donee under any of subsections (1) to (2.1), subject to subsection (4),

• (4) Subsection 188.2(4) of the Act is replaced by the following:

  • Marginal note:Application for postponement

    (4) If a notice of objection to a suspension under any of subsections (1) to (2.1) has been filed by a qualified donee, the qualified donee may file an application to the Tax Court of Canada for a postponement of that portion of the period of suspension that has not elapsed until the time determined by the Court.

14. Paragraph 227(10)(b) of the Act is replaced by the following:

• 15. (1) Subsection 237.1(4) of the Act is replaced by the following:

  • Marginal note:Sales prohibited

    (4) A person may, at any time, whether as a principal or an agent, sell or issue, or accept consideration in respect of, a tax shelter only if

    • (a) the Minister has issued before that time an identification number for the tax shelter; and

    • (b) that time is before 2014.

• (2) Paragraph 237.1(4)(b) of the Act, as enacted by subsection (1), is replaced by the following:

  • (b) that time is during the calendar year designated by the Minister as being applicable to the identification number.

• (3) Paragraph 237.1(7.4)(b) of the Act is replaced by the following:

  • (b) 25% of the greater of

    • (i) the total of all amounts each of which is the consideration received or receivable from a person in respect of the tax shelter before the correct information is filed with the Minister or the identification number is issued, as the case may be, and

    • (ii) the total of all amounts each of which is an amount stated or represented to be the value of property that a particular person who acquires or otherwise invests in the tax shelter could donate to a qualified donee, if the tax shelter is a gifting arrangement and consideration has been received or is receivable from the particular person in respect of the tax shelter before the correct information is filed with the Minister or the identification number is issued, as the case may be.

• (4) Section 237.1 of the Act is amended by adding the following after subsection (7.4):

  • Marginal note:Penalty

    (7.5) Every person who is required under subsection (7) to file an information return and who fails to comply with a demand under section 233 to file the return, or to report in the return information required under paragraph (7)(a) or (b), is liable to a penalty equal to 25% of the greater of

    • (a) the total of all amounts each of which is the consideration received or receivable by the person in respect of the tax shelter from a particular person in respect of whom information required under paragraph (7)(a) or (b) had not been reported at or before the time that the demand was issued or the return was filed, as the case may be, and

    • (b) if the tax shelter is a gifting arrangement, the total of all amounts each of which is an amount stated or represented to be the value of property that the particular person could donate to a qualified donee.

• (5) Subsection (1) is deemed to have come into force on March 29, 2012.

• (6) Subsection (2) applies in respect of any tax shelter for which an application for an identification number has been made after March 28, 2012.

• (7) Subsection (3) applies in respect of any application for an identification number made, any sale or issuance of a tax shelter made and any consideration in respect of a tax shelter accepted, on or after the day on which this Act receives royal assent.

• (8) Subsection (4) applies in respect of any demand made, and any information return filed, on or after the day on which this Act receives royal assent.

R.S., c. G-9Governor General’s Act

Marginal note:1990, c. 5, s. 1

16. Subsection 4(1) of the Governor General’s Act is replaced by the following: