Jobs and Growth Act, 2012 (S.C. 2012, c. 31)
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Assented to 2012-12-14
2010, c. 12, s. 91Input Tax Credit Allocation Methods (GST/HST) Regulations
96. The Input Tax Credit Allocation Methods (GST/HST) Regulations are deemed
(a) to have been made under section 277 of the Excise Tax Act;
(b) for the purposes of subsection 5(1) of the Statutory Instruments Act, to have been transmitted to the Clerk of the Privy Council for registration; and
(c) to have met the publication requirements of subsection 11(1) of the Statutory Instruments Act.
PART 3R.S., c. F-8; 1995, c. 17, s. 45(1)FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
97. (1) The Federal-Provincial Fiscal Arrangements Act is amended by adding the following after section 12.3:
PART IV.11TRANSFER PAYMENTS — TAX IN RESPECT OF SIFT TRUSTS OR SIFT PARTNERSHIPS
Marginal note:Definitions
12.31 The following definitions apply in this Part.
“SIFT entity”
« entité intermédiaire de placement déterminée »
“SIFT entity” means a SIFT trust or a SIFT partnership.
“SIFT partnership”
« société de personnes intermédiaire de placement déterminée »
“SIFT partnership” has the same meaning as in subsection 248(1) of the Income Tax Act.
“SIFT trust”
« fiducie intermédiaire de placement déterminée »
“SIFT trust” has the same meaning as in subsection 248(1) of the Income Tax Act.
Marginal note:Permanent establishment
12.32 The definition “permanent establishment” in subsection 400(2) of the Income Tax Regulations, as it read on March 12, 2009 and as it is amended from time to time after that date, applies in determining the amount payable to a province under this Part.
Marginal note:Transfer payments for SIFT entity with single permanent establishment
12.33 Subject to this Act, the Minister may pay to a province, in respect of tax payable under subsection 122(1) or 197(2) of the Income Tax Act by a SIFT entity that, in a taxation year, has a permanent establishment in the province and no permanent establishment outside the province, the amount determined by the formula
Z × Y
where
- Z
- is
(a) in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, 0.13, and
(b) in any other case, the amount determined under paragraph 414(3)(b) of the Income Tax Regulations in respect of the SIFT entity for the taxation year; and
- Y
- is
(a) for a SIFT entity that is a SIFT trust, the SIFT trust’s taxable SIFT trust distributions, as defined in subsection 122(3) of the Income Tax Act, for the taxation year, and
(b) for a SIFT entity that is a SIFT partnership, the SIFT partnership’s taxable non-portfolio earnings, as defined in subsection 197(1) of the Income Tax Act, for the taxation year.
Marginal note:Transfer payments for SIFT entity with multiple permanent establishments
12.34 (1) Subject to this Act, the Minister may pay to a province, in respect of tax payable under subsection 122(1) or 197(2) of the Income Tax Act by a SIFT entity that, in a taxation year, has a permanent establishment in the province and a permanent establishment outside the province, the amount determined by the formula
(Z/Y) × (X × W)
where
- Z
- is, subject to subsection (2), the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations for the taxation year in respect of the province;
- Y
- is
(a) subject to subsection (2), in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, the amount that would be determined under paragaph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year if the SIFT entity had made that election, and
(b) in any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year;
- X
- is
(a) in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, 0.13, and
(b) in any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year; and
- W
- is
(a) for a SIFT entity that is a SIFT trust, the SIFT trust’s taxable SIFT trust distributions, as defined in subsection 122(3) of the Income Tax Act, for the taxation year, and
(b) for a SIFT entity that is a SIFT partnership, the SIFT partnership’s taxable non-portfolio earnings, as defined in subsection 197(1) of the Income Tax Act, for the taxation year.
Marginal note:2007 and 2008 taxation years — permanent establishment in Quebec
(2) In respect of a taxation year that is after 2006 and before 2009 for which no election was made under subsection 34(4) of the Budget Implementation Act, 2008 by a SIFT entity that has a permanent establishment in the province of Quebec in that taxation year, in calculating the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations in respect of that province, paragraph (a) of the definition “general corporate income tax rate” in subsection 414(1) is to be read as follows:
(a) for Quebec, the highest percentage rate of tax imposed under the laws of Quebec on the taxable income of a public corporation earned in the taxation year in Quebec;
Marginal note:Consolidated Revenue Fund
12.35 Payments that the Minister may make under section 12.33 or 12.34 are to be made out of the Consolidated Revenue Fund at any time that the Minister may determine.
Marginal note:Information
12.36 A SIFT entity that has not made an election under subsection 34(4) of the Budget Implementation Act, 2008 in respect of a taxation year that is after 2006 and before 2009 must furnish to the Minister of National Revenue any information that that Minister may require for the purpose of determining the amount payable to a province under this Part in respect of taxes payable by the SIFT entity under subsection 122(1) or 197(2) of the Income Tax Act for that taxation year.
(2) Part IV.11 of the Act, as enacted by subsection (1), applies in respect of the 2007 and subsequent taxation years.
98. (1) The Act is amended by adding the following after section 12.5:
PART IV.3TRANSFER PAYMENTS — TAX ON EXCESS EPSP AMOUNTS UNDER PART XI.4 OF THE INCOME TAX ACT
Marginal note:Transfer payments — Consolidated Revenue Fund
12.6 Subject to this Act, the Minister may, at such time as he or she determines, pay to a province, out of the Consolidated Revenue Fund in respect of tax payable under section 207.8 of the Income Tax Act for a taxation year by a person who is resident in the province at the end of the taxation year, the amount determined by the formula:
A × B
where
- A
- is the percentage applicable to the person for the taxation year under the description of B in the formula in subsection 207.8(2) of the Income Tax Act; and
- B
- is the amount determined for the person for the taxation year under the description of C in the formula in subsection 207.8(2) of the Income Tax Act.
Marginal note:Eligibility for payment
12.7 No payment may be made under this Part to a province if, in the opinion of the Minister, the province imposes or purports to impose a tax that is similar to the tax imposed under Part XI.4 of the Income Tax Act.
PART IV.4TRANSFER PAYMENTS WITH RESPECT TO FEDERAL TAXES — NECESSARY INFORMATION
Marginal note:Information to be provided
12.8 The Minister of National Revenue shall provide to the Minister in a form and manner, and at a time, satisfactory to the Minister, any information necessary for the administration of Parts IV.01 to IV.3.
(2) Part IV.3 of the Act, as enacted by subsection (1), applies in respect of the 2012 and subsequent taxation years.
PART 4VARIOUS MEASURES
Division 1Financial Institutions
1991, c. 45Trust And Loan Companies Act
Marginal note:2012, c. 19, s. 326
99. Paragraph 164(f.1) of the Trust and Loan Companies Act is replaced by the following:
(f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of section 374.1;
Marginal note:1994, c. 47, s. 206
100. Section 376.1 of the Act is replaced by the following:
Marginal note:Exception — small holdings
376.1 Despite section 376, if, as a result of a transfer or issue of shares of a class of shares of a company to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the company in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the company is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the company as a result of that issue or transfer of shares.
101. Section 377 of the Act is amended by adding the following after subsection (3):
Marginal note:Exception — eligible agent
(3.1) If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
Marginal note:2001, c. 9, s. 520
102. Paragraph 378(1)(b) of the Act is replaced by the following:
(b) a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the company acquires additional shares of the company.
103. Subsection 391(2) of the Act is replaced by the following:
Marginal note:Notice of decision
(2) Subject to subsections (4) and 392(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 390(1) in the following cases:
(a) the application involves the acquisition of control of a company;
(b) the application is made by an eligible agent or an entity controlled by an eligible agent; or
(c) an application is made for the approval referred to in subsection 396(3).
104. Subsection 392(2) of the English version of the Act is replaced by the following:
Marginal note:Reasonable opportunity to make representations
(2) If, after receipt of the notice sent in accordance with subsection 391(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
Marginal note:2012, c. 19, s. 328
105. Subsection 396(4) of the Act is replaced by the following:
Marginal note:Application made jointly
(4) The application for the approval referred to in subsection (3) must be made jointly by the company and the eligible agent.
Marginal note:Matters for consideration
(5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 388(1)(a) to (g).
Marginal note:Consequence of revocation of approval
(6) If an approval referred to in subsection (3) is revoked, the company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
Marginal note:Disposition of shareholdings
(7) If a company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
Marginal note:Representations
(8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
Marginal note:Appeal
(9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 530.
106. Section 399 of the Act is amended by adding the following after subsection (5):
Marginal note:Consequence of suspension of approval
(6) If an approval referred to in subsection 396(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the company that is beneficially owned by the eligible agent.
107. Subsection 402(1) of the Act is replaced by the following:
Marginal note:Application to court
402. (1) If a person fails to comply with a direction made under subsection 396(7) or 401(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
Marginal note:1996, c. 6, s. 132
108. Subsection 530(1) of the Act is replaced by the following:
Marginal note:Appeal to Federal Court
530. (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 396(7) or 401(1).
1991, c. 46Bank Act
Marginal note:2012, c. 19, s. 330
109. Paragraph 160(f.1) of the Bank Act is replaced by the following:
(f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of subsection 370(1);
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