Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7)

Assented to 2016-06-22

Budget Implementation Act, 2016, No. 1

S.C. 2016, c. 7

Assented to 2016-06-22

An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures

RECOMMENDATION

His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures”.

SUMMARY

Part 1 implements certain income tax measures proposed in the March 22, 2016 budget by

  • (a) eliminating the education tax credit;

  • (b) eliminating the textbook tax credit;

  • (c) exempting from taxable income amounts received as rate assistance under the Ontario Electricity Support Program;

  • (d) maintaining the small business tax rate at 10.5% for the 2016 and subsequent taxation years and making consequential adjustments to the dividend gross-up factor and dividend tax credit;

  • (e) increasing the maximum deduction available under the northern residents deduction;

  • (f) eliminating the children’s arts tax credit;

  • (g) eliminating the family tax cut credit;

  • (h) replacing the Canada child tax benefit and universal child care benefit with the new Canada child benefit;

  • (i) eliminating the child fitness tax credit;

  • (j) introducing the school supplies tax credit;

  • (k) extending, for one year, the mineral exploration tax credit for flow-through share investors;

  • (l) restoring the labour-sponsored venture capital corporations tax credit for purchases of shares of provincially registered labour-sponsored venture capital corporations for the 2016 and subsequent taxation years; and

  • (m) introducing changes consequential to the introduction of the new 33% individual tax rate.

Part 1 implements other income tax measures confirmed in the March 22, 2016 budget by

  • (a) amending the anti-avoidance rules in the Income Tax Act that prevent the conversion of capital gains into tax-deductible intercorporate dividends;

  • (b) qualifying certain costs associated with undertaking environmental studies and community consultations as Canadian exploration expenses;

  • (c) ensuring that profits from the insurance of Canadian risks remain taxable in Canada;

  • (d) ensuring that the dividend rental arrangement rules under the Income Tax Act apply where there is a synthetic equity arrangement;

  • (e) providing specific tax rules in respect of the commercialization of the Canadian Wheat Board, including a tax deferral for eligible farmers;

  • (f) permitting registered charities and registered Canadian amateur athletic associations to hold limited partnership interests;

  • (g) providing an exemption to the withholding tax requirements for payments by qualifying non-resident employers to qualifying non-resident employees;

  • (h) limiting the circumstances in which the repeated failure to report income penalty will apply;

  • (i) permitting the sharing of taxpayer information within the Canada Revenue Agency to facilitate the collection of certain non-tax debts; and

  • (j) permitting the sharing of taxpayer information with the Office of the Chief Actuary.

Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 22, 2016 budget by

  • (a) adding insulin pens, insulin pen needles and intermittent urinary catheters to the list of GST/HST zero-rated medical and assistive devices;

  • (b) clarifying that GST/HST generally applies to supplies of purely cosmetic procedures provided by all suppliers, including registered charities;

  • (c) relieving tax to ensure that when a charity makes a taxable supply of property or services in exchange for a donation and an income tax receipt may be issued for a portion of the donation, only the value of the property or services supplied is subject to GST/HST;

  • (d) ensuring that interest earned in respect of certain deposits is not included in determining whether a person is considered to be a financial institution for GST/HST purposes; and

  • (e) clarifying the treatment of imported reinsurance services under the GST/HST imported supply rules for financial institutions.

Part 2 also implements other GST/HST measures confirmed in the March 22, 2016 budget by

  • (a) adding feminine hygiene products to the list of GST/HST zero-rated products; and

  • (b) permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.

Part 3 implements certain excise measures proposed in the March 22, 2016 budget by

  • (a) ensuring that excise tax relief for diesel fuel used as heating oil or to generate electricity is targeted to specific instances; and

  • (b) enhancing certain security and collection provisions in the Excise Act, 2001.

Part 3 also implements other excise measures confirmed in the March 22, 2016 budget by permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.

Division 1 of Part 4 repeals the Federal Balanced Budget Act.

Division 2 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things,

  • (a) replace “permanent impairment allowance” with “career impact allowance”;

  • (b) replace “totally and permanently incapacitated” with “diminished earning capacity”;

  • (c) increase the percentage in the formula used to calculate the earnings loss benefit;

  • (d) specify when a disability award becomes payable and clarify the formula used to calculate the amount of a disability award;

  • (e) increase the amounts of a disability award; and

  • (f) increase the amount of a death benefit.

In addition, it contains transitional provisions that provide, among other things, that the Minister of Veterans Affairs must pay, to a person who received a disability award or a death benefit under that Act before April 1, 2017, an amount that represents the increase in the amount of the disability award or the death benefit, as the case may be. It also makes consequential amendments to the Children of Deceased Veterans Education Assistance Act, the Pension Act and the Income Tax Act.

Division 3 of Part 4 amends the sunset provisions of certain Acts governing federal financial institutions to extend by two years, namely, from March 29, 2017 to March 29, 2019, the period during which those institutions may carry on business.

Division 4 of Part 4 amends the Bank Act to facilitate the continuance of local cooperative credit societies as federal credit unions by granting the Minister of Finance the authority to provide transitional procedural exemptions, as well as a loan guarantee.

Division 5 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, broaden the Corporation’s powers to temporarily control or own a domestic systemically important bank and to convert certain shares and liabilities of such a bank into common shares.

It also amends the Bank Act to allow the designation of domestic systemically important banks by the Superintendent of Financial Institutions and to require such banks to maintain a minimum capacity to absorb losses.

Lastly, it makes consequential amendments to the Financial Administration Act, the Winding-up and Restructuring Act and the Payment Clearing and Settlement Act.

Division 6 of Part 4 amends the Office of the Superintendent of Financial Institutions Act to change the membership of the committee established under that Act so that the Chairperson of the Canada Deposit Insurance Corporation is replaced by that Corporation’s Chief Executive Officer. It also amends several Acts to replace references to that Chairperson with references to that Chief Executive Officer.

Division 7 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize an additional payment to be made to a territory, in order to take into account the amount of the territorial formula financing payment that would have been paid to that territory for the fiscal year beginning on April 1, 2016, if that amount had been determined using the recalculated amount determined to be the gross expenditure base for that fiscal year.

Division 8 of Part 4 amends the Financial Administration Act to restrict the circumstances in which the Governor in Council may authorize the borrowing of money without legislative approval.

Division 9 of Part 4 amends the Old Age Security Act to increase the single rate of the guaranteed income supplement for the lowest-income pensioners by up to $947 annually and to repeal section 2.2 of that Act, which increases the age of eligibility to receive a benefit.

Division 10 of Part 4 amends the Special Import Measures Act to provide that a finding by the President of the Canada Border Services Agency of an insignificant margin of dumping or an insignificant amount of subsidy in respect of goods imported into Canada will no longer result in the termination of a trade remedy investigation prior to the President’s preliminary determination. It also provides that expiry reviews may be initiated from a date that is closer to the expiry date of an anti-dumping or countervailing measure and makes amendments related to that new time period.

Division 11 of Part 4 amends the Pension Benefits Standards Act, 1985 to combine the authorities for bilateral agreements and multilateral agreements into one authority for federal-provincial agreements, and to clarify that federal-provincial agreements may permit the application of provincial legislation with respect to a pension plan.

Division 12 of Part 4 amends the Employment Insurance Act to, among other things,

  • (a) increase, until July 8, 2017, the maximum number of weeks for which benefits may be paid to certain claimants in certain regions;

  • (b) eliminate the category of claimants who are new entrants and re-entrants; and

  • (c) reduce to one week the length of the waiting period during which claimants are not entitled to benefits.

Division 13 of Part 4 amends the Canada Marine Act to allow the Minister of Canadian Heritage to make payments to Canada Place Corporation for certain celebrations.

Division 14 of Part 4 amends the Jobs, Growth and Long-term Prosperity Act to authorize the Minister of Infrastructure, Communities and Intergovernmental Affairs to acquire the shares of PPP Canada Inc. on behalf of Her Majesty in right of Canada. It also sets out that the appropriate Minister, as defined in the Financial Administration Act, holds those shares and authorizes that appropriate Minister to conduct, with the Governor in Council’s approval, certain transactions relating to PPP Canada Inc. Finally, it authorizes PPP Canada Inc. and its wholly-owned subsidiaries to sell, with the Governor in Council’s approval, their assets in certain circumstances.

Division 15 of Part 4 amends the Canada Foundation for Sustainable Development Technology Act to modify the process that leads to the Governor in Council’s appointment of persons to the board of directors of the Canada Foundation for Sustainable Development Technology by eliminating the role of the Minister of Natural Resources and the Minister of the Environment as well as the consultative role of the Minister of Industry from that process. It also amends the Budget Implementation Act, 2007 to provide that a sum may be paid out of the Consolidated Revenue Fund to the Foundation on the requisition of the Minister of Industry and to clarify the maximum amount of that sum.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

Marginal note:Short title

 This Act may be cited as the Budget Implementation Act, 2016, No. 1.

PART 1Amendments to the Income Tax Act and to Related Legislation

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

  •  (1) Paragraph 52(3)(a) of the Income Tax Act is replaced by the following:

    • (a) where the stock dividend is a dividend,

      • (i) in the case of a shareholder that is an individual, the amount of the stock dividend, and

      • (ii) in any other case, the total of all amounts each of which is

        • (A) the amount, if any, by which

          • (I) the amount that is the lesser of the amount of the stock dividend and its fair market value

          exceeds

          • (II) the amount of the dividend that the shareholder may deduct under subsection 112(1) in computing the shareholder’s taxable income, except any portion of the dividend that, if paid as a separate dividend, would not be subject to subsection 55(2) because the amount of the separate dividend would not exceed the amount of the income earned or realized by any corporation — after 1971 and before the safe-income determination time for the transaction, event or series of transactions or events as part of which the dividend is received — that could reasonably be considered to contribute to the capital gain that could be realized on a disposition at fair market value, immediately before the dividend, of the share on which the dividend is received, and

        • (B) the amount determined by the formula

          A + B

          where

          A
          is the amount of the deemed gain under paragraph 55(2)(c) in respect of that stock dividend, and
          B
          is the amount, if any, by which the amount of the reduction under paragraph 55(2.3)(b) in respect of that stock dividend to which paragraph 55(2)(a) would otherwise apply exceeds the amount determined for clause (A) in respect of that dividend;
  • (2) Subsection (1) applies to stock dividends received after April 20, 2015, except that, in respect of stock dividends that are declared after April 20, 2015 and before July 31, 2015, and that are received before September 30, 2015,

    • (a) clause 52(3)(a)(ii)(A), as enacted by subsection (1), is to be read as follows:

      • (A) the lesser of the amount of the stock dividend and its fair market value, and

    • (b) the description of B in clause 52(3)(a)(ii)(B), as enacted by subsection (1), is to be read without reference to the words “to which paragraph 55(2)(a) would otherwise apply”.

  •  (1) Subparagraph 53(1)(b)(ii) of the Act is replaced by the following:

    • (ii) the portion of the total determined under subparagraph (i) that relates to dividends in respect of which the taxpayer was permitted a deduction under subsection 112(1) in computing the taxpayer’s taxable income, except any portion of the dividend that, if paid as a separate dividend, would not be subject to subsection 55(2) because the amount of the separate dividend would not exceed the amount of the income earned or realized by any corporation — after 1971 and before the safe-income determination time for the transaction, event or series of transactions or events as part of which the dividend is received — that could reasonably be considered to contribute to the capital gain that could be realized on a disposition at fair market value, immediately before the dividend, of the share on which the dividend is received;

  • (2) Subsection (1) applies to dividends received after April 20, 2015.

  •  (1) Paragraph (j) of the definition proceeds of disposition in section 54 of the Act is replaced by the following:

    • (j) any amount that would otherwise be proceeds of disposition of a share to the extent that the amount is deemed by subsection 84(2) or (3) to be a dividend received except to the extent the dividend is deemed

      • (i) by paragraph 55(2)(b) to be proceeds of disposition of the share, or

      • (ii) by subparagraph 88(2)(b)(ii) not to be a dividend, or

  • (2) Subsection (1) applies to dividends received after April 20, 2015.

  •  (1) Subsection 55(2) of the Act is replaced by the following:

    • Marginal note:Deemed proceeds or gain

      (2) If this subsection applies to a taxable dividend received by a dividend recipient, notwithstanding any other provision of this Act, the amount of the dividend (other than the portion of it, if any, subject to tax under Part IV that is not refunded as a consequence of the payment of a dividend by a corporation where the payment is part of the series referred to in subsection (2.1)) is deemed

      • (a) not to be a dividend received by the dividend recipient;

      • (b) if the dividend is received on a redemption, acquisition or cancellation of a share, by the corporation that issued the share, to which subsection 84(2) or (3) applies, to be proceeds of disposition of the share that is redeemed, acquired or cancelled except to the extent that the dividend is otherwise included in computing those proceeds; and

      • (c) if paragraph (b) does not apply to the dividend, to be a gain of the dividend recipient, for the year in which the dividend was received, from the disposition of a capital property.

    • Marginal note:Application of subsection (2)

      (2.1) Subsection (2) applies to a taxable dividend received by a corporation resident in Canada (in subsections (2) to (2.2) and (2.4) referred to as the dividend recipient) as part of a transaction or event or a series of transactions or events if

      • (a) the dividend recipient is entitled to a deduction in respect of the dividend under subsection 112(1) or (2) or 138(6);

      • (b) it is the case that

        • (i) one of the purposes of the payment or receipt of the dividend (or, in the case of a dividend under subsection 84(3), one of the results of which) is to effect a significant reduction in the portion of the capital gain that, but for the dividend, would have been realized on a disposition at fair market value of any share of capital stock immediately before the dividend, or

        • (ii) the dividend (other than a dividend that is received on a redemption, acquisition or cancellation of a share, by the corporation that issued the share, to which subsection 84(2) or (3) applies) is received on a share that is held as capital property by the dividend recipient and one of the purposes of the payment or receipt of the dividend is to effect

          • (A) a significant reduction in the fair market value of any share, or

          • (B) a significant increase in the cost of property, such that the amount that is the total of the cost amounts of all properties of the dividend recipient immediately after the dividend is significantly greater than the amount that is the total of the cost amounts of all properties of the dividend recipient immediately before the dividend; and

      • (c) the amount of the dividend exceeds the amount of the income earned or realized by any corporation — after 1971 and before the safe-income determination time for the transaction, event or series — that could reasonably be considered to contribute to the capital gain that could be realized on a disposition at fair market value, immediately before the dividend, of the share on which the dividend is received.

    • Marginal note:Special rule — amount of the stock dividend

      (2.2) For the purpose of applying subsections (2), (2.1), (2.3) and (2.4), the amount of a stock dividend and the dividend recipient’s entitlement to a deduction under subsection 112(1) or (2) or 138(6) in respect of the amount of that dividend are to be determined as if paragraph (b) of the definition amount in subsection 248(1) read as follows:

      • (b) in the case of a stock dividend paid by a corporation, the greater of

        • (i) the amount by which the paid-up capital of the corporation that paid the dividend is increased by reason of the payment of the dividend, and

        • (ii) the fair market value of the share or shares issued as a stock dividend at the time of payment,

    • Marginal note:Stock dividends and safe income

      (2.3) If this subsection applies in respect of a stock dividend

      • (a) the amount of the stock dividend is deemed for the purpose of subsection (2) to be a separate taxable dividend to the extent of the portion of the amount that does not exceed the amount of the income earned or realized by any corporation — after 1971 and before the safe-income determination time for the transaction, event or series — that could reasonably be considered to contribute to the capital gain that could be realized on a disposition at fair market value, immediately before the dividend, of the share on which the dividend is received; and

      • (b) the amount of the separate taxable dividend referred to in paragraph (a) is deemed to reduce the amount of the income earned or realized by any corporation — after 1971 and before the safe-income determination time for the transaction, event or series — that could reasonably be considered to contribute to the capital gain that could be realized on a disposition at fair market value, immediately before the dividend, of the share on which the dividend is received.

    • Marginal note:Application of subsection (2.3)

      (2.4) Subsection (2.3) applies in respect of a stock dividend if

      • (a) a dividend recipient holds a share upon which it receives the stock dividend;

      • (b) the fair market value of the share or shares issued as a stock dividend exceeds the amount by which the paid-up capital of the corporation that paid the stock dividend is increased because of the dividend; and

      • (c) subsection (2) would apply to the dividend if subsection (2.1) were read without reference to its paragraph (c).

    • Marginal note:Determination of reduction in fair market value

      (2.5) For the purpose of applying clause (2.1)(b)(ii)(A), whether a dividend causes a significant reduction in the fair market value of any share is to be determined as if the fair market value of the share, immediately before the dividend, was increased by an amount equal to the amount, if any, by which the fair market value of the dividend received on the share exceeds the fair market value of the share.

  • (2) The portion of paragraph 55(3)(a) of the Act before subparagraph (i) is replaced by the following:

    • (a) in the case of a dividend that is received on a redemption, acquisition or cancellation of a share, by the corporation that issued the share, to which subsection 84(2) or (3) applies, if, as part of a transaction or event or a series of transactions or events as a part of which the dividend is received, there was not at any particular time

  • (3) Subparagraph 55(3.01)(d)(i) of the Act is replaced by the following:

    • (i) subparagraph (j)(i) of the definition proceeds of disposition in section 54, and

  • (4) Paragraph 55(5)(f) of the Act is replaced by the following:

    • (f) unless subsection (2.3) applies, if a corporation has received a dividend any portion of which is a taxable dividend (such a portion referred to as the taxable part in this paragraph), as part of a transaction or event or series of transactions or events

      • (i) a portion of the dividend is deemed to be a separate taxable dividend equal to the lesser of

        • (A) the taxable part, and

        • (B) the amount of the income earned or realized by any corporation — after 1971 and before the safe-income determination time for the transaction, event or series — that could reasonably be considered to contribute to the capital gain that could be realized on a disposition at fair market value, immediately before the dividend, of the share on which the dividend is received, and

      • (ii) the amount, if any, by which the taxable part exceeds the portion referred to in subparagraph (i) is deemed to be a separate taxable dividend.

  • (5) Subsections (1) to (4) apply to dividends received after April 20, 2015 except that, for dividends received after April 20, 2015 and before April 18, 2016, paragraph 55(5)(f) of the Act, as enacted by subsection (4), is to be read as follows:

    • (f) unless subsection (2.3) applies, if a corporation has received a dividend any portion of which is a taxable dividend

      • (i) the corporation may designate in its return of income under this Part for the taxation year during which the dividend was received any portion of the taxable dividend to be a separate taxable dividend, and

      • (ii) the amount, if any, by which the portion of the dividend that is a taxable dividend exceeds the portion designated under subparagraph (i) shall be deemed to be a separate dividend.

  •  (1) Subparagraph 56(3)(a)(i) of the Act is replaced by the following:

    • (i) in an educational program in respect of which the taxpayer is a qualifying student (as defined in subsection 118.6(1)) in the taxation year, in the immediately preceding taxation year or in the following taxation year, or

  • (2) Paragraph 56(3.1)(b) of the Act is replaced by the following:

    • (b) if an award is received in connection with an educational program in respect of which the taxpayer is a qualifying student because of subparagraph (a)(ii) of the definition qualifying student in subsection 118.6(1) in the taxation year, in the immediately preceding taxation year or in the following taxation year (in this paragraph referred to as the claim year), the amount included under subparagraph (1)(n)(i) in computing the taxpayer’s income for the taxation year in respect of the award may not exceed the amount that is the total of amounts, each of which is the cost of materials related to the program or a fee paid to a designated educational institution in respect of the program, as defined in subsection 118.6(1), in respect of the claim year.

  • (3) Subsection (1) applies to the 2017 and subsequent taxation years and

    • (a) for the 2016 taxation year, a taxpayer is considered to be entitled to deduct an amount under subsection 118.6(2) of the Act in respect of an educational program for the immediately following taxation year if the taxpayer is a qualifying student (as defined in subsection 118.6(1) of the Act) in respect of the educational program in that year; and

    • (b) for the 2017 taxation year, a taxpayer is considered to be a qualifying student in respect of an educational program in the immediately preceding taxation year if the taxpayer was entitled to deduct an amount under subsection 118.6(2) of the Act in respect of the educational program for that year.

  • (4) Subsection (2) applies to the 2017 and subsequent taxation years and

    • (a) for the 2016 taxation year, a taxpayer is considered to be entitled to deduct an amount by reason of paragraph (b) of the description of B in subsection 118.6(2) of the Act in respect of an educational program for the immediately following taxation year if the taxpayer is a qualifying student in respect of the educational program because of subparagraph (a)(ii) of the definition qualifying student in subsection 118.6(1) of the Act for that year; and

    • (b) for the 2017 taxation year, a taxpayer is considered to be a qualifying student in respect of an educational program because of subparagraph (a)(ii) of the definition qualifying student in subsection 118.6(1) of the Act in the immediately preceding taxation year if the taxpayer was entitled to deduct an amount by reason of paragraph (b) of the description of B in subsection 118.6(2) of the Act in respect of the educational program for that year.

  •  (1) Paragraph (a) of the definition Canadian exploration expense in subsection 66.1(6) of the Act is replaced by the following:

    • (a) any expense incurred by the taxpayer (other than an expense incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well) for the purpose of determining the existence, location, extent or quality of an accumulation of petroleum or natural gas (other than a mineral resource) in Canada, including such an expense that is

      • (i) a geological, geophysical or geochemical expense, or

      • (ii) an expense for environmental studies or community consultations (including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of an accumulation of petroleum or natural gas),

  • (2) The portion of paragraph (f) of the definition Canadian exploration expense in subsection 66.1(6) of the Act before subparagraph (i) is replaced by the following:

    • (f) any expense incurred by the taxpayer (other than an expense incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well) for the purpose of determining the existence, location, extent or quality of a mineral resource in Canada including such an expense for environmental studies or community consultations (including, notwithstanding subparagraph (v), studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in Canada) and any expense incurred in the course of

  • (3) Subsections (1) and (2) apply in respect of expenses incurred after February 2015.

  •  (1) Subsection 81(1) of the Act is amended by adding the following after paragraph (g.5):

    • Marginal note:Ontario Electricity Support Program

      (g.6) an amount of rate assistance received under section 79.2 of the Ontario Energy Board Act, 1998, S.O. 1998, c. 15, Sch B, as amended from time to time;

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) Subparagraph 82(1)(b)(i) of the Act is replaced by the following:

    • (i) the product of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year multiplied by 17%, and

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) Clause (a)(i)(A) of the definition capital dividend account in subsection 89(1) of the Act is replaced by the following:

    • (A) the amount of the corporation’s capital gain — computed without reference to subclause 52(3)(a)(ii)(A)(II) and subparagraph 53(1)(b)(ii) — from the disposition (other than a disposition under paragraph 40(3.1)(a) or subsection 40(12) or a disposition that is the making of a gift after December 8, 1997 that is not a gift described in subsection 110.1(1)) of a property in the period beginning at the beginning of its first taxation year that began after the corporation last became a private corporation and that ended after 1971 and ending immediately before the particular time (in this definition referred to as the period)

  • (2) Clause (a)(ii)(A) of the definition capital dividend account in subsection 89(1) of the Act is replaced by the following:

    • (A) the amount of the corporation’s capital loss — computed without reference to subclause 52(3)(a)(ii)(A)(II) and subparagraph 53(1)(b)(ii) — from the disposition (other than a disposition under subsection 40(3.12) or a disposition that is the making of a gift after December 8, 1997 that is not a gift described in subsection 110.1(1)) of a property in the period

  • (3) Subparagraph (b)(iii) of the definition paid-up capital in subsection 89(1) of the Act is replaced by the following:

    • (iii) where the particular time is after March 31, 1977, an amount equal to the paid-up capital in respect of that class of shares at the particular time, computed without reference to the provisions of this Act except subsections 51(3) and 66.3(2) and (4), sections 84.1 and 84.2, subsections 85(2.1), 85.1(2.1) and (8), 86(2.1), 87(3) and (9), paragraph 128.1(1)(c.3), subsections 128.1(2) and (3), section 135.2, subsections 138(11.7), 139.1(6) and (7), 192(4.1) and 194(4.1) and sections 212.1 and 212.3,

  • (4) Subsections (1) and (2) apply to dispositions made after April 20, 2015.

  • (5) Subsection (3) is deemed to have come into force on July 1, 2015.

  •  (1) Paragraph 94(4)(b) of the Act is replaced by the following:

    • (b) subsections (8.1) and (8.2), paragraph (14)(a), subsections 70(6) and 73(1), the definition Canadian partnership in subsection 102(1), paragraph 107.4(1)(c), the definition qualified disability trust in subsection 122(3), paragraph (a) of the definition mutual fund trust in subsection 132(6) and the definition eligible trust in subsection 135.2(1);

  • (2) Subsection (1) is deemed to have come into force on July 1, 2015, except that, for taxation years that end before 2016, paragraph 94(4)(b) of the Act, as enacted by subsection (1), is to be read without reference to “the definition qualified disability trust in subsection 122(3),”.

  •  (1) Paragraphs 95(2)(a.2) and (a.21) of the Act are replaced by the following:

    • (a.2) in computing the income from a business other than an active business for a taxation year of a foreign affiliate of a taxpayer

      • (i) there shall be included the income of the affiliate for the year from the insurance of specified Canadian risks (which, for the purposes of this paragraph, includes income for the year from the reinsurance of specified Canadian risks), unless more than 90% of the gross premium revenue of the affiliate for the year from the insurance of risks (net of reinsurance ceded) was in respect of the insurance of risks (other than specified Canadian risks) of persons with whom the affiliate deals at arm’s length,

      • (ii) if subparagraph (i) applies to include income of the affiliate from the insurance of specified Canadian risks,

        • (A) the insurance of those risks is deemed to be a separate business, other than an active business, carried on by the affiliate, and

        • (B) any income of the affiliate that pertains to or is incident to that business is deemed to be income from a business other than an active business,

      • (iii) there shall be included the income of the affiliate for the year in respect of the ceding of specified Canadian risks — except to the extent that the income is included because of subparagraph (i) or (ii) — which, for the purposes of this paragraph, includes

        • (A) income of the affiliate from services in respect of the ceding of specified Canadian risks, and

        • (B) except to the extent the amount is included under clause (A), the amount, if any, by which the fair market value of the consideration provided in respect of the ceding of the specified Canadian risks exceeds the affiliate’s cost in respect of those specified Canadian risks, and

      • (iv) if subparagraph (iii) applies to include income of the affiliate in respect of the ceding of specified Canadian risks,

        • (A) the ceding of those risks is deemed to be a separate business, other than an active business, carried on by the affiliate, and

        • (B) any income of the affiliate that pertains to or is incident to that business is deemed to be income from a business other than an active business;

    • (a.21) for the purposes of paragraph (a.2), one or more risks insured by a foreign affiliate of a taxpayer that, if this Act were read without reference to this paragraph, would not be specified Canadian risks (in this paragraph referred to as the foreign policy pool) are deemed to be specified Canadian risks if

      • (i) the affiliate, or a person or partnership that does not deal at arm’s length with the affiliate, enters into one or more agreements or arrangements in respect of the foreign policy pool,

      • (ii) the affiliate’s risk of loss or opportunity for gain or profit in respect of the foreign policy pool, in combination with its risk of loss or opportunity for gain in respect of the agreements or arrangements, can reasonably be considered to be — or could reasonably be considered to be if the affiliate had entered into the agreements or arrangements entered into by the person or partnership — determined, in whole or in part, by reference to one or more criteria in respect of one or more risks insured by another person or partnership (in this paragraph referred to as the tracked policy pool), which criteria are

        • (A) the fair market value of the tracked policy pool,

        • (B) the revenue, income, loss or cash flow from the tracked policy pool, or

        • (C) any other similar criteria, and

      • (iii) 10% or more of the tracked policy pool consists of specified Canadian risks;

  • (2) Subsection 95(2) of the Act is amended by adding the following after paragraph (a.22):

    • (a.23) for the purposes of paragraphs (a.2) and (a.21), specified Canadian risk means a risk in respect of

      • (i) a person resident in Canada,

      • (ii) a property situated in Canada, or

      • (iii) a business carried on in Canada;

  • (3) Subsections (1) and (2) apply to taxation years of a taxpayer that begin after April 20, 2015.

  •  (1) Clauses 110.7(1)(b)(ii)(A) and (B) of the Act are replaced by the following:

    • (A) $11.00 multiplied by the number of days in the year included in the qualifying period in which the taxpayer resided in the particular area, and

    • (B) $11.00 multiplied by the number of days in the year included in that portion of the qualifying period throughout which the taxpayer maintained and resided in a self-contained domestic establishment in the particular area (except any day included in computing a deduction claimed under this paragraph by another person who resided on that day in the establishment).

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) Subsection 112(2.3) of the Act is replaced by the following:

    • Marginal note:Where no deduction permitted

      (2.3) No deduction may be made under subsection (1) or (2) or 138(6) in computing the taxable income of a particular corporation in respect of a dividend received on a share of the capital stock of a corporation where there is, in respect of the share, a dividend rental arrangement of the particular corporation, a partnership of which the particular corporation is directly or indirectly a member or a trust under which the particular corporation is a beneficiary.

    • Marginal note:Dividend rental arrangements — exception

      (2.31) Subsection (2.3) does not apply to a dividend received on a share where there is, in respect of the share, a dividend rental arrangement of a person or partnership (referred to in this subsection and subsection (2.32) as the taxpayer) throughout a particular period during which the synthetic equity arrangement referred to in paragraph (c) of the definition dividend rental arrangement in subsection 248(1) is in effect if

      • (a) the dividend rental arrangement is a dividend rental arrangement because of that paragraph; and

      • (b) the taxpayer establishes that, throughout the particular period, no tax-indifferent investor or group of tax-indifferent investors, each member of which is affiliated with every other member, has all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share because of the synthetic equity arrangement or a specified synthetic equity arrangement.

    • Marginal note:Representations

      (2.32) A taxpayer is considered to have satisfied the condition described in paragraph (2.31)(b) in respect of a share if

      • (a) the taxpayer or the connected person referred to in paragraph (a) of the definition synthetic equity arrangement in subsection 248(1) (either of which is referred to in this subsection as the synthetic equity arrangement party) obtains accurate representations in writing from its counterparty, or from each member of a group comprised of all its counterparties each of which is affiliated with each other (each member of this group of counterparties is referred to in this subsection as an affiliated counterparty), with respect to the synthetic equity arrangement, as appropriate, that

        • (i) it is not a tax-indifferent investor and it does not reasonably expect to become a tax-indifferent investor during the particular period referred to in subsection (2.31), and

        • (ii) it has not eliminated and it does not reasonably expect to eliminate all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share during the particular period referred to in subsection (2.31);

      • (b) the synthetic equity arrangement party obtains accurate representations in writing from its counterparty, or from each affiliated counterparty, with respect to the synthetic equity arrangement that the counterparty, or each affiliated counterparty, as appropriate

        • (i) is not a tax-indifferent investor and does not reasonably expect to become a tax-indifferent investor during the particular period referred to in subsection (2.31),

        • (ii) has entered into one or more specified synthetic equity arrangements that have the effect of eliminating all or substantially all of its risk of loss and opportunity for gain or profit, in respect of the share, in one of the following circumstances:

          • (A) in the case of a counterparty, that counterparty

            • (I) has entered into a specified synthetic equity arrangement with its own counterparty (a counterparty of a counterparty or of an affiliated counterparty is referred to in this subsection as a specified counterparty), or

            • (II) has entered into a specified synthetic equity arrangement with each member of a group of its own counterparties each member of which is affiliated with each other member (each member of this group of counterparties is referred to in this subsection as an affiliated specified counterparty), or

          • (B) in the case of an affiliated counterparty, each affiliated counterparty

            • (I) has entered into a specified synthetic equity arrangement with the same specified counterparty, or

            • (II) has entered into a specified synthetic equity arrangement with an affiliated specified counterparty that is part of the same group of affiliated specified counterparties, and

        • (iii) has obtained accurate representations in writing from each of its specified counterparties, or from each member of the group of affiliated specified counterparties referred to in subclause (A)(II) or (B)(II), as appropriate, that

          • (A) it is not a tax-indifferent investor and it does not reasonably expect to become a tax-indifferent investor during the particular period referred to in subsection (2.31), and

          • (B) it has not eliminated and it does not reasonably expect to eliminate all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share during the particular period referred to in subsection (2.31);

      • (c) the synthetic equity arrangement party obtains accurate representations in writing from its counterparty, or from each affiliated counterparty, with respect to the synthetic equity arrangement that the counterparty, or each affiliated counterparty, as appropriate

        • (i) is not a tax-indifferent investor and does not reasonably expect to become a tax-indifferent investor during the particular period referred to in subsection (2.31),

        • (ii) has entered into specified synthetic equity arrangements

          • (A) that have the effect of eliminating all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share,

          • (B) where no single specified counterparty or group of affiliated specified counterparties has been provided with all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share, and

          • (C) where each specified counterparty or affiliated specified counterparty deals at arm’s length with each other (other than in the case of affiliated specified counterparties, within the same group, of affiliated specified counterparties), and

        • (iii) has obtained accurate representations in writing from each of its specified counterparties, or from each of its affiliated specified counterparties, that

          • (A) it is a person resident in Canada and it does not reasonably expect to cease to be resident in Canada during the particular period referred to in subsection (2.31), and

          • (B) it has not eliminated and it does not reasonably expect to eliminate all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share during the particular period referred to in subsection (2.31); or

      • (d) where a person or partnership is a party to a synthetic equity arrangement chain in respect of the share, the person or partnership

        • (i) has obtained all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share under the synthetic equity arrangement chain,

        • (ii) has entered into one or more specified synthetic equity arrangements that have the effect of eliminating all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share, and

        • (iii) obtains accurate representations in writing of the type described in paragraph (a), (b) or (c), as if it were a synthetic equity arrangement party, from each of its counterparties where each such counterparty deals at arm’s length with that person or partnership.

    • Marginal note:End of particular period

      (2.33) If, at a time during a particular period referred to in subsection (2.31), a counterparty, specified counterparty, affiliated counterparty or affiliated specified counterparty reasonably expects to become a tax-indifferent investor or, if it has provided a representation described by subparagraph (2.32)(a)(ii) or clause (2.32)(b)(iii)(B) or (c)(iii)(B) in respect of a share, to eliminate all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share, the particular period for which it has provided a representation in respect of the share is deemed to end at that time.

    • Marginal note:Interpretation

      (2.34) For greater certainty, each reference in subsection (2.32) to a “counterparty”, a “specified counterparty”, an “affiliated counterparty” or an “affiliated specified counterparty” is to be read as referring only to a person or partnership that obtains all or any portion of the risk of loss or opportunity for gain or profit in respect of the share.

  • (2) Section 112 of the Act is amended by adding the following after subsection (9):

    • Marginal note:Synthetic equity arrangements — ordering

      (10) For the purposes of subsections (3), (3.1), (4), (4.1) and (5.2), if a synthetic equity arrangement is in respect of a number of shares that are identical properties (referred to in this subsection as identical shares) that is less than the total number of such identical shares owned by a person or partnership at that time and in respect of which there is no other synthetic equity arrangement, the synthetic equity arrangement is deemed to be in respect of those identical shares in the order in which the person or partnership acquired them.

  • (3) Subsection (1) applies to

    • (a) dividends that are paid or become payable after April 2017; and

    • (b) dividends that are paid or become payable at any time after October 2015 and before May 2017 on a share if

      • (i) there is a synthetic equity arrangement, or one or more agreements or arrangements described by paragraph (d) of the definition dividend rental arrangement in subsection 248(1) of the Act, as enacted by subsection 48(1) of this Act, in respect of the share at that time, and

      • (ii) after April 21, 2015 and before that time, all or any part of the synthetic equity arrangement, or the agreements or arrangements, referred to in subparagraph (i) — including an option, swap, futures contract, forward contract or other financial or commodity contract or instrument as well as a right or obligation under the terms of such a contract or instrument — that contributes or could contribute to the effect of providing all or substantially all of the risk of loss and opportunity for gain or profit, in respect of the share, to one or more persons or partnerships is

        • (A) entered into, acquired, extended or renewed after April 21, 2015, or

        • (B) in the case of a right to increase the notional amount under an agreement that is or is part of the synthetic equity arrangement, is exercised or acquired after April 21, 2015.

  • (4) Subsection (2) is deemed to have come into force on April 22, 2015.

  •  (1) The portion of the description of B in subsection 118.031(2) of the Act before the formula is replaced by the following:

    B
    is the total of all amounts each of which is, in respect of a qualifying child of the individual for the taxation year, the lesser of $250 and the amount determined by the formula
  • (2) Section 118.031 of the Act, as amended by subsection (1), is repealed.

  • (3) Subsection (1) applies to the 2016 taxation year.

  • (4) Subsection (2) comes into force on January 1, 2017.

  •  (1) Paragraphs (b) and (c) of the definition designated educational institution in subsection 118.6(1) of the Act are replaced by the following:

    • (b) a university outside Canada at which the individual referred to in the definition qualifying student in this subsection was enrolled in a course, of not less than three consecutive weeks duration, leading to a degree, or

    • (c) if the individual referred to in the definition qualifying student in this subsection resided, throughout the  year referred to in that definition, in Canada near the boundary between Canada and the United States, an educational institution in the United States to which the individual commuted that is a university, college or other educational institution providing courses at a post-secondary school level; (établissement d’enseignement agréé)

  • (2) Paragraph (b) of the definition qualifying educational program in subsection 118.6(1) of the Act is replaced by the following:

  • (3) Subsection 118.6(1) of the Act is amended by adding the following in alphabetical order:

    qualifying student

    qualifying student, for a month in a taxation year, means an individual who,

    • (a) in the month,

      • (i) is enrolled in a qualifying educational program as a full-time student at a designated educational institution, or

      • (ii) is not described in subparagraph (i) and is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program,

    • (b) if requested by the Minister, proves the enrolment by filing with the Minister a certificate in prescribed form issued by the designated educational institution and containing prescribed information, and

    • (c) in the case of an individual who is enrolled in a program at a designated educational institution described in subparagraph (a)(ii) of the definition designated educational institution,

      • (i) has attained the age of 16 years before the end of the year, and

      • (ii) is enrolled in the program to obtain skills for, or improve the individual’s skills in, an occupation; (étudiant admissible)

  • (4) Subsections 118.6(2) and (2.1) of the Act are repealed.

  • (5) The portion of subsection 118.6(3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Students eligible for disability tax credit

      (3) For the purposes of subparagraph (a)(i) of the definition qualifying student in subsection (1), the reference to “full-time student” is to be read as “student” if

  • (6) Subsections (1) and (3) to (5) apply to the 2017 and subsequent taxation years.

  • (7) Subsection (2) is deemed to have come into force on January 2, 2015.

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

    B
    is the total of all amounts each of which may be deducted under section 118.5 in computing the individual’s tax payable under this Part for the year;
  • (2) The description of E in subsection 118.61(1) of the Act is replaced by the following:

    E
    is the tuition tax credit transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent.
  • (3) The portion of subsection 118.61(4) of the Act before the formula is replaced by the following:

    • Marginal note:Change of appropriate percentage

      (4) For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year is deemed to be the amount determined by the formula

  • (4) Subsections (1) to (3) apply to the 2017 and subsequent taxation years.

  •  (1) The description of A in section 118.8 of the Act is replaced by the following:

    A
    is the tuition tax credit transferred for the year by the spouse or common-law partner to the individual;
  • (2) Subparagraph (b)(i) of the description of C in section 118.8 of the Act is replaced by the following:

    • (i) the total of all amounts that may be deducted under section 118.5 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, and

  • (3) Subsections (1) and (2) apply to the 2017 and subsequent taxation years.

  •  (1) The portion of section 118.81 of the Act before paragraph (a) is replaced by the following:

    Marginal note:Tuition tax credit transferred

    118.81 In this subdivision, the tuition tax credit transferred for a taxation year by a person to an individual is the lesser of

  • (2) Subparagraph (i) of the description of A in paragraph 118.81(a) of the Act is replaced by the following:

    • (i) the total of all amounts that may be deducted under section 118.5 in computing the person’s tax payable under this Part for the year, and

  • (3) Subsections (1) and (2) apply to the 2017 and subsequent taxation years.

  •  (1) Section 118.9 of the Act is replaced by the following:

    Marginal note:Transfer to parent or grandparent

    118.9 If for a taxation year a parent or grandparent of an individual (other than an individual in respect of whom the individual’s spouse or common-law partner deducts an amount under section 118 or 118.8 for the year) is the only person designated in writing by the individual for the year for the purpose of this section, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, as the case may be, the tuition tax credit transferred for the year by the individual to the parent or grandparent, as the case may be.

  • (2) Subsection (1) applies to the 2017 and subsequent taxation years.

  •  (1) Subparagraph 118.91(b)(i) of the Act is replaced by the following:

    • (i) such of the deductions permitted under subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 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

  • (2) Subsection (1) applies to the 2017 and subsequent taxation years.

  •  (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, 118.031, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

  • (2) Section 118.92 of the Act, as enacted by subsection (1), 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, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

  • (3) Subsection (1) applies to the 2016 taxation year.

  • (4) Subsection (2) applies to the 2017 and subsequent taxation years.

  •  (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 118.07 and 118.2, subsections 118.3(2) and (3) and sections 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 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 2017 and subsequent taxation years.

  •  (1) Paragraph 118.95(a) of the Act is 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, 118.62 and 118.7, as can reasonably be considered wholly applicable to the taxation year, and

  • (2) Subsection (1) applies to the 2017 and subsequent taxation years.

  •  (1) Section 119.1 of the Act is repealed.

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) Paragraph 121(a) of the Act is replaced by the following:

    • (a) the product of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be included in computing the individual’s income for the year multiplied by 21/29, and

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) The heading of Subdivision A.1 of the Act is replaced by the following:

    Canada Child Benefit

  • (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2016.

  •  (1) Paragraph (e) of the definition eligible individual in section 122.6 of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iv) and by adding the following after subparagraph (iv):

  • (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2016.

  •  (1) Subsection 122.61(1) of the Act is replaced by the following:

    Marginal note:Deemed overpayment
    • 122.61 (1) If a person and, if the Minister so demands, the person’s cohabiting spouse or common-law partner at the end of a taxation year have filed a return of income for the year, an overpayment on account of the person’s liability under this Part for the year is deemed to have arisen during a month in relation to which the year is the base taxation year, equal to the amount determined by the formula

      (A + C + M)/12

      where

      A
      is the amount determined by the formula

      E – Q – R

      where

      E
      is the total of
      • (a) the product obtained by multiplying $6,400 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of the month who have not reached the age of six years at the beginning of the month, and

      • (b) the product obtained by multiplying $5,400 by the number of qualified dependants, other than those qualified dependants referred to in paragraph (a), in respect of whom the person was an eligible individual at the beginning of the month,

      Q
      is
      • (a) if the person’s adjusted income for the year is less than or equal to $30,000, nil,

      • (b) if the person’s adjusted income for the year is greater than $30,000 but less than or equal to $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of

        • (i) only one qualified dependant, 7% of the person’s adjusted income for the year in excess of $30,000,

        • (ii) only two qualified dependants, 13.5% of the person’s adjusted income for the year in excess of $30,000,

        • (iii) only three qualified dependants, 19% of the person’s adjusted income for the year in excess of $30,000, or

        • (iv) more than three qualified dependants, 23% of the person’s adjusted income for the year in excess of $30,000, and

      • (c) if the person’s adjusted income for the year is greater than $65,000, and if the person is, at the beginning of the month, an eligible individual in respect of

        • (i) only one qualified dependant, the total of $2,450 and 3.2% of the person’s adjusted income for the year in excess of $65,000,

        • (ii) only two qualified dependants, the total of $4,725 and 5.7% of the person’s adjusted income for the year in excess of $65,000,

        • (iii) only three qualified dependants, the total of $6,650 and 8% of the person’s adjusted income for the year in excess of $65,000, or

        • (iv) more than three qualified dependants, the total of $8,050 and 9.5% of the person’s adjusted income for the year in excess of $65,000, and

      R
      is the amount determined for C;
      C
      is the amount determined by the formula

      F – (G × H)

      where

      F
      is, if the person is, at the beginning of the month, an eligible individual in respect of
      • (a) only one qualified dependant, $2,308, and

      • (b) two or more qualified dependants, the total of

        • (i) $2,308 for the first qualified dependant,

        • (ii) $2,042 for the second qualified dependant, and

        • (iii) $1,943 for each of the third and subsequent qualified dependants,

      G
      is the amount determined by the formula

      J – [K – (L/0.122)]

      where

      J
      is the person’s adjusted income for the year,
      K
      is $45,282, and
      L
      is the amount referred to in paragraph (a) of the description of F, and
      H
      is
      • (a) if the person is an eligible individual in respect of only one qualified dependant, 12.2%, and

      • (b) if the person is an eligible individual in respect of two or more qualified dependants, the fraction (expressed as a percentage rounded to the nearest one-tenth of one per cent) of which

        • (i) the numerator is the total that would be determined under the description of F in respect of the eligible individual if that description were applied without reference to the fourth and subsequent qualified dependants in respect of whom the person is an eligible individual, and

        • (ii) the denominator is the amount referred to in paragraph (a) of the description of F, divided by 0.122; and

      M
      is the amount determined by the formula

      N – O

      where

      N
      is the product obtained by multiplying $2,730 by the number of qualified dependants in respect of whom both
      • (a) an amount may be deducted under section 118.3 for the taxation year that includes the month, and

      • (b) the person is an eligible individual at the beginning of the month, and

      O
      is
      • (a) if the person’s adjusted income for the year is less than or equal to $65,000, nil, and

      • (b) if the person’s adjusted income for the year is greater than $65,000,

        • (i) where the person is an eligible individual in respect of only one qualified dependant described in N, 3.2% of the person’s adjusted income for the year in excess of $65,000, and

        • (ii) where the person is an eligible individual in respect of two or more qualified dependants described in N, 5.7% of the person’s adjusted income for the year in excess of $65,000.

  • (2) The first formula in subsection 122.61(1) of the Act, as enacted by subsection (1), is replaced by the following:

    (A + M)/12

  • (3) The formula in the description of A in subsection 122.61(1) of the Act, as enacted by subsection (1), is replaced by the following:

    E − Q

  • (4) The description of C in subsection 122.61(1) of the Act, as enacted by subsection (1), is repealed.

  • (5) Subsection 122.61(1) of the Act, as enacted by subsection (1), is amended by striking out “and” at the end of the description of Q, by adding “and” at the end of the description of E and by repealing the description of R.

  • (6) Subsection 122.61(5) of the Act is repealed.

  • (7) Subsection 122.61(7) of the Act is repealed.

  • (8) Subsections (1), (6) and (7) come into force, or are deemed to have come into force, on July 1, 2016.

  • (9) Subsections (2) to (5) come into force on July 1, 2017.

  •  (1) Subsection 122.62(2) of the Act is replaced by the following:

    • Marginal note:Extension for notices

      (2) The Minister may, on or before the day that is 10 years after the beginning of the month referred to in subsection (1), extend the time for filing a notice under that subsection.

  • (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2016.

  •  (1) Section 122.63 of the Act is repealed.

  • (2) The Act is amended by adding the following after section 122.62:

    Marginal note:Agreement
    • 122.63 (1) The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under the description of E in subsection 122.61(1) with respect to persons resident in the province shall, for the purpose of calculating overpayments deemed to arise under that subsection, be replaced by amounts determined in accordance with the agreement.

    • Marginal note:Agreement

      (2) The amounts determined under the description of E in subsection 122.61(1) for a base taxation year because of any agreement entered into with a province and referred to in subsection (1) shall be based on the age of qualified dependants of eligible individuals, or on the number of such qualified dependants, or both, and shall result in an amount in respect of a qualified dependant that is not less, in respect of that qualified dependant, than 85% of the amount that would otherwise be determined under that description in respect of that qualified dependant for that year.

    • Marginal note:Agreement

      (3) Any agreement entered into with a province and referred to in subsection (1) shall provide that, where the operation of the agreement results in a total of all amounts, each of which is an amount deemed under subsection 122.61(1) to be an overpayment on account of the liability under this Part for a taxation year of a person subject to the agreement, that exceeds 101% of the total of such overpayments that would have otherwise been deemed to have arisen under subsection 122.61(1), the excess shall be reimbursed by the government of the province to the Government of Canada.

  • (3) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2016.

  • (4) Subsection (2) comes into force on July 1, 2017.

  •  (1) The portion of the description of B in subsection 122.8(2) of the Act before the formula is replaced by the following:

    B
    is the total of all amounts each of which is, in respect of a qualifying child of the individual for the year, the lesser of $500 and the amount determined by the formula
  • (2) Subdivision A.3 of Division E of Part I of the Act, as amended by subsection (1), is repealed.

  • (3) Subsection (1) applies to the 2016 taxation year.

  • (4) Subsection (2) comes into force on January 1, 2017.

  •  (1) The Act is amended by adding the following after section 122.8:

    Subdivision A.4School Supplies Tax Credit

    Marginal note:Definitions
    • 122.9 (1) The following definitions apply in this section.

      eligible educator

      eligible educator, in respect of a taxation year, means an individual who, at any time during the taxation year,

      • (a) is employed in Canada as a teacher or an early childhood educator at

        • (i) an elementary or secondary school, or

        • (ii) a regulated child care facility; and

      • (b) holds a valid and recognized (in the province or territory in which the individual is employed)

        • (i) teaching certificate, licence, permit or diploma, or

        • (ii) certificate or diploma in early childhood education. (éducateur admissible)

      eligible supplies expense

      eligible supplies expense, of an eligible educator for a taxation year, means an amount (other than any amount deducted in computing any person’s income for any taxation year or any amount otherwise included in computing a deduction from any person’s tax payable under this Act for any taxation year) paid by the eligible educator in the taxation year for teaching supplies to the extent that

      • (a) the teaching supplies were

        • (i) purchased by the eligible educator for the purpose of teaching or facilitating students’ learning, and

        • (ii) directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the duties of the eligible educator’s employment; and

      • (b) the eligible educator is not entitled to receive a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of the eligible educator and that is not deductible in computing the taxable income of the eligible educator) in respect of the amount paid. (dépense admissible)

      return of income

      return of income filed by an eligible educator for a taxation year means a return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the year or that would be required to be filed if the eligible educator had tax payable under this Part for the year. (déclaration de revenu)

      teaching supplies

      teaching supplies means

      • (a) consumable supplies; and

      • (b) prescribed durable goods. (fournitures scolaires)

    • Marginal note:Deemed overpayment

      (2) An eligible educator who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, at the end of the year, on account of tax payable under this Part for the year, an amount equal to the amount determined by the formula

      A × B

      where

      A
      is the appropriate percentage for the year; and
      B
      is the least of
      • (a) $1,000,

      • (b) the total of all amounts each of which is an eligible supplies expense of the eligible educator for the year, and

      • (c) if the eligible educator fails to provide the certificate referred to in subsection (3) in respect of the year, as and when requested by the Minister, nil.

    • Marginal note:Certificate

      (3) If the Minister so demands, an eligible educator making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from their employer, or a delegated official of the employer, attesting to the eligible supplies expenses of the eligible educator for the year.

    • Marginal note:Effect of bankruptcy

      (4) For the purposes of this subdivision, if an eligible educator becomes bankrupt in a particular calendar year, notwithstanding subsection 128(2), any reference to the taxation year of the eligible educator (other than in this subsection) is deemed to be a reference to the particular calendar year.

    • Marginal note:Part-year residents

      (5) If an eligible educator is resident in Canada throughout part of a taxation year and is non-resident throughout another part of the year, the total of the amounts that are deemed to be paid by the eligible educator under subsection (2) for the year cannot exceed the lesser of

      • (a) the total of

        • (i) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is not resident in Canada, computed as though that period or those periods were the whole taxation year, and

        • (ii) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is resident in Canada, computed as though that period or those periods were the whole taxation year; and

      • (b) the total of the amounts that would have been deemed to have been paid under subsection (2) for the year had the eligible educator been resident in Canada throughout the year.

    • Marginal note:Non-residents

      (6) Subsection (2) does not apply in respect of a taxation year of an eligible educator if the eligible educator is, at no time in the year, resident in Canada, unless all or substantially all the eligible educator’s income for the year is included in computing the eligible educator’s taxable income earned in Canada for the year.

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) Subsection 125(1.1) of the Act is amended by adding “and” at the end of paragraph (a) and by replacing paragraphs (b) to (e) with the following:

    • (b) that proportion of 17.5% that the number of days in the taxation year that are after 2015 is of the number of days in the taxation year.

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) Paragraph (a) of the definition flow-through mining expenditure in subsection 127(9) of the Act is replaced by the following:

    • (a) that is a Canadian exploration expense incurred by a corporation after March 2016 and before 2018 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2018) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition mineral resource in subsection 248(1),

  • (2) Paragraphs (c) and (d) of the definition flow-through mining expenditure in subsection 127(9) of the Act are replaced by the following:

    • (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2016 and before April 2017, and

    • (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2016 and before April 2017;

  • (3) Subsections (1) and (2) apply to expenses renounced under a flow-through share agreement entered into after March 2016.

  •  (1) Paragraph 127.4(5)(a) of the Act is replaced by the following:

    • (a) the amount determined by the formula

      0.15 × A + 0.05 × B

      where

      A
      is the lesser of
      • (i) $5,000, and

      • (ii) the total of all amounts each of which is the net cost of the original acquisition of shares of a prescribed labour-sponsored venture capital corporation (other than a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation), and

      B
      is the lesser of
      • (i) the amount if any by which $5,000 exceeds the amount determined under subparagraph (ii) of the description of A, and

      • (ii) the total of all amounts each of which is the net cost of the original acquisition of shares of a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation, and

  • (2) Paragraph 127.4(5)(a) of the Act, as enacted by subsection (1), is replaced by the following:

  • (3) Paragraphs 127.4(6)(a) and (a.1) of the Act are replaced by the following:

    • (a) 15% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if the share is a share of a prescribed labour-sponsored venture capital corporation (other than a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation),

    • (a.1) 5% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if

      • (i) the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is 2016, and

      • (ii) the share is a share of a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation,

    • (a.2) nil, if

      • (i) the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is after 2016, and

      • (ii) the share is a share of a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation,

  • (4) Subsection (1) applies to the 2016 taxation year.

  • (5) Subsection (2) applies to the 2017 and subsequent taxation years.

  • (6) Subsection (3) applies to the 2016 and subsequent taxation years.

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

    • (A) under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.6, 118.8 and 118.9,

  • (2) Clause 128(2)(e)(iii)(A) of the Act, as enacted by subsection (1), is replaced by the following:

    • (A) under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.8 and 118.9,

  • (3) Subsection (1) applies to the 2016 taxation year.

  • (4) Subsection (2) applies to the 2017 and subsequent taxation years.

  •  (1) The Act is amended by adding the following after section 135.1:

    Continuance of the Canadian Wheat Board

    Marginal note:Definitions
    • 135.2 (1) The following definitions apply in this section.

      application for continuance

      application for continuance means the application for continuance referred to in paragraph (a) of the definition Canadian Wheat Board continuance. (demande de prorogation)

      Canadian Wheat Board

      Canadian Wheat Board means the corporation referred to in subsection 4(1) of the Canadian Wheat Board (Interim Operations) Act, as it read before its repeal, that is continued under the Canada Business Corporations Act pursuant to the application for continuance. (Commission canadienne du blé)

      Canadian Wheat Board continuance

      Canadian Wheat Board continuance means the series of transactions or events that includes

      • (a) the application for continuance under the Canada Business Corporations Act that is

      • (b) the issuance of a promissory note or other evidence of indebtedness by the Canadian Wheat Board to the eligible trust; and

      • (c) the disposition of the eligible debt by the eligible trust, in the same taxation year of the trust in which the eligible debt is issued to it, in exchange for consideration that includes the issuance of shares by the Canadian Wheat Board that have a total fair market value at the time of their issuance that is equal to the amount by which the principal amount of the eligible debt exceeds $10 million. (prorogation de la Commission canadienne du blé)

      eligible debt

      eligible debt means the promissory note or other evidence of indebtedness referred to in paragraph (b) of the definition Canadian Wheat Board continuance. (dette admissible)

      eligible share

      eligible share means a common share of the capital stock of the Canadian Wheat Board that is issued in exchange for the eligible debt, as referred to in paragraph (c) of the definition Canadian Wheat Board continuance. (action admissible)

      eligible trust

      eligible trust, at any time, means a trust that meets the following conditions:

      • (a) it was established in connection with the application for continuance;

      • (b) it is resident in Canada at that time;

      • (c) immediately before it acquired the eligible debt, it held only property of nominal value;

      • (d) it is not exempt because of subsection 149(1) from tax on its taxable income for any period in its taxation year that includes that time;

      • (e) all of the interests of beneficiaries under it at that time are described by reference to units that are eligible units in it;

      • (f) the only persons who have acquired an interest as a beneficiary under the trust from it before that time are persons who were participating farmers at the time they acquired the interest;

      • (g) all or substantially all of the fair market value of its property at that time is based on the value of property that is

        • (i) eligible debt,

        • (ii) shares of the capital stock of the Canadian Wheat Board, or

        • (iii) property described in paragraph (a) or (b) of the definition qualified investment if in section 204 or a deposit with a credit union;

      • (h) the property that it has paid or distributed at or before that time to a beneficiary under the trust in satisfaction of the beneficiary’s eligible unit in the trust is

        • (i) money denominated in Canadian dollars, or

        • (ii) shares distributed as an eligible wind-up distribution of the trust; and

      • (i) at no time in its taxation year that includes that time is any other trust an eligible trust. (fiducie admissible)

      eligible unit

      eligible unit, in a trust at any time, means a unit that describes all or part of an interest as a beneficiary under the trust, if

      • (a) the total of all amounts each of which is the value of a unit at the time it was issued by the trust to a participating farmer does not exceed the amount by which the principal amount of the eligible debt exceeds $10 million; and

      • (b) all of the interests as a beneficiary under the trust are fixed interests if (as defined in subsection 251.2(1)) in the trust. (unité admissible)

      eligible wind-up distribution

      eligible wind-up distribution, of a trust, means a distribution of property by the trust to a person if

      • (a) the distribution includes a share of the capital stock of the Canadian Wheat Board that is listed on a designated stock exchange;

      • (b) the only property (other than a share described in paragraph (a)) distributed by the trust on the distribution is money denominated in Canadian dollars;

      • (c) the distribution results in the disposition of all of the person’s interest as a beneficiary under the trust; and

      • (d) the trust ceases to exist immediately after the distribution or immediately after the last of a series of eligible wind-up distributions (determined without reference to this paragraph) of the trust that includes the distribution. (distribution admissible sur liquidation)

      participating farmer

      participating farmer, in respect of a trust at any time, means a person

      • (a) who is eligible to receive units of the trust pursuant to the plan under which the trust directs its trustees to grant units to persons who have delivered grain under a contract with the Canadian Wheat Board on or after August 1, 2013; and

      • (b) engaged in the production of grain or any person entitled, as landlord, vendor or mortgagee or hypothecary creditor, to grain produced by a person engaged in the production of grain or to any share of that grain. (agriculteur participant)

      person

      person includes a partnership. (personne)

    • Marginal note:Trust acquires an eligible debt

      (2) If, at any time, an eligible trust acquires eligible debt, the principal amount of the eligible debt is deemed not to be included in computing the income of the eligible trust for the taxation year of the eligible trust that includes that time.

    • Marginal note:Disposition of eligible debt

      (3) If, at any time, an eligible trust disposes of eligible debt in exchange for consideration that includes the issuance of eligible shares

      • (a) for the purpose of computing the income of the eligible trust for its taxation year that includes that time

        • (i) an amount, in respect of the disposition of the eligible debt, equal to the fair market value of all property (other than eligible shares) received on the exchange by the trust is included,

        • (ii) no amount in respect of the disposition of the eligible debt is included (other than the amount described in subparagraph (i)), and

        • (iii) no amount in respect of the receipt of the eligible shares is included;

      • (b) the cost to the eligible trust of each eligible share is deemed to be nil;

      • (c) in computing the paid-up capital in respect of the class of the capital stock of the Canadian Wheat Board that includes the eligible shares, at any time after the shares are issued, there shall be deducted an amount equal to the amount of the paid-up capital in respect of that class at the time the shares are issued;

      • (d) subsection 75(2) does not apply to property

        • (i) that is held by the trust in a taxation year that ends at or after that time, and

        • (ii) that is

          • (A) received by the trust on the exchange, or

          • (B) a substitute for property described in subparagraph (i); and

      • (e) subsections 84(2) and (3) and section 85 do not apply at any time to eligible shares.

    • Marginal note:Eligible trust

      (4) The following rules apply in respect of a trust that is an eligible trust at any time in a taxation year of the trust:

      • (a) in computing the trust’s income for the year

        • (i) no deduction may be made by the trust under subsection 104(6), except to the extent of the income of the trust (determined without reference to subsection 104(6)) for the year that is paid in the year, and

        • (ii) no deduction may be made by the trust under subsection 104(6), if the trust ceased to be an eligible trust at the beginning of the following taxation year;

      • (b) for the purposes of applying Part XII.2 in respect of the year

        • (i) the trust’s designated income for the year is deemed to be the trust’s income for the year determined without reference to subsections 104(6) and (30), and

        • (ii) the designated beneficiaries under the trust at any time in the year are deemed to include any beneficiary under the trust that is at that time

          • (A) non-resident,

          • (B) a partnership (other than a partnership that is, throughout its fiscal period that includes that time, a Canadian partnership), or

          • (C) exempt because of subsection 149(1) from tax under this Part on the person’s taxable income;

      • (c) each property held by the trust that is the eligible debt or an eligible share is deemed to have a cost amount to the trust of nil;

      • (d) if the trust disposes of a property,

        • (i) subject to subsection (14), the disposition is deemed to occur for proceeds equal to the fair market value of the property immediately before the disposition,

        • (ii) the gain, if any, of the trust from the disposition is

          • (A) deemed not to be a capital gain, and

          • (B) to be included in computing the trust’s income for the trust’s taxation year that includes the time of disposition, and

        • (iii) the loss, if any, of the trust from the disposition is

          • (A) deemed not to be a capital loss, and

          • (B) to be deducted in computing the trust’s income for the trust’s taxation year that includes the time of disposition;

      • (e) the trust is deemed not to be a

        • (i) personal trust,

        • (ii) unit trust,

        • (iii) trust prescribed for the purpose of subsection 107(2), or

        • (iv) trust any interest in which is an excluded right or interest in applying section 128.1;

      • (f) any security (in this paragraph and paragraph (g), as defined in subsection 122.1(1)) of the trust that is held by a trust governed by a deferred profit sharing plan, RDSP, RESP, RRIF, RRSP or TFSA (referred to in this paragraph and paragraph (g) as the registered plan trust) is deemed not to be a qualified investment for the registered plan trust;

      • (g) if a registered plan trust governed by a TFSA acquires at any time a security of the trust, Part XI.01 applies in respect of the security as though the acquisition is an advantage

        • (i) in relation to the TFSA that is extended at that time to the controlling individual of the TFSA, and

        • (ii) that is a benefit the fair market value of which is the fair market value of the security at that time; and

      • (h) paragraph (h) of the definition disposition in subsection 248(1) does not apply in respect of eligible units of the trust.

    • Marginal note:Participating farmer — acquisition of eligible unit

      (5) If, at any time, a participating farmer acquires an eligible unit in an eligible trust from the trust,

      • (a) no amount in respect of the acquisition of the eligible unit is included in computing the income of the participating farmer; and

      • (b) the cost amount to the participating farmer of the eligible unit is deemed to be nil.

    • Marginal note:Eligible unit issued to estate

      (6) If a participating farmer has, immediately before the participating farmer’s death, not received an eligible unit of an eligible trust for which the participating farmer was eligible — pursuant to the plan under which the eligible trust directs its trustees to grant units to persons who have delivered grain under a contract with the Canadian Wheat Board on or after August 1, 2013 — and the eligible trust issues the unit to the estate that arose on and as a consequence of the death,

      • (a) the participating farmer is deemed to have acquired the unit at the time that is immediately before the time that is immediately before the death, as a participating farmer from the eligible trust, and to own the unit at the time that is immediately before the death;

      • (b) for the purpose of paragraph (f) of the definition eligible trust in subsection (1), the estate is deemed not to have acquired the unit from the trust; and

      • (c) for the purposes of paragraphs (8)(b) and (c), the estate is deemed to have acquired the eligible unit on and as a consequence of the death.

    • Marginal note:Eligible unit — gain (loss)

      (7) If a person disposes of an eligible unit in a trust that is an eligible trust at the time of the disposition

      • (a) the gain, if any, of the person from the disposition is

        • (i) deemed not to be a capital gain, and

        • (ii) to be included in computing the person’s income for the person’s taxation year that includes that time; and

      • (b) the loss, if any, of the person from the disposition is

        • (i) deemed not to be a capital loss, and

        • (ii) to be deducted in computing the person’s income for the person’s taxation year that includes that time.

    • Marginal note:Death of a participating farmer

      (8) If, immediately before an individual’s death, the individual owns an eligible unit that the individual acquired as a participating farmer from an eligible trust

      • (a) the individual is deemed to dispose (referred to in this subsection as the particular disposition) of the eligible unit immediately before death;

      • (b) if paragraph (d) does not apply,

        • (i) the individual’s proceeds from the particular disposition are deemed to be equal to the unit’s fair market value immediately before the particular disposition,

        • (ii) the gain from the particular disposition is deemed to be included, under subsection 70(1) and not under any other provision, in the individual’s income for the individual’s taxation year in which the individual dies,

        • (iii) subsection 159(5) applies in respect of the individual who has died (determined as though a reference in that subsection to subsection 70(5.2) includes a reference to subsection 70(1) in the application of subsection 159(5) to the gain from the particular disposition) in respect of the particular disposition, and

        • (iv) the person who acquires the eligible unit as a consequence of the individual’s death is deemed to have acquired the eligible unit at the time of the death at a cost equal to the individual’s proceeds, described in subparagraph (i), from the particular disposition;

      • (c) paragraph (d) applies if

        • (i) the individual is resident in Canada immediately before the individual’s death,

        • (ii) the individual’s graduated rate estate acquires the eligible unit on and as a consequence of the death,

        • (iii)  the individual’s legal representative elects in prescribed form in the course of administering the individual’s graduated rate estate that paragraph (b) not apply to the individual in respect of the particular disposition,

        • (iv) the election is filed with the individual’s return of income under this Part for the individual’s taxation year in which the death occurred,

        • (v) the estate distributes the eligible unit to the individual’s spouse or common-law partner at a time at which it is the individual’s graduated rate estate,

        • (vi) the individual’s spouse or common-law partner is resident in Canada at the time of the distribution, and

        • (vii) the estate does not dispose of the unit before the distribution; and

      • (d) if this paragraph applies,

        • (i) the individual’s gain from the disposition is deemed to be nil,

        • (ii) the cost amount to the estate of the eligible unit is deemed to be nil,

        • (iii) any amount that is included in the estate’s income (determined without reference to this subparagraph and subsections 104(6) and (12)) for a taxation year from a source that is the eligible unit is, notwithstanding subsection 104(24), deemed

          • (A) to have become payable in that taxation year by the estate to the spouse or common-law partner, and

          • (B) not be have become payable to any other beneficiary,

        • (iv) the distribution is deemed to be a disposition by the estate of the eligible unit for proceeds equal to the cost amount to the estate of the unit,

        • (v) the part of the spouse or common-law partner’s interest as a beneficiary under the estate that is disposed of as a result of the distribution is deemed to be disposed of for proceeds of disposition equal to the cost amount to the spouse or common-law partner of that part immediately before the disposition,

        • (vi) the cost amount to the spouse or common-law partner of the eligible unit is deemed to be nil, and

        • (vii) the spouse or common-law partner is, except for the purposes of paragraph (c), deemed to have acquired the eligible unit as a participating farmer from an eligible trust.

    • Marginal note:Participating farmer — disposition of eligible unit

      (9) If, at any time, an eligible unit of an eligible trust that was acquired by a participating farmer from the eligible trust is disposed of by the participating farmer (other than a disposition described in paragraph (8)(a), (10)(d) or (11)(b)),

      • (a) the participating farmer’s proceeds from the disposition are deemed to be equal to the fair market value of the unit immediately before its disposition;

      • (b) if the disposition results from a distribution of money denominated in Canadian dollars by the trust to the participating farmer in a taxation year of the trust, the money is proceeds from the disposition in that taxation year by the trust of other property and, at the time of the disposition, the participating farmer is not a person described in any of clauses (4)(b)(ii)(A) to (C), the trust’s gain, if any, from the disposition of the other property is reduced to the extent that the proceeds so distributed would, in the absence of this paragraph, be included under subsection 104(13) in the participating farmer’s income for the taxation year of the participating farmer in which the taxation year of the trust ends; and

      • (c) if the participating farmer is a Canadian-controlled private corporation, for the purposes of section 125, the gain from the disposition is deemed to be income from an active business carried on by the corporation.

    • Marginal note:Eligible wind-up distribution

      (10) If, at any time, an eligible trust distributes property as an eligible wind-up distribution of the trust to a person

      • (a) subsection 107(2.1) does not apply in respect of the distribution;

      • (b) the trust is deemed to have disposed of the property for proceeds equal to its fair market value at that time;

      • (c) the trust’s gain from the disposition of the property is, notwithstanding subsection 104(24), deemed

        • (i) to have become payable at that time by the trust to the person, and

        • (ii) not to have become payable to any other beneficiary;

      • (d) the person is deemed to acquire the property at a cost equal to the trust’s proceeds from the disposition;

      • (e) the person’s proceeds from the disposition of the eligible unit, or part of it, that results from the distribution are deemed to be equal to the cost amount of the unit to the person immediately before that time; and

      • (f) for greater certainty, no part of the trust’s gain from the disposition is to be included in the cost to the person of the property, other than as determined by paragraph (d).

    • Marginal note:Ceasing to be an eligible trust

      (11) If a trust ceases to be an eligible trust at a particular time

      • (a) subsection 149(10) applies to the trust as if

        • (i) it ceased at that particular time to be exempt from tax under this Part on its taxable income, and

        • (ii) the list of provisions in paragraph 149(10)(c) included a reference to this section; and

      • (b) each person who holds at the particular time an eligible unit in the trust is deemed to have

        • (i) disposed of, at the time that is immediately before the time that is immediately before the particular time, each of the eligible units for proceeds equal to the cost amount of the unit to the person, and

        • (ii) reacquired the eligible unit at the time that is immediately before the particular time at a cost equal to the fair market value of the unit at the time that is immediately before the particular time.

    • Marginal note:Stock dividends — Canadian Wheat Board shares

      (12) If, at any time, the eligible trust holds an eligible share (or another share of the Canadian Wheat Board acquired before that time as a stock dividend) and the Canadian Wheat Board issues, as a stock dividend paid in respect of such a share, a share of a class of its capital stock, the amount by which the paid-up capital is increased — in respect of the issuance of all shares paid by the Canadian Wheat Board to the eligible trust as the stock dividend or any other stock dividend paid to other shareholders in connection with that stock dividend — for all classes of shares of the Canadian Wheat Board is, for the purposes of this Act, deemed to be no more than $1.

    • Marginal note:Reorganization of capital — Canadian Wheat Board

      (13) Subsection (14) applies in respect of the disposition by an eligible trust of all of the shares (in this subsection and subsection (14) referred to collectively as the old shares and individually as an old share) of a class of the capital stock of the Canadian Wheat Board owned by the eligible trust if

      • (a) the disposition of the old shares results from the acquisition, cancellation or redemption in the course of a reorganization of the capital of the Canadian Wheat Board;

      • (b) the Canadian Wheat Board issues to the eligible trust, in exchange for the old shares, shares (in this subsection and subsection (14) referred to collectively as the new shares and individually as a new share) of a class of the capital stock of the Canadian Wheat Board the terms and conditions of which — including the entitlement to receive an amount on a redemption, acquisition or cancellation — are in all material respects the same as those of the old shares;

      • (c) the amount that is the total fair market value of all of the new shares acquired by the eligible trust on the exchange equals the total fair market value of all of the old shares disposed of by the eligible trust; and

      • (d) the amount that is the total paid-up capital in respect of all of the new shares acquired by the eligible trust on the exchange is equal to the amount that is the total paid-up capital in respect of all of the old shares disposed of on the exchange.

    • Marginal note:Rollover of shares on reorganization

      (14) If this subsection applies in respect of an exchange of an eligible trust’s old share for a new share,

      • (a) the old share is deemed to be disposed of by the eligible trust for proceeds equal to its cost amount to the eligible trust;

      • (b) the new share acquired for the old share referred to in paragraph (a) is deemed to be acquired for a cost equal to the amount referred to in paragraph (a);

      • (c) if the old share was an eligible share, the new share is deemed to be an eligible share; and

      • (d) if new shares are deemed to be eligible shares because of paragraph (c) and those shares are included in a class of shares that also includes other shares that are not eligible shares, those eligible shares are deemed to have been issued in a separate series of the class and the other shares are deemed to have been issued in a separate series of the class.

    • Marginal note:Information filing requirement

      (15) A trust shall file with the Minister a prescribed form in prescribed manner in respect of each taxation year of the trust in which it is an eligible trust on or before the trust’s filing-due date for the year.

    • Marginal note:Failure to file prescribed form

      (16) If a trust fails to file the form required by subsection (15) on or before the day that is the trust’s filing-due date for a taxation year,

      • (a) in addition to any other penalty for which the trust may be liable under this Act in respect of the failure, the trust is liable to a penalty equal to the product obtained when $1,000 is multiplied by the number of days during which the failure continues; and

      • (b) if, within 30 days after the trust is served personally or by registered mail with a demand in writing from the Minister for the form to be filed, the trust has not filed the form with the Minister, the trust is deemed to cease to be an eligible trust at the end of the day on which the demand was served.

  • (2) Subsection (1) is deemed to have come into force on July 1, 2015, except that, before December 31, 2015, each reference to “graduated rate estate” in section 135.2 of the Act, as enacted by subsection (1), is to be read as “estate”.

 Subparagraphs (a)(i) to (iii) of the definition repayment period in subsection 146.02(1) of the Act are replaced by the following:

  • (i) at the beginning of the third calendar year within the participation period if, in each of the second and third calendar years within the participation period,

    • (A) for calendar years before 2017, the person would not be entitled to claim an amount under subsection 118.6(2) (as it read in the year) in respect of at least three months in the year, if that subsection were read without reference to paragraph (b) of the description of B in that subsection, and

    • (B) for calendar years after 2016, the person would not be a qualifying student (as defined in subsection 118.6(1)) in respect of at least three months in the year, if that definition were read without reference to its subparagraph (a)(ii),

  • (ii) at the beginning of the fourth calendar year within the participation period if, in each of the third and fourth calendar years within the participation period,

    • (A) for calendar years before 2017, the person would not be entitled to claim an amount under subsection 118.6(2) (as it read in the year) in respect of at least three months in the year, if that subsection were read without reference to paragraph (b) of the description of B in that subsection, and

    • (B) for calendar years after 2016, the person would not be a qualifying student (as defined in subsection 118.6(1)) in respect of at least three months in the year, if that definition were read without reference to its subparagraph (a)(ii),

  • (iii) at the beginning of the fifth calendar year within the participation period if, in each of the fourth and fifth calendar years within the participation period,

    • (A) for calendar years before 2017, the person would not be entitled to claim an amount under subsection 118.6(2) (as it read in the year) in respect of at least three months in the year, if that subsection were read without reference to paragraph (b) of the description of B in that subsection, and

    • (B) for calendar years after 2016, the person would not be a qualifying student (as defined in subsection 118.6(1)) in respect of at least three months in the year, if that definition were read without reference to its subparagraph (a)(ii), and

  •  (1) Section 149.1 of the Act is amended by adding the following after subsection (10):

    • Marginal note:Partnership look-through rule

      (11) For the purposes of this section and sections 149.2 and 188.1, each member of a partnership at any time is deemed at that time to own the portion of each property of the partnership equal to the proportion that the fair market value of the member’s interest in the partnership at that time is of the fair market value of all interests in the partnership at that time.

  • (2) Subsection (1) is deemed to have come into force on April 21, 2015.

  •  (1) Paragraph 152(1)(b) of the Act is replaced by the following:

    • (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 122.8(2) or (3), 122.9(2), 125.4(3), 125.5(3), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.

  • (2) Paragraph 152(1)(b) of the Act, as enacted by subsection (1), is replaced by the following:

    • (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 122.9(2), 125.4(3), 125.5(3), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.

  • (3) Paragraph 152(4.2)(b) of the Act is replaced by the following:

    • (b) redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 122.8(2) or (3), 122.9(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.

  • (4) Paragraph 152(4.2)(b) of the Act, as enacted by subsection (3), is replaced by the following:

    • (b) redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 122.9(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.

  • (5) Subsections (1) and (3) apply to the 2016 taxation year.

  • (6) Subsections (2) and (4) apply to the 2017 and subsequent taxation years.

  •  (1) Paragraph 153(1)(a) of the Act is replaced by the following:

    • (a) salary, wages or other remuneration, other than

      • (i) amounts described in subsection 212(5.1), and

      • (ii) amounts paid at any time by an employer to an employee if, at that time, the employer is a qualifying non-resident employer and the employee is a qualifying non-resident employee,

  • (2) Subsection 153(1.3) of the Act is replaced by the following:

    • Marginal note:Reduction not permitted

      (1.3) A joint election made or expected to be made under section 60.03 is not to be considered a basis on which the Minister may determine a lesser amount under subsection (1.1).

  • (3) Subsection 153(6) of the Act is replaced by the following:

    • Marginal note:Definitions

      (6) The following definitions apply in this section.

      designated financial institution

      designated financial institution means a corporation that

      • (a) is a bank, other than an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act;

      • (b) is authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

      • (c) is authorized under the laws of Canada or a province to accept deposits from the public and carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or of hypothecs on immovables. (institution financière désignée)

      qualifying non-resident employee

      qualifying non-resident employee, at any time in respect of a payment referred to in paragraph (1)(a), means an employee who

      • (a) is, at that time, resident in a country with which Canada has a tax treaty;

      • (b) is not liable to tax under this Part in respect of the payment because of that treaty; and

      • (c) works in Canada for less than 45 days in the calendar year that includes that time or is present in Canada for less than 90 days in any 12-month period that includes that time. (employé non-résident admissible)

      qualifying non-resident employer

      qualifying non-resident employer, at any time, means an employer

      • (a) that at that time

        • (i) in the case of an employer that is not a partnership,

          • (A) is a resident of a country with which Canada has a tax treaty, or

          • (B) is a corporation that does not satisfy the condition in clause (A), but would be a resident of a country with which Canada has a tax treaty if the corporation were treated, for the purpose of income taxation in that country, as a body corporate, and

        • (ii) in the case of an employer that is a partnership, is a partnership in respect of which the total of all amounts, each of which is a share of the partnership’s income or loss for the fiscal period that includes that time of a member that, at that time, is a resident of a country with which Canada has a tax treaty (or is a corporation that satisfies the condition in clause (i)(B)), is not less than 90% of the income or loss of the partnership for the period (for the purposes of this subparagraph, where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000); and

      • (b) that is at that time certified by the Minister under subsection (7). (employeur non-résident admissible)

    • Marginal note:Certification by Minister

      (7) The Minister may

      • (a) certify an employer for a specified period of time if the employer has applied in prescribed form containing prescribed information and the Minister is satisfied that the employer

        • (i) meets the conditions in paragraph (a) of the definition qualifying non-resident employer in subsection (6), and

        • (ii) meets the conditions established by the Minister; and

      • (b) revoke an employer’s certification if the Minister is no longer satisfied that the employer meets the conditions referred to in subparagraph (a)(i) or (ii).

  • (4) Subsections (1) and (3) apply in respect of payments made after 2015.

  • (5) Subsection (2) applies to the 2016 and subsequent taxation years.

  •  (1) Subsection 163(1) of the Act is replaced by the following:

    Marginal note:Repeated failure to report income
    • 163 (1) Every person is liable to a penalty who

      • (a) fails to report an amount, equal to or greater than $500, required to be included in computing the person’s income in a return filed under section 150 for a taxation year (in this subsection and subsection (1.1) referred to as the unreported amount);

      • (b) had failed to report an amount, equal to or greater than $500, required to be included in computing the person’s income in any return filed under section 150 for any of the three preceding taxation years; and

      • (c) is not liable to a penalty under subsection (2) in respect of the unreported amount.

    • Marginal note:Amount of penalty

      (1.1) The amount of the penalty to which the person is liable under subsection (1) is equal to the lesser of

      • (a) 10% of the unreported amount, and

      • (b) the amount determined by the formula

        0.5 × (A – B)

        where

        A
        is the total of the amounts that would be determined under paragraphs (2)(a) to (g) if subsection (2) applied in respect of the unreported amount, and
        B
        is any amount deducted or withheld under subsection 153(1) that may reasonably be considered to be in respect of the unreported amount.
  • (2) Paragraph 163(2)(c.4) of the Act is repealed.

  • (3) Subsection 163(2) of the Act is amended by adding the following after paragraph (c.4):

    • (c.5) the amount, if any, by which

      • (i) the total of all amounts each of which is an amount that would be deemed by subsection 122.9(2) to have been paid on account of the person’s tax payable under this Part for the year if that amount were calculated by reference to the person’s claim for the year under the subsection

      exceeds

      • (ii) the total of all amounts each of which is the amount that the person is entitled to claim for the year under subsection 122.9(2),

  • (4) Subsection (1) applies to taxation years that begin after 2014.

  • (5) Subsection (2) comes into force on January 1, 2017.

  • (6) Subsection (3) applies to the 2016 and subsequent taxation years.

  •  (1) Paragraphs (b) and (c) of the definition labour-sponsored funds tax credit in subsection 211.7(1) of the Act are replaced by the following:

    • (b) in any other case, the amount that would be determined under subsection 127.4(6) in respect of the share if this Act were read without reference to its paragraphs (b) and (d). (crédit d’impôt relatif à un fonds de travailleurs)

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

  •  (1) Subparagraph 217(5)(a)(i) of the Act is replaced by the following:

    • (i) such of the amounts that would have been deductible under any of section 118.2, subsections 118.3(2) and (3) and sections 118.8 and 118.9 in computing the person’s tax payable under Part I for the year if the person had been resident in Canada throughout the year, as can reasonably be considered wholly applicable, and

  • (2) Subsection (1) applies to the 2017 and subsequent taxation years.

  •  (1) Section 227 of the Act is amended by adding the following after subsection (8.5):

    • Marginal note:No penalty — qualifying non-resident employers

      (8.6) Subsection (8) does not apply to a qualifying non-resident employer (as defined in subsection 153(6)) in respect of a payment made to an employee if, after reasonable inquiry, the employer had no reason to believe at the time of the payment that the employee was not a qualifying non-resident employee (as defined in subsection 153(6)).

  • (2) Subsection (1) applies in respect of payments made after 2015.

  •  (1) The definition dividend rental arrangement in subsection 248(1) of the Act is replaced by the following:

    dividend rental arrangement

    dividend rental arrangement, of a person or a partnership (each of which is referred to in this definition as the person), means

    • (a) any arrangement entered into by the person where it can reasonably be considered that

      • (i) the main reason for the person entering into the arrangement was to enable the person to receive a dividend on a share of the capital stock of a corporation, other than a dividend on a prescribed share or on a share described in paragraph (e) of the definition term preferred share in this subsection or an amount deemed by subsection 15(3) to be received as a dividend on a share of the capital stock of a corporation, and

      • (ii) under the arrangement someone other than that person bears the risk of loss or enjoys the opportunity for gain or profit with respect to the share in any material respect,

    • (b) for greater certainty, any arrangement under which

      • (i) a corporation at any time receives on a particular share a taxable dividend that would, if this Act were read without reference to subsection 112(2.3), be deductible in computing its taxable income or taxable income earned in Canada for the taxation year that includes that time, and

      • (ii) the corporation or a partnership of which the corporation is a member is obligated to pay to another person or partnership an amount

        • (A) that is compensation for

          • (I) the dividend described in subparagraph (i),

          • (II) a dividend on a share that is identical to the particular share, or

          • (III) a dividend on a share that, during the term of the arrangement, can reasonably be expected to provide to a holder of the share the same or substantially the same proportionate risk of loss or opportunity for gain as the particular share, and

        • (B) that, if paid, would be deemed by subsection 260(5.1) to have been received by that other person or partnership, as the case may be, as a taxable dividend,

    • (c) any synthetic equity arrangement, in respect of a DRA share of the person, and

    • (d) one or more agreements or arrangements (other than agreements or arrangements described in paragraph (c)) entered into by the person, the connected person referred to in paragraph (a) of the definition synthetic equity arrangement or, for greater certainty, by any combination of the person and connected persons, if

      • (i) the agreements or arrangements have the effect, or would have the effect if each agreement or arrangement entered into by a connected person were entered into by the person, of eliminating all or substantially all of the person’s risk of loss and opportunity for gain or profit in respect of a DRA share of the person,

      • (ii) as part of a series of transactions that includes these agreements or arrangements, a tax-indifferent investor, or a group of tax-indifferent investors each member of which is affiliated with every other member, obtains all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share or an identical share (as defined in subsection 112(10)), and

      • (iii) it is reasonable to conclude that one of the purposes of the series of transactions is to obtain the result described in subparagraph (ii); (mécanisme de transfert de dividendes)

  • (2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

    DRA share

    DRA share, of a person or partnership, means a share

    • (a) that is owned by the person or partnership,

    • (b) in respect of which the person or partnership is deemed to have received a dividend under subsection 260(5.1) and is provided with all or substantially all of the risk of loss and opportunity for gain or profit under an agreement or arrangement,

    • (c) that is held by a trust under which the person or partnership is a beneficiary and in respect of which the person or partnership is deemed to have received a dividend as a result of a designation by the trust under subsection 104(19),

    • (d) in respect of which the person or partnership is deemed to have received a dividend under subsection 82(2), or

    • (e) in any other case, in respect of which the person or partnership is (or would be in the absence of subsection 112(2.3)) entitled to a deduction under subsection 112(1) in respect of dividends received on the share; (action de mécanisme de transfert de dividendes ou AMTD)

    recognized derivatives exchange

    recognized derivatives exchange means a person or partnership recognized or registered under the securities laws of a province to carry on the business of providing the facilities necessary for the trading of options, swaps, futures contracts or other financial contracts or instruments whose market price, value, delivery obligations, payment obligations or settlement obligations are derived from, referenced to or based on an underlying interest; (bourse reconnue en instruments financiers dérivés)

    specified mutual fund trust

    specified mutual fund trust, at any time, means a mutual fund trust other than a mutual fund trust for which it can reasonably be considered, having regard to all the circumstances, including the terms and conditions of the units of the trust, that the total of all amounts each of which is the fair market value, at that time, of a unit issued by the trust and held by a person exempt from tax under section 149 is all or substantially all of the total of all amounts each of which is the fair market value, at that time, of a unit issued by the trust; (fiducie de fonds commun de placement déterminée)

    specified synthetic equity arrangement

    specified synthetic equity arrangement, in respect of a DRA share of a person or partnership, means one or more agreements or other arrangements that

    • (a) have the effect of providing to a person or partnership all or any portion of the risk of loss or opportunity for gain or profit in respect of the DRA share and, for greater certainty, opportunity for gain or profit includes rights to, benefits from and distributions on a share, and

    • (b) can reasonably be considered to have been entered into in connection with a synthetic equity arrangement, in respect of the DRA share, or in connection with another specified synthetic equity arrangement, in respect of the DRA share; (arrangement de capitaux propres synthétiques déterminé)

    synthetic equity arrangement

    synthetic equity arrangement in respect of a DRA share of a person or partnership (referred to in this definition as the particular person),

    • (a) means one or more agreements or other arrangements that

      • (i) are entered into by the particular person, by a person or partnership that does not deal at arm’s length with, or is affiliated with, the particular person (referred to in this definition as a connected person) or, for greater certainty, by any combination of the particular person and connected persons, with one or more persons or partnerships (referred to in this definition as a counterparty and in subsection 112(2.32) as a counterparty or an affiliated counterparty as appropriate),

      • (ii) have the effect, or would have the effect, if each agreement entered into by a connected person were entered into by the particular person, of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share to a counterparty or a group of counterparties each member of which is affiliated with every other member and, for greater certainty, opportunity for gain or profit includes rights to, benefits from and distributions on a share, and

      • (iii) if entered into by a connected person, can reasonably be considered to have been entered into with the knowledge, or where there ought to have been the knowledge, that the effect described in subparagraph (ii) would result, and

    • (b) does not include

      • (i) an agreement that is traded on a recognized derivatives exchange unless it can reasonably be considered that, at the time the agreement is entered into,

        • (A) the particular person or the connected person, as the case may be, knows or ought to know that the agreement is part of a series of transactions that has the effect of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the DRA share to a tax-indifferent investor, or a group of tax-indifferent investors each member of which is affiliated with every other member, or

        • (B) one of the main reasons for entering into the agreement is to obtain the benefit of a deduction in respect of a payment, or a reduction of an amount that would otherwise have been included in income, under the agreement, that corresponds to an expected or actual dividend in respect of a DRA share,

      • (ii) one or more agreements or other arrangements that, but for this subparagraph, would be a synthetic equity arrangement, in respect of a share owned by the particular person (in this subparagraph referred to as the synthetic short position), if

        • (A) the particular person has entered into one or more other agreements or other arrangements (other than, for greater certainty, an agreement under which the share is acquired or an agreement or arrangement under which the particular person receives a deemed dividend and is provided with all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share) that have the effect of providing all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share to the particular person (in this subparagraph referred to as the synthetic long position),

        • (B) the synthetic short position has the effect of offsetting all amounts included or deducted in computing the income of the particular person with respect to the synthetic long position, and

        • (C) the synthetic short position was entered into for the purpose of obtaining the effect referred to in clause (B), and

      • (iii) an agreement to purchase the shares of a corporation, or a purchase agreement that is part of a series of agreements to purchase the shares of a corporation, under which a counterparty or a group of counterparties each member of which is affiliated with every other member acquires control of the corporation that has issued the shares being purchased, unless the main reason for establishing, incorporating or operating the corporation is to have this subparagraph apply; (arrangement de capitaux propres synthétiques)

    synthetic equity arrangement chain

    synthetic equity arrangement chain, in respect of a share owned by a person or partnership, means a synthetic equity arrangement — or a synthetic equity arrangement in combination with one or more specified synthetic equity arrangements — where

    • (a) no party to the synthetic equity arrangement or a specified synthetic equity arrangement, if any, is a tax-indifferent investor, and

    • (b) each other party to these agreements or arrangements is affiliated with the person or partnership; (chaîne d’arrangements de capitaux propres synthétiques)

    tax-indifferent investor

    tax-indifferent investor, at any time, means a person or partnership that is at that time

    • (a) a person exempt from tax under section 149,

    • (b) a non-resident person, other than a person to which all amounts paid or credited under a synthetic equity arrangement or a specified synthetic equity arrangement may reasonably be attributed to the business carried on by the person in Canada through a permanent establishment (as defined by regulation) in Canada,

    • (c) a trust resident in Canada (other than a specified mutual fund trust) if any of the interests as a beneficiary under the trust is not a fixed interest (as defined in subsection 251.2(1)) in the trust (in this definition referred to as a discretionary trust),

    • (d) a partnership more than 10% of the fair market value of all interests in which can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraphs (a) to (c), or

    • (e) a trust resident in Canada (other than a specified mutual fund trust or a discretionary trust) if more than 10% of the fair market value of all interests as beneficiaries under the trust can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraph (a) or (c); (investisseur indifférent relativement à l’impôt)

  • (3) Section 248 of the Act is amended by adding the following after subsection (41):

    • Marginal note:Synthetic equity arrangements — disaggregation

      (42) For the purposes of the definition synthetic equity arrangement in subsection (1), paragraphs (c) and (d) of the definition dividend rental arrangement in subsection (1) and subsections 112(2.31), (2.32) and (10), an arrangement that reflects the fair market value of more than one type of identical share (as defined in subsection 112(10)) is considered to be a separate arrangement with respect to each type of identical share the value of which the arrangement reflects.

  • (4) Subsection (1) applies to

    • (a) dividends that are paid or become payable after April 2017; and

    • (b) dividends that are paid or become payable at any time after October 2015 and before May 2017 on a share if

      • (i) there is a synthetic equity arrangement, or one or more agreements or arrangements described by paragraph (d) of the definition dividend rental arrangement in subsection 248(1) of the Act, as enacted by subsection (1), in respect of the share at that time, and

      • (ii) after April 21, 2015 and before that time, all or any part of the synthetic equity arrangement, or the agreements or arrangements, referred to in subparagraph (i) — including an option, swap, futures contract, forward contract or other financial or commodity contract or instrument as well as a right or obligation under the terms of such a contract or instrument — that contributes or could contribute to the effect of providing all or substantially all of the risk of loss and opportunity for gain or profit, in respect of the share, to one or more persons or partnerships is

        • (A) entered into, acquired, extended or renewed after April 21, 2015, or

        • (B) in the case of a right to increase the notional amount under an agreement that is or is part of the synthetic equity arrangement, is exercised or acquired after April 21, 2015.

  • (5) Subsections (2) and (3) are deemed to have come into force on April 22, 2015.

  •  (1) Section 253.1 of the Act is renumbered as subsection 253.1(1) and is amended by adding the following:

    • Marginal note:Investments in limited partnerships

      (2) For the purposes of section 149.1 and subsections 188.1(1) and (2), if a registered charity or a registered Canadian amateur athletic association holds an interest as a member of a partnership, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business of the partnership if

      • (a) by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited;

      • (b) the member deals at arm’s length with each general partner of the partnership; and

      • (c) the member, or the member together with persons and partnerships with which it does not deal at arm’s length, holds interests in the partnership that have a fair market value of not more than 20% of the fair market value of the interests of all members in the partnership.

  • (2) Subsection (1) applies in respect of investments in limited partnerships that are made or acquired after April 20, 2015.

Related Amendments to Other Acts

1992, c. 48, Sch.Children’s Special Allowances Act

Marginal note:2006, c. 4, s. 169

 Section 2.1 of the Children’s Special Allowances Act is repealed.

Marginal note:2015, c. 36, s. 38
  •  (1) Subparagraph 3.1(1)(a)(ii) of the Act is replaced by the following:

    • (ii) a special allowance supplement in the amount of $160, in respect of every month as of January 1, 2015 but before July 1, 2016; and

  • Marginal note:2015, c. 36, s. 38

    (2) Paragraph 3.1(1)(b) of the Act is replaced by the following:

    • (b) is six years of age or older, a special allowance supplement in the amount of $60, in respect of every month as of January 1, 2015 but before July 1, 2016.

  • (3) Section 3.1 of the Act is repealed.

Marginal note:1998, c. 21, s. 98(1)

 Subsection 8(1) of the Act is replaced by the following:

Marginal note:Calculation of amount
  • 8 (1) The amount of special allowance to be paid in respect of a child for a month is one twelfth of the total of

    • (a) if the child has not reached the age of six years at the beginning of the month, the amount expressed in dollars in paragraph (a) of the description of E in subsection 122.61(1) of the Income Tax Act,

    • (b) if the child is six years of age or older at the beginning of the month, the amount expressed in dollars in paragraph (b) of the description of E in subsection 122.61(1) of the Income Tax Act, and

    • (c) if an amount may be deducted under section 118.3 of theIncome Tax Act in respect of the child for the taxation year that includes the month, the amount expressed in dollars in the description of N in subsection 122.61(1) of that Act.

2006, c. 4, s. 168Universal Child Care Benefit Act

Marginal note:2015, c. 36, s. 37(2)
  •  (1) The portion of subsection 4(1.1) of the Universal Child Care Benefit Act before paragraph (a) is replaced by the following:

    • Marginal note:Child under six years — January 2015 to June 2016

      (1.1) In respect of every month as of January 1, 2015 but before July 1, 2016, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is under the age of six years and is a qualified dependant of the eligible individual,

  • Marginal note:2015, c. 36, s. 37(2)

    (2) The portion of subsection 4(1.2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Other children — January 2015 to June 2016

      (1.2) In respect of every month as of January 1, 2015 but before July 1, 2016, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is six years of age or older and is a qualified dependant of the eligible individual,

Coming into Force

Marginal note:July 1, 2017
  •  (1) Section 50 and subsection 51(3) come into force on July 1, 2017.

  • Marginal note:July 1, 2016

    (2) Subsections 51(1) and (2) and sections 52 and 53 come into force, or are deemed to have come into force, on July 1, 2016.

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

  •  (1) Subsection 200(1) of the Income Tax Regulations is replaced by the following:

    • 200 (1) Subject to subsection (1.1), every person who makes a payment described in subsection 153(1) of the Act (including an amount paid that is described in subparagraph 153(1)(a)(ii) of the Act) shall make an information return in prescribed form in respect of the payment unless an information return in respect of the payment has been made under sections 202, 214, 237 or 238.

    • (1.1) Subsection (1) does not apply in respect of

      • (a) an annuity payment in respect of an interest in an annuity contract to which subsection 201(5) applies; or

      • (b) an amount paid by a qualifying non-resident employer to a qualifying non-resident employee that is exempted under subparagraph 153(1)(a)(ii) of the Act if the employer, after reasonable inquiry, has no reason to believe that the employee’s total amount of taxable income earned in Canada under Part I of the Act during the calendar year that includes the time of this payment (including an amount described in paragraph 110(1)(f) of the Act) is more than $10,000.

  • (2) Subsection (1) applies in respect of payments made after 2015.

  •  (1) Section 210 of the Regulations is replaced by the following:

    210 Every person who makes a payment described in section 153 of the Act (including an amount paid that is described in subparagraph 153(1)(a)(ii) of the Act), or who pays or credits, or is deemed by any of Part I, XIII and XIII.2 of the Act to have paid or credited, an amount described in that section, Part XIII or XIII.2 of the Act, shall, on demand by registered letter from the Minister, make an information return in prescribed form containing the information required in the return and shall file the return with the Minister within such reasonable time as is stipulated in the registered letter.

  • (2) Subsection (1) applies in respect of payments made after 2015.

  •  (1) Section 6701.1 of the Regulations is repealed.

  • (2) Subsection (1) is deemed to have come into force on March 22, 2016.

  •  (1) The portion of section 8201 of the Regulations before paragraph (a) is replaced by the following:

    8201 For the purposes of subsection 16.1(1), the definition outstanding debts to specified non-residents in subsection 18(5), subsections 100(1.3) and 112(2), the definition qualified Canadian transit organization in subsection 118.02(1), subsections 125.4(1) and 125.5(1), the definition taxable supplier in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), the definitions Canadian banking business and tax-indifferent investor in subsection 248(1) and paragraph 260(5)(a) of the Act, a permanent establishment of a person or partnership (either of whom is referred to in this section as the person) means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person’s business is conducted, and

  • (2) Subsection (1) is deemed to have come into force on April 22, 2015.

  •  (1) Part XCIV of the Regulations is repealed.

  • (2) Subsection (1) comes into force on January 1, 2017.

  •  (1) The Regulations are amended by adding the following after Part XCV:

    PART XCVISchool Supplies Tax Credit

    Marginal note:Prescribed durable goods

    9600 For the purpose of the definition teaching supplies in subsection 122.9(1) of the Act, the following are prescribed durable goods:

    • (a) books;

    • (b) games and puzzles;

    • (c) containers (such as plastic boxes or banker boxes); and

    • (d) educational support software.

  • (2) Subsection (1) applies to the 2016 and subsequent taxation years.

2013, c. 40Coordinating Amendments

Marginal note:2013, c. 40
  •  (1) If this Act receives royal assent before January 1, 2017, then subsections 59(1), (4), (6) and (7) of the Economic Action Plan 2013 Act, No. 2 are deemed never to have produced their effects and are repealed.

  • (2) If this Act receives royal assent on or after January 1, 2017, then

    • (a) section 127.4 of the Income Tax Act is amended by adding the following after subsection (1.1):

      • Marginal note:Deduction of labour-sponsored funds tax credit

        (2) There may be deducted from the tax otherwise payable by an individual (other than a trust) for a taxation year such amount as the individual claims not exceeding the individual’s labour-sponsored funds tax credit limit for the year.

    • (b) paragraphs 36(2) and (3) of this Act are replaced by the following:

      • (2) Section 127.4 of the Act is amended by adding the following before subsection (5.1):

        • Marginal note:Labour-sponsored funds tax credit limit

          (5) For the purpose of subsection (2), an individual’s labour-sponsored funds tax credit limit for a taxation year is the lesser of

          • (a) $750, and

          • (b) the amount, if any, by which

            • (i) the total of all amounts each of which is the individual’s labour-sponsored funds tax credit in respect of an original acquisition in the year or in the first 60 days of the following taxation year of an approved share

            exceeds

            • (ii) the portion of the total described in subparagraph (i) that was deducted under subsection (2) in computing the individual’s tax payable under this Part for the preceeding taxation year.

      • (3) Section 127.4 of the Act is amended by adding the following after subsection (5.1):

        • Marginal note:Labour-sponsored funds tax credit

          (6) For the purpose of subsection (5), an individual’s labour-sponsored funds tax credit in respect of an original acquisition of an approved share is equal to the least of

          • (a) 15% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if the share is a share of a prescribed labour-sponsored venture capital corporation (other than a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation),

          • (a.1) 5% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if

            • (i) the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is 2016, and

            • (ii) the share is a share of a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation,

          • (a.2) nil, if

            • (i) the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is after 2016, and

            • (ii) the share is a share of a corporation that is a prescribed labour-sponsored venture capital corporation solely because it is a registered labour-sponsored venture capital corporation,

          • (b) nil, if the share was issued by a registered labour-sponsored venture capital corporation unless the information return described in paragraph 204.81(6)(c) is filed with the individual’s return of income for the taxation year for which a claim is made under subsection (2) in respect of the original acquisition of the share (other than a return of income filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(e) or subsection 150(4)),

          • (c) nil, if the individual dies after December 5, 1996 and before the original acquisition of the share,

          • (d) nil, if a payment in respect of the disposition of the share has been made under section 211.9, and

          • (e) nil, if the share is issued in exchange for another share of the corporation.

Marginal note:Bill C-2
  •  (1) Subsections (2) to (17) apply if Bill C-2, introduced in the 1st session of the 42nd Parliament and entitled An Act to amend the Income Tax Act, receives royal assent.

  • (2) Paragraph (b) of the definition relevant tax factor in subsection 95(1) of the Income Tax Act is replaced by the following:

    • (b) in any other case, 1.9; (facteur fiscal approprié)

  • (3) Subsection 118.1(3) of the Income Tax Act is replaced by the following:

    • Marginal note:Deduction by individuals for gifts

      (3) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula

      A × B + C × D + E × F

      where

      A
      is the appropriate percentage for the year;
      B
      is the lesser of $200 and the individual’s total gifts for the year;
      C
      is the highest individual percentage for the year;
      D
      is
      • (a) in the case of a trust (other than a graduated rate estate or a qualified disability trust as defined in subsection 122(3)), the amount, if any, by which its total gifts for the year exceeds $200, and

      • (b) in any other case, the lesser of

        • (i) the amount, if any, by which the individual’s total gifts for the year exceeds $200, and

        • (ii) the amount, if any, by which the individual’s amount taxable for the year for the purposes of subsection 117(2) exceeds the first dollar amount for the year referred to in paragraph 117(2)(e);

      E
      is 29%; and
      F
      is the amount, if any, by which the individual’s total gifts for the year exceeds the total of $200 and the amount determined for D.
  • (4) Subparagraph (i) of the description of A in paragraph 122(1)(c) of the Income Tax Act is replaced by the following:

    • (i) the rate of tax payable under this Part by the trust for each taxation year referred to in the description of B were the highest individual percentage for the taxation year, and

  • (5) The Income Tax Act is amended by adding the following after section 123.4:

    Marginal note:Tax on personal services business income

    123.5 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation an amount equal to 5% of the corporation’s taxable income for the year from a personal services business.

  • (6) Clauses 132(1)(a)(i)(A) and (B) of the Income Tax Act are replaced by the following:

    • (A) 16.5% of the total of the trust’s capital gains redemptions for the year, and

    • (B) the positive or negative amount, if any, that the Minister determines to be reasonable in the circumstances, after giving consideration to the percentages applicable in determining the trust’s capital gains refunds for the year or any previous taxation year and the percentages applicable in determining the trust’s refundable capital gains tax on hand at the end of the year, and

  • (7) The description of C in the definition capital gains redemptions in subsection 132(4) of the Income Tax Act is replaced by the following:

    C
    is 100/16.5 of the trust’s refundable capital gains tax on hand at the end of the year,
  • (8) Paragraphs (a) and (b) of the description of A in the definition refundable capital gains tax on hand in subsection 132(4) of the Income Tax Act are replaced by the following:

    • (a) the highest individual percentage for the year multiplied by its taxable income for the year,

    • (b) the highest individual percentage for the year multiplied by its taxed capital gains for the year, and

  • (9) Paragraph 143.1(3)(c) of the Income Tax Act is replaced by the following:

    • (c) if the trust is liable to pay tax under Part XII.2 in respect of the particular year, 60% of the fair market value of all property held by it at that time, and

  • (10) Paragraph 143.1(4)(a) of the Income Tax Act is replaced by the following:

    • (a) if the trust is liable to pay tax under Part XII.2 in respect of the year, 60% of the fair market value of all property held by it at that time; and

  • (11) The description of A in subsection 207.8(2) of the Income Tax Act is replaced by the following:

    A
    is the highest individual percentage for the year;
  • (12) The portion of subsection 210.2(1) of the Income Tax Act before paragraph (a) is replaced by the following:

    Marginal note:Tax on income of trust
    • 210.2 (1) Subject to section 210.3, if a trust deducts an amount under paragraph 104(6)(b) in computing its income under Part I for a taxation year, the trust shall pay a tax under this Part in respect of the year equal to 40% of the least of

  • (13) Paragraph 210.2(1)(c) of the Income Tax Act is replaced by the following:

    • (c) 100/60 of the amount deducted.

  • (14) The portion of subsection 210.2(2) of the Income Tax Act before paragraph (a) is replaced by the following:

    • Marginal note:Amateur athlete trusts

      (2) Notwithstanding subsection 210(2), a trust shall pay a tax under this Part in respect of a particular taxation year of the trust equal to 2/3 of the amount that is required by subsection 143.1(2) to be included in computing the income under Part I for a taxation year of a beneficiary under the trust, if

  • (15) Subsections (2), (4) and (6) to (14) apply to the 2016 and subsequent taxation years and, for the purpose of determining the amount for A in the definition refundable capital gains tax on hand in subsection 132(4) of the Income Tax Act, as amended by subsection (8), in respect of previous taxation years prior to 2016, the references to “the highest individual percentage for the year” in paragraphs (a) and (b) of that description are to be read as “29%”.

  • (16) Subsection 118.1(3) of the Income Tax Act, as enacted by subsection (3), applies to the 2016 and subsequent taxation years and, for the purpose of calculating the amount determined for D in subsection 118.1(3) of that Act, as enacted by subsection (3), an individual’s total gifts for the year are determined without reference to gifts made before the 2016 taxation year.

  • (17) Subsection (5) applies to taxation years that end after 2015 except that, for taxation years that end after 2015 and begin before 2016, the reference to 5% in section 123.5 of the Income Tax Act, as enacted by subsection (5), is to be read as a reference to the percentage determined by the formula

    5% (A/B)

    where

    A
    is the number of days in the taxation year that are after 2015; and
    B
    is the total number of days in the taxation year.

PART 2R.S., c. E-15Amendments to the Excise Tax Act (GST/HST Measures)

  •  (1) Section 149 of the Excise Tax Act is amended by adding the following after subsection (4.01):

    • Marginal note:Exclusion of interest

      (4.02) In determining a total under paragraph (1)(c) for a person (in this subsection and subsection (4.03) referred to as the depositor), interest from another person in respect of a deposit of money received or held by the other person in the usual course of its deposit-taking business is not to be included if

      • (a) the other person is

        • (i) a bank,

        • (ii) a credit union,

        • (iii) a corporation authorized under the laws of Canada or a province to carry on the business of offering to the public its services as a trustee, or

        • (iv) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or investing in indebtedness on the security of mortgages or hypothecs on real property; and

      • (b) the other person is obligated, or may by the demand of the depositor become obligated, to repay the money on or before the particular day that is 364 days after the day on which the deposit of money is made.

    • Marginal note:Repayment obligation — special cases

      (4.03) For the purpose of paragraph (4.02)(b), in determining whether the other person is obligated, or may by the demand of the depositor become obligated, to repay the money on or before the particular day that is 364 days after the day on which the deposit of money is made, the following rules apply:

      • (a) if the other person is obligated to repay the money to the depositor on a fixed day and also is or may become obligated to repay the money on an earlier day by virtue of a right of withdrawal, reinvestment or other right afforded to the depositor by the terms under which the money was solicited or received or is held, then only the obligation to repay on the fixed day is to be considered, whether or not the right is exercised; and

      • (b) if the other person is obligated to repay the money to the depositor on a fixed day and also is or may become obligated to repay the money on a later day by virtue of a right afforded to any person to extend the term of the deposit at a rate or rates of interest determined at the time the money was solicited or received, then only the obligation to repay on the later day is to be considered, whether or not the right is exercised.

  • (2) Subsection (1) applies

    • (a) for the purpose of determining if a person is a financial institution throughout the person’s taxation years that begin on or after March 22, 2016; and

    • (b) for the purpose of determining if a person is a reporting institution under section 273.2 of the Act throughout the person’s fiscal year that begins before March 22, 2016 and that ends on or after that day.

  •  (1) The Act is amended by adding the following after section 163:

    Marginal note:Donation — value of consideration

    164 For the purposes of this Part, if a charity or a public institution makes a taxable supply of property or service to another person, if the value of the property or service is included in determining the amount of the advantage in respect of a gift by the other person to the charity or public institution under subsection 248(32) of the Income Tax Act and if a receipt referred to in subsection 110.1(2) or 118.1(2) of that Act may be issued, or could be issued if the other person were an individual, in respect of part of the consideration for the supply, then the value of the consideration for the supply is deemed to be equal to the fair market value of the property or service at the time the supply is made.

  • (2) Subsection (1) applies to any supply made after March 22, 2016. It also applies to any taxable supply, other than a supply to which subsection (3) applies, made by a person on or before that day but after December 20, 2002 if, on or before March 22, 2016, the person

    • (a) did not charge, collect or remit an amount as or on account of tax under Part IX of the Act in respect of the supply; or

    • (b) charged an amount as or on account of tax under Part IX of the Act that is less than the amount of tax that would have been payable under that Part in respect of the supply in the absence of section 164 of the Act, as enacted by subsection (1).

  • (3) For the purposes of Part IX of the Act (other than sections 232 and 261 of the Act, section 5 of Part V.1 of Schedule V to the Act and section 10 of Part VI of Schedule V to the Act), a taxable supply of property or service made by a charity or a public institution to another person after December 20, 2002 but on or before March 22, 2016 is deemed to have been made for no consideration if

    • (a) the value of the property or service is included in determining the amount of the advantage in respect of a gift by the other person to the charity or public institution under subsection 248(32) of the Income Tax Act;

    • (b) a receipt referred to in subsection 110.1(2) or 118.1(2) of the Income Tax Act may be issued, or could be issued if the other person were an individual, in respect of part of the consideration for the supply;

    • (c) the fair market value of the property or service at the time the supply is made is less than $500; and

    • (d) on or before March 22, 2016, the charity or public institution

      • (i) did not charge, collect or remit an amount as or on account of tax under Part IX of the Act in respect of the supply, or

      • (ii) charged an amount as or on account of tax under Part IX of the Act that is less than the amount of tax that would have been payable under that Part in respect of the supply in the absence of section 164 of the Act, as enacted by subsection (1).

Marginal note:2010, c. 12, s. 61(2)
  •  (1) The description of B in the definition external charge in section 217 of the Act is replaced by the following:

    B
    is the total of all amounts, each of which is included in the amount determined under the description of A and is
    • (a) a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer, other than a returned commission included in paragraph (b), or

    • (b) if a particular amount, included in the amount determined under the description of A, is any part of the value of the consideration for a supply made to the qualifying taxpayer of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance in respect of one or more particular insurance policies issued by the qualifying taxpayer, an amount (in this description referred to as a returned commission) included in the particular amount that

      • (i) is attributable to expenses incurred exclusively in Canada by the qualifying taxpayer to issue and administer the particular insurance policies,

      • (ii) is returned to the qualifying taxpayer as a ceding commission in respect of the particular insurance policies, and

      • (iii) is required to be included under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year or for another specified year of the qualifying taxpayer, or would be so required to be included if the conditions set out in subparagraphs (a)(i) to (iii) of the description of A applied to the qualifying taxpayer. (frais externes)

  • Marginal note:2010, c. 12, s. 61(2)

    (2) Paragraph (a) of the definition loading in section 217 of the Act is replaced by the following:

    • (a) if the financial service includes the issuance, renewal, variation or transfer of ownership of an insurance policy but not of any other qualifying instrument, the total of

      • (i) the estimate of the net premium of the insurance policy, and

      • (ii) if the insurance policy is a policy of reinsurance, the margin for risk transfer of the insurance policy;

  • Marginal note:2010, c. 12, s. 61(2)

    (3) The description of A in paragraph (c) of the definition loading in section 217 of the Act is replaced by the following:

    A
    is the total of
    • (i) the estimate of the net premium of the insurance policy, and

    • (ii) if the insurance policy is a policy of reinsurance, the margin for risk transfer of the insurance policy, and

  • Marginal note:2010, c. 12, s. 61(2)

    (4) Paragraph (k) of the definition permitted deduction in section 217 of the Act is replaced by the following:

    • (k) consideration (other than interest referred to in paragraph (g), dividends referred to in paragraph (h) or consideration referred to in paragraph (k.1)) for a specified non-arm’s length supply made to the qualifying taxpayer less the total of all amounts, each of which is a part of the value of the consideration and is loading;

    • (k.1) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified non-arm’s length supply made to the qualifying taxpayer of a financial service of issuing, renewing, varying or transferring the ownership of a policy of reinsurance, issued by an insurer to the qualifying taxpayer, in respect of one or more particular insurance policies issued by the qualifying taxpayer, if

      • (i) the policy of reinsurance is in accordance with all applicable guidelines with respect to sound reinsurance practices and procedures, as amended from time to time, that are issued by the Superintendent or a provincial regulatory authority having powers similar to those of the Superintendent,

      • (ii) the qualifying taxpayer pays to the insurer, or to persons related to the insurer (each of which is referred to in this paragraph as an affiliate), amounts (each of which is referred to in this paragraph as a fee) under one or more agreements in writing, each of which is not the policy of reinsurance and is between the qualifying taxpayer and the insurer or an affiliate,

      • (iii) the fees include 99% or more of the total of all amounts, each of which

        • (A) is payable to the insurer or to an affiliate for property acquired, manufactured or produced, or for a service acquired or performed, in whole or in part outside Canada in respect of the policy of reinsurance, and

        • (B) does not represent

          • (I) the estimate of the net premium of the policy of reinsurance,

          • (II) the margin for risk transfer of the policy of reinsurance, or

          • (III) expenses incurred exclusively in Canada by the qualifying taxpayer to issue and administer the particular insurance policies,

      • (iv) each fee paid by the qualifying taxpayer to the insurer or an affiliate

        • (A) is commensurate with the arm’s length transfer price, as defined in subsection 247(1) of the Income Tax Act, for the provision of the property and services to which the fee relates, and

        • (B) is allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for a specified year, or would be so allowed if the conditions set out in subparagraphs (a)(i) to (iii) of the description of A in the definition qualifying consideration applied to the qualifying taxpayer, and

      • (v) the qualifying taxpayer pays or remits any amount that is payable or remittable under this Part by the qualifying taxpayer in respect of each fee paid by the qualifying taxpayer to the insurer or an affiliate;

  • Marginal note:2010, c. 12, s. 61(2)

    (5) Paragraph (a) of the description of B in the definition qualifying consideration in section 217 of the Act is replaced by the following:

    • (a) an amount that is a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer, other than an amount that is included in paragraph (b) or that is a returned commission included in paragraph (c),

  • (6) The description of B in the definition qualifying consideration in section 217 of the Act is amended by adding “or” at the end of paragraph (b) and by adding the following after that paragraph:

    • (c) if a particular amount, included in the amount determined under the description of A, is any part of the value of the consideration for a supply made to the qualifying taxpayer of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance in respect of one or more particular insurance policies issued by the qualifying taxpayer, an amount (in this description referred to as a returned commission) included in the particular amount that

      • (i) is attributable to expenses incurred exclusively in Canada by the qualifying taxpayer to issue and administer the particular insurance policies,

      • (ii) is returned to the qualifying taxpayer as a ceding commission in respect of the particular insurance policies, and

      • (iii) is required to be included under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year or for another specified year of the qualifying taxpayer, or would be so required to be included if the conditions set out in subparagraphs (a)(i) to (iii) of the description of A applied to the qualifying taxpayer. (contrepartie admissible)

  • (7) Section 217 of the Act is amended by adding the following in alphabetical order:

    ceding commission

    ceding commission means an amount that is paid to a particular insurer by another insurer under an agreement for the supply of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance issued by the other insurer in respect of one or more particular insurance policies issued by the particular insurer and that compensates the particular insurer for property acquired, manufactured or produced, and for services acquired or performed, exclusively in Canada by the particular insurer in order to issue and administer the particular insurance policies. (commission de réassurance)

    margin for risk transfer

    margin for risk transfer means an amount payable to a particular insurer by another insurer under an agreement for the supply of a financial service, which includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance issued by the particular insurer, that exclusively represents compensation for the assumption, by the particular insurer, of the risk of potential future claims under particular insurance policies issued by the other insurer and that is in addition to the estimate of the net premium of the policy of reinsurance. (marge de transfert de risques)

  • (8) Subsections (1) to (7) apply to any specified year of a person that ends after November 16, 2005, except that for purposes of applying the definition permitted deduction in section 217 of the Act, as amended by subsection (4), in respect of an amount of consideration for a specified non-arm’s length supply that became due, or was paid without having become due, on or before that day, paragraph (k) of that definition is to be read without reference to the words “less the total of all amounts, each of which is a part of the value of the consideration and is loading”.

  • (9) If, in assessing under section 296 of the Act tax payable by a person under Division IV of Part IX of the Act for a particular specified year of the person, an amount was taken into consideration as an external charge or as qualifying consideration for the particular specified year and as a result of the application of the definitions ceding commission, external charge, loading, margin for risk transfer, permitted deduction and qualifying consideration in section 217 of the Act, as enacted or amended by subsections (1) to (7), the amount or part of the amount is not qualifying consideration for any specified year of the person and is not an external charge for any specified year of the person for which an election under subsection 217.2(1) of the Act is in effect, the person is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount or the part of the amount, as the case may be, is not, if an election under subsection 217.2(1) of the Act is in effect for the particular specified year, an external charge for the particular specified year or, in any other case, qualifying consideration for the particular specified year and, on receipt of the request, the Minister must with all due dispatch

    • (a) consider the request; and

    • (b) under section 296 of the Act assess, reassess or make an additional assessment of the tax payable by the person under Division IV of Part IX of the Act for any specified year of the person, and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the amount or the part of the amount, as the case may be, is not, if an election under subsection 217.2(1) of the Act is in effect for the particular specified year, an external charge for the particular specified year or, in any other case, qualifying consideration for the particular specified year.

Marginal note:2010, c. 12, s. 62(1)
  •  (1) Subparagraph 217.1(4)(b)(ii) of the Act is replaced by the following:

    • (ii) a permitted deduction of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer, other than a permitted deduction of the qualifying taxpayer that is included under paragraph (a) of the description of B in the definition external charge in section 217 in calculating an external charge of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer,

  • (2) Subsection (1) applies to any specified year of a person that ends after November 16, 2005.

  •  (1) Section 1 of Part V.1 of Schedule V to the Act is amended by striking out “or” at the end of paragraph (n), by adding “or” at the end of paragraph (o) and by adding the following after paragraph (o):

    • (p) a service rendered to an individual for the purpose of enhancing or otherwise altering the individual’s physical appearance and not for medical or reconstructive purposes or a right entitling a person to the service.

  • (2) Subsection (1) applies to any supply made after March 22, 2016.

Marginal note:1990, c. 45, s. 18
  •  (1) Section 21 of Part II of Schedule VI to the Act is replaced by the following:

    • 21 A supply of an insulin infusion pump, insulin syringe, insulin pen or insulin pen needle.

  • (2) Subsection (1) applies to

    • (a) any supply made after March 22, 2016; and

    • (b) any supply made on or before March 22, 2016 unless, on or before that day, an amount was charged, collected or remitted as or on account of tax under Part IX of the Act in respect of the supply.

  •  (1) Part II of Schedule VI to the Act is amended by adding the following after section 25:

    • 25.1 A supply of an intermittent urinary catheter if the catheter is supplied on the written order of a specified professional for use by a consumer named in the order.

  • (2) Subsection (1) applies to any supply made after March 22, 2016.

  •  (1) Schedule VI to the Act is amended by adding the following after Part II:

    PART II.1
    Other Products

    • 1 A supply of a product that is marketed exclusively for feminine hygiene purposes and is a sanitary napkin, tampon, sanitary belt, menstrual cup or other similar product.

  • (2) Subsection (1) applies to any supply made on or after July 1, 2015.

PART 3Amendments to the Excise Tax Act (Excise Measures), the Excise Act, 2001 and Other Related Texts

R.S., c. E-15Excise Tax Act

  •  (1) Subsection 2(1) of the Excise Tax Act is amended by adding the following in alphabetical order:

    heating oil

    heating oil means any fuel oil that is consumed exclusively for providing heat to a home, building or similar structure and that is not consumed for generating heat in an industrial process, including any commercial process that involves removing moisture from a good; (huile à chauffage)

  • (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2016.

  • (3) In respect of fuel oil that is delivered to a purchaser or imported, as heating oil, before July 2016, in respect of which no tax was imposed, levied or collected under subsection 23(1) of the Act at the time of delivery or importation and that is not intended for use, or not used, after June 2016, as heating oil, within the meaning of that term if the definition heating oil in subsection 2(1) of the Act, as enacted by subsection (1), had been in force at the time of delivery or importation, subsection 23(9.1) of the Act is to be read as follows:

    • (9.1) Where fuel other than aviation gasoline has been purchased or imported for a use for which the tax imposed under this Part on diesel fuel was not payable before July 2016 and the purchaser or importer sells or appropriates the fuel after June 2016 for a purpose for which the fuel could not have been purchased or imported after June 2016 without payment of the tax imposed under this Part on the fuel, the tax imposed under this Part on the diesel fuel shall be payable by the person who sells or appropriates the fuel

      • (a) where the fuel is sold, at the time of delivery to the purchaser; and

      • (b) where the fuel is appropriated, at the time of that appropriation.

  • (4) In respect of diesel fuel that is delivered to a purchaser after March 22, 2016 but before July 2016, subparagraphs 68.01(1)(a)(i) and (ii) of the Act are to be read as follows:

    • (i) to the vendor, if the vendor applies for the payment, the purchaser certifies that the diesel fuel is either for use exclusively, before July 2016, as heating oil, or for use exclusively, after June 2016, as heating oil, within the meaning of that term if the definition heating oil in subsection 2(1) of the Act, as enacted by subsection 72(1) of the Budget Implementation Act, 2016, No. 1, had been in force at the time of delivery and the vendor reasonably believes that the purchaser will use it exclusively as the purchaser has certified,

    • (ii) to the purchaser, if the purchaser applies for the payment, the purchaser uses, before July 2016, the diesel fuel as heating oil, or uses, after June 2016, the diesel fuel as heating oil, within the meaning of that term if the definition heating oil in subsection 2(1) of the Act, as enacted by subsection 72(1) of the Budget Implementation Act, 2016, No. 1, had been in force at the time of delivery and no application in respect of the diesel fuel can be made by the vendor under subparagraph (i); or

Marginal note:R.S., c. 7 (2nd Supp.), s. 10(4)
  •  (1) Paragraph 23(8)(c) of the Act is replaced by the following:

    • (c) diesel fuel for use in the generation of electricity, unless the diesel fuel is used in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation.

  • (2) Subsection (1) applies to diesel fuel delivered to a purchaser, or imported, after June 2016.

  • (3) In respect of diesel fuel that is delivered to a purchaser, or imported, before July 2016, in respect of which no tax was imposed, levied or collected under subsection 23(1) of the Act at the time of delivery or importation and that is used after June 2016 in the generation of electricity in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation, subsection 23(9.1) of the Act is to be read as follows:

    • (9.1) Where fuel other than aviation gasoline has been purchased or imported for a use for which the tax imposed under this Part on diesel fuel or aviation fuel was not payable before July 2016 and the purchaser or importer sells or appropriates the fuel after June 2016 for a purpose for which the fuel could not have been purchased or imported after June 2016 without payment of the tax imposed under this Part on the fuel, the tax imposed under this Part on diesel fuel or aviation fuel shall be payable by the person who sells or appropriates the fuel

      • (a) where the fuel is sold, at the time of delivery to the purchaser; and

      • (b) where the fuel is appropriated, at the time of that appropriation.

Marginal note:2007, c. 29, s. 43(1)
  •  (1) Paragraph 68.01(1)(b) of the Act is replaced by the following:

    • (b) to a purchaser who applies for the payment and who uses the diesel fuel to generate electricity, unless the diesel fuel is used in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation.

  • (2) Subsection (1) applies in respect of diesel fuel used after June 2016.

2002, c. 22Excise Act, 2001

  •  (1) The Act is amended by adding the following after section 286:

    Marginal note:Over $10,000,000 — security
    • 286.1 (1) The Minister may, by sending a notice to a person, require security in a form satisfactory to the Minister and in an amount up to a specified amount that is the greater of $0 and the amount that is determined by the formula

      (A/2) – B – $10,000,000

      where

      A
      is the total of all amounts, each of which is
      • (a) an amount that the person has been assessed under this Act in respect of which a portion remains unpaid, or

      • (b) a penalty that the person is liable to pay under this Act in respect of which a portion remains unpaid; and

      B
      is the greater of $0 and the amount that is determined by the formula

      C – (D/2)

      where

      C
      is the total of all amounts that the person has paid against the amount determined for A in the first formula in this subsection, and
      D
      is the amount determined for A in the first formula in this subsection.
    • Marginal note:When security to be furnished

      (2) The security required under subsection (1) shall be furnished to the Minister no later than 60 days following the day on which the Minister required the security.

    • Marginal note:Types of security

      (3) The types of security acceptable for the purpose of subsection (1) are those types of security that are acceptable for the purpose of paragraph 23(3)(b).

    • Marginal note:Failure to comply

      (4) Despite subsections 286(1) to (7), the Minister may collect an amount equivalent to the amount of security that was required under subsection (1) if the security required under that subsection is not furnished to the Minister as set out in this section.

  • (2) Subsection (1) applies to amounts that a person has been assessed, and penalties for which a person becomes liable, after the day on which this Act receives royal assent.

SOR/2003-115Regulations Respecting Excise Licences and Registrations

  •  (1) Paragraph 5(1)(b) of the Regulations Respecting Excise Licences and Registrations is replaced by the following:

    • (b) in the case of a tobacco licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million.

  • (2) Subsection (1) comes into force on the later of June 22, 2016 and the day on which this Act receives royal assent.

SOR/2003-288Stamping and Marking of Tobacco Products Regulations

  •  (1) Subsection 4.1(2) of the Stamping and Marking of Tobacco Products Regulations is replaced by the following:

    • (2) Subject to subsection (3), if the amount referred to in paragraph (1)(a) is greater than $5 million, the amount of security for the purpose of subsection 25.1(3) of the Act is $5 million.

  • (2) Subsection (1) comes into force on the later of June 22, 2016 and the day on which this Act receives royal assent.

PART 4Various Measures

DIVISION 12015, c. 36, s. 41Federal Balanced Budget Act

Marginal note:Repeal

 The Federal Balanced Budget Act, section 41 of chapter 36 of the Statutes of Canada, 2015, is deemed never to have come into force and is repealed.

DIVISION 22005, c. 21Canadian Forces Members and Veterans Re-establishment and Compensation Act

Amendments to the Act

 Paragraph 11(1)(b) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act is replaced by the following:

  • (b) has determined, based on an assessment of the veteran under subsection 10(1), that the veteran would not benefit from vocational rehabilitation as a result of their having a diminished earning capacity that is due to the physical or mental health problem in respect of which the rehabilitation services were approved.

 The portion of subsection 18(4) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Continuation of benefit

    (4) If the Minister determines that the veteran has a diminished earning capacity that is due to the physical or mental health problem for which the rehabilitation plan was developed, the earnings loss benefit continues to be payable to the veteran after the plan has been completed or cancelled until the earlier of

    • (a) the day on which the Minister determines that the veteran no longer has a diminished earning capacity that is due to that health problem, and

 The description of A in subsection 19(1) of the Act is replaced by the following:

A
is 90% of the veteran’s imputed income for a month; and

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

Marginal note:Examination or assessment
  • 20 (1) The Minister may, for the purpose of determining whether a veteran may continue to receive an earnings loss benefit, require a veteran who, as a result of a determination that they have a diminished earning capacity, is in receipt of an earnings loss benefit under section 18 — or would, but for their level of income, be in receipt of it — to undergo a medical examination or an assessment by a person specified by the Minister.

 Subsection 23(1) of the Act is replaced by the following:

Marginal note:Amount of benefit
  • 23 (1) Subject to the regulations, the monthly amount of an earnings loss benefit under section 22 that is payable in respect of a member or a veteran is 90% of the member’s or veteran’s imputed income for a month.

Marginal note:2011, c. 12, s. 8(1)
  •  (1) Subparagraph 38(1)(b)(ii) of the Act is replaced by the following:

    • (ii) the disability award is not yet payable in accordance with section 53.

  • Marginal note:2011, c. 12, s. 8(2)

    (2) Subsections 38(2) and (3) of the Act are replaced by the following:

    • Marginal note:Amount of allowance

      (2) The Minister shall determine the amount of the career impact allowance that may be paid to the veteran in a year, taking into account the potential impact of the permanent and severe impairment on the veteran’s career advancement opportunities. The minimum career impact allowance shall be the amount set out in item 1, column 2, of Schedule 2, and the maximum career impact allowance shall be the amount set out in item 2, column 2.

    • Marginal note:Diminished earning capacity

      (3) The Minister may, on application, increase the career impact allowance that may be paid under subsection (2) by the amount set out in item 2.1, column 2, of Schedule 2, if the Minister determines that the veteran has a diminished earning capacity.

 Subsection 40(2) of the English version of the Act is replaced by the following:

  • Marginal note:Non-compliance

    (2) If a veteran who is required by the Minister to undergo a medical examination or an assessment fails without reasonable excuse to do so, the Minister may cancel the career impact allowance.

  •  (1) Paragraph 41(b) of the Act is replaced by the following:

    • (b) respecting what constitutes a barrier to re-establishment in civilian life and a diminished earning capacity;

  • (2) Paragraph 41(g) of the French version of the Act is replaced by the following:

    • g) concernant, pour l’application de l’article 38, ce qui constitue une déficience grave et permanente et la méthode pour établir l’existence et l’ampleur d’une telle déficience chez le vétéran.

 The description of B in subsection 52(1) of the Act is replaced by the following:

B
is the amount set out in column 3 of Schedule 3 that corresponds to what was, immediately before the disability award becomes payable, the member’s or veteran’s extent of disability, as set out in column 2 of that Schedule, in respect of the aggregate of all of the member’s or veteran’s disability assessments and deemed disability assessments under this Act.

 Section 53 of the Act is replaced by the following:

Marginal note:When award payable

53 A disability award under section 45, 47 or 48 becomes payable when both of the following conditions are met:

  • (a) in the opinion of the Minister, the disability has stabilized;

  • (b) an assessment of the extent of the disability has been made.

 The Act is amended by adding the following after section 94:

Marginal note:Transitional provisions — April 1, 2017

94.01 The Governor in Council may make regulations

  • (a) respecting the provision of information or documents to the Minister by a person who may be entitled to an amount under any of sections 100 to 103 of the Budget Implementation Act, 2016, No. 1; and

  • (b) providing for the reimbursement of fees for financial advice obtained by a person in relation to an amount that is paid or payable to them under any of sections 100 to 103 of that Act.

 Section 98 of the Act is repealed.

 Schedule 1 to the Act is amended by replacing the references after the heading “SCHEDULE 1” with the following:

(Section 37 and paragraphs 41(d) and 94(c))

Marginal note:2015, c. 36, s. 224

 Schedule 2 to the Act is amended by replacing the references after the heading “SCHEDULE 2” with the following:

(Subsections 38(2) and (3), section 44.2, subsection 58(1), sections 61 and 65.2 and paragraph 94(c))

Marginal note:2011, c. 12, s. 19

 The portion of item 2.1 of Schedule 2 to the Act in column 1 is replaced by the following:

Career impact allowance supplement for diminished earning capacity

 The portion of item 3 of Schedule 2 to the Act in column 2 is replaced by the following:

360,000.00 (lump sum)

 Schedule 3 to the Act is replaced by the Schedule 3 set out in Schedule 1 to this Act.

Marginal note:Replacement of “permanent impairment allowance”

 The Act is amended by replacing “permanent impairment allowance” with “career impact allowance” in the following provisions:

  • (a) the definition compensation in subsection 2(1);

  • (b) the heading before section 38;

  • (c) the portion of subsection 38(1) before paragraph (a) and subsection (1.1);

  • (d) the portion of section 39 before paragraph (a);

  • (e) subsection 40(1);

  • (f) the description of B in subsection 40.1(4);

  • (g) the description of B in subsection 40.2(4);

  • (h) subsection 40.5(1);

  • (i) the portion of subsection 88(4) before paragraph (a);

  • (j) paragraph 94(e); and

  • (k) items 1 and 2 of Schedule 2.

Transitional Provisions

Earnings Loss Benefit

Marginal note:Period before October 1, 2016
  •  (1) For greater certainty, the amount of an earnings loss benefit that is payable in respect of a period before October 1, 2016 is to be determined in accordance with subsection 19(1) or 23(1) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the regulations made under subsection 19(2) or 23(4) of that Act, as those provisions of that Act and those regulations read during the period in respect of which the benefit is payable, regardless of the date on which the benefit is paid.

  • Marginal note:Period after September 30, 2016

    (2) The amount of an earnings loss benefit that is payable in respect of a period after September 30, 2016 is to be determined as if subsections 19(1) and 23(1) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the regulations made under subsections 19(2) and 23(4) of that Act — as those provisions of that Act and those regulations read during the period in respect of which the benefit is payable — had been in force since April 1, 2006, regardless of whether or not the veteran or the member’s or veteran’s survivor or orphan was in receipt of an earnings loss benefit before October 1, 2016.

Disability Award and Death Benefit

Marginal note:Definitions

 The following definitions apply in this section and sections 100 to 111.

Act

Act means the Canadian Forces Members and Veterans Re-establishment and Compensation Act. (Loi)

dependent child

dependent child has the same meaning as in subsection 2(1) of the Act. (enfant à charge)

Minister

Minister means the Minister of Veterans Affairs. (ministre)

survivor

survivor has the same meaning as in subsection 2(1) of the Act. (survivant)

Marginal note:Member or veteran who received disability award
  •  (1) The Minister must pay to a member or a veteran who received, in whole or in part, a disability award under section 45, 47 or 48 of the Act before April 1, 2017, and who is alive on April 1, 2017, an amount determined in accordance with the formula

    A − B

    where

    A
    is the amount set out in column 3 of Schedule 3 to the Act, as that Schedule read on April 1, 2017, that corresponds to the member’s or veteran’s extent of disability, as set out in column 2, for which the disability award was received, reduced — for every calendar year from 2016 until the year in which the disability award was received — by a percentage calculated in accordance with the method of calculating the percentages by which the amounts set out in Schedule 3 to the Act are periodically adjusted; and
    B
    is the amount of the disability award that was payable to the member or the veteran under subsection 52(1) of the Act.
  • Marginal note:Death of member or veteran before amount paid

    (2) If the member or veteran dies before the amount is paid under subsection (1), the Minister must pay that amount, in accordance with section 55 of the Act, to a survivor or a person who was, at the time of the member’s or veteran’s death, a dependent child.

Marginal note:Death of member or veteran before April 1, 2017

 If a member or a veteran who received, in whole or in part, a disability award under section 45, 47 or 48 of the Act before April 1, 2017 dies before that day, the Minister must pay, in accordance with section 55 of the Act, to a survivor or a person who was, at the time of the member’s or veteran’s death, a dependent child — if that survivor or person is alive on April 1, 2017 — an amount determined in accordance with the formula

A − B

where

A
is the amount set out in column 3 of Schedule 3 to the Act, as that Schedule read on April 1, 2017, that corresponds to the member’s or veteran’s extent of disability, as set out in column 2, for which the disability award was received, reduced — for every calendar year from 2016 until the year in which the disability award was received — by a percentage calculated in accordance with the method of calculating the percentages by which the amounts set out in Schedule 3 to the Act are periodically adjusted; and
B
is the amount of the disability award that was payable to the member or the veteran under subsection 52(1) of the Act.
Marginal note:Disability award received by survivor or dependent child

 The Minister must pay, in accordance with section 55 of the Act, to a person who received a disability award under subsection 50(1) or (2) of the Act before April 1, 2017, and who is alive on April 1, 2017, an amount determined in accordance with the formula

A − B

where

A
is the amount set out in column 3 of Schedule 3 to the Act, as that Schedule read on April 1, 2017, that corresponds to the member’s or veteran’s extent of disability, as set out in column 2, for which the disability award was received, reduced — for every calendar year from 2016 until the year in which the disability award was received — by a percentage calculated in accordance with the method of calculating the percentages by which the amounts set out in Schedule 3 to the Act are periodically adjusted; and
B
is the amount of the disability award that was payable under subsection 52(1) of the Act.
Marginal note:Death benefit

 The Minister must pay, in accordance with section 59 of the Act, to a person who received a death benefit under section 57 of the Act before April 1, 2017, and who is alive on April 1, 2017, an amount determined in accordance with the formula

A − B

where

A
is the amount set out in item 3, column 2, of Schedule 2 to the Act, as that Schedule read on April 1, 2017, reduced — for every calendar year from 2016 until the year in which the death benefit was received — by a percentage calculated in accordance with the method of calculating the percentages by which the amount set out in item 3, column 2, is periodically adjusted; and
B
is the amount of the death benefit that was payable under subsection 58(1) of the Act.
Marginal note:Application

 Sections 100 to 102 apply in respect of each disability award received by or in respect of a member or a veteran.

Marginal note:Amount of award or benefit equal to zero

 For the purposes of sections 100 to 103, a person is considered to have received a disability award or a death benefit even if the amount that was paid to them was equal to zero.

Marginal note:Lump sum

 An amount that is to be paid under any of sections 100 to 103 is to be paid as a lump sum.

Marginal note:Power to require information

 The Minister may, for the purposes of establishing a person’s entitlement to an amount under any of sections 100 to 103, require a person who may be entitled to an amount to provide to the Minister the information or documents set out in the regulations made under the Act.

Marginal note:Information to be made available to Minister

 Personal information, as defined in section 3 of the Privacy Act, held by a government institution, as defined in that section, is, if requested by the Minister, to be made available to the Minister for the purposes of sections 100 to 103.

Marginal note:Entitlement ceases on death

 If a person to whom an amount is to be paid under any of sections 100 to 103 dies before the amount is paid, that person’s entitlement to the amount ceases on their death.

Amount deemed to be compensation

 An amount paid or payable under any of sections 100 to 103 is deemed, for the purposes of sections 89 and 90 of the Act, to be compensation as defined in subsection 2(1) of the Act.

Marginal note:Income Tax Act

 An amount paid or payable under any of sections 100 to 103 is deemed, for the purposes of paragraph 81(1)(d.1) of the Income Tax Act, to be a disability award or a death benefit, as the case may be, payable to the taxpayer under Part 3 of the Act.

Consequential Amendments

R.S., c. C-28; 1990, c. 43, s. 43Children of Deceased Veterans Education Assistance Act

Marginal note:2005, c. 21, s. 99(2)

 Subparagraph (f)(iii) of the definition student in section 2 of the Children of Deceased Veterans Education Assistance Act is replaced by the following:

R.S., c. P-6Pension Act

Marginal note:2011, c. 12, s. 20

 Subsection 72(1.1) of the Pension Act is replaced by the following:

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

 Paragraph 6(1)(f.1) of the Income Tax Act is replaced by the following:

Coordinating Amendments

Marginal note:2012, c. 19
  •  (1) In this section, other Act means the Jobs, Growth and Long-term Prosperity Act.

  • (2) If section 97 of this Act comes into force before subsection 683(2) of the other Act, then

    • (a) section 228 of the Economic Action Plan 2015 Act, No. 1 is repealed; and

    • (b) on the day on which that subsection 683(2) comes into force, paragraph 94(e) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act is replaced by the following:

      • (e) respecting the provision of any information, declaration or document to the Minister by any person who applies for or is in receipt of rehabilitation services, vocational assistance, an earnings loss benefit, a Canadian Forces income support benefit, a career impact allowance, a retirement income security benefit, a clothing allowance, a family caregiver relief benefit, or a payment or reimbursement of fees in respect of career transition services under this Act, and authorizing the Minister to suspend the delivery of the services or assistance, the payment of the benefit or allowance or the payment or reimbursement of fees until the information, declaration or document is provided;

  • (3) If section 97 of this Act and subsection 683(2) of the other Act come into force on the same day, then that section 97 is deemed to have come into force before that subsection 683(2) and subsection (2) applies as a consequence.

Coming into Force

Marginal note:April 1, 2017
  •  (1) Sections 80, 81, 83, 85 to 97 and 99 to 114 come into force on April 1, 2017.

  • Marginal note:October 1, 2016

    (2) Sections 82, 84 and 98 come into force on October 1, 2016.

DIVISION 3Financial Institutions (Sunset Provisions)

1991, c. 45Trust and Loan Companies Act

Marginal note:2012, c. 5, s. 163
  •  (1) Subsection 20(1) of the Trust and Loan Companies Act is replaced by the following:

    Marginal note:Sunset provision
    • 20 (1) Subject to subsections (2) and (4), companies shall not carry on business after March 29, 2019.

  • Marginal note:2012, c. 5, s. 163

    (2) Subsection 20(4) of the Act is replaced by the following:

    • Marginal note:Exception — dissolution

      (4) If Parliament dissolves on March 29, 2019 or on any day within the six-month period before that date or on any day within an extension ordered under subsection (2), companies may continue to carry on business until the end of the 180th day after the first day of the first session of the next Parliament.

1991, c. 46Bank Act

Marginal note:2012, c. 5, s. 3
  •  (1) Subsection 21(1) of the Bank Act is replaced by the following:

    Marginal note:Sunset provision
    • 21 (1) Subject to subsections (2) and (4), banks shall not carry on business, and authorized foreign banks shall not carry on business in Canada, after March 29, 2019.

  • Marginal note:2012, c. 5, s. 3

    (2) Subsection 21(4) of the Act is replaced by the following:

    • Marginal note:Exception — dissolution

      (4) If Parliament dissolves on March 29, 2019 or on any day within the six-month period before that date or on any day within an extension ordered under subsection (2), banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, until the end of the 180th day after the first day of the first session of the next Parliament.

Marginal note:2012, c. 5, s. 77
  •  (1) Subsection 670(1) of the Act is replaced by the following:

    Marginal note:Sunset provision
    • 670 (1) Subject to subsections (2) and (4), bank holding companies shall not carry on business after March 29, 2019.

  • Marginal note:2012, c. 5, s. 77

    (2) Subsection 670(4) of the Act is replaced by the following:

    • Marginal note:Exception — dissolution

      (4) If Parliament dissolves on March 29, 2019 or on any day within the six-month period before that date or on any day within an extension ordered under subsection (2), bank holding companies may continue to carry on business until the end of the 180th day after the first day of the first session of the next Parliament.

1991, c. 47Insurance Companies Act

Marginal note:2012, c. 5, s. 123
  •  (1) Subsection 21(1) of the Insurance Companies Act is replaced by the following:

    Marginal note:Sunset provision
    • 21 (1) Subject to subsections (2) and (4), companies and societies shall not carry on business, and foreign companies shall not carry on business in Canada, after March 29, 2019.

  • Marginal note:2012, c. 5, s. 123

    (2) Subsection 21(4) of the Act is replaced by the following:

    • Marginal note:Exception — dissolution

      (4) If Parliament dissolves on March 29, 2019 or on any day within the six-month period before that date or on any day within an extension ordered under subsection (2), companies and societies may continue to carry on business, and foreign companies may continue to carry on business in Canada, until the end of the 180th day after the first day of the first session of the next Parliament.

Marginal note:2012, c. 5, s. 154
  •  (1) Subsection 707(1) of the Act is replaced by the following:

    Marginal note:Sunset provision
    • 707 (1) Subject to subsections (2) and (4), insurance holding companies shall not carry on business after March 29, 2019.

  • Marginal note:2012, c. 5, s. 154

    (2) Subsection 707(4) of the Act is replaced by the following:

    • Marginal note:Exception — dissolution

      (4) If Parliament dissolves on March 29, 2019 or on any day within the six-month period before that date or on any day within an extension ordered under subsection (2), insurance holding companies may continue to carry on business until the end of the 180th day after the first day of the first session of the next Parliament.

1991, c. 48Cooperative Credit Associations Act

Marginal note:2012, c. 5, s. 105
  •  (1) Subsection 22(1) of the Cooperative Credit Associations Act is replaced by the following:

    Marginal note:Sunset provision
    • 22 (1) Subject to subsections (2) and (4), associations shall not carry on business after March 29, 2019.

  • Marginal note:2012, c. 5, s. 105

    (2) Subsection 22(4) of the Act is replaced by the following:

    • Marginal note:Exception — dissolution

      (4) If Parliament dissolves on March 29, 2019 or on any day within the six-month period before that date or on any day within an extension ordered under subsection (2), associations may continue to carry on business until the end of the 180th day after the first day of the first session of the next Parliament.

DIVISION 41991, c. 46Amendments to the Bank Act (Federal Credit Unions)

Marginal note:2010, c. 12, s. 1911
  •  (1) Subsection 35.1(1) of the French version of the Bank Act is replaced by the following:

    Marginal note:Prorogation
    • 35.1 (1) Sous réserve des autres dispositions de la présente partie, le ministre ne peut délivrer des lettres patentes prorogeant comme coopérative de crédit fédérale la société coopérative de crédit locale qui en fait la demande aux termes du paragraphe 33(2) que s’il estime qu’elle s’est conformée aux règlements relatifs aux exigences de notification et de divulgation.

  • Marginal note:2014, c. 39, s. 272

    (2) The portion of subsection 35.1(2) of the French version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Prorogation en vue d’une fusion

      (2) Sous réserve des autres dispositions de la présente partie, le ministre ne peut délivrer des lettres patentes prorogeant comme coopérative de crédit fédérale la société coopérative de crédit locale qui en fait la demande aux termes des paragraphes 33(3) ou (4) que si :

  • (3) Section 35.1 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Exemption

      (4) For the purpose of facilitating the continuance as a federal credit union of a local cooperative credit society, the Minister may, on application and by order, subject to any terms and conditions that he or she considers appropriate, exempt the local cooperative credit society from any requirement of this Part or of the regulations made under this Part, if he or she is of the opinion that it has acted in a manner that substantially complies with the requirement.

 The Act is amended by adding the following after section 39:

Marginal note:Transitional — federal credit unions
  • 39.01 (1) When the Minister issues letters patent continuing a local cooperative credit society as a federal credit union under subsection 35(1), he or she may, on application and by order, subject to any terms and conditions that he or she considers appropriate, exempt the federal credit union resulting from the continuance from any requirement of Part VI — or of the regulations made under this Act — relating to voting, if he or she is of the opinion that the federal credit union will act in a manner that substantially complies with the requirement.

  • Marginal note:Duration

    (2) The order shall specify the period of the exemption, which may not extend beyond the third anniversary of the effective date of the letters patent.

Marginal note:Transitional — loan guarantee

39.02 For the purpose of supporting a federal credit union during the period that begins on the effective date of the federal credit union’s letters patent issued under subsection 35(1) and ends on the third anniversary of that date, the Minister may, subject to any terms and conditions that he or she considers appropriate and for the period that he or she considers appropriate, guarantee the repayment of a loan that a federal financial institution makes to the federal credit union.

Marginal note:2014, c. 39, s. 276

 Subsection 229(1.1) of the Act is replaced by the following:

  • Marginal note:Exception

    (1.1) In the case of an application made under subsection 223(1.2) or (1.3), the Minister shall not issue letters patent of amalgamation unless the Minister has issued, under subsection 35(1), letters patent continuing as a federal credit union each applicant that was a local cooperative credit society.

DIVISION 5Bank Recapitalization Regime (Bail-in)

R.S., c. C-3Canada Deposit Insurance Corporation Act

Marginal note:1996, c. 6, s. 21(2)
  •  (1) The definition affaires internes in section 2 of the French version of the Canada Deposit Insurance Corporation Act is repealed.

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

    domestic systemically important bank

    domestic systemically important bank has the same meaning as in section 2 of the Bank Act; (banque d’importance systémique nationale)

  • (3) Section 2 of the French version of the Act is amended by adding the following in alphabetical order:

    affairs

    affaires Les activités commerciales de l’institution membre ainsi que les relations entre celle-ci, les entités de son groupe et leurs associés, actionnaires, administrateurs et dirigeants. (affairs)

  •  (1) Paragraph 10(1)(a) of the Act is replaced by the following:

    • (a) acquire assets from a member institution;

    • (a.1) make or guarantee loans or advances, with or without security, to a member institution;

    • (a.11) make or guarantee a deposit with a member institution;

    • (a.12) assume liabilities of a member institution;

  • (2) Paragraph 10(1)(f) of the Act is replaced by the following:

    • (f) acquire assets and assume liabilities of a member institution from its liquidator or receiver;

  • (3) Section 10 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Assets and liabilities

      (3.1) A corporation described in paragraph (2)(a) or (b) may acquire assets and assume liabilities of a member institution from that institution or from its liquidator or receiver.

  •  (1) Subsection 29(1) of the Act is amended by striking out “and” at the end of paragraph (b) and by adding the following after that paragraph:

    • (b.1) if the member institution is a domestic systemically important bank, provide an assessment of its capacity to absorb losses that it is required to maintain under section 485 of the Bank Act; and

  • Marginal note:2001, c. 9, s. 210

    (2) Subsection 29(3) of the Act is replaced by the following:

    • Marginal note:Right of Corporation to information

      (3) The Corporation is entitled to all information obtained by or produced by or for the person, whether in the course of conducting the examination or inspection or otherwise, regarding the affairs of the member institution or any of its affiliates or of any person dealing with the member institution or any of its affiliates.

Marginal note:R.S., c. 18 (3rd Supp.), s. 62; 1996, c. 6, s. 35; 2005, c. 30, s. 106

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

Marginal note:Reporting breaches
  • 30 (1) If, in the Corporation’s opinion, a member institution is in breach of a provision of this Act or the regulations, a by-law of the Corporation or a condition of its policy of deposit insurance, the Corporation may send a report of the facts to the chief executive officer or chairperson of the board of directors of the member institution. The report may be sent by registered mail or delivered by hand and a copy of it must be provided to the Minister.

Marginal note:1996, c. 6, s. 41; 1999, c. 31, s. 28(F)

 Sections 39.11 and 39.12 of the Act are replaced by the following:

Marginal note:Request of Corporation

39.11 On receipt of a report made by the Superintendent under section 39.1, the Corporation may

  • (a) after determining that a transaction referred to in section 39.2 is reasonably likely to be expeditiously carried out after the making of the order, request the Minister to recommend that one or more orders be made under subsection 39.13(1); or

  • (b) in the case of a domestic systemically important bank, request the Minister to recommend that one or more orders be made under subsection 39.13(1) and that an order be made under subsection 39.13(1.3).

Marginal note:Recommendation of Minister

39.12 If a request referred to in section 39.11 is made by the Corporation, the Minister may, if he or she is of the opinion that it is in the public interest to do so, recommend to the Governor in Council that one or more orders be made under subsection 39.13(1) in respect of the federal member institution and, in the case of a domestic systemically important bank, that an order be made under subsection 39.13(1.3) in respect of that institution.

Marginal note:2009, c. 2, s. 243(1)
  •  (1) Paragraph 39.13(1)(a) of the Act is replaced by the following:

    • (a) vest in the Corporation the shares and subordinated debt of the federal member institution that are specified in the order;

  • (2) Subsection 39.13(1) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):

    • (d) direct the Corporation to carry out a conversion under subsection 39.2(2.3).

  • (3) Section 39.13 of the Act is amended by adding the following after subsection (1.1):

    • Marginal note:Conditions for conversion

      (1.2) An order may be made under paragraph (1)(d) in respect of the federal member institution only if the institution is a domestic systemically important bank and an order has also been made under paragraph (1)(a) or (b) in respect of the institution.

    • Marginal note:Order — longer period

      (1.3) The Governor in Council may, on the recommendation of the Minister made under section 39.12, by order, require the Corporation to apply for a winding-up order in respect of the federal member institution in accordance with subsection 39.22(1.1).

  • Marginal note:1996, c. 6, s. 41; 2009, c. 2, s. 243(2)(F)

    (4) The portion of subsection 39.13(2) of the French version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:But du décret portant dévolution

      (2) Le décret pris au titre de l’alinéa (1)a) :

  • Marginal note:1996, c. 6, s. 41

    (5) Paragraphs 39.13(2)(a) and (b) of the Act are replaced by the following:

    • (a) vests in the Corporation the shares and subordinated debt that are subject to the order, free from any adverse claim, including any claim that a transfer was wrongful or that a particular adverse person was the owner of or had an interest or right in respect of the shares or subordinated debt, even though the Corporation knows of the adverse claim;

    • (b) extinguishes any such adverse claim to the extent that the claim is a claim that a person other than the Corporation is the owner of or has an interest or right in respect of the shares or subordinated debt;

  • Marginal note:1996, c. 6, s. 41

    (6) Paragraph 39.13(2)(d) of the Act is replaced by the following:

    • (d) does not prevent a secured creditor or assignee or successor in interest of the person who was the holder of the shares or subordinated debt immediately before the making of the order from being entitled to receive compensation under section 39.23; and

  • (7) Subsection 39.13(2) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):

    • (e) gives the Corporation the right to recover, out of the assets of the federal member institution and in priority to all other claims, all the costs, charges and expenses properly incurred by the Corporation in furtherance of the order, including those related to its operation of the institution.

  • Marginal note:1996, c. 6, s. 41

    (8) Paragraph 39.13(3)(c) of the Act is replaced by the following:

    • (c) gives the Corporation the right to recover, out of the assets of the federal member institution and in priority to all other claims, all the costs, charges and expenses properly incurred by the Corporation in furtherance of the order, including those related to its operation of the institution.

  • Marginal note:1996, c. 6, s. 41

    (9) Subsection 39.13(4) of the Act is replaced by the following:

    • Marginal note:For greater certainty — bankruptcy

      (4) For greater certainty, shares and subordinated debt that are subject to an order made under paragraph (1)(a) and that, immediately before the making of the order, are vested in a trustee in bankruptcy under the Bankruptcy and Insolvency Act are vested in the Corporation.

    • Marginal note:For greater certainty — exercising rights

      (4.1) For greater certainty, an order made under paragraph (1)(a) or (b) prevents any person, other than the Corporation, who is the holder of shares or subordinated debt or other debts or liabilities of the federal member institution or who is a party to or a beneficiary of a contract with the institution, and any secured creditor or assignee or successor in interest of such a person, from exercising any voting or other rights arising from the person’s status in any manner that could defeat or interfere with the rights, powers, privileges and immunities of the Corporation as holder of shares or subordinated debt or as receiver, as the case may be.

  • Marginal note:1996, c. 6, s. 41

    (10) Paragraph 39.13(5)(b) of the English version of the Act is replaced by the following:

    • (b) an asset of the federal member institution that is acquired from the Corporation, as receiver, shall, except to the extent that it is an asset referred to in subparagraph (3)(b)(iii), be acquired free of any adverse claim of the federal member institution or any other person, and

  • Marginal note:1996, c. 6, s. 41

    (11) Subsection 39.13(6) of the Act is replaced by the following:

    • Marginal note:Order conclusive

      (6) An order made under this section and any action taken or decision made in furtherance of such an order are for all purposes final and conclusive and shall not be questioned or reviewed in any court.

Marginal note:2009, c. 2, s. 244; 2012, c. 5, s. 197

 Sections 39.131 and 39.132 of the Act are repealed.

Marginal note:1996, c. 6, s. 41
  •  (1) Subsection 39.14(1) of the Act is replaced by the following:

    Marginal note:Powers of Corporation
    • 39.14 (1) If an order is made under paragraph 39.13(1)(a) or (b) in respect of a federal member institution, the powers, duties, functions, rights and privileges of the directors of the federal member institution and those of its officers who are responsible for its management are suspended except to the extent that is specified in writing by the Corporation. The Corporation may exercise those powers, rights and privileges and perform those duties and functions.

  • Marginal note:1996, c. 6, s. 41

    (2) Subsection 39.14(2) of the Act is replaced by the following:

    • Marginal note:Shareholders

      (1.2) If an order is made under paragraph 39.13(1)(a) or (b) in respect of a federal member institution, the powers, rights and privileges of its shareholders to vote or give approvals are suspended and the Corporation may exercise those powers, rights and privileges.

    • Marginal note:Persons to assist

      (2) The Corporation may appoint one or more persons to assist it in the management of any federal member institution or in carrying out the Corporation’s functions as holder of shares or subordinated debt or as receiver and may delegate to those persons any of the powers, duties, functions, rights or privileges of the directors and officers of the federal member institution.

  • Marginal note:1996, c. 6, s. 41

    (3) Subsection 39.14(3) of the Act is repealed.

  • (4) Section 39.14 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Power to appoint and remove

      (4) If an order is made under paragraph 39.13(1)(b) in respect of a federal member institution, the Corporation may appoint or remove any director of the federal member institution.

    • Marginal note:Corporation’s directions

      (5) If an order is made under paragraph 39.13(1)(a) or (b) in respect of a federal member institution, the Corporation may give directions to the board of directors of the federal member institution, including to make, amend or repeal any by-law of the institution.

    • Marginal note:Implementation

      (6) The board of directors of the federal member institution shall ensure that a direction given under subsection (5) is implemented in a prompt and efficient manner and shall, after implementing a direction, notify the Corporation without delay that it has been implemented.

    • Marginal note:By-laws — board of directors

      (7) The board of directors of the federal member institution may, with the prior approval of the Corporation, make, amend or repeal any by-law of the institution.

Marginal note:1996, c. 6, s. 41; 2009, c. 2, s. 245(2)
  •  (1) Paragraphs 39.15(1)(d) to (f) of the Act are replaced by the following:

    • (d) except in the normal course of clearing and settlement processes, including the consolidation of accounts in respect of those processes or the services referred to in paragraph (5)(c), no creditor has any right of set-off or compensation against the federal member institution;

    • (e) no person may terminate or amend any agreement with the federal member institution or claim an accelerated payment, or forfeiture of the term, under such an agreement by reason only of

      • (i) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

      • (ii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the agreement,

      • (iii) a monetary default, before the order was made, under the agreement by the federal member institution or any of its affiliates that is remedied within 60 days after the day on which the order is made,

      • (iv) the making of the order or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

      • (v) the assignment or assumption of the agreement to or by a bridge institution or a third party,

      • (vi) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates,

      • (vii) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

      • (viii) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities; and

    • (f) no person may terminate the federal member institution’s membership in an organization by reason only of

      • (i) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

      • (ii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the rules of the organization,

      • (iii) a monetary default, before the order was made, under the rules of the organization by the federal member institution or any of its affiliates that is remedied within 60 days after the day on which the order is made,

      • (iv) the making of the order or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

      • (v) the transfer of the federal member institution’s membership to a bridge institution or a third party,

      • (vi) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates,

      • (vii) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

      • (viii) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities.

  • Marginal note:2009, c. 2, s. 245(3)

    (2) Subparagraphs 39.15(2)(b)(i) to (iv) of the Act are replaced by the following:

    • (i) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

    • (ii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the agreement,

    • (iii) a monetary default, before the order was made, under the agreement by the federal member institution or any of its affiliates that is remedied within 60 days after the day on which the order is made,

    • (iv) the making of the order or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

    • (v) the assignment or assumption of the agreement to or by a bridge institution or a third party,

    • (vi) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates,

    • (vii) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

    • (viii) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities.

  • Marginal note:2009, c. 2, s. 245(4)

    (3) Subparagraphs 39.15(2.1)(b)(i) to (iv) of the Act are replaced by the following:

    • (i) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

    • (ii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the rules of the organization,

    • (iii) a monetary default, before the order was made, under the rules of the organization by the federal member institution or any of its affiliates that is remedied by the institution within 60 days after the day on which the order is made,

    • (iv) the making of the order or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

    • (v) the transfer of the federal member institution’s membership to a bridge institution or a third party,

    • (vi) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates,

    • (vii) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

    • (viii) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities.

  • Marginal note:2001, c. 9, s. 212(1); 2009, c. 2, s. 245(5)

    (4) Subsections 39.15(3) and (3.1) of the Act are replaced by the following:

    • Marginal note:Clearing arrangements

      (3) Subsections (1) to (2.1) do not apply so as to prevent a member of the Canadian Payments Association from acting or ceasing to act as a clearing agent for a federal member institution in accordance with the Canadian Payments Act and the by-laws and rules of that Association.

    • Marginal note:Exception

      (3.1) Despite subsection (3), if a clearing agent that is a member of the Canadian Payments Association acts in that capacity for a federal member institution at the time an order is made under subsection 39.13(1) in respect of the institution, the clearing agent shall continue to act in that capacity for the institution after the order is made, if the Corporation has given an undertaking to provide the financial assistance that the institution needs in order to discharge its obligations to the clearing agent as they become due.

    • Marginal note:Clearing house

      (3.2) Subsections (1) to (2.1) do not apply so as to prevent a clearing house

      • (a) from acting or ceasing to act in that capacity for a federal member institution; or

      • (b) from exercising its rights under its settlement rules, as defined in subsection 8(5) of the Payment Clearing and Settlement Act.

    • Marginal note:Exception

      (3.3) Despite subsection (3.2), a clearing house that acts in that capacity for a federal member institution at the time an order is made under subsection 39.13(1) in respect of the institution shall continue to act in that capacity for the institution and subsections (1) to (2.1) apply in respect of the clearing house, if the Corporation has given an undertaking to provide the financial assistance that the institution needs in order to discharge its obligations to the clearing house as they become due.

  • Marginal note:2009, c. 2, s. 245(6)

    (5) Paragraph 39.15(6)(b) of the Act is replaced by the following:

    • (b) the Superintendent, on the application of the federal member institution, exempted the security agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1) and the Corporation does not undertake

      • (i) to ensure that the obligations secured by the security interest will be assumed by a bridge institution or a third party, or

      • (ii) to provide the federal member institution with the financial assistance that it needs to discharge the obligations secured by the security interest as they become due.

  • Marginal note:2007, c. 29, s. 103(1)

    (6) Subsection 39.15(7) of the Act is replaced by the following:

    • Marginal note:Eligible financial contracts

      (7) Nothing in subsection (1), (2) or (2.1) prevents the following actions from being taken in accordance with the provisions of an eligible financial contract:

      • (a) the termination or amendment of the contract;

      • (b) the accelerated payment or forfeiture of the term under the contract;

      • (c) the exercise of remedies for a failure to pay an amount payable under or in connection with the contract;

      • (d) the netting or setting off or compensation of an amount payable under or in connection with the contract; or

      • (e) except in respect of the actions referred to in paragraphs (c) and (d), any dealing with financial collateral, including

        • (i) the sale or foreclosure or, in Quebec, the surrender of financial collateral, and

        • (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

  • Marginal note:2012, c. 31, s. 166(1)

    (7) The portion of subsection 39.15(7.01) of the Act before paragraph (b) is replaced by the following:

    • Marginal note:Stay — bridge institutions

      (7.01) If an order directing the incorporation of a bridge institution is made, the actions referred to in paragraphs (7)(a), (b) and (e) are not to be taken during the period beginning on the coming into force of the order and ending on the following business day at 5:00 p.m. at the location of the Corporation’s head office, by reason only of

      • (a) the insolvency or deteriorated financial condition of the federal member institution, any of its affiliates or any of its providers of credit support or guarantors in respect of the institution’s obligations under the eligible financial contract;

  • Marginal note:2012, c. 31, s. 166(1)

    (8) Subsections 39.15(7.02) to (7.1) of the Act are replaced by the following:

    • Marginal note:Stay — eligible financial contracts

      (7.1) If an order made under subsection 39.13(1) does not direct the incorporation of a bridge institution, or if it directs the incorporation of a bridge institution and the Corporation undertakes, before the time referred to in subsection (7.01), to assign the eligible financial contract to the bridge institution, the actions referred to in paragraphs (7)(a), (b) and (e) are not to be taken by reason only of

      • (a) the insolvency or deteriorated financial condition of the federal member institution, any of its affiliates or any of its providers of credit support or guarantors in respect of the institution’s obligations under the eligible financial contract;

      • (b) the assignment or assumption of the eligible financial contract to or by a bridge institution or a third party;

      • (c) the making of the order or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order;

      • (d) a conversion under subsection 39.2(2.3) in respect of the federal member institution; or

      • (e) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities.

    • Marginal note:Stay terminated by order

      (7.101) If the Governor in Council considers that all or substantially all of the federal member institution’s assets will be transferred to a third party, the Governor in Council may, by order, declare that subsection (7.1) ceases to apply in respect of the institution’s eligible financial contracts, or any class of those contracts, at the later of

      • (a) 5:00 p.m. at the location of the Corporation’s head office on the first business day after the day on which the order made under subsection 39.13(1) comes into force, and

      • (b) 5:00 p.m. at the location of the Corporation’s head office on the day on which the order is made under this subsection.

    • Marginal note:Exception

      (7.102) Despite any order made under subsection (7.101), subsection (7.1) does not cease to apply in respect of an eligible financial contract if the Corporation undertakes, before the time provided for in subsection (7.101), to assign it to a third party.

  • Marginal note:2012, c. 31, s. 166(1)

    (9) Paragraph 39.15(7.11)(b) of the Act is replaced by the following:

    • (b) provides, in substance, that, by reason of the occurrence of any circumstance described in any of paragraphs (7.01)(a) to (c) and (7.1)(a) to (e), the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have.

  • (10) Section 39.15 of the Act is amended by adding the following after subsection (7.11):

    • Marginal note:Exception

      (7.12) Subsections (7.01) and (7.1) do not apply in respect of an eligible financial contract between the federal member institution and a clearing house unless the Corporation has given the undertaking referred to in subsection (3.3) in respect of the institution.

  • Marginal note:2010, c. 12, s. 1889

    (11) The portion of subsection 39.15(7.2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Assignment of eligible financial contracts

      (7.2) Subject to subsection (7.21), the Corporation may assign to a bridge institution or a third party eligible financial contracts — including any claim under such contracts — that are between a federal member institution and an entity or any of the following entities if the Corporation assigns all of those eligible financial contracts to the bridge institution or the third party:

  • Marginal note:2010, c. 12, s. 1889

    (12) Subsection 39.15(7.3) of the Act is replaced by the following:

    • Marginal note:Eligible third parties

      (7.21) The Corporation may assign eligible financial contracts to a third party under subsection (7.2) if the third party has met any condition that may be prescribed in the by-laws and has certified in writing that

      • (a) it maintains all material licences and registrations that are required for the continued operation of its business and, if applicable, that it is in good standing in respect of those licences and registrations;

      • (b) it has, on its balance sheet, assets that exceed its liabilities;

      • (c) it is able to discharge its obligations in respect of the assigned eligible financial contracts as they become due; and

      • (d) its creditworthiness is at least as good as the federal member institution’s creditworthiness was immediately before the order was made under subsection 39.13(1).

    • Marginal note:Effects of assignment of eligible financial contracts

      (7.3) If any of the eligible financial contracts are assigned to or assumed by a bridge institution or a third party,

      • (a) the Corporation shall assign all of the federal member institution’s obligations arising from the eligible financial contracts, and the bridge institution or the third party shall assume those obligations; and

      • (b) the federal member institution’s interest or right in property that secures its obligations under the eligible financial contracts is transferred to the bridge institution or the third party.

  • (13) Subsection 39.15(9) of the Act is amended by adding the following in alphabetical order:

    business day

    business day means a day, other than a Saturday or a Sunday, on which the head office of the federal member institution is open for business. (jour ouvrable)

    clearing agent

    clearing agent has the same meaning as in section 1 of the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System. (agent de compensation)

    clearing house

    clearing house means

Marginal note:2012, c. 5, s. 199

 Section 39.152 of the Act is replaced by the following:

Marginal note:Assignments — bridge institution or third party
  • 39.152 (1) Subject to subsection (2), if an agreement with a federal member institution is assigned to or assumed by a bridge institution or a third party,

    • (a) a person is prohibited from terminating or amending the agreement, or claiming an accelerated payment or forfeiture of the term under the agreement, by reason only of

      • (i) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

      • (ii) the making of an order under subsection 39.13(1) or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

      • (iii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the agreement,

      • (iv) a monetary default, before the order was made, under the agreement by the federal member institution or any of its affiliates that is remedied within 60 days after the day on which the agreement is assigned or assumed,

      • (v) the assignment or assumption of the agreement to or by a bridge institution or a third party,

      • (vi) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates,

      • (vii) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

      • (viii) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities; and

    • (b) any stipulation in the agreement that has the effect of providing for or permitting anything that, in substance, is contrary to any of subparagraphs (a)(i) to (viii) or provides, in substance, that the bridge institution or the third party does not have the rights to use or deal with assets that the bridge institution or the third party would otherwise have by reason of the occurrence of any circumstance described in those subparagraphs, is of no force or effect.

  • Marginal note:Exception

    (2) Subparagraphs (1)(a)(iii) and (iv) do not apply to an eligible financial contract, as defined in subsection 39.15(9).

  • Marginal note:Membership in organization

    (3) If a bridge institution or a third party becomes a member of an organization in place of a federal member institution, it is prohibited for the organization to terminate the membership of the bridge institution or of the third party by reason only of

    • (a) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors;

    • (b) the making of an order under subsection 39.13(1) or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order;

    • (c) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the rules of the organization;

    • (d) a monetary default, before the order was made, under the rules of the organization by the federal member institution or any of its affiliates that is remedied within 60 days after the day on which the order is made;

    • (e) the transfer of the federal member institution’s membership to a bridge institution or a third party;

    • (f) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates;

    • (g) a conversion under subsection 39.2(2.3) in respect of the federal member institution; or

    • (h) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities.

Marginal note:1996, c. 6, s. 41; 2012, c. 31, s. 167
  •  (1) Subsection 39.18(1) of the French version of the Act is replaced by the following:

    Marginal note:Durée d’application
    • 39.18 (1) Les articles 39.14 et 39.15 cessent de s’appliquer à l’institution fédérale membre :

      • a) soit à la date précisée à son égard dans l’avis prévu au paragraphe 39.2(3);

      • b) soit à la date du prononcé à son égard d’une ordonnance de liquidation.

  • Marginal note:2012, c. 31, s. 167

    (2) Subsection 39.18(2) of the Act is replaced by the following:

    • Marginal note:Exceptions

      (2) Despite paragraph (1)(a),

      • (a) paragraph 39.15(1)(e) or (f) or subsection 39.15(2) or (2.1) continues to apply to the extent that it produced its effects by reason of

        • (i) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

        • (ii) the making of the order under subsection 39.13(1) or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

        • (iii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under an agreement or the rules of an organization,

        • (iv) a monetary default, before the order was made, under an agreement or the rules of an organization by the federal member institution or any of its affiliates that was remedied within 60 days after the day on which the order was made,

        • (v) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

        • (vi) a conversion of any of the federal member institution’s shares or liabilities in accordance with contractual terms of those shares or liabilities; and

      • (b) subject to subsections 39.15(7.101) and (7.102), subsections 39.15(7.01), (7.1) and (7.11) to (7.2) continue to apply and — only for the purpose of interpreting those subsections 39.15(7.01), (7.1) and (7.11) to (7.2) — subsections 39.15(7) and (9) continue to apply.

    • Marginal note:Stay terminated by order

      (3) The Governor in Council may, by order, declare that paragraph (2)(a) ceases to apply in respect of the federal member institution if the Governor in Council considers that all or substantially all of the institution’s assets have been transferred to a bridge institution or a third party.

 The Act is amended by adding the following after section 39.18:

Non-application of Certain Legislative Provisions

Marginal note:Not agent or Crown corporation
  • 39.181 (1) A federal member institution that is a subsidiary of the Corporation as a result of an order made under paragraph 39.13(1)(a) or (b), a bridge institution or a subsidiary of either of those institutions is not an agent of the Corporation or Her Majesty in right of Canada and, despite Part X of the Financial Administration Act, is not a parent Crown corporation, or a wholly-owned subsidiary, within the meaning of section 83 of that Act. Their respective directors, officers and employees are not part of the federal public administration.

  • Marginal note:Exception

    (2) Despite subsection (1), Division V of Part X of the Financial Administration Act and the regulations made under that Division apply to the federal member institution, the bridge institution or a subsidiary of either of those institutions as if it were a Crown corporation within the meaning of section 83 of that Act.

 The Act is amended by adding the following after section 39.191:

Marginal note:Regulation to exempt or adapt
  • 39.192 (1) The Governor in Council may, by regulation,

  • Marginal note:Order directed at a given federal member institution

    (2) The Governor in Council or the Minister may, by order, do anything that may be done by regulation under subsection (1) in respect of a federal member institution in respect of which an order is made under subsection 39.13(1), a bridge institution, an affiliate of either of those institutions or any other person.

  • Marginal note:Scope or conditions

    (3) An exemption made under paragraph (1)(a) or subsection (2) may be limited in scope or duration or subject to conditions.

  • Marginal note:Coming into force

    (4) An order made by the Minister does not take effect before the later of the date specified in a notice described in subsection 39.2(3) in respect of the federal member institution and the day on which an order made by the Governor in Council under subsection (2) expires.

  • Marginal note:Expiry

    (5) An order made by the Minister expires one year after the day on which the order comes into force or any shorter period specified in the order.

  • Marginal note:Extension

    (6) The Minister may, by order, grant one or more extensions of the applicable period set out in subsection (5) — of up to one year each — but the last extension must expire not later than five years after the date specified in the notice described in subsection 39.2(3).

  • Marginal note:Statutory Instruments Act

    (7) The Statutory Instruments Act does not apply to an order made under subsection (2).

  • Marginal note:Publication

    (8) The Minister shall cause an order made under subsection (2) to be published in the Canada Gazette as soon as he or she considers it appropriate to do so.

Marginal note:Office of Superintendent of Financial Institutions
  • 39.193 (1) Despite subsection 4(2) of the Office of the Superintendent of Financial Institutions Act, if an order is made under subsection 39.13(1) in respect of a federal member institution, the objects of the Office of the Superintendent of Financial Institutions, in respect of the institution or, in the case of an order made under paragraph 39.13(1)(c), a bridge institution, are

    • (a) to monitor the institution in order to assess its financial condition and determine whether it is complying with its governing statute law and supervisory requirements under that law; and

    • (b) to report the Office’s findings to the Minister and the Corporation.

  • Marginal note:Application

    (2) Subsection (1) applies during the period that begins on the day on which the order is made and ends

    • (a) on the date specified in a notice described in subsection 39.2(3) in respect of the federal member institution; or

    • (b) on the day on which the bridge institution ceases to be designated as such.

Marginal note:1996, c. 6, s. 41
  •  (1) The portion of subsection 39.2(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Restructuring transactions
    • 39.2 (1) If an order is made under paragraph 39.13(1)(a), the Corporation may, in addition to any other of its rights and powers, carry out, or cause the federal member institution to carry out,

  • Marginal note:1996, c. 6, s. 41

    (2) Paragraphs 39.2(1)(c) and (d) of the Act are replaced by the following:

    • (c) a transaction or series of transactions that involves the sale or other disposition by the federal member institution of all or part of its assets or the assumption by another person of all or part of its liabilities, or both; and

    • (d) any other transaction or series of transactions the purpose of which is to restructure the business of the federal member institution.

  • Marginal note:1996, c. 6, s. 41; 2009, c. 2, s. 247

    (3) Subsections 39.2(2) to (5) of the Act are replaced by the following:

    • Marginal note:Transactions for disposition of assets or restructuring

      (2) If an order is made under paragraph 39.13(1)(b), the Corporation, as receiver, may, in addition to any other of its rights and powers, carry out

      • (a) a transaction or series of transactions that involves the sale or other disposition of all or part of the assets of the federal member institution or the assumption by another person of all or part of its liabilities, or both; and

      • (b) any other transaction or series of transactions the purpose of which is to restructure the business of the federal member institution.

    • Marginal note:No approval required — transaction with bridge institution

      (2.1) If a transaction referred to in subsection (1) or (2) between the Corporation, as receiver for a federal member institution, and a bridge institution requires the approval of the Minister or the Superintendent under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act, that approval is not required despite those Acts.

    • Marginal note:Approval by Minister

      (2.2) If a transaction referred to in subsection (1) or (2), other than one described in subsection (2.1), requires the approval of the Superintendent under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act, that approval is not required despite those Acts but the transaction has no force or effect until the Minister approves it after consultation with the Superintendent.

    • Marginal note:Conversion

      (2.3) An order made under paragraph 39.13(1)(d) gives the Corporation the power to convert, or cause the federal member institution to convert, in whole or in part — by means of a transaction or series of transactions and in one or more steps — the institution’s shares and liabilities that are prescribed by the regulations made under subsection (10) into common shares of that institution or of any of its affiliates.

    • Marginal note:Terms and conditions

      (2.4) Subject to any regulations made under subsection (10) and any by-laws made under subsection (12), the Corporation shall set the terms and conditions of the conversion, including its timing.

    • Marginal note:Publication

      (2.5) As soon as feasible after the conversion, the Corporation shall cause a notice of it to be published in the Canada Gazette and on the federal member institution’s website.

    • Marginal note:Completion of transaction

      (3) If the Corporation considers that a transaction or series of transactions referred to in this section has been substantially completed and that no other such transactions are expected in respect of the federal member institution, it shall cause a notice to that effect to be published in the Canada Gazetteand on the institution’s website. The notice must specify the date on which the notice is to take effect.

    • Marginal note:Negative pledges inapplicable

      (4) No restriction on the rights of the federal member institution, including the right to amalgamate, to sell or otherwise dispose of any of its assets or to provide for the assumption of any of its liabilities, other than a restriction provided for in an Act of Parliament, applies so as to prevent the Corporation, the federal member institution or any other person from carrying out a transaction referred to in this section.

  • (4) Section 39.2 of the Act is amended by adding the following after subsection (8):

    • Marginal note:Effects of conversion

      (9) The conversion of shares or liabilities under subsection (2.3)

      • (a) subject to paragraph (b), extinguishes any claim, interest or right in respect of the shares or liabilities, or part of them, that were converted; and

      • (b) does not extinguish any claim to the extent that the claim is a personal claim against a person other than the Corporation, the federal member institution or a person claiming under the Corporation or the federal member institution.

    • Marginal note:Regulations

      (10) The Governor in Council may make regulations respecting conversion for the purposes of this section.

    • Marginal note:Regulations — application

      (11) Regulations made under subsection (10) may, if they so provide, apply in respect of shares and liabilities

      • (a) that were issued or that originated before the day on which the first regulation made under that subsection comes into force if, on or after that day, they are amended or, in the case of liabilities, their term is extended; or

      • (b) that are issued or that originate on or after that day.

    • Marginal note:By-laws

      (12) The Corporation may make by-laws respecting conversion for the purposes of this section, including by-laws that prescribe, for the purposes of subsection (2.3), the interim instruments into which shares and liabilities may be converted before they are converted into common shares.

    • Marginal note:Inconsistency

      (13) In the event of any inconsistency between the regulations made under subsection (10) and the by-laws made under subsection (12), the regulations prevail to the extent of the inconsistency.

  • (5) Paragraph 39.2(9)(a) of the Act is replaced by the following:

    • (a) subject to paragraphs (b) and (c), extinguishes any claim, interest or right in respect of the shares or liabilities, or part of them, that were converted;

  • (6) Subsection 39.2(9) of the Act is amended by adding “and” at the end of paragraph (b) and by adding the following after that paragraph:

    • (c) does not prevent a secured creditor or an assignee or successor in interest of the person who was the holder of the shares or liabilities immediately before the conversion from being entitled to receive compensation under section 39.23.

Marginal note:2009, c. 2, s. 248

 Subsection 39.201(3) of the Act is repealed.

Marginal note:1996, c. 6, s. 41
  •  (1) The portion of subsection 39.22(1) of the Act before paragraph (b) is replaced by the following:

    Marginal note:Winding-up
    • 39.22 (1) The Corporation shall apply for a winding-up order in respect of a federal member institution under the Winding-up and Restructuring Act if a notice has not been published under subsection 39.2(3) in respect of the institution on or before

      • (a) the 60th day after the day on which the order is made under subsection 39.13(1); or

  • Marginal note:1996, c. 6, s. 41

    (2) Paragraph 39.22(1)(b) of the English version of the Act is replaced by the following:

    • (b) the day on which any extension of that period ends.

  • (3) Section 39.22 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Winding-up — certain cases

      (1.1) Despite subsection (1), if an order is made under paragraph 39.13(1)(d) or subsection 39.13(1.3) in respect of the institution, the Corporation shall apply for a winding-up order in respect of the institution under the Winding-up and Restructuring Act if a notice has not been published under subsection 39.2(3) in respect of the institution on or before

      • (a) the day that is one year after the day on which the order is made under subsection 39.13(1) or any shorter period specified in the order made under paragraph 39.13(1)(d) or subsection 39.13(1.3), as the case may be; or

      • (b) the day on which any extension of the applicable period ends.

  • Marginal note:1996, c. 6, s. 41

    (4) Subsection 39.22(3) of the Act is replaced by the following:

    • Marginal note:Extension

      (3) The Governor in Council may, by order made on the recommendation of the Minister, grant one or more extensions of the period set out in subsection (1) — of up to 30 days each — but the last extension must expire not later than 180 days after the day on which the order is made under subsection 39.13(1).

    • Marginal note:Extension — certain cases

      (4) The Governor in Council may, by order made on the recommendation of the Minister, grant one or more extensions of the applicable period set out in subsection (1.1) — of up to one year each — but the last extension must expire not later than five years after the day on which the order is made under subsection 39.13(1).

Marginal note:1996, c. 6, s. 41; 2002, c. 8, par. 182(1)(d); 2009, c. 2, s. 250

 Sections 39.23 to 39.37 of the Act are replaced by the following:

Marginal note:Amount of compensation
  • 39.23 (1) If an order is made under subsection 39.13(1), the Corporation shall, in accordance with the regulations and the by-laws, determine the amount of compensation, if any, to be paid to a prescribed person.

  • Marginal note:Persons entitled to compensation

    (2) Only a prescribed person who is in a worse financial position than they would have been had the federal member institution been liquidated under the Winding-up and Restructuring Act is entitled to be paid compensation.

  • Marginal note:Duty to pay compensation

    (3) The Corporation shall pay the compensation and shall decide whether to pay it wholly or partly in cash or wholly or partly in any other form, including shares, that the Corporation considers appropriate.

  • Marginal note:Determining amount — no comparison with others

    (4) In determining the amount of compensation to which a person is entitled, the following shall not be taken into account:

    • (a) any shares or other interest or right received by another person as a result of an order made under subsection 39.13(1) or retained by another person; and

    • (b) any common shares received by another person as a result of a conversion of shares or liabilities in accordance with the contractual terms of those shares or liabilities.

Marginal note:Decision conclusive

39.24 Except as otherwise provided in this Act, a decision made by the Corporation under section 39.23 or by an assessor appointed under section 39.26 is for all purposes final and conclusive and shall not be questioned or reviewed in any court.

Marginal note:Discharge of liability

39.25 Payment of the compensation by the Corporation under section 39.23 discharges the Corporation from its obligations under that section and in no case is the Corporation under any obligation to see to the proper application in any way of any such payment.

Marginal note:Appointment of assessor

39.26 In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge who is in receipt of a salary under the Judges Act to review a decision made by the Corporation under subsection 39.23(1) and determine the amount of compensation, if any, to be paid to a prescribed person.

Marginal note:Sittings and hearings
  • 39.27 (1) An assessor may sit at any place and shall arrange for the sittings and hearings that may be required.

  • Marginal note:Powers of assessor

    (2) The assessor has all the powers conferred on a commissioner appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath.

  • Marginal note:Persons to assist

    (3) An assessor may appoint a person to assist him or her in performing his or her functions.

  • Marginal note:Payment

    (4) Fees and disbursements payable to the person may be included by the assessor in an amount awarded in respect of costs under subsection (5) or (6).

  • Marginal note:Costs of prescribed person

    (5) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to a prescribed person and against the Corporation, the amount that the assessor determines to be just and reasonable to award in respect of those costs is payable by the Corporation to the prescribed person.

  • Marginal note:Costs of Corporation

    (6) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to the Corporation and against a prescribed person, the amount that the assessor determines to be just and reasonable to award in respect of those costs constitutes a debt payable by the prescribed person to the Corporation and may be recovered as such in any court of competent jurisdiction.

Marginal note:Regulations
  • 39.28 (1) The Governor in Council may make regulations respecting compensation for the purposes of sections 39.23 to 39.27, including regulations

    • (a) prescribing persons referred to in subsection 39.23(1);

    • (b) respecting the factors that the Corporation shall or shall not consider in making a decision under subsection 39.23(1);

    • (c) respecting the circumstances in which an assessor must be appointed under section 39.26;

    • (d) respecting the factors that an assessor shall or shall not consider in making a decision; and

    • (e) respecting procedural requirements.

  • Marginal note:By-laws

    (2) The Corporation may make by-laws respecting compensation for the purposes of section 39.23.

  • Marginal note:Inconsistency

    (3) In the event of any inconsistency between the regulations made under subsection (1) and the by-laws made under subsection (2), the regulations prevail to the extent of the inconsistency.

Marginal note:2009, c. 2, s. 251

 Section 39.3712 of the Act is repealed.

Marginal note:2009, c. 2, s. 251

 Subsection 39.3721(2) of the Act is replaced by the following:

  • Marginal note:Implementation

    (2) The board of directors of the bridge institution shall ensure that the directions are implemented in a prompt and efficient manner and shall, after implementing a direction, notify the Corporation without delay that it has been implemented.

Marginal note:2009, c. 2, s. 251

 Subsection 39.3722(2) of the Act is replaced by the following:

  • Marginal note:By-laws — board of directors

    (2) The board of directors of a bridge institution may, with the prior approval of the Corporation, make, amend or repeal any by-law.

Marginal note:2009, c. 2, s. 251; 2012, c. 5, s. 202

 Section 39.3723 of the Act is repealed.

Marginal note:1996, c. 6, s. 41
  •  (1) Subsection 39.38(1) of the Act is replaced by the following:

    Marginal note:Federal-provincial agreements
    • 39.38 (1) The Minister may, with the approval of the Governor in Council, enter into an agreement with an appropriate provincial minister providing for the application of any of sections 39.1 to 39.28 to provincial member institutions incorporated under the laws of that province.

  • Marginal note:1996, c. 6, s. 41

    (2) Subsection 39.38(2) of the English version of the Act is replaced by the following:

    • Marginal note:Orders

      (2) If an agreement has been entered into with an appropriate provincial minister, the Governor in Council may make orders, which are to be consistent with the agreement, providing for the application of any of sections 39.1 to 39.28 to provincial member institutions incorporated under the laws of that province and adapting any of the provisions of those sections in their application to those provincial member institutions.

Marginal note:R.S., c. 18 (3rd Supp.), s. 68
  •  (1) Subsection 45.1(1) of the Act is replaced by the following:

    Marginal note:No liability for acts in good faith
    • 45.1 (1) Her Majesty in right of Canada, any servant or agent of Her Majesty, the Corporation, its directors, officers and employees and any person acting on behalf of the Corporation are not liable to any member institution, depositor with, or creditor or shareholder of, any member institution, or to any other person, for any damages, payment, compensation, contribution or indemnity that any such member institution, depositor, creditor, shareholder or other person may suffer or claim by reason of anything done or omitted to be done, in good faith, in the exercise, execution or performance — or the purported exercise, execution or performance — of any powers, duties and functions under this Act.

  • Marginal note:R.S., c. 18 (3rd Supp.), s. 68

    (2) Subsection 45.1(2) of the Act is replaced by the following:

    • Marginal note:Obligation remains

      (2) Nothing in subsection (1) shall be construed to relieve the Corporation from the obligation to make payment in respect of a deposit insured under this Act or to pay compensation under section 39.23.

Marginal note:2009, c. 2, s. 252

 Section 45.11 of the Act is replaced by the following:

Marginal note:Directors and officers of institutions
  • 45.11 (1) Directors and officers of a federal member institution in respect of which an order is made under paragraph 39.13(1)(a) or (b) or of a bridge institution are not liable for any damages, payment, compensation, contribution or indemnity that any person may suffer or claim by reason of anything done or omitted to be done during the period set out in subsection (3), in good faith, in the exercise, execution or performance of any powers, duties and functions as directors or officers of the institution.

  • Marginal note:Indemnification

    (2) Section 119 of the Financial Administration Act and the regulations made under that section apply to the directors and officers referred to in subsection (1) in respect of anything done or omitted to be done in the exercise, execution or performance of their powers, duties and functions during the period set out in subsection (3), as if the federal member institution or the bridge institution were a Crown corporation within the meaning of section 83 of that Act.

  • Marginal note:Time period

    (3) The period referred to in subsections (1) and (2) begins on the day on which the order is made under subsection 39.13(1) and ends

    • (a) on the date specified in a notice described in subsection 39.2(3) in respect of the federal member institution;

    • (b) on the day on which the bridge institution ceases to be designated as such; or

    • (c) on the day on which a winding-up order is made in respect of the federal member institution or the bridge institution.

Marginal note:Foreign relief — no recognition or enforcement
  • 45.12 (1) Except with the consent of the Attorney General of Canada, no judgment, order or other relief given in a proceeding outside Canada in respect of an order made under subsection 39.13(1) shall be recognized or enforceable in any manner in Canada.

  • Marginal note:No proceedings

    (2) Except with the consent of the Attorney General of Canada, no proceedings shall be commenced in any court in Canada in respect of the judgment, order or other relief given outside Canada.

Marginal note:2009, c. 2, s. 253
  •  (1) Subsections 45.3(1) and (2) of the Act are replaced by the following:

    Marginal note:Disclosures prohibited
    • 45.3 (1) Subject to subsection 12(1) of the Privacy Act, any information with respect to the affairs of a federal member institution in respect of which an order is made under paragraph 39.13(1)(a) or (b), a bridge institution, a subsidiary of either of those institutions or any person dealing with such an institution or subsidiary is confidential, shall be treated accordingly and shall not be disclosed.

    • Marginal note:Duration of prohibition

      (2) The prohibition applies only during the period set out in subsection 45.11(3).

  • Marginal note:2009, c. 2, s. 253

    (2) Paragraph 45.3(3)(d) of the Act is replaced by the following:

    • (d) to the Corporation for the purposes of fulfilling its functions under this Act or as a shareholder of the federal member institution or the bridge institution;

  • Marginal note:2009, c. 2, s. 253

    (3) Paragraphs 45.3(4)(a) and (b) of the Act are replaced by the following:

    • (a) in the normal conduct of the business of the federal member institution, the bridge institution or a subsidiary of either of those institutions;

    • (b) for the purposes of selling the shares or assets of the federal member institution, the bridge institution or a subsidiary of either of those institutions;

  • Marginal note:2009, c. 2, s. 253

    (4) Paragraph 45.3(4)(f) of the Act is replaced by the following:

    • (f) in any other circumstance that the board of directors of the federal member institution, the bridge institution or a subsidiary of either of those institutions considers necessary.

Marginal note:2001, c. 9, s. 215

 The portion of section 47 of the Act before paragraph (a) is replaced by the following:

Marginal note:False statements

47 A person is guilty of an offence if the person prepares, signs, approves or concurs in any account, statement, return, report or other document required to be submitted to the Corporation under the provisions of this Act, the regulations or the by-laws or under an application to become a member institution or a policy of deposit insurance that

Marginal note:1996, c. 6, s. 45
  •  (1) The portion of section 49 of the English version of the Act before paragraph (a) is replaced by the following:

    Marginal note:Failure to provide information, etc.

    49 A member institution is guilty of an offence if it fails or neglects

  • Marginal note:1996, c. 6, s. 45

    (2) Paragraphs 49(a) and (b) of the Act are replaced by the following:

    • (a) within the time limited for so doing, to provide the Corporation with any account, statement, return, report or other document respecting the affairs of the member institution that is required to be submitted to the Corporation under the provisions of this Act, the regulations or the by-laws or under the policy of deposit insurance of the member institution; or

    • (b) to respond, within a reasonable time, to a request for information or explanations respecting the member institution made by or on behalf of the Corporation under the provisions of this Act, the regulations or the by-laws or under the policy of deposit insurance of the member institution.

  • Marginal note:1996, c. 6, s. 45

    (3) The portion of section 49 of the English version of the Act after paragraph (b) is repealed.

Marginal note:1996, c. 6, s. 45

 Section 50 of the Act is replaced by the following:

Marginal note:General offence

50 A member institution or other person is guilty of an offence if they, without reasonable cause, contravene a provision of this Act, other than section 47, 48 or 49, or a provision of the regulations or the by-laws.

Marginal note:1996, c. 6, s. 45

 Section 51 of the Act is replaced by the following:

Marginal note:Court may order compliance

51 If a member institution or other person has been convicted of an offence under this Act, the court may, in addition to any fine or term of imprisonment that may be imposed, order the member institution or person to rectify the contravention of a provision of this Act, the regulations or the by-laws or the policy of deposit insurance in respect of which the member institution or person was convicted.

Marginal note:1996, c. 6, s. 45
  •  (1) Subsection 52(1) of the French version of the Act is replaced by the following:

    Marginal note:Sanction pécuniaire additionnelle
    • 52 (1) Le tribunal peut également, s’il est convaincu que l’institution membre ou la personne condamnée pour l’infraction a tiré des avantages financiers de l’infraction, lui ordonner de payer, malgré toute disposition de la présente loi établissant un plafond à cet égard, une amende supplémentaire jusqu’à concurrence de ces avantages.

  • Marginal note:1996, c. 6, s. 45

    (2) Subsection 52(2) of the Act is replaced by the following:

    • Marginal note:Restraining or compliance order

      (2) If a member institution or other person does not comply with any provision of this Act, the regulations or the by-laws or the policy of deposit insurance that applies in respect of the member institution or person, the Corporation may apply to a superior court for an order directing the member institution or person to comply with or restraining the member institution or person from acting in breach of the provision or the policy and, on the application, the court may so order and make any further order that it thinks fit.

1991, c. 46Bank Act

 Section 2 of the Bank Act is amended by adding the following in alphabetical order:

domestic systemically important bank

domestic systemically important bank means a bank that is designated as a domestic systemically important bank under section 484.1; (banque d’importance systémique nationale)

Marginal note:2014, c. 20, s. 210
  •  (1) Subsection 415.2(1) of the Act is replaced by the following:

    Marginal note:Derivatives and eligible financial contracts — regulations
    • 415.2 (1) The Governor in Council may make regulations respecting a bank’s activities in relation to derivatives and eligible financial contracts.

  • (2) Section 415.2 of the Act is amended by adding the following after subsection (2):

 The heading of Part X of the Act is replaced by the following:

Capital, Liquidity and Capacity to Absorb Losses

 The Act is amended by adding the following before section 485:

Marginal note:Domestic systemically important bank
  • 484.1 (1) The Superintendent may, by order, designate a bank as a domestic systemically important bank unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so.

  • Marginal note:Revocation

    (2) The Superintendent may, by order, revoke the designation unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so.

  • Marginal note:Factors

    (3) In making the designation or revoking it, the Superintendent shall take into account all factors that he or she considers relevant, including whether the distress or failure of the bank could have a significant adverse impact on the financial system in Canada.

  • Marginal note:Notice and publication

    (4) If a designation is made or revoked, the Superintendent shall, as soon as feasible, cause a notice of the designation or revocation, as the case may be, to be published in the Canada Gazette and on the website of the Office of the Superintendent of Financial Institutions.

Marginal note:1996, c. 6, s. 7
  •  (1) Subsection 485(2) of the Act is replaced by the following:

    • Marginal note:Domestic systemically important banks

      (1.1) If the bank is a domestic systemically important bank, it shall also maintain the minimum capacity to absorb losses that is provided for under subsection (1.2) and shall comply with any regulations in relation to that requirement.

    • Marginal note:Superintendent’s order

      (1.2) For each domestic systemically important bank, the Superintendent shall, by order made after consulting with the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act, provide for the amount — consisting of capital and prescribed shares and liabilities — that constitutes the bank’s minimum capacity to absorb losses.

    • Marginal note:Public interest

      (1.3) Despite subsection (1.2), if, before the order is made, the Minister advises the Superintendent that the Minister is of the opinion that the amount provided for by the Superintendent is not in the public interest, the Superintendent shall provide for another amount in accordance with that subsection.

    • Marginal note:Notice and publication

      (1.4) If an order is made under subsection (1.2), the Superintendent shall, in writing and without delay, inform the bank that is subject to the order and shall, as soon as feasible, cause the order to be published in the Canada Gazette and on the website of the Office of the Superintendent of Financial Institutions.

    • Marginal note:Regulations and guidelines

      (2) The Governor in Council may make regulations and the Superintendent may make guidelines respecting the maintenance by banks of adequate capital and adequate and appropriate forms of liquidity and the maintenance by domestic systemically important banks of the minimum capacity to absorb losses.

  • (2) Subsection 485(4) of the Act is replaced by the following:

    • Marginal note:Orders to limit or prohibit

      (3.1) If the Superintendent becomes aware that a domestic systemically important bank is not maintaining its minimum capacity to absorb losses, the Superintendent shall notify the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act and may, by order, take any measures that he or she considers appropriate, including

      • (a) limiting the growth of the bank’s total assets;

      • (b) limiting or prohibiting acquisitions of assets by the bank;

      • (c) limiting or prohibiting discretionary payments in respect of the bank’s shares or subordinated indebtedness;

      • (d) limiting or prohibiting purchases by the bank, or redemptions, of the bank’s shares, subordinated indebtedness or prescribed liabilities;

      • (e) limiting or prohibiting reductions of the bank’s stated capital; and

      • (f) limiting or prohibiting the opening of new branches by the bank.

    • Marginal note:Consultation

      (3.2) Before making an order under subsection (3.1) or varying or revoking such an order, the Superintendent shall consult with the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act.

    • Marginal note:Compliance

      (4) A bank shall comply with an order made under subsection (3) or (3.1) within the time that is specified in the order.

 The Act is amended by adding the following after section 485:

Marginal note:Prescribed conditions

485.01 The Governor in Council may make regulations respecting the conditions that domestic systemically important banks must meet in issuing, originating or amending prescribed shares or liabilities.

 The Act is amended by adding the following after section 485.01:

Marginal note:Regulations and guidelines — disclosure of information

485.02 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the disclosure by domestic systemically important banks of information in relation to their capacity to absorb losses.

Consequential Amendments

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

Marginal note:1992, c. 26, s. 18; 2009, c. 2, s. 257(2)

 Subsections 85(3) and (4) of the Financial Administration Act are repealed.

R.S., c. W-11; 1996, c. 6, s. 134Winding-up and Restructuring Act

Marginal note:2007, c. 6, s. 444; 2010, c. 12, s. 2127
  •  (1) The portion of paragraph 3(i) of the Winding-up and Restructuring Act before subparagraph (ii) is replaced by the following:

    • (i) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which an order has been made under paragraph 39.13(1)(a) of that Act but in respect of which no order has been made under subsection 39.13(1.3) of that Act, a notice has not been published under subsection 39.2(3) of that Act in respect of the institution on or before

      • (i) the 60th day after the day on which the order was made under paragraph 39.13(1)(a) of that Act, or

  • Marginal note:2007, c. 6, s. 444

    (2) Subparagraph 3(i)(ii) of the English version of the Act is replaced by the following:

    • (ii) the day on which any extension of that period ends;

  • Marginal note:2007, c. 6, s. 444

    (3) The portion of paragraph 3(j) of the Act before subparagraph (ii) is replaced by the following:

    • (j) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which an order has been made under paragraph 39.13(1)(b) of that Act but in respect of which no order has been made under subsection 39.13(1.3) of that Act, a notice has not been published under subsection 39.2(3) of that Act in respect of the institution on or before

      • (i) the 60th day after the day on which the order was made under paragraph 39.13(1)(b) of that Act, or

  • Marginal note:2007, c. 6, s. 444

    (4) Subparagraph 3(j)(ii) of the English version of the Act is replaced by the following:

    • (ii) the day on which any extension of that period ends;

  • (5) Section 3 of the Act is amended by adding the following after paragraph (j):

    • (j.1) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which an order has been made under paragraph 39.13(1)(d) or subsection 39.13(1.3) of that Act, a notice has not been published under subsection 39.2(3) of that Act in respect of the institution on or before

      • (i) the day that is one year after the day on which the order is made under subsection 39.13(1) of that Act or any shorter period that is specified in the order made under paragraph 39.13(1)(d) or subsection 39.13(1.3) of that Act, as the case may be, or

      • (ii) the day on which any extension of the applicable period ends; or

1996, c. 6, sch.Payment Clearing and Settlement Act

Marginal note:2012, c. 31, s. 169(2)

 Subsection 8(3.1) of the Payment Clearing and Settlement Act is replaced by the following:

  • Marginal note:Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act

    (3.1) Despite subsections (1) to (3) and the settlement rules,

    • (a) no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.01), (7.1), (7.11), (7.12) or (7.2) or section 39.152 of that Act; and

    • (b) a clearing house, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, shall comply with subsection 39.15(3.3) of that Act, shall take any action required by subsection 39.15(7.12) of that Act and shall not take any action prevented by that subsection 39.15(7.12).

Marginal note:2012, c. 31, s. 170(3)

 Subsection 13(1.2) of the Act is replaced by the following:

Marginal note:2012, c. 31, s. 171(2)

 Subsection 13.1(1.1) of the Act is replaced by the following:

Coming into Force

Marginal note:Order in council
  •  (1) Sections 128, 158, 160 and 162 come into force on a day to be fixed by order of the Governor in Council.

  • Marginal note:Order in council

    (2) Subsections 131(6), 133(3) and 139(5) and (6), sections 140, 142 and 147 and subsection 148(2) come into force on a day to be fixed by order of the Governor in Council.

DIVISION 6Chief Executive Officer of the Canada Deposit Insurance Corporation

R.S., c. 18 (3rd Supp.), Part IOffice of the Superintendent of Financial Institutions Act

Marginal note:1996, c. 6, s. 108 (E)

 Paragraph 18(1)(c) of the Office of the Superintendent of Financial Institutions Act is replaced by the following:

  • (c) the Chief Executive Officer of the Canada Deposit Insurance Corporation; and

R.S., c. C-21; 2001, c. 9, s. 218Canadian Payments Act

Marginal note:2001, c. 9, s. 244

 Paragraph 43(2)(c) of the Canadian Payments Act is replaced by the following:

  • (c) the Chief Executive Officer of the Canada Deposit Insurance Corporation or any other officer of that Corporation authorized in writing by the Chief Executive Officer,

R.S., c. N-11National Housing Act

Marginal note:2012, c. 19, s. 351

 The definition Chairperson of the Canada Deposit Insurance Corporation in section 7 of the National Housing Act is repealed.

Marginal note:2011, c. 15, s. 24; 2012, c. 19, s. 358

 Subsection 21.1(3) of the Act is replaced by the following:

  • Marginal note:Power to disclose

    (3) The Minister of Finance may disclose to the Superintendent, the Governor of the Bank of Canada, the Chief Executive Officer of the Canada Deposit Insurance Corporation and the Commissioner of the Financial Consumer Agency of Canada any information or copies of any books or records received under subsection (2).

Marginal note:2011, c. 15, s. 24; 2012, c. 19, s. 358

 Paragraph 21.2(7)(c) of the Act is replaced by the following:

  • (c) the Chief Executive Officer of the Canada Deposit Insurance Corporation; and

1991, c. 45Trust and Loan Companies Act

Marginal note:2009, c. 2, s. 292

 Paragraph 527.9(2)(b) of the Trust and Loan Companies Act is replaced by the following:

  • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chief Executive Officer of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

1991, c. 46Bank Act

Marginal note:2009, c. 2, s. 275

 Paragraph 973.2(2)(b) of the Bank Act is replaced by the following:

  • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chief Executive Officer of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

1991, c. 47Insurance Companies Act

Marginal note:2009, c. 2, s. 287

 Paragraph 1016.7(2)(b) of the Insurance Companies Act is replaced by the following:

  • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chief Executive Officer of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

1991, c. 48Cooperative Credit Associations Act

Marginal note:2009, c. 2, s. 279

 Paragraph 459.9(2)(b) of the Cooperative Credit Associations Act is replaced by the following:

  • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chief Executive Officer of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

1996, c. 6, sch.Payment Clearing and Settlement Act

Marginal note:2014, c. 39, s. 372(2)

 Paragraph 18(2)(b) of the Payment Clearing and Settlement Act is replaced by the following:

  • (b) to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Chief Executive Officer of the Canada Deposit Insurance Corporation or any other officer of that Corporation authorized in writing by the Chief Executive Officer.

2011, c. 15, s. 20Protection of Residential Mortgage or Hypothecary Insurance Act

 Subsection 15(3) of the Protection of Residential Mortgage or Hypothecary Insurance Act is replaced by the following:

  • Marginal note:Disclosure of information

    (3) The Minister and the Superintendent may disclose to each other any information or copies of any books or records received under subsection (2) and may also disclose them to the Governor of the Bank of Canada, the Chief Executive Officer of the Canada Deposit Insurance Corporation and the Commissioner of the Financial Consumer Agency of Canada.

DIVISION 7R.S., c. F-8Federal-Provincial Fiscal Arrangements Act

Marginal note:2013, c. 33, s. 122(5)
  •  (1) Paragraph (a) of the definition gross expenditure base in subsection 4(1) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

    • (a) for the fiscal year beginning on April 1, 2015, an amount equal to

      • (i) $1,065,524,388 in respect of Yukon,

      • (ii) $1,551,787,629 in respect of the Northwest Territories, and

      • (iii) $1,579,969,113 in respect of Nunavut; and

  • Marginal note:2007, c. 29, s. 62

    (2) Subsection 4(2) of the Act is replaced by the following:

    • Marginal note:Redetermination — gross expenditure base for 2016-2017

      (2) For the purposes of the definition gross expenditure base in subsection (1), the Minister may, at any time during the fiscal year beginning on April 1, 2016, recalculate the amount determined to be the gross expenditure base in respect of a territory for that fiscal year using the following population adjusted gross expenditure escalator:

      • (a) 1.02497 in respect of Yukon;

      • (b) 1.01377 in respect of the Northwest Territories; and

      • (c) 1.02833 in respect of Nunavut.

 The Act is amended by adding the following after section 4.1:

Marginal note:Additional payment for 2016-2017

4.11 An amount may be paid to a territory equal to the difference between the amount determined by the Minister under paragraph (a) and the amount set out under paragraph (b) for that territory:

  • (a) the amount of the territorial formula financing payment that would have been paid to a territory for the fiscal year beginning on April 1, 2016, if that amount had been determined using the amount determined to be the gross expenditure base under subsection 4(2); and

  • (b) as the case may be,

    • (i) $878,040,329 in respect of Yukon,

    • (ii) $1,195,799,238 in respect of the Northwest Territories, and

    • (iii) $1,462,488,258 in respect of Nunavut.

DIVISION 8R.S., c. F-11Financial Administration Act

Amendments to the Act

Marginal note:2007, c. 29, s. 85

 Section 43.1 of the Financial Administration Act is repealed.

 The Act is amended by adding the following after section 46:

Marginal note:Authority to borrow money

46.1 In any fiscal year, the Governor in Council may by order authorize the Minister to borrow money for

  • (a) the payment of any amount that is required to be paid in that fiscal year in respect of any money borrowed under the authority of this Act or any other Act of Parliament;

  • (b) the extinguishment or reduction of any liability of Canada, if the Minister is of the opinion that the liability should be extinguished or reduced; or

  • (c) the payment, by Her Majesty, of any amount in extraordinary circumstances, including in the event of a natural disaster or to promote the stability or maintain the efficiency of the financial system in Canada, if the Minister is of the opinion that the borrowing of money is necessary in those circumstances.

Marginal note:2007, c. 29, s. 87
  •  (1) The portion of subsection 49(1) of the French version of the Act before paragraph (a) is replaced by the following:

    Marginal note:Rapport : gestion de la dette publique
    • 49 (1) Après le dépôt des Comptes publics devant la Chambre des communes, le ministre fait déposer devant chaque chambre du Parlement, dans les trente premiers jours de séance de celle-ci qui suivent ce dépôt, un rapport faisant état :

  • Marginal note:2007, c. 29, s. 87

    (2) Paragraph 49(1)(a) of the Act is replaced by the following:

    • (a) the money borrowed in the fiscal year to which the Public Accounts relate;

    • (a.1) the money that is borrowed under an order made under paragraph 46.1(c) and that is due; and

  • Marginal note:2007, c. 29, s. 87

    (3) Paragraph 49(1)(b) of the French version of the Act is replaced by the following:

    • b) des mesures qu’il a prises pendant l’exercice en cause à l’égard de la gestion de la dette publique.

  • Marginal note:2007, c. 29, s. 87

    (4) Paragraph 49(2)(a) of the Act is replaced by the following:

    • (a) the money to be borrowed in the next fiscal year and the purposes for which the moneys will be borrowed; and

 The Act is amended by adding the following after section 49:

Marginal note:Report — borrowings in respect of extraordinary circumstances

49.1 The Minister shall cause to be tabled in each House of Parliament a report on the money borrowed or to be borrowed under an order made under paragraph 46.1(c) within the first 30 days on which that House is sitting after the day on which the Governor in Council’s authorization is given under that paragraph.

 The Act is amended by adding the following after section 101:

Marginal note:Minister’s responsibility

101.1 In the exercise of the Minister’s powers and duties under subsections 127(2) and (3) in respect of an agent corporation, the Minister shall ensure that the total of the amounts borrowed by it, other than from the Crown, is not in excess of any limit established by any other Act of Parliament.

Coming into Force

Marginal note:Order in council

 The provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council.

DIVISION 9R.S., c. O-9Old Age Security Act

Amendments to the Act

Marginal note:2012, c. 19, s. 447

 Section 2.2 of the Old Age Security Act is repealed.

  •  (1) Section 12.1 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Increase on July 1, 2016

      (2.1) For any month in the payment quarter beginning on July 1, 2016,

      • (a) the amount determined for A in subsection (1) is the amount that would otherwise have been determined for A in that subsection for any month in that payment quarter plus $78.92; and

      • (b) the amount determined for A in subsection (2) in the case set out in paragraph (a) of A in that subsection is the amount that would otherwise have been determined in that case for A in that subsection for any month in that payment quarter plus $78.92.

  • Marginal note:2011, c. 15, s. 13

    (2) The portion of subsection 12.1(3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Indexation

      (3) Subject to subsection (2.1), for the purpose of calculating the amount payable under subsection (1) or (2) for any month in a payment quarter beginning after September 30, 2011, the amount to be determined for A in that subsection is the amount obtained by multiplying

  •  (1) Section 22.1 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Increase on July 1, 2016

      (3.1) The amount determined for A in subsection (3) for any month in the payment quarter beginning on July 1, 2016 is the amount that would otherwise have been determined for A in that subsection for any month in that payment quarter plus $78.92.

  • Marginal note:2011, c. 15, s. 14

    (2) The portion of subsection 22.1(4) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Indexation

      (4) Subject to subsection (3.1), for the purpose of calculating the amount payable under any of subsections (1) to (3) for any month in a payment quarter beginning after September 30, 2011, the amount to be determined for A in that subsection is the amount obtained by multiplying

Coming into Force

Marginal note:July 1, 2016

 Sections 189 and 190 come into force, or are deemed to have come into force, on July 1, 2016.

DIVISION 10R.S., c. S-15Special Import Measures Act

Marginal note:1994, c. 47, s. 144(3)

 The definition negligible in subsection 2(1) of the Special Import Measures Act is replaced by the following:

negligible

negligible means, in respect of the volume of goods of a country, less than 3% of the total volume of goods that are released into Canada from all countries and that are of the same description as the goods. However, if the total volume of goods of three or more countries — each of whose exports of goods into Canada is less than 3% of the total volume of goods that are released into Canada from all countries and that are of the same description — is more than 7% of the total volume of goods that are released into Canada from all countries and that are of the same description, the volume of goods of any of those countries is not negligible; (négligeable)

 The Act is amended by adding the following after section 7.1:

Marginal note:Return of duty

7.2 If the Tribunal makes an order under paragraph 76.03(12)(a), the amount that was paid as anti-dumping or countervailing duties by or on an importer’s behalf shall be returned to the importer, in respect of goods that were released, five years after

  • (a) the day on which the original order or finding was made under subsection 43(1), if no order continuing the order or finding that applies to those goods has been made under paragraph 76.03(12)(b); or

  • (b) the day on which the last order was made, if one or more orders continuing the order or finding have been made under paragraph 76.03(12)(b).

Marginal note:1994, c. 47, s. 149(1); 2005, c. 38, par. 134(h)
  •  (1) The portion of subsection 8(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Imposition of provisional duty
    • 8 (1) Subject to subsection (1.3), if the President makes a preliminary determination of dumping or subsidizing in an investigation under this Act and considers that the imposition of provisional duty is necessary to prevent injury, retardation or threat of injury, the importer in Canada of dumped or subsidized goods that are of the same description as any goods to which the preliminary determination applies and that are released during the period beginning on the day on which the preliminary determination is made and ending on the earlier of

  • Marginal note:2001, c. 25, s. 92(2)

    (2) The portion of subsection 8(1.1) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Imposition of provisional duties on referral back to Tribunal

      (1.1) Subject to subsection (1.3), if an order or finding of the Tribunal under subsection 43(1), 76.02(4) respecting a review under subsection 76.02(1), or 91(3), other than an order or finding described in any of sections 3 to 6, is referred back to the Tribunal under subsection 77.015(3) or (4) or 77.019(5), or under subsection 77.15(3) or (4) or 77.19(4), the importer of dumped or subsidized goods that are of the same description as any goods to which the order or finding applies and that are released during the period beginning on the day on which the preliminary determination is made under subsection 38(1) and ending on the day on which the Tribunal makes an order or finding, on the referral back, with respect to goods of that description, shall, within the time prescribed under the Customs Act for the payment of duties, at the option of the importer,

  • Marginal note:2001, c. 25, s. 92(2)

    (3) The portion of subsection 8(1.2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Imposition of provisional duties on referral back from Federal Court of Appeal

      (1.2) Subject to subsection (1.3), if an order or finding of the Tribunal under subsection 43(1), 76.02(4) respecting a review under subsection 76.02(1), or 91(3), other than an order or finding described in any of sections 3 to 6, is referred back to the Tribunal by the Federal Court of Appeal, the importer of dumped or subsidized goods that are of the same description as any goods to which the order or finding applies and that are released during the period beginning on the day on which the preliminary determination is made under subsection 38(1) and ending on the day on which the Tribunal makes an order or finding, on the referral back, with respect to goods of that description, shall, within the time prescribed under the Customs Act for the payment of duties, at the option of the importer,

  • (4) Section 8 of the Act is amended by adding the following after subsection (1.2):

    • Marginal note:Insignificant margin or amount

      (1.3) Subsections (1), (1.1) and (1.2) do not apply in respect of

      • (a) goods of the same description as the goods specified in a preliminary determination in which the President determines that the margin of dumping of the goods is insignificant; or

      • (b) goods of the same description as the goods specified in a preliminary determination in which the President determines that the amount of subsidy on the goods is insignificant.

Marginal note:1999, c. 12, s. 12

 Section 30.1 of the Act is replaced by the following:

Marginal note:Determination of margin of dumping in respect of a country

30.1 For the purposes of subsection 8(1.3), paragraph 35(1)(a), subparagraph 38(1)(a)(i), subsection 38(1.1), subparagraph 41(1)(a)(ii) and paragraphs 41.1(1)(a) and (2)(a), the margin of dumping in relation to goods of a particular country is the weighted average of the margins of dumping determined in accordance with section 30.2.

Marginal note:1999, c. 12, s. 17; 2005, c. 38, par. 134(z)

 Paragraph 35(1)(a) of the Act is replaced by the following:

  • (a) the President is satisfied in respect of some or all of those goods that the actual and potential volume of goods is negligible; or

  •  (1) Subparagraph 38(1)(a)(i) of the English version of the Act is replaced by the following:

    • (i) estimating the margin of dumping of the goods to which the preliminary determination applies, using the information available to the President at the time the estimate is made, and

  • Marginal note:1994, c. 47, par. 185(1)(d)

    (2) Subparagraph 38(1)(b)(i) of the English version of the Act is replaced by the following:

    • (i) estimating the amount of subsidy on the goods to which the preliminary determination applies, using the information available to the President at the time the estimate is made,

  • (3) Section 38 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Insignificant margin or amount

      (1.1) The President may in making a preliminary determination under subsection (1), using the information available to him or her at that time, make the determination that the margin of dumping of, or the amount of subsidy on, the goods is insignificant.

    • Marginal note:Deeming provision

      (1.2) For the purposes of a preliminary determination, if the President determines that the margin of dumping or the amount of subsidy is equivalent to 0% of the export price of the goods, then that margin or amount is considered to be insignificant and the investigation in respect of those goods continues.

Marginal note:1994, c. 47, s. 171(3); 2005, c. 38, par. 134(z.5)(E)

 Paragraph 49(2)(b) of the Act is replaced by the following:

  • (b) unless the President has made a preliminary determination under subsection 38(1), other than a determination respecting an insignificant margin of dumping or an insignificant amount of subsidy; or

Marginal note:1999, c. 12, s. 36
  •  (1) Subsection 76.03(2) of the Act is replaced by the following:

    • Marginal note:Publication of notice

      (2) If an order or finding is to be deemed rescinded under subsection (1), the Tribunal shall, not later than two months before the expiry date of the order or finding under that subsection, cause to be published in the Canada Gazette a notice of expiry setting out the information specified in the rules of the Tribunal.

  • Marginal note:1999, c. 12, s. 36

    (2) Paragraph 76.03(7)(a) of the Act is replaced by the following:

    • (a) within 150 days after the day on which the notice is received under subparagraph (6)(a)(i), determine whether the expiry of the order or finding in respect of goods of a country or countries is likely to result in the continuation or resumption of dumping or subsidizing of the goods; and

  • Marginal note:1999, c. 12, s. 36; 2005, c. 38, par. 134(z.19)

    (3) Subsection 76.03(10) of the Act is replaced by the following:

    • Marginal note:Tribunal’s determination

      (10) If the President makes a determination described in subsection (9), the Tribunal shall, within 160 days after the day on which that determination was received, determine whether the expiry of the order or finding in respect of the goods referred to in that subsection is likely to result in injury or retardation.

Marginal note:Application

 The provisions of the Special Import Measures Act, as enacted or amended by sections 192 to 199, apply to goods from a NAFTA country, as defined in subsection 2(1) of that Act.

DIVISION 11R.S., c. 32 (2nd Supp.)Pension Benefits Standards Act, 1985

Marginal note:2010, c. 25, s. 179(2)
  •  (1) The definition multilateral agreement in subsection 2(1) of the Pension Benefits Standards Act, 1985 is repealed.

  • (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

    federal-provincial agreement

    federal-provincial agreement means an agreement entered into under subsection 6.1(1); (accord fédéral-provincial)

Marginal note:2010, c. 25, s. 180

 Paragraph 5(2)(d) of the Act is replaced by the following:

  • (d) collect information from a pension supervisory authority of a designated province and disclose information to that authority for the purposes of implementing a federal-provincial agreement.

Marginal note: 2010, c. 25, s. 181

 Section 6 of the Act is repealed.

Marginal note:2010, c. 25, s. 181
  •  (1) Subsection 6.1(1) of the Act is replaced by the following:

    Marginal note:One or more designated provinces
    • 6.1 (1) The Minister may, with the approval of the Governor in Council, enter into an agreement with one or more designated provinces respecting any matter relating to pension plans that are subject to the pension legislation of at least one designated province that is a party to the agreement.

  • Marginal note:2010, c. 25, s. 181

    (2) The portion of subsection 6.1(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Content of agreement

      (2) A federal-provincial agreement may, among other things,

  • (3) Subsection 6.1(2) of the Act is amended by adding the following after paragraph (c):

    • (c.1) make applicable, with respect to a pension plan, the pension legislation of a designated province that is a party to the agreement;

  • Marginal note:2010, c. 25, s. 181

    (4) Subsections 6.1(3) to (5) of the Act are replaced by the following:

    • Marginal note:Tabling in Parliament

      (3) The Minister must cause every federal-provincial agreement to be tabled in each House of Parliament.

    • Marginal note:Publication — Canada Gazette

      (4) The Minister must cause to be published in the Canada Gazette

      • (a) every federal-provincial agreement and a notice of the date on which the agreement comes into effect with respect to pension plans;

      • (b) every amendment to a federal-provincial agreement and a notice of the date on which the amendment comes into effect with respect to pension plans; and

      • (c) a notice of the effective date of the Government of Canada’s withdrawal from the federal-provincial agreement or of the effective date of termination of that agreement, whichever comes first.

    • Marginal note:Publication — other

      (5) In addition to the publishing requirements under subsection (4), the Minister must ensure that every federal-provincial agreement and every amendment to a federal-provincial agreement is accessible to the public through the Internet or by any other means that the Minister considers appropriate.

Marginal note:2010, c. 25, s. 181

 Sections 6.2 to 6.4 of the Act are replaced by the following:

Marginal note:Force of law
  • 6.2 (1) The provisions of a federal-provincial agreement, other than those exempted from the application of this subsection by regulation, have the force of law during the period that the agreement is in effect with respect to pension plans and are enforceable during that period as if those provisions formed part of this Act.

  • Marginal note:Inconsistency with agreement

    (2) The provisions of a federal-provincial agreement that have the force of law prevail over any provision of this Act and the regulations to the extent of any inconsistency or conflict between them.

Marginal note:Review by Federal Court
  • 6.3 (1) A decision of a pension supervisory authority of a designated province that is made under the authority of a federal-provincial agreement and that relates to the application of this Act or the regulations is deemed to be a decision of a federal board, commission or other tribunal, as defined in subsection 2(1) of the Federal Courts Act, and is subject to judicial review under that Act.

  • Marginal note:No review by Federal Court

    (2) A decision of the Superintendent that is made under the authority of a federal-provincial agreement and that relates to the application of the pension legislation of a designated province is deemed to be a decision of the pension supervisory authority of that province and is not subject to judicial review under the Federal Courts Act.

Marginal note:Association of pension supervisory authorities

6.4 The Minister may, with the approval of the Governor in Council, enter into an agreement with one or more designated provinces respecting the establishment and operation in Canada of an association of pension supervisory authorities.

Marginal note:2010, c. 25, ss. 196(1) and 198(8)

 Paragraphs 39(1)(b.1) to (b.3) of the Act are replaced by the following:

  • (b.1) respecting the implementation of a federal-provincial agreement;

  • (b.2) exempting a federal-provincial agreement or any provision of that agreement from the application of subsection 6.2(1);

  • (b.3) respecting transitional matters in the event that the Government of Canada ceases to be a party to a federal-provincial agreement;

DIVISION 121996, c. 23Employment Insurance Act

Amendments to the Act

  •  (1) Subsection 2(1) of the Employment Insurance Act is amended by adding the following in alphabetical order:

    long-tenured worker

    long-tenured worker means a claimant who was paid less than 36 weeks of regular benefits in the 260 weeks before the beginning of their benefit period and who, according to their income tax returns for which notices of assessment have been sent by the Canada Revenue Agency, paid at least 30% of the maximum annual employee’s premium in 7 of the 10 years before the beginning of their benefit period or, if their income tax return for the year before the beginning of their benefit period has not yet been filed with that Agency or a notice of assessment for that year has not yet been sent by that Agency, in 7 of the 10 years before that year; (travailleur de longue date)

  • (2) The definition long-tenured worker in subsection 2(1) of the Act is repealed.

  • Marginal note:2001, c. 5, s. 1(1)

    (3) Subsection 2(5) of the Act is replaced by the following:

    • Marginal note:Weeks of benefits paid

      (5) For the purposes of section 145, the Commission may, with the approval of the Governor in Council, make regulations for establishing how many weeks of benefits a claimant was paid, in order to take into account benefit reductions or deductions in the calculation or payment of those benefits.

 The definition waiting period in subsection 6(1) of the Act is replaced by the following:

waiting period

waiting period means the one week of the benefit period described in section 13. (délai de carence)

  •  (1) The portion of subsection 7(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Qualification requirement

      (2) An insured person qualifies if the person

  • Marginal note:2009, c. 33, s. 3

    (2) Subsections 7(3) to (5) of the Act are repealed.

  •  (1) The portion of subsection 7.1(1) of the Act before the table is replaced by the following:

    Marginal note:Increase in required hours
    • 7.1 (1) The number of hours that an insured person requires under section 7 to qualify for benefits is increased to the number set out in the following table in relation to the applicable regional rate of unemployment if the insured person accumulates one or more violations in the 260 weeks before making their initial claim for benefit.

  • (2) Subsection 7.1(2) of the Act is repealed.

  • Marginal note:2009, c. 33, s. 4

    (3) Subsection 7.1(3) of the Act is replaced by the following:

    • Marginal note:Limitation

      (3) A violation may not be taken into account under subsection (1) in more than two initial claims for benefits under this Act by an individual if the individual who accumulated the violation qualified for benefits in each of those two initial claims, taking into account subsection (1), subparagraph 152.07(1)(d)(ii) or regulations made under Part VIII, as the case may be.

Marginal note:2012, c. 27, s. 13(2)
  •  (1) Subsection 10(14) of the Act is replaced by the following:

    • Marginal note:Extension of benefit period — additional 17 weeks

      (13.1) A claimant’s benefit period that has not ended before July 3, 2016, or that begins on or after that date, is extended by 17 weeks if the number of weeks for which benefits may be paid to the claimant has been increased as a result of subsection 12(2.1).

    • Marginal note:Benefit period deemed not ended — additional 17 weeks

      (13.2) Subject to subsections (13.7) and (14.1), if a claimant’s benefit period ended before July 3, 2016, that benefit period is deemed, despite subsection (8), not to have ended and it is extended by 17 weeks beginning on July 3, 2016 if the number of weeks for which benefits may be paid to the claimant has been increased as a result of subsection 12(2.1).

    • Marginal note:Extension of benefit period — additional 37 weeks

      (13.3) A claimant’s benefit period that has not ended before July 3, 2016, or that begins on or after that date, is extended by 37 weeks if the number of weeks for which benefits may be paid to the claimant has been increased as a result of subsection 12(2.3).

    • Marginal note:Benefit period deemed not ended — additional 37 weeks

      (13.4) Subject to subsections (13.7) and (14.1), if a claimant’s benefit period ended before July 3, 2016, that benefit period is deemed, despite subsection (8), not to have ended and it is extended by 37 weeks beginning on July 3, 2016 if the number of weeks for which benefits may be paid to the claimant has been increased as a result of subsection 12(2.3).

    • Marginal note:Extension of benefit period — additional 29 weeks

      (13.5) A claimant’s benefit period is extended by 29 weeks if the number of weeks for which benefits may be paid to the claimant has been increased as a result of subsection 12(2.5).

    • Marginal note:Extension of benefit period — additional 22 weeks

      (13.6) A claimant’s benefit period is extended by 22 weeks if the number of weeks for which benefits may be paid to the claimant has been increased as a result of subsection 12(2.6).

    • Marginal note:Clarification

      (13.7) A benefit period that is deemed under subsection (13.2) or (13.4) not to have ended does not include the period that begins on the day after the day on which the benefit period ended and that ends on July 2, 2016.

    • Marginal note:Maximum extension under subsections (10) to (13.6)

      (14) Subject to subsections (14.1) and (15), an extension under any of subsections (10) to (13.6) must not result in a benefit period of more than 104 weeks.

    • Marginal note:Excluded period to be included

      (14.1) The period that is excluded under subsection (13.7) is to be included in the calculation of the 104 weeks for the purposes of subsection (14).

  • (2) Subsections 10(13.1) to (14.1) of the Act are replaced by the following:

    • Marginal note:Maximum extension under subsections (10) to (13)

      (14) Subject to subsection (15), an extension under any of subsections (10) to (13) must not result in a benefit period of more than 104 weeks.

Marginal note:2009, c. 30, s. 2(2)
  •  (1) Subsection 12(2) of the Act is replaced by the following:

    • Marginal note:General maximum

      (2) Subject to subsections (2.1) to (2.6), the maximum number of weeks for which benefits may be paid in a benefit period because of a reason other than those mentioned in subsection (3) shall be determined in accordance with the table in Schedule I by reference to the regional rate of unemployment that applies to the claimant and the number of hours of insurable employment of the claimant in their qualifying period.

    • Marginal note:Increase — five weeks

      (2.1) Subject to subsection (2.7), the number of weeks of benefits set out in the table in Schedule I that applies in respect of a claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant, but for this subsection, increased by five weeks if the following conditions are met:

      • (a) the claimant is not a long-tenured worker;

      • (b) the claimant’s benefit period began during the period beginning on January 4, 2015 and ending on July 8, 2017;

      • (c) the claimant’s ordinary residence at the beginning of the benefit period was in a region referred to in subsection (2.8); and

      • (d) benefits were paid or payable to the claimant because of a reason mentioned in subsection (2) for at least one week in the benefit period.

    • Marginal note:Payment of benefits — subsection 10(13.2)

      (2.2) If subsection (2.1) applies in respect of a claimant whose benefit period is deemed under subsection 10(13.2) not to have ended,

      • (a) the claimant may, for weeks beginning on or after July 3, 2016, be paid benefits because of a reason mentioned in subsection (2) for no more than the five additional weeks referred to in subsection (2.1); and

      • (b) the claimant may not be paid those additional five weeks of benefits for any week that began before July 3, 2016.

    • Marginal note:Increase — 25 weeks

      (2.3) Subject to subsection (2.7), the number of weeks of benefits set out in the table in Schedule I that applies in respect of a claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant, but for this subsection, increased by 25 weeks if the following conditions are met:

      • (a) the claimant is a long-tenured worker;

      • (b) the claimant’s benefit period began during the period beginning on January 4, 2015 and ending on October 29, 2016;

      • (c) the claimant’s ordinary residence at the beginning of the benefit period was in a region referred to in subsection (2.8); and

      • (d) benefits were paid or payable to the claimant because of a reason mentioned in subsection (2) for at least one week in the benefit period.

    • Marginal note:Payment of benefits — subsection 10(13.4)

      (2.4) If subsection (2.3) applies in respect of a claimant whose benefit period is deemed under subsection 10(13.4) not to have ended,

      • (a) the claimant may, for weeks beginning on or after July 3, 2016, be paid benefits because of a reason mentioned in subsection (2) for no more than the 25 additional weeks referred to in subsection (2.3); and

      • (b) the claimant may not be paid those additional 25 weeks of benefits for any week that began before July 3, 2016.

    • Marginal note:Increase — 17 weeks

      (2.5) The number of weeks of benefits set out in the table in Schedule I that applies in respect of a claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant, but for this subsection, increased by 17 weeks if the following conditions are met:

      • (a) the claimant is a long-tenured worker;

      • (b) the claimant’s benefit period began during the period beginning on October 30, 2016 and ending on February 25, 2017;

      • (c) the claimant’s ordinary residence at the beginning of the benefit period was in a region referred to in subsection (2.8); and

      • (d) benefits were paid or payable to the claimant because of a reason mentioned in subsection (2) for at least one week in the benefit period.

    • Marginal note:Increase — 10 weeks

      (2.6) The number of weeks of benefits set out in the table in Schedule I that applies in respect of a claimant is deemed to be the number of weeks that would otherwise apply in respect of the claimant, but for this subsection, increased by 10 weeks if the following conditions are met:

      • (a) the claimant is a long-tenured worker;

      • (b) the claimant’s benefit period began during the period beginning on February 26, 2017 and ending on July 8, 2017;

      • (c) the claimant’s ordinary residence at the beginning of the benefit period was in a region referred to in subsection (2.8); and

      • (d) benefits were paid or payable to the claimant because of a reason mentioned in subsection (2) for at least one week in the benefit period.

    • Marginal note:Application

      (2.7) If more than one benefit period in respect of a claimant began before July 3, 2016, subsection (2.1) or (2.3), as the case may be, applies to increase the number of weeks of benefits only in the benefit period that began on the day that is closest to that day.

    • Marginal note:Regions

      (2.8) The regions, for the purposes of subsections (2.1) to (2.6), are the following regions described in Schedule I to the Employment Insurance Regulations:

      • (a) the region of Northern Ontario described in subsection 2(3) of that Schedule;

      • (b) the region of Sudbury described in subsection 2(14) of that Schedule;

      • (c) the region of Northern Manitoba described in subsection 6(3) of that Schedule;

      • (c.1) the region of Southern Interior British Columbia described in subsection 7(1) of that Schedule;

      • (d) the region of Northern British Columbia described in subsection 7(5) of that Schedule;

      • (e) the region of Saskatoon described in subsection 9(2) of that Schedule;

      • (e.1) the region of Southern Saskatchewan described in subsection 9(3) of that Schedule;

      • (f) the region of Northern Saskatchewan described in subsection 9(4) of that Schedule;

      • (g) the region of Calgary described in subsection 10(1) of that Schedule;

      • (g.1) the region of Edmonton described in subsection 10(2) of that Schedule;

      • (h) the region of Southern Alberta described in subsection 10(3) of that Schedule;

      • (i) the region of Northern Alberta described in subsection 10(4) of that Schedule;

      • (j) the region of Newfoundland/Labrador described in subsection 11(2) of that Schedule;

      • (k) the region of Whitehorse described in subsection 12(1) of that Schedule; and

      • (l) the region of Nunavut described in subsection 14(2) of that Schedule.

  • (2) Subsections 12(2) to (2.8) of the Act are replaced by the following:

    • Marginal note:General maximum

      (2) The maximum number of weeks for which benefits may be paid in a benefit period because of a reason other than those mentioned in subsection (3) shall be determined in accordance with the table in Schedule I by reference to the regional rate of unemployment that applies to the claimant and the number of hours of insurable employment of the claimant in their qualifying period.

  • Marginal note:2009, c. 30, s. 2(4)

    (3) Subsection 12(6) of the Act is replaced by the following:

    • Marginal note:Combined weeks of benefits

      (6) In a claimant’s benefit period, the claimant may, subject to the applicable maximums, combine weeks of benefits to which the claimant is entitled because of a reason mentioned in subsections (2) and (3), but the total number of weeks of benefits shall not exceed 50 or, if the maximum number of weeks for which benefits may be paid to a claimant because of a reason mentioned in subsection (2) is greater than 45 weeks as a result of the application of any of subsections (2.1), (2.3), (2.5) and (2.6), the number that corresponds to that maximum number of weeks increased by five weeks.

  • (4) Subsection 12(6) of the Act is replaced by the following:

    • Marginal note:Combined weeks of benefits

      (6) In a claimant’s benefit period, the claimant may, subject to the applicable maximums, combine weeks of benefits to which the claimant is entitled because of a reason mentioned in subsections (2) and (3), but the total number of weeks of benefits shall not exceed 50.

 Section 13 of the Act is replaced by the following:

Marginal note:Waiting period

13 A claimant is not entitled to be paid benefits in a benefit period until, after the beginning of the benefit period, the claimant has served a waiting period of one week of unemployment for which benefits would otherwise be payable.

 Subsection 22(4) of the Act is replaced by the following:

  • Marginal note:Application of section 18

    (4) For the purposes of section 13, the provisions of section 18 do not apply to the week that immediately precedes the period described in subsection (2).

 Section 54 of the Act is amended by striking out “and” at the end of paragraph (z.3) and by adding the following after that paragraph:

  • (z.31) eliminating the special benefits payable to a claimant in respect of any period that constitutes, under a plan other than one established under a provincial law, an elimination period during which no benefit is payable to the claimant under the plan; and

Marginal note:2015, c. 36, s. 153

 Section 58 of the Act is replaced by the following:

Definition of insured participant

58 In this Part, insured participant means an insured person who requests assistance under employment benefits and, when requesting the assistance, is an unemployed person for whom a benefit period is established or whose benefit period has ended within the previous 60 months.

Marginal note:2015, c. 36, s. 154

 Subsection 63(2) of the Act is replaced by the following:

  • Marginal note:Insured participants

    (2) An agreement may be entered into under subsection (1) with a government even if the benefits provided by that government are provided only for an insured participant as defined in section 58 as it read immediately before June 23, 2015, the text of which is set out in Schedule III.

Marginal note:2015, c. 36, s. 155

 Section 63.1 of the Act is replaced by the following:

Marginal note:Payment of contributions — insured participants
  • 63.1 (1) If an agreement that is entered into with a government under section 63 provides for the payment of contributions for all or a portion of the costs of benefits provided by the government that are similar to employment benefits under this Part and the benefits to be provided by that government under the agreement are provided only for an insured participant as defined in section 58 as it read immediately before June 23, 2015, the text of which is set out in Schedule III, the contributions to be paid under the agreement shall be paid only for costs of benefits for an insured participant as defined in that section 58.

  • Marginal note:Application

    (2) Subsection (1) applies in respect of agreements entered into before, on or after the day on which this subsection comes into force.

Marginal note:2009, c. 33, s. 16

 The definition waiting period in subsection 152.01(1) of the Act is replaced by the following:

waiting period

waiting period means the one week of the benefit period described in section 152.15. (délai de carence)

Marginal note:2009, c. 33, s. 16

 Subsection 152.07(7) of the Act is replaced by the following:

  • Marginal note:Limitation

    (7) A violation may not be taken into account under paragraph (1)(d) in more than two initial claims by an individual for benefits under this Act if the individual who accumulated the violation qualified for benefits in each of those two initial claims, taking into account subparagraph (1)(d)(ii), subsection 7.1(1) or regulations made under Part VIII, as the case may be.

Marginal note:2009, c. 33, s. 16

 Section 152.15 of the Act is replaced by the following:

Marginal note:Waiting period

152.15 A self-employed person is not entitled to be paid benefits in a benefit period until, after the beginning of the benefit period, the person has served a waiting period of one week of unemployment for which benefits would otherwise be payable.

 Schedule I to the Act is amended by replacing the reference after the heading “SCHEDULE I” with the following:

(Subsections 12(2), (2.1), (2.3), (2.5) and (2.6))

 Schedule I to the Act is amended by replacing the references after the heading “SCHEDULE I” with the following:

(Subsection 12(2))

 The Act is amended by adding, after Schedule II, the Schedule III set out in Schedule 2 to this Act.

Transitional Provisions

Marginal note:Provisions continue to apply

 The following provisions of the Employment Insurance Act, as those provisions read immediately before July 9, 2017, continue to apply in respect of a claimant, as defined in subsection 2(1) of that Act, whose benefit period, as defined in that subsection 2(1), began before that day and has not ended before that day:

  • (a) the definition long-tenured worker in subsection 2(1);

  • (b) subsections 10(13.1) to (14.1); and

  • (c) subsections 12(2) to (2.8) and (6).

Marginal note:Application of provisions

 The following provisions of the Employment Insurance Act, as enacted by subsections 207(3), 209(1) and 210(1) and (3) and section 220, apply only in respect of a claimant, as defined in subsection 2(1) of that Act, whose benefit period, as defined in that subsection 2(1), begins on or after the day fixed by order of the Governor in Council made under subsection 231(3):

  • (a) subsection 2(5);

  • (b) the portion of subsection 7(2) before paragraph (a);

  • (c) the portion of subsection 7.1(1) before the table and subsection 7.1(3); and

  • (d) subsection 152.07(7).

Marginal note:Application of provisions

 The following provisions of the Employment Insurance Act, as those provisions read immediately before the day fixed by order of the Governor in Council made under subsection 231(4), continue to apply in respect of a claimant, as defined in subsection 2(1) of that Act, whose benefit period, as defined in that subsection 2(1), began before that day:

  • (a) the definition waiting period in subsection 6(1);

  • (b) section 13;

  • (c) subsection 22(4);

  • (d) the definition waiting period in subsection 152.01(1); and

  • (e) section 152.15.

Regulations

Marginal note:Retroactive regulations

 Regulations made by the Canada Employment Insurance Commission under the Employment Insurance Act that, in the opinion of the Commission, are necessary as a result of the amendments made by sections 208, 213, 214, 219 and 221 may, if the regulations so provide, be retroactive and have effect with respect to any period before they are made that begins on or after the day that is fixed by order of the Governor in Council made under subsection 231(4).

Marginal note:Non-application of subsections 153(3) and (4)

 Subsections 153(3) and (4) of the Employment Insurance Act do not apply in respect of any regulations made by the Canada Employment Insurance Commission under that Act that, in the opinion of the Commission, are necessary as a result of the amendments made by subsection 207(3) and sections 209, 210, 216, 220 and 230.

2015, c. 36Consequential Amendment to the Economic Action Plan 2015 Act, No. 1

 Section 158 of the Economic Action Plan 2015 Act, No. 1 is repealed.

Coming into Force

Marginal note:July 3, 2016
  •  (1) Subsections 207(1), 211(1) and 212(1) and (3) and section 222 come into force or are deemed to have come into force on July 3, 2016.

  • Marginal note:July 9, 2017

    (2) Subsections 207(2), 211(2) and 212(2) and (4) and section 223 come into force on July 9, 2017.

  • Marginal note:Order in council

    (3) Subsection 207(3) and sections 209, 210, 216, 220 and 230 come into force on a day to be fixed by order of the Governor in Council.

  • Marginal note:Order in council

    (4) Sections 208, 213, 214, 219 and 221 come into force on a day to be fixed by order of the Governor in Council, which may be earlier than the day on which the order is made but not earlier than January 1, 2017.

DIVISION 131998, c. 10Canada Marine Act

 The Canada Marine Act is amended by adding the following after section 25.1:

Marginal note:Payments to Canada Place Corporation

25.2 Despite section 25, the Minister of Canadian Heritage may make payments to Canada Place Corporation for Canada Day celebrations and for the celebrations marking the 150th anniversary of Confederation.

DIVISION 142012, c. 19Jobs, Growth and Long-term Prosperity Act

 The Jobs, Growth and Long-term Prosperity Act is amended by adding the following after section 209:

Marginal note:Acquisition of shares
  • 209.1 (1) For the purposes of paragraph 90(1)(b) of the Financial Administration Act, the Minister of Infrastructure, Communities and Intergovernmental Affairs may acquire the shares of PPP Canada Inc.

  • Marginal note:Shares held by appropriate Minister

    (2) The appropriate Minister holds the shares acquired under subsection (1).

  • Marginal note:Appropriate Minister — other transactions

    (3) The appropriate Minister may, with the approval of the Governor in Council, conduct any transaction referred to in any of paragraphs 90(1)(c) to (e) of the Financial Administration Act in respect of PPP Canada Inc.

  • Marginal note:Authorization — parent Crown corporation

    (4) PPP Canada Inc. may, with the approval of the Governor in Council, sell or otherwise dispose of all or substantially all of its assets.

  • Marginal note:Authorization — wholly-owned subsidiaries

    (5) Any of the corporations that are part of the group of corporations that consists of PPP Canada Inc. and of all of its wholly-owned subsidiaries may, with the approval of the Governor in Council, sell or otherwise dispose of any of the assets of the corporations, even if the assets to be sold or otherwise disposed of constitute all or substantially all of the total assets of that group.

 Section 211 of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

  • (d) conducting any activity specified in an order made under section 211.1.

 The Act is amended by adding the following after section 211:

Marginal note:Order in council

211.1 The Governor in Council may, by order, specify any activity in relation to which PPP Canada Inc. is an agent of Her Majesty in right of Canada.

 Section 213 of the Act is repealed.

DIVISION 15Canada Foundation for Sustainable Development Technology

2001, c. 23Canada Foundation for Sustainable Development Technology Act

 Paragraphs 9(2)(a) and (b) of the Canada Foundation for Sustainable Development Technology Act are replaced by the following:

  • (a) the Chairperson of the board appointed by the Governor in Council on the Minister’s recommendation;

  • (b) six persons appointed by the Governor in Council on the Minister’s recommendation; and

2007, c. 29Budget Implementation Act, 2007

 Section 143 of the Budget Implementation Act, 2007 is replaced by the following:

Marginal note:Maximum payment of $200,000,000

143 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding $200 million to the Canada Foundation for Sustainable Development Technology for its use.

Marginal note:Clarification — maximum payment

143.1 Despite section 143, the sum that may be paid out under that section is not to exceed the difference between $200 million and the sum paid out of the Consolidated Revenue Fund, on the requisition of the Minister of the Environment and the Minister of Natural Resources to the Canada Foundation for Sustainable Development Technology for its use, under section 143 as it read immediately before the day on which this section comes into force.

SCHEDULE 1(Section 96)

SCHEDULE 3(Subsection 52(1) and paragraph 94(c))

Disability Award

Column 1Column 2Column 3
Rate of Award

(%)

Extent of Disability

(%)

Lump Sum Amount

($)

10098-100360,000.00
9593-97342,000.00
9088-92324,000.00
8583-87306,000.00
8078-82288,000.00
7573-77270,000.00
7068-72252,000.00
6563-67234,000.00
6058-62216,000.00
5553-57198,000.00
5048-52180,000.00
4543-47162,000.00
4038-42144,000.00
3533-37126,000.00
3028-32108,000.00
2523-2790,000.00
2018-2272,000.00
1513-1754,000.00
108-1236,000.00
55-718,000.00
4414,400.00
3310,800.00
227,200.00
113,600.00

SCHEDULE 2(Section 224)

SCHEDULE III(Subsections 63(2) and 63.1(1))Text of Section 58 as It Read Before June 23, 2015

  • Definition of insured participants

    • 58 (1) In this Part, insured participant means an insured person who requests assistance under employment benefits and, when requesting the assistance, is an unemployed person

      • (a) for whom a benefit period is established or whose benefit period has ended within the previous 36 months; or

      • (b) for whom a benefit period has been established in the previous 60 months and who

        • (i) was paid special benefits under section 22 or 23 during the benefit period,

        • (ii) subsequently withdrew from active participation in the labour force to care for one or more of their new-born children or one or more children placed with them for the purpose of adoption, and

        • (iii) is seeking to re-enter the labour force.

    • Marginal note:Interpretation

      (2) For the purposes of subsection (1), benefit period includes a benefit period established under the Unemployment Insurance Act and special benefits includes benefits under sections 18 and 20 of that Act.

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