An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (S.C. 2016, c. 14)
Full Document:
Assented to 2016-12-15
PART 1Amendments to the Canada Pension Plan and the Canada Pension Plan Investment Board Act (continued)
R.S., c. C-8Canada Pension Plan (continued)
Marginal note:1991, c. 49, ss. 210(1) and 211(1); 1993, c. 24, ss. 145(1) and 146(1); 1994, c. 21, s. 124(1)
15 Sections 31 to 34 of the Act are replaced by the following:
Marginal note:Estimate to be made
31 Every person who is required by section 30 to file a return of the person’s self-employed earnings shall in the return estimate the amount of the contributions to be made by the person in respect of those earnings.
Marginal note:Examination of return and notice of assessment
32 The Minister shall, with all due dispatch, examine each return of self-employed earnings and assess the contributions for the year in respect of those earnings and the interest and penalties, if any, payable, and, after the examination, shall send a notice of assessment to the person by whom the return was filed.
Marginal note:Payment of contributions
33 (1) If the amount of the contributions required to be made by a person for a year in respect of the person’s self-employed earnings is $40 or less, or a person who is required by this Act to make contributions for a year in respect of the person’s self-employed earnings is not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of the person’s income tax, the person shall, on or before the person’s balance-due day for the year, pay to the Receiver General the whole amount of the contributions.
Marginal note:Farmers and fishers
(2) Every person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of
(a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or
(b) the contributions required in respect of the person’s self-employed earnings for the preceding year.
Marginal note:Other persons
(3) Every person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year
(a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of
(i) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or
(ii) the contributions required in respect of the person’s self-employed earnings for the preceding year; or
(b) on or before
(i) March 15 and June 15 in the year, an amount equal to one quarter of the contributions required in respect of the person’s self-employed earnings for the second preceding year, and
(ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which
(A) the contributions required in respect of the person’s self-employed earnings for the preceding year
exceeds
(B) one half of the contributions required in respect of the person’s self-employed earnings for the second preceding year.
Marginal note:Payment of remainder of estimated contributions
(4) A person referred to in subsection (2) or (3) shall also pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the contributions as estimated under section 31. However, paragraphs (2)(a) and (b) and (3)(a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the person’s death.
Marginal note:Interest on unpaid contributions
34 (1) If the amount paid by a person on or before the person’s balance-due day for a year on account of contributions required to be made by the person for the year in respect of the person’s self-employed earnings is less than the amount of the contributions required to be made by the person, interest at a prescribed rate per annum is payable by the person on the difference between those amounts from the balance-due day for the year to the day of payment.
Marginal note:Interest on instalments
(2) In addition to any interest payable under subsection (1), if a person, being required by section 33 to pay a part or instalment of the contributions required to be made by the person, has failed to pay all or any part of the contributions as required, the person shall, on payment of the amount that the person failed to pay, pay interest on the amount at a prescribed rate per annum from the day on or before which the person was required to make the payment to the day of payment or the beginning of the period in respect of which the person is liable to pay interest on the amount under subsection (1), whichever is the earlier.
Marginal note:Limitation for farmers and fishers
(3) For the purposes of subsection (2), if a person is required by subsection 33(2) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before the day referred to in subsection 33(2) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least amount required to be paid by the person on or before that day:
(a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;
(b) the contributions required in respect of the person’s self-employed earnings for the preceding year;
(c) the amount stated to be the amount of the instalment payable by the person for the year in the notice, if any, sent to the person by the Minister.
Marginal note:Limitation for other persons
(4) For the purposes of subsection (2), if a person is required by subsection 33(3) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before each day referred to in subsection 33(3) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least total amount of those parts or instalments required to be paid by the person by that day:
(a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;
(b) the contributions required in respect of the person’s self-employed earnings for the preceding year;
(c) the amounts determined under paragraph 33(3)(b) in respect of the person for the year;
(d) the amounts stated to be the amounts of instalment payable by the person for the year in the notices, if any, sent to the person by the Minister.
Marginal note:1991, c. 49, s. 212(1)
16 Subsection 35(1) of the Act is replaced by the following:
Marginal note:Failure to file a return
35 (1) Every person who fails to file a return of the person’s self-employed earnings for a year as and when required by section 30 is liable to a penalty of 5% of the part of the amount of the contributions required to be made by the person for the year in respect of the contributions that remained unpaid at the expiration of the time the return was required to be filed, except that, if that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister may reduce the penalty to which the person is liable under this section or may remit the penalty in whole or in part.
Marginal note:1991, c. 49, s. 213
17 Sections 36 and 37 of the Act are replaced by the following:
Marginal note:Application of Income Tax Act provisions
36 Subject to this Part and except as otherwise provided by regulation, the provisions of Divisions I and J of Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of Part XV (except section 221) and subsections 248(7) and (11) of that Act apply, with any modifications that the circumstances require, in relation to any amount paid or payable as or on account of the contributions for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act.
Marginal note:Priority in which payment to be applied
37 If any payment is made by a person to the Minister on account of taxes specified in section 228 of the Income Tax Act and of contributions under this Act in respect of self-employed earnings, despite any direction made by the person making the payment with respect to its application, the part of the payment that would be applied under that section in payment of tax under the Income Tax Act shall be applied in payment of the contributions under this Act and is deemed to be a payment on account of those contributions, and to the extent of the amount so applied shall not discharge liability for tax under the Income Tax Act, and any amount then remaining shall be applied in payment of tax under the Income Tax Act and shall discharge the liability of the person making the payment for that tax to the extent of that amount.
Marginal note:1997, c. 40, s. 67(1); 2004, c. 22, s. 18(1); 2012, c. 19, s. 227(1) and (2); 2013, c. 40, subpar. 236(1)(b)(i)
18 (1) Subsections 38(1) to (3.1) of the Act are 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 contributions under this Act for a year, the Minister must, 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, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year, refund to the employee the amount of the overpayment.
Marginal note:Refund after decision on appeal
(2) If an amount on account of contributions is deducted from the remuneration of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under section 27, 27.1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.
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 contributions for the year required of the employee under section 8, 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, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year.
Marginal note:Refund of amount remitted in excess — employer
(3.1) Subject to subsection (3.2) but despite any other provision of this Part, if an employer applies to the Minister and satisfies the Minister that, for any year, the amount remitted by the employer as the employer’s contributions with respect to an employee exceeds the contributions for the year required of the employer under section 9 with respect to the employee, the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.
Marginal note:2010, c. 25, s. 70
(2) The portion of subsection 38(4) of the Act before paragraph (b) is replaced by the following:
Marginal note:Refund of excess — self-employed person
(4) If a person has paid, on account of the contributions required to be made by the person for a year in respect of the person’s self-employed earnings, an amount in excess of the contributions, the Minister
(a) may refund that part of the amount so paid in excess of the contributions on sending the notice of assessment of the contributions, without any application having been made for the refund; and
Marginal note:1991, c. 49, s. 214
(3) Subsection 38(5) of the Act is replaced by the following:
Marginal note:Recovery of amount refunded or credited on liability
(5) If an application under this section has been made to the Minister for a refund of any amount deducted on account of an employee’s contributions for a year and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has refunded an amount to the employee, or applied an amount to a liability of the employee to Her Majesty in right of Canada, in excess of the amount that should have been refunded or applied, the amount of the excess may be recovered at any time from the employee as a debt due to Her Majesty.
19 Section 39 of the Act is replaced by the following:
Marginal note:Refund of overpayment in accordance with agreement
39 (1) Despite anything in this Act, if an overpayment has been made by an employee on account of the employee’s contributions for a year under this Act, the Minister may, in accordance with any agreement that may be entered into by the Minister with the approval of the Governor in Council with the appropriate authority of a province having the administration of the provincial pension plan referred to in subsection 8(2), if application in writing is made to the Minister by the employee not later than four years after the end of the year, refund to the employee the whole amount of the excess referred to in that subsection, in which case the whole of that amount is deemed to be an overpayment made by the employee on account of the employee’s contributions for that year under this Act.
Marginal note:Saving
(2) If, in accordance with any agreement entered into under subsection (1), the appropriate authority of a province has refunded to an employee the whole amount of the excess referred to in subsection 8(2) with respect to that employee, the whole of that amount is deemed to be an overpayment made by the employee on account of the employee’s contributions for that year under the provincial pension plan referred to in that subsection.
Marginal note:Provision for making of financial adjustments
(3) Any agreement entered into under subsection (1) may provide for the making of any financial adjustments required to be made by reason of any payments made to employees in accordance with that agreement and for the crediting or charging of the amount of those adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be.
Marginal note:R.S., c. 30 (2nd Supp.), s. 13(1)
20 (1) Subparagraph 44(1)(b)(i) of the Act is replaced by the following:
(i) has made base contributions for not less than the minimum qualifying period,
(2) Paragraph 44(1)(c) of the Act is replaced by the following:
(c) a death benefit shall be paid to the estate or succession of a deceased contributor who has made base contributions for not less than the minimum qualifying period;
Marginal note:2000, c. 12, s. 45(1)
(3) The portion of paragraph 44(1)(d) of the Act before subparagraph (i) is replaced by the following:
(d) subject to subsection (1.1), a survivor’s pension shall be paid to the survivor of a deceased contributor who has made base contributions for not less than the minimum qualifying period, if the survivor
Marginal note:R.S., c. 30 (2nd Supp.), s. 13(3)
(4) Subparagraph 44(1)(e)(i) of the Act is replaced by the following:
(i) has made base contributions for not less than the minimum qualifying period,
(5) Paragraph 44(1)(f) of the Act is replaced by the following:
(f) an orphan’s benefit shall be paid to each orphan of a deceased contributor who has made base contributions for not less than the minimum qualifying period; and
Marginal note:2012, c. 31, s. 195(1)
(6) The portion of paragraph 44(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during the contributor’s contributory period on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),
Marginal note:1997, c. 40, s. 69(4)
(7) Subparagraph 44(2)(b)(iv) of the Act is replaced by the following:
(iv) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings are less than the basic exemption of the contributor for the year, calculated without regard to subsection 20(2).
Marginal note:2009, c. 31, s. 32(2)
(8) Subsection 44(2.1) of the Act is replaced by the following:
Marginal note:Proration — late applications for disability pensions
(2.1) For the purpose 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 base 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:2012, c. 31, s. 195(2)
(9) The portion of subsection 44(2.2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Family allowance — late applications for disability pensions
(2.2) A contributor referred to in subparagraph (1)(b)(ii) is deemed to have made base contributions for not less than the minimum qualifying period for the purpose of subparagraph (1)(b)(i) if
Marginal note:2012, c. 31, s. 195(2)
(10) Subparagraph 44(2.2)(b)(ii) of the Act is replaced by the following:
(ii) their base unadjusted pensionable earnings were less than their basic exemption, calculated without regard to subsection 20(2); and
Marginal note:1991, c. 44, s. 4; 2012, c. 31, s. 195(3)
(11) The portion of subsection 44(3) of the Act before paragraph (b) is replaced by the following:
Marginal note:Calculation for other supplementary benefits
(3) For the purposes of paragraphs (1)(c), (d) and (f), a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during their contributory period
(a) for at least one third of the total number of years included either wholly or partly within their contributory period, excluding from the calculation of that contributory period any month in a year after the year in which the contributor reaches 65 years of age and for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for that year, but in no case for less than three years; or
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