Fall Economic Statement Implementation Act, 2022 (S.C. 2022, c. 19)

• 56 (1) The definitions tax benefit and tax consequences in subsection 245(1) of the Act are replaced by the following:

  tax benefit

  tax benefit means

  • (a) a reduction, avoidance or deferral of tax or other amount payable under this Act, and includes a reduction, avoidance or deferral of tax or other amount that would be payable under this Act but for a tax treaty,

  • (b) an increase in a refund of tax or other amount under this Act, and includes an increase in a refund of tax or other amount under this Act as a result of a tax treaty, or

  • (c) a reduction, increase or preservation of an amount that could at a subsequent time

    • (i) be relevant for the purpose of computing an amount referred to in paragraph (a) or (b), and

    • (ii) result in any of the effects described in paragraph (a) or (b); (avantage fiscal)

  tax consequences

  tax consequences, to a person, means

  • (a) the amount of income, taxable income or taxable income earned in Canada of the person under this Act,

  • (b) the tax or other amount payable by, or refundable to, the person under this Act, or

  • (c) any other amount that is, or could at a subsequent time be, relevant for the purpose of computing an amount referred to in paragraph (a) or (b); (attribut fiscal)

• (2) Subsection (1) applies in respect of transactions that occur

  • (a) on or after April 7, 2022; or

  • (b) before April 7, 2022 if a determination is made under subsection 152(1.11) of the Act on or after April 7, 2022 in respect of the transaction.

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

  first home savings account

  first home savings account or FHSA has the same meaning as in subsection 146.6(1); (compte d’épargne libre d’impôt pour l’achat d’une première propriété ou CELIAPP)

• (2) Subsection (1) comes into force on April 1, 2023.

• 58 (1) Subsection 253.1(1) of the Act is replaced by the following:

  Marginal note:Investments in limited partnerships

  • 253.1 (1) For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 146.1(2.1)(c), subsection 146.2(6), paragraph 146.4(5)(b), subsections 146.6(3) and 147.5(8), paragraph 149(1)(o.2), the definition private holding corporation in subsection 191(1), the definition investment fund in subsection 251.2(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, 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, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

• (2) Subsection (1) comes into force on April 1, 2023.

R.S., c. C-3Canada Deposit Insurance Corporation Act

• 59 (1) Section 5 of the schedule to the Canada Deposit Insurance Corporation Act is amended by adding the following after subsection (3):

  • Marginal note:First home savings account

    (3.1) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a first home savings account as defined in subsection 248(1) of the Income Tax Act, and the account is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from that depositor under any other first home savings account that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

• (2) Subsection (1) comes into force on April 1, 2023.

R.S., c. E-15Excise Tax Act

60 Subsection 98(3) of the Excise Tax Act is replaced by the following:

• 61 (1) The Act is amended by adding the following after section 285.02:

  Marginal note:Definitions

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

    gross entitlements

    gross entitlements of a person at any time, in respect of a planning activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)

    planning activity

    planning activity has the same meaning as in subsection 285.1(1). (activité de planification)

    section 325 avoidance planning

    section 325 avoidance planning, by a person, means a planning activity in respect of a transaction or series of transactions that meets the following conditions:

    • (a) the transaction or series of transactions is, or is part of, a section 325 avoidance transaction; and

    • (b) one of the purposes of the transaction or series of transactions is to

      • (i) reduce a transferee’s joint and several, or solidary, liability under section 325 for an amount payable or remittable under this Part by a transferor or for an amount that would be payable or remittable by the transferor but for a transaction or series of transactions in which an amount, that is or may be relevant in determining any obligations or entitlements under this Part of a person that dealt at arm’s length with the transferor or transferee immediately before the transaction or series of transactions, is used directly or indirectly to provide a tax benefit for the transferor or transferee, or

      • (ii) reduce the person or another person’s ability to pay any amount payable or remittable, or that may become payable or remittable, under this Part. (planification d’évitement de l’article 325)

    section 325 avoidance transaction

    section 325 avoidance transaction means a transaction or series of transactions in respect of which

    • (a) the conditions in paragraph 325(5)(a) or (b) are met; or

    • (b) if subsection 325(5) applied to the transaction or series of transactions, the amount determined under subparagraph 325(5)(c)(ii) would exceed the amount determined under subparagraph 325(5)(c)(i). (opération d’évitement de l’article 325)

    tax benefit

    tax benefit has the same meaning as in subsection 285.1(1). (avantage fiscal)

    transaction

    transaction includes an arrangement or event. (opération)

  • Marginal note:Penalty

    (2) Every person that engages in, participates in, assents to or acquiesces in a planning activity that they know is section 325 avoidance planning, or would reasonably be expected to know is section 325 avoidance planning, but for circumstances amounting to gross negligence, is liable to a penalty equal to the lesser of

    • (a) 50% of the amount payable or remittable under this Part in respect of which the joint and several, or solidary, liability was sought to be avoided through the planning, and

    • (b) the total of $100,000 and the person’s gross entitlements in respect of the planning at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning.

  • Marginal note:Clerical or secretarial services

    (3) Subsection (2) does not apply to a person solely because the person provided clerical services or secretarial services with respect to the planning.

• (2) Subsection (1) is deemed to have come into force on April 19, 2021.

• 62 (1) Subsections 288(1) and (2) of the Act are replaced by the following:

  Marginal note:Inspections

  • 288 (1) Subject to subsection (2), an authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Part

    • (a) inspect, audit or examine any documents, property or processes of a person that may be relevant in determining the obligations or entitlements of that or any other person under this Part;

    • (b) enter any premises or place where any business or commercial activity is carried on, where any property is kept, where anything is done in connection with any business or commercial activity or where any documents are or should be kept;

    • (c) require any person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration and enforcement of this Part and

      • (i) to attend with the authorized person at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

      • (ii) to answer the questions in writing, in any form specified by the authorized person; and

    • (d) require the person or any other person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Part.

  • Marginal note:Prior authorization

    (2) If any premises or place referred to in subsection (1) is a dwelling-house, an authorized person may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (3).

• (2) Paragraph 288(3)(a) of the Act is replaced by the following:

  • (a) there are reasonable grounds to believe that a dwelling-house is a premises or place referred to in subsection (1),

63 Paragraph 298(1)(e) of the Act is replaced by the following:

• 64 (1) Section 325 of the Act is amended by adding the following before subsection (1):

  Marginal note:Definitions

  • 325 (0.1) The following definitions apply in this section.

    property

    property includes money. (bien)

    transaction

    transaction includes an arrangement or event. (opération)

• (2) Subsection 325(5) of the Act is replaced by the following:

  • Marginal note:Anti-avoidance rules

    (5) For the purposes of this section, if a person transfers property to another person as part of a transaction or series of transactions, the following rules apply:

    • (a) the transferor is deemed to not be dealing at arm’s length with the transferee at the time of the transfer of the property if

      • (i) the transferor and the transferee do not deal at arm’s length at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, and

      • (ii) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable or remittable under this Part;

    • (b) an amount that the transferor is liable to pay or remit under this Part (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) in respect of that amount) is deemed to have become payable or remittable, as the case may be, in the reporting period of the transferor in which the property was transferred, if it is reasonable to conclude that one of the purposes of the transfer of the property is to avoid the payment of a future amount payable under this Part by the transferor or transferee; and

    • (c) the amount determined for A in paragraph (1)(d) is deemed to be the greater of

      • (i) the amount otherwise determined for A in paragraph (1)(d) without reference to this paragraph, and

      • (ii) the amount determined by the formula

        A − B

        where

        A

        is the fair market value of the property at the time of the transfer, and

        B

        is the fair market value, at its lowest at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, of the consideration given by the transferee for the transfer of the property (other than any part of the consideration that is in a form that is cancelled or extinguished during that period and for which no property that is neither cancelled nor extinguished during that period is substituted) provided that the consideration is held by the transferor at that time.

• (3) Subsections (1) and (2) are deemed to have come into force on April 19, 2021.

2002, c. 9, s. 5Air Travellers Security Charge Act

• 65 (1) The portion of subsection 70(2) of the Air Travellers Security Charge Act before paragraph (a) is replaced by the following:

  • Marginal note:Powers of authorized person

    (2) Subject to subsection (3), the authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Act

• (2) Paragraph 70(2)(b) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

  • (b) require any person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Act and

    • (i) to attend with the authorized person at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

    • (ii) to answer the questions in writing, in any form specified by the authorized person; and

  • (c) require any person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Act.

• (3) Subsection 70(3) of the Act is replaced by the following:

  • Marginal note:Prior authorization

    (3) If any place referred to in subsection (2) is a dwelling-house, the authorized person may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4).

• (4) Paragraph 70(4)(a) of the Act is replaced by the following:

  • (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in subsection (2);