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Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)

Assented to 2018-12-13

Budget Implementation Act, 2018, No. 2

S.C. 2018, c. 27

Assented to 2018-12-13

A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

RECOMMENDATION

Her 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 “A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures”.

SUMMARY

Part 1 implements certain income tax and related measures by

  • (a) introducing rules intended to provide greater certainty with respect to various tax consequences arising from certain foreign divisive reorganizations;

  • (b) ensuring that the existing cross-border anti-surplus stripping rule cannot be circumvented through transactions involving the use of partnerships or trusts;

  • (c) introducing rules to prevent misuse of the foreign accrual property income regime through the use of tracking interests involving foreign affiliates;

  • (d) ensuring consistency between the trading or dealing in indebtedness rules and the investment business rules within the foreign accrual property income regime;

  • (e) ensuring that the at-risk rules apply appropriately at each level of a tiered partnership structure;

  • (f) providing that the Minister of Public Safety and Emergency Preparedness can determine international operational missions for the purpose of the deduction available for income earned by members of the Canadian Forces or police officers on such missions;

  • (g) amending the synthetic equity arrangement rules and securities lending arrangement rules to prevent the artificial generation of losses through the use of equity-based financial instruments;

  • (h) ensuring that social assistance payments under certain programs do not preclude individuals from receiving the Canada Child Benefit;

  • (i) ensuring that an individual who is eligible to receive the Canada Workers Benefit can receive the benefit without having to claim it;

  • (j) introducing a refundable tax credit for the purposes of the climate action incentive;

  • (k) providing allocation rules for losses applied against Part IV taxes;

  • (l) preventing the creation of artificial losses on shares held as mark-to-market property by financial institutions;

  • (m) revising the rules relating to the non-partisan political activities of charities;

  • (n) ensuring that a taxpayer is subject to a three-year extended reassessment period in respect of any income, loss or other amount arising in connection with a foreign affiliate of the taxpayer;

  • (o) providing the Canada Revenue Agency with an extended reassessment period of an additional three years, to the extent that the reassessment relates to the adjustment of a loss carryback for transactions involving a taxpayer and non-resident non-arm’s length persons;

  • (p) extending the reassessment period of a taxpayer by the period of time during which a requirement for information or compliance order is contested;

  • (q) requiring that information returns in respect of a taxpayer’s foreign affiliates be filed within 10 months after the end of the taxpayer’s taxation year;

  • (r) enabling the disclosure of taxpayer and other confidential tax information to Canada’s bilateral mutual legal assistance treaty partners for the purposes of non-tax criminal investigations and prosecutions of certain serious crimes; and

  • (s) providing a deduction for employee contributions to the enhanced portion of the Quebec Pension Plan.

Part 1 also amends the Mutual Legal Assistance in Criminal Matters Act to, among other things, define the term “agreement” as applying, among other things, to tax information exchange agreements and tax treaties to which Canada is a party, and provide for orders to produce financial information for the purposes of investigation and prosecution of certain offences set out in subsection 462.48(1.1) of the Criminal Code. The enactment also amends paragraph 462.48(2)(c) of the Criminal Code to provide that information may also be gathered under Part IX of the Excise Tax Act and under the Excise Act, 2001.

Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by

(a) replacing the requirement that GST/HST be collected on a sale of carbon emission allowances with a requirement that the purchaser self-assess that GST/HST;

(b) extending the assessment period for group registered education savings plan trusts that make a special relieving election in respect of their past HST liability;

(c) introducing GST/HST rules in respect of investment limited partnerships;

(d) clarifying the intended tax policy of excluding books that are sold by a public service body from the GST/HST rebate for printed books;

(e) introducing amendments similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested; and

(f) introducing amendments similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes.

Part 3 implements certain excise measures by

(a) broadening the refund regime in respect of excise tax on diesel fuel to allow a vendor to apply for a refund where a purchaser will use excise tax-paid diesel fuel to generate electricity, if certain conditions are met;

(b) introducing an anti-avoidance excise measure relating to the taxation of cannabis in respect of the rules establishing the value of a cannabis product on which an ad valorem duty is calculated;

(c) introducing amendments to the Air Travellers Security Charge Act and the Excise Act, 2001 that are similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested;

(d) introducing amendments to the Excise Act, 2001 that are similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes; and

(e) making housekeeping amendments to the Excise Act, 2001 in order to ensure consistency between the English and French version of the legislation.

Part 4 enacts and amends several Acts in order to implement various measures.

Division 1 of Part 4 amends the Customs Tariff in order to simplify it and reduce the administrative burden for Canadian businesses and the Government of Canada by consolidating similar tariff items that have the same tariff rates and removing end-use provisions where appropriate. The amendments also clarify existing tariff provisions and make other technical amendments.

Division 2 of Part 4 amends the Canada Pension Plan to modify the calculation of the amount to be attributed for a year in which a contributor is a family allowance recipient and their first or second additional contributory period begins or ends.

Subdivision A of Division 3 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things,

  • (a) establish thresholds below which the acquisition of control of certain entities, or the acquisition or increase of a substantial investment in them, does not require the approval of the Superintendent of Financial Institutions;

  • (b) allow financial institutions to invest in the Canadian business growth fund; and

  • (c) ensure that customers can provide consent electronically to receive electronic documents.

It also corrects a reference to the Insurance Companies Act in the Budget Implementation Act, 2018, No. 1.

Subdivision B of Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things,

  • (a) make technical amendments to clarify the method of calculating insured deposits, to remove outdated references, to repeal certain provisions not yet in force and to clarify that withdrawals made following the amalgamation of two or more member institutions or the continuance as a federal credit union will be considered to be made from pre-existing deposits and that the separation of accounts following the amalgamation is limited to a period of two years;

  • (b) exclude amounts borrowed by the Canada Deposit Insurance Corporation under paragraph 60.2(2)(c) of the Financial Administration Act from the calculation of the Corporation’s total principal indebtedness; and

  • (c) clarify that the liquidator of a member institution of the Canada Deposit Insurance Corporation must not apply the law of set-off or compensation to a claim related to insured deposits.

It also repeals two sections of the Financial System Review Act.

Subdivision C of Division 3 of Part 4 amends the Office of the Superintendent of Financial Institutions Act, the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things, clarify that providing legally privileged information to the Superintendent of Financial Institutions does not constitute a waiver of the privilege.

Division 4 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to remove the right of persons to decide not to proceed further with importing or exporting currency or monetary instruments that are required to be reported.

Division 5 of Part 4 amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act to, among other things, allow for the application, within the offshore area, of the provincial greenhouse gas pricing regime and to confer powers and impose duties and functions on the Canada–Newfoundland and Labrador Offshore Petroleum Board for the application of that regime. It also amends the Greenhouse Gas Pollution Pricing Act to provide that the provincial regime does not apply if the offshore area is mentioned in Part 2 of Schedule 1 to that Act. Finally, it amends the Offshore Health and Safety Act to postpone the repeal of certain regulations.

Division 6 of Part 4 amends the Canada Business Corporations Act to set out criteria for identifying individuals with significant control over a corporation. The Division also sets out a requirement for a corporation that meets certain criteria to keep a register of individuals with significant control and requirements respecting the information to be recorded in it. Finally, the Division includes applicable offences and punishments.

Subdivision A of Division 7 of Part 4 amends the Patent Act in order to

  • (a) provide a regulation-making authority for the establishment of requirements for written demands relating to patents;

  • (b) specify that an act committed for the purpose of experimentation relating to the subject matter of a patent is not an infringement of the patent and that licencing commitments that bind the owner of a standard-essential patent or the holder of a certificate of supplementary protection that sets out such a patent bind any subsequent owners or holders;

  • (c) expand the rights of a person in respect of a claim in a patent who meets the requirements to be considered a prior user;

  • (d) ensure that patent prosecution histories may be admissible into evidence for certain purposes;

  • (e) clarify when a late fee must be paid in respect of divisional applications as well as when the confidentiality period begins in the case where a request for priority is deemed never to have been made.

Subdivision B of Division 7 of Part 4 amends the Trade-marks Act to, among other things,

  • (a) add bad faith as a ground of opposition to the registration of a trade-mark and for the invalidation of a trade-mark registration;

  • (b) prevent the owner of a registered trade-mark from obtaining relief for acts done contrary to section 19, 20 or 22 of that Act during the first three years after the trade-mark is registered unless the trade-mark was in use in Canada during that period or special circumstances exist that excuse the absence of use;

  • (c) clarify that the prohibitions in subparagraph 9(1)(n)(iii) and section 11 of that Act do not apply with respect to a badge, crest, emblem or mark that was the subject of a public notice of adoption and use as an official mark if the entity that made the request for the public notice is not a public authority or no longer exists; and

  • (d) modernize the conduct of various proceedings before the Registrar of Trade-marks, including by providing the Registrar with additional powers in such proceedings.

It also makes certain housekeeping amendments to provisions of the Trade-marks Act that are enacted by the Economic Action Plan 2014 Act, No. 1 and the Combating Counterfeit Products Act.

Subdivision C of Division 7 of Part 4 amends the Copyright Act in order to specify that certain information is not permitted to be included within a notice under the notice and notice regime and to provide for a regulation-making power to prohibit further types of information from being included within such a notice.

Subdivision D of Division 7 of Part 4 enacts the College of Patent Agents and Trade-mark Agents Act. That Act establishes the College of Patent Agents and Trade-mark Agents, which is to be responsible for the regulation of patent agents and trade-mark agents in the public interest. That Act, among other things,

  • (a) requires that individuals obtain a licence in order to act as patent agents or trade-mark agents and that licensees comply with a code of professional conduct;

  • (b) authorizes the College’s Investigations Committee to receive complaints and conduct investigations into whether a licensee has committed professional misconduct or was incompetent;

  • (c) authorizes the College’s Discipline Committee to impose disciplinary measures if it decides that a licensee has committed professional misconduct or was incompetent; and

  • (d) creates new offences of claiming to be a patent agent or trade-mark agent and unauthorized representation before the Patent Office or the Office of the Registrar of Trade-marks.

That Subdivision also makes consequential amendments to certain Acts.

Subdivision E of Division 7 of Part 4 amends the Bankruptcy and Insolvency Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of in an insolvency proceeding or when the agreement relating to such property rights is disclaimed or resiliated in such a proceeding. It also amends the Companies’ Creditors Arrangement Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of.

Subdivision F of Division 7 of Part 4 amends the Access to Information Act and the Privacy Act to provide that the head of a government institution may refuse to disclose, under either of those Acts, information that is subject to the privilege set out in section 16.1 of the Patent Act or section 51.13 of the Trade-marks Act. It makes a related amendment to the Pest Control Products Act.

Subdivision G of Division 7 of Part 4 amends the National Research Council Act to clarify that the National Research Council of Canada has the authority to dispose of all forms of intellectual property that it develops, including future rights to such property and to provide the Council with the authority to dispose of real, personal, movable and immovable property, complementing the current provision in the Act that allows it to acquire such property.

Subdivision H of Division 7 of Part 4 amends the Copyright Act in order to modernize the legislative framework relating to the Copyright Board so as to improve the timeliness and clarity of its proceedings and decision-making processes. More specifically, it repeals spent provisions and

  • (a) codifies the Board’s mandate and establishes decision-making criteria;

  • (b) establishes new timelines in respect of Board matters, including earlier filing dates for proposed tariffs and longer effective periods for approved tariffs, and empowers the Governor in Council to make additional timelines by regulation;

  • (c) formalizes case management of Board proceedings;

  • (d) reduces the number of matters that must be considered by the Board;

  • (e) streamlines procedural steps across different tariff contexts, maintaining differences between them only where necessary;

  • (f) amends relevant enforcement provisions, including the availability of statutory damages for certain parties in respect of Board-set royalty rates and enforcement of Board-set terms and conditions; and

  • (g) modernizes existing language and structure for greater clarity and consistency.

Division 8 of Part 4 amends the Employment Insurance Act to, among other things, increase the maximum number of weeks for which parental benefits may be paid if these benefits are divided between claimants. It also amends the Canada Labour Code to, among other things, increase the aggregate amount of leave that may be taken by employees under sections 206.1 and 206.2 if that leave is divided between employees.

Division 9 of Part 4 enacts the Canadian Gender Budgeting Act in order to state the Government’s policy of promoting gender equality and inclusiveness by taking gender and diversity into consideration in the budget process. It also establishes related reporting requirements.

Division 10 of Part 4 amends the Bank Act to strengthen provisions that apply to a bank or an authorized foreign bank in relation to the protection of customers and the public. It implements enhancements in the areas of corporate governance, responsible business conduct, disclosure and transparency, and redress. It also amends the Financial Consumer Agency of Canada Act to strengthen the mandate of the Financial Consumer Agency of Canada and grant additional powers to that Agency.

Division 11 of Part 4 amends the First Nations Land Management Act to give effect to amendments to the Framework Agreement on First Nation Land Management respecting, among other things, procedures for obtaining community approval of a land code, the lands to which a land code may apply, the addition of lands to First Nation land by order of the Minister and the transfer of capital moneys.

Division 12 of Part 4 amends the First Nations Fiscal Management Act to, among other things,

  • (a) enable more Aboriginal organizations and First Nations to benefit from the provisions of the Act in order to strengthen their financial management systems and give them access to long-term financing;

  • (b) address certain administrative issues identified by the bodies established under the Act; and

  • (c) provide another option for First Nations to access moneys held by Her Majesty for their use and benefit.

Division 13 of Part 4 amends the Export and Import Permits Act to give the Minister of Foreign Affairs the authority to issue an import allocation for goods that are included on the Import Control List under subsection 5(6) of that Act.

Division 14 of Part 4 enacts the Pay Equity Act to establish a proactive process for the achievement of pay equity by the redressing of the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes. The new Act requires federal public and private sector employers that have 10 or more employees to establish and maintain a pay equity plan within set time frames so as to identify and correct differences in compensation between predominantly female and predominantly male job classes for which the work performed is of equal value. The new Act provides for the powers, duties and functions of a Pay Equity Commissioner, which include facilitating the resolution of disputes, conducting compliance audits and investigating disputes, objections and complaints, as well as making orders and imposing administrative monetary penalties for violations of that Act. The new Act also requires the Pay Equity Commissioner to report annually to Parliament on the administration and enforcement of the new Act.

Division 14 also amends the Parliamentary Employment and Staff Relations Act to provide for the application of the Pay Equity Act to parliamentary employers with certain adaptations and without limiting the powers, privileges and immunities of the Senate, the House of Commons and the members of those Houses.

It also makes the Minister of Labour responsible for the administration of the Federal Contractors Program for Pay Equity.

Finally, it makes related and consequential amendments to certain Acts and repeals the section of the Budget Implementation Act, 2009 that enacts the Public Sector Equitable Compensation Act.

Subdivision A of Division 15 of Part 4 amends the Canada Labour Code to, among other things,

  • (a) provide five days of paid leave for victims of family violence, a personal leave of five days with three paid days, an unpaid leave for court or jury duty and a fourth week of annual vacation with pay for employees who have completed at least 10 consecutive years of employment;

  • (b) eliminate minimum length of service requirements for leaves and general holiday pay and reduce the length of service requirement for three weeks of vacation with pay;

  • (c) prohibit differences in rate of wages based on the employment status of employees;

  • (d) address continuity of employment issues when a work, undertaking or business becomes federally regulated or in cases of contract retendering; and

  • (e) update group and individual termination provisions by increasing the minimum notice of termination.

Subdivision B of Division 15 of Part 4 amends the Canada Labour Code to allow the Minister of Labour to designate a Head of Compliance and Enforcement who will exercise most of the powers and perform most of the duties and functions that are related to the administration and enforcement of Parts II, III and IV of the Code.

Division 16 of Part 4 amends the Wage Earner Protection Program Act to, among other things, increase the maximum amount that may be paid to an individual under the Act, expand the definition of eligible wages, expand the conditions under which a payment may be made under the Act and create additional requirements related to Her Majesty in right of Canada’s right of subrogation in respect of payments made under the Act.

Division 17 of Part 4 amends the Bretton Woods and Related Agreements Act, the European Bank for Reconstruction and Development Agreement Act and the Official Development Assistance Accountability Act to harmonize the periods within which the reports under those Acts must be laid before Parliament in order to better communicate Canada’s international development efforts. It also repeals the definition of “official development assistance” in the Official Development Assistance Accountability Act and confers the power to define this expression by regulation.

Division 17 also enacts the International Financial Assistance Act, which provides the Minister of Foreign Affairs and the Minister for International Development with powers, duties and functions to support the delivery of a sovereign loans program, an international assistance innovation program and a federal international assistance program that promotes the mitigation of or adaptation to climate change through repayable contributions.

Division 18 of Part 4 enacts the Department for Women and Gender Equality Act which, among other things, establishes the Department for Women and Gender Equality to assist the Minister responsible for that department in exercising or performing the Minister’s powers, duties and functions that extend to and include all matters relating to women and gender equality, including the advancement of equality in respect of sex, sexual orientation, or gender identity or expression and the promotion of a greater understanding of the intersection of sex and gender with other identity factors. It also contains transitional provisions. Finally, Division 18 makes consequential amendments to other Acts.

Division 19 of Part 4 enacts the Addition of Lands to Reserves and Reserve Creation Act which authorizes a Minister, designated by the Governor in Council, to set apart lands as reserves for the use and benefit of First Nations. The Division also repeals Part 2 of the Manitoba Claim Settlements Implementation Act and the Claim Settlements (Alberta and Saskatchewan) Implementation Act.

Division 20 of Part 4 amends section 715.42 of the Criminal Code to require the publication of any decision not to publish a remediation agreement or order related to that agreement and of any decision related to the review of such a decision, to specify that the court may make the first decision subject to a condition, including one related to the duration of non-publication, and to allow anyone to request a review of that decision.

Division 21 of Part 4 enacts the Poverty Reduction Act, which sets out two targets for poverty reduction in Canada.

Division 22 of Part 4 amends the Canada Shipping Act, 2001 to, among other things,

  • (a) authorize the Governor in Council to make regulations respecting the protection of the marine environment from the impacts of navigation and shipping activities;

  • (b) authorize the Minister of Transport to

    • (i) make an interim order to mitigate risks to marine safety or to the marine environment, and

    • (ii) exempt any person or vessel from the application of any provision of that Act or the regulations if doing so would allow the undertaking of research and development that may enhance marine safety or environmental protection;

  • (c) increase the maximum amount of an administrative penalty that the Governor in Council may fix by regulation;

  • (d) authorize the Minister of Fisheries and Oceans, pollution response officers and accompanying persons to enter private property in the case of a discharge of oil from a vessel or oil handling facility; and

  • (e) double the administration monetary penalties for certain violations.

Division 23 of Part 4 amends the Marine Liability Act to modernize the Ship-source Oil Pollution Fund, including, among other things,

  • (a) removing the Fund’s per-occurrence limit of liability;

  • (b) in the event that the Fund is depleted, authorizing the temporary transfer to the Fund of funds from the Consolidated Revenue Fund;

  • (c) modernizing the Fund’s levy so that the Fund is replenished by receivers and exporters of oil;

  • (d) ensuring that the Fund’s liability for claims for economic losses caused by oil pollution aligns with international conventions;

  • (e) providing that the Fund is liable for the costs and expenses incurred by the Minister of Fisheries and Oceans or any other person in respect of preventive measures when the occurrence for which those costs and expenses were incurred has not yet created a grave and imminent threat of causing oil pollution damage;

  • (f) authorizing the provision of up-front emergency funding out of the Fund to the Minister of Fisheries and Oceans for significant oil pollution incidents;

  • (g) creating an expedited, simplified process for small claims to the Fund; and

  • (h) providing for administrative monetary penalties for contraventions of specified or designated provisions under that Act.

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, 2018, No. 2.

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

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

  •  (1) Subsection 15(1.4) of the Income Tax Act is amended by adding “and” at the end of paragraph (c), by striking out “and” at the end of paragraph (d) and by repealing paragraph (e).

  • (2) Section 15 of the Act is amended by adding the following after subsection (1.4):

    • Marginal note:Division of corporation under foreign laws

      (1.5) If a non-resident corporation (in this subsection referred to as the “original corporation”) governed by the laws of a foreign jurisdiction undergoes a division under those laws that results in all or part of its property and liabilities becoming the property and liabilities of one or more other non-resident corporations (each of which is referred to in this subsection as a “new corporation”) and, as a consequence of the division, a shareholder of the original corporation acquires one or more shares (referred to in this subsection as “new shares”) of the capital stock of a new corporation at a particular time, the following rules apply:

      • (a) except to the extent that any of subparagraphs (1)(a.1)(i) to (iii) and paragraph (1)(b) applies (determined without reference to this subsection) to the acquisition of the new shares

        • (i) in the case where, for each class of shares of the capital stock of the original corporation of which shares are held by the shareholder immediately before the division, new shares are received at the particular time by shareholders of that class on a pro rata basis in respect of all the shares (referred to in this subsection as the “original shares”) of that class

          • (A) at the particular time, the original corporation is deemed to have distributed, and the shareholder is deemed to have received, as a dividend in kind in respect of the original shares, the new shares acquired by the shareholder at the particular time, and

          • (B) the amount of the dividend in kind received by the shareholder in respect of an original share is deemed to be equal to the fair market value, immediately after the particular time, of the new shares acquired by the shareholder at the particular time in respect of the original share, and

        • (ii) in any case where subparagraph (i) does not apply, the original corporation is deemed, at the particular time, to have conferred a benefit on the shareholder equal to the total fair market value, at that time, of the new shares acquired by the shareholder as a consequence of the division;

      • (b) any gain or loss of the original corporation from a distribution of the new shares as a consequence of the division is deemed to be nil; and

      • (c) each property of the original corporation that becomes at any time (referred to in this paragraph as the “disposition time”) property of the new corporation as a consequence of the division is deemed to be

        • (i) disposed of by the original corporation immediately before the disposition time for proceeds of disposition equal to the property’s fair market value, and

        • (ii) acquired by the new corporation at the disposition time at a cost equal to the amount determined under subparagraph (i) to be the original corporation’s proceeds of disposition.

  • (3) Subsection (1) is deemed to have come into force on October 24, 2012.

  • (4) Subsection (2) applies in respect of divisions that occur after October 23, 2012.

  •  (1) Subparagraph (a)(ii) of the definition equity amount in subsection 18(5) of the Act is replaced by the following:

    • (ii) the average of all amounts each of which is the corporation’s contributed surplus (other than any portion of that contributed surplus that arose at a time when the corporation was non-resident, or that arose in connection with a disposition to which subsection 212.1(1.1) applies or an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies) at the beginning of a calendar month that ends in the year, to the extent that it was contributed by a specified non-resident shareholder of the corporation, and

  • (2) Subsection (1) applies in respect of transactions or events that occur after February 26, 2018.

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

    • (k) any amount that would otherwise be proceeds of disposition of property of a taxpayer to the extent that the amount is deemed by subsection 84.1(1), 212.1(1.1) or 212.2(2) to be a dividend paid to the taxpayer or, if the taxpayer is a partnership, to a member of the taxpayer; (produit de disposition)

  • (2) Subsection (1) applies in respect of dispositions that occur after February 26, 2018.

  •  (1) Paragraphs 84(1)(c.1) and (c.2) of the Act are replaced by the following:

    • (c.1) if the corporation is an insurance corporation, any action by which it converts contributed surplus related to its insurance business (other than any portion of that contributed surplus that arose at a time when it was non-resident, or that arose in connection with a disposition to which subsection 212.1(1.1) applies or an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies) into paid-up capital in respect of the shares of its capital stock,

    • (c.2) if the corporation is a bank, any action by which it converts any of its contributed surplus that arose on the issuance of shares of its capital stock (other than any portion of that contributed surplus that arose at a time when it was non-resident, or that arose in connection with a disposition to which subsection 212.1(1.1) applies or an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies) into paid-up capital in respect of shares of its capital stock, or

  • (2) The portion of paragraph 84(1)(c.3) of the Act before subparagraph (ii) is replaced by the following:

    • (c.3) if the corporation is neither an insurance corporation nor a bank, any action by which it converts into paid-up capital in respect of a class of shares of its capital stock any of its contributed surplus that arose after March 31, 1977 (other than any portion of that contributed surplus that arose at a time when it was non-resident, or that arose in connection with a disposition to which subsection 212.1(1.1) applies or an investment, as defined in subsection 212.3(10), to which subsection 212.3(2) applies)

      • (i) on the issuance of shares of that class or shares of another class for which the shares of that class were substituted (other than an issuance to which section 51, 66.3, 84.1, 85, 85.1, 86 or 87 or subsection 192(4.1) or 194(4.1) applied),

  • (3) Subsections (1) and (2) apply in respect of transactions or events that occur after February 26, 2018.

  •  (1) Paragraph 93.1(1.1)(d) of the Act is replaced by the following:

    • (d) paragraph 95(2)(g.04), subsections 95(2.2) and (8) to (12) and section 126.

  • (2) Subsection (1) is deemed to have come into force on February 27, 2018.

  •  (1) The portion of paragraph 95(2)(l) of the Act after subparagraph (ii) and before subparagraph (iii) is replaced by the following:

    unless it is established by the taxpayer or the foreign affiliate that, throughout the period in the taxation year during which the business was carried on by the affiliate,

  • (2) The portion of subparagraph 95(2)(l)(iii) of the Act before clause (A) is replaced by the following:

    • (iii) the business (other than any business conducted principally with persons with whom the affiliate does not deal at arm’s length) is carried on by the affiliate as a foreign bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities, the activities of which are regulated under the laws

  • (3) Paragraph 95(2)(l) of the Act is amended by striking out “and” at the end of subparagraph (iii) and by repealing subparagraph (iv).

  • (4) The portion of subsection 95(2.11) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Rule for investment business definition and paragraph (2)(l)

      (2.11) A taxpayer or a foreign affiliate of the taxpayer, as the case may be, is deemed not to have established that the conditions in subparagraph (a)(i) of the definition investment business in subsection (1), or in subparagraph (2)(l)(iii), have been satisfied throughout a period in a particular taxation year of the affiliate unless

  • (5) Section 95 of the Act is amended by adding the following after subsection (7):

    • Marginal note:Tracking interests — interpretation

      (8) For the purposes of subsections (9) to (12), a particular property is a tracking interest in respect of a person or partnership (referred to in this subsection as the “tracked entity”) if

      • (a) all or part of the fair market value of the particular property — or of any payment or right to receive an amount in respect of the particular property — can reasonably be considered to be determined, directly or indirectly, by reference to one or more of the following criteria in respect of property or activities of the tracked entity (referred to in this subsection and subsections (9) to (11) as the “tracked property and activities”):

        • (i) the fair market value of property of the tracked entity,

        • (ii) any revenue, income or cash flow from property or activities of the tracked entity,

        • (iii) any profits or gains from the disposition of property of the tracked entity, and

        • (iv) any similar criteria in respect of property or activities of the tracked entity; and

      • (b) the tracked property and activities in respect of the particular property represent less than all of the property and activities of the tracked entity.

    • Marginal note:Tracking interests — investment business definition

      (9) For the purposes of the definition investment business in subsection (1), if, at any time in a taxation year of a foreign affiliate of a taxpayer, a person or partnership holds a tracking interest in respect of the affiliate or a partnership of which the affiliate is a member, the tracked property and activities in respect of the tracking interest are, to the extent they would not otherwise be part of an investment business of the affiliate, deemed, in respect of the taxpayer,

      • (a) to be a separate business carried on by the affiliate throughout the year; and

      • (b) not to be part of any other business of the affiliate.

    • Marginal note:Conditions for subsection (11)

      (10) Subsection (11) applies in respect of a foreign affiliate of a taxpayer for a taxation year of the affiliate if, at any time in the year,

      • (a) the taxpayer holds a property that is a tracking interest in respect of the affiliate; and

      • (b) shares of a class of the capital stock of the affiliate the fair market value of which can reasonably be considered to be determined by reference to the tracked property and activities in respect of the tracking interest (referred to in subsection (11) as a “tracking class”) are held by the taxpayer or a foreign affiliate of the taxpayer.

    • Marginal note:Tracking class — separate corporation

      (11) If this subsection applies in respect of a foreign affiliate (referred to in this subsection as the “actual affiliate”) of a taxpayer for a taxation year of the actual affiliate, the following rules apply for the purpose of determining the amounts, if any, to be included under subsection 91(1), and to be deducted under subsection 91(4), by the taxpayer in respect of the year and for the purpose of applying section 233.4 in respect of the year:

      • (a) the tracked property and activities of the actual affiliate are deemed to be property and activities of a non-resident corporation (referred to in this subsection as the “separate corporation”) that is separate from the actual affiliate and not to be property or activities of the actual affiliate;

      • (b) any income, losses or gains for the year in respect of the property and activities described in paragraph (a) are deemed to be income, losses or gains of the separate corporation and not of the actual affiliate;

      • (c) all rights and obligations of the actual affiliate in respect of the property and activities described in paragraph (a) are deemed to be rights and obligations of the separate corporation and not of the actual affiliate;

      • (d) the separate corporation is deemed to have, at the end of the year, 100 issued and outstanding shares of a single class (referred to in this subsection as the “single class”) of its capital stock, having full voting rights under all circumstances;

      • (e) each shareholder of the actual affiliate is deemed to own, at the end of the year, that number of shares of the single class that is equal to the product of 100 and the amount that would be the aggregate participating percentage (as defined in subsection 91(1.3)) of that shareholder in respect of the actual affiliate for the year if

        • (i) the actual affiliate were a controlled foreign affiliate of that shareholder at the end of the year,

        • (ii) the only shares of the capital stock of the actual affiliate issued and outstanding at the end of the year were shares of tracking classes in respect of the tracked properties and activities, and

        • (iii) the only income, losses and gains of the actual affiliate for the year were those referred to in paragraph (b); and

      • (f) any amounts included under subsection 91(1), or deducted under subsection 91(4), by the taxpayer in respect of shares of the separate corporation are deemed to be amounts included under subsection 91(1), or deducted under subsection 91(4), as the case may be, by the taxpayer in respect of shares of tracking classes held by the taxpayer or a foreign affiliate of the taxpayer, as the case may be.

    • Marginal note:Tracking interests – controlled foreign affiliate

      (12) If subsection (11) does not apply in respect of a foreign affiliate of the taxpayer for a taxation year of the affiliate, the affiliate is deemed to be a controlled foreign affiliate of the taxpayer throughout the taxation year if, at any time in the year, a tracking interest in respect of the affiliate, or a partnership of which the affiliate is a member, is held by

      • (a) the taxpayer; or

      • (b) a person or partnership (each referred to in this paragraph as a “holder”), if

        • (i) the holder does not deal at arm’s length with the taxpayer at that time,

        • (ii) where either the taxpayer or the holder is a partnership and the other party is not, any member of the partnership does not deal at arm’s length, at that time, with the other party, or

        • (iii) where both the taxpayer and the holder are partnerships, the taxpayer or any member of the taxpayer does not deal at arm’s length, at that time, with the holder or any member of the holder.

  • (6) Subsections (1) to (4) apply to taxation years of a foreign affiliate of a taxpayer that begin after February 26, 2018.

  • (7) Subsection (5) applies to taxation years of a foreign affiliate of a taxpayer that begin after February 26, 2018, except that, notwithstanding subsection 95(10) of the Act, as enacted by subsection (5), subsection 95(11) of the Act, as enacted by subsection (5), shall not apply in respect of a foreign affiliate of the taxpayer in respect of taxation years of the affiliate that begin after February 26, 2018 and before October 25, 2018, if the taxpayer

    • (a) elects in writing under this subsection in respect of all of its foreign affiliates; and

    • (b) files the election with the Minister of National Revenue on or before the day that is the later of

      • (i) the day that is six months after the day on which this Act receives royal assent, and

      • (ii) the taxpayer’s filing-due date for its taxation year that includes October 25, 2018.

  •  (1) Section 96 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Tiered partnerships

      (2.01) For the purposes of this section, a taxpayer includes a partnership.

  • (2) Subsection 96(2.1) of the Act is amended by striking out “and” at the end of paragraph (d) and by replacing paragraph (e) with the following:

    • (e) if the taxpayer is not a partnership, be deemed to be the taxpayer’s limited partnership loss in respect of the partnership for the year, and

    • (f) if the taxpayer is a partnership, reduce the taxpayer’s share of any loss of the partnership for a fiscal period of the partnership ending in the taxation year of the taxpayer from a business (other than a farming business) or from property.

  • (3) Section 96 of the Act is amended by adding the following after subsection (2.1):

    • Marginal note:Tiered partnerships — adjustments

      (2.11) The following rules apply to taxation years of a taxpayer that end after February 26, 2018:

      • (a) for the purpose of applying section 111, the taxpayer’s non-capital loss, or limited partnership loss in respect of a partnership, for a preceding taxation year shall be determined as if subsection (2.01) and paragraph (2.1)(f) applied in respect of taxation years that end before February 27, 2018; and

      • (b) in computing the adjusted cost base to the taxpayer of the taxpayer’s interest in a partnership after February 26, 2018, there shall be added an amount equal to the portion of the amount of any reduction because of paragraph (a) in a non-capital loss of the taxpayer that can reasonably be considered to relate to the amount of a loss deducted under subparagraph 53(2)(c)(i) in computing the adjusted cost base of that interest.

  • (4) Subsections (1) and (2) apply to taxation years that end after February 26, 2018.

  •  (1) Clause 110(1)(f)(v)(A) of the Act is replaced by the following:

    • (A) the employment income earned by the taxpayer as a member of the Canadian Forces, or as a police officer, while serving on a deployed operational mission (as determined by the Department of National Defence or the Department of Public Safety and Emergency Preparedness) that is

      • (I) assessed for risk allowance at level 3 or higher (as determined by the Department of National Defence), or

      • (II) assessed at a risk score greater than 1.99 and less than 2.50 (as determined by the Department of National Defence) and designated by the Minister of Finance, and

  • (2) Clause 110(1)(f)(v)(A) of the Act is replaced by the following:

    • (A) the employment income earned by the taxpayer as a member of the Canadian Forces, or as a police officer, while serving on a deployed international operational mission (as determined by the Minister of National Defence, the Minister of Public Safety and Emergency Preparedness or by a person designated by either Minister), and

  • (3) Subsection (1) applies in respect of missions initiated after September 2012 and in respect of missions initiated before October 2012 that were not prescribed under Part LXXV of the Income Tax Regulations as that Part read on February 28, 2013.

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

  •  (1) Paragraph 112(2.31)(b) of the Act is replaced by the following:

    • (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.

  • (2) Subparagraph 112(2.32)(a)(ii) of the Act is replaced by the following:

    • (ii) 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) has not been eliminated and cannot reasonably be expected by it to be eliminated;

  • (3) Clause 112(2.32)(b)(iii)(B) of the Act is replaced by the following:

    • (B) 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) has not been eliminated and cannot reasonably be expected by it to be eliminated;

  • (4) Clause 112(2.32)(c)(iii)(B) of the Act is replaced by the following:

    • (B) 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) has not been eliminated and cannot reasonably be expected by it to be eliminated; or

  • (5) Subsection 112(2.33) of the Act is replaced by the following:

    • 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 — that all or substantially all of its risk of loss and opportunity for gain or profit in respect of the share will be eliminated, the particular period for which it has provided a representation in respect of the share is deemed to end at that time.

  • (6) The description of B in subsection 112(5.2) of the Act is replaced by the following:

    B
    is
    • (a) if the taxpayer received a dividend under subsection 84(3) in respect of the share, the total determined under subparagraph (b)(ii), and

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

      • (i) the loss, if any, from the disposition of the share that would be determined before the application of this subsection if the cost of the share to any taxpayer were determined without reference to

        • (A) paragraphs 87(2)(e.2) and (e.4), 88(1)(c), 138(11.5)(e) and 142.5(2)(b),

        • (B) subsection 85(1), where the provisions of that subsection are required by paragraph 138(11.5)(e) to be applied, and

        • (C) paragraph 142.6(1)(d), and

      • (ii) the total of all amounts each of which is

        • (A) where the taxpayer is a corporation, a taxable dividend received by the taxpayer on the share, to the extent of the amount that was deductible under this section or subsection 115(1) or 138(6) in computing the taxpayer’s taxable income or taxable income earned in Canada for any taxation year,

        • (B) where the taxpayer is a partnership, a taxable dividend received by the taxpayer on the share, to the extent of the amount that was deductible under this section or subsection 115(1) or 138(6) in computing the taxable income or taxable income earned in Canada for any taxation year of members of the partnership,

        • (C) where the taxpayer is a trust, an amount designated under subsection 104(19) in respect of a taxable dividend on the share, or

        • (D) a dividend (other than a taxable dividend) received by the taxpayer on the share,

  • (7) Paragraph (c) of the description of C in subsection 112(5.2) of the Act is replaced by the following:

    • (c) where the taxpayer is a partnership, a loss of a member of the partnership on a deemed disposition of the share before that time was reduced because of subsection (3.1) or (4), and

  • (8) The portion of subsection 112(5.21) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Subsection (5.2) — excluded dividends

      (5.21) A dividend, other than a dividend received under subsection 84(3), shall not be included in the total determined under subparagraph (b)(ii) of the description of B in subsection (5.2) unless

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

    • Marginal note:Exception

      (9.1) Subsection (8) does not apply for the purpose of paragraph (5.21)(b) in respect of a dividend received on a share, referred to in paragraph (a) of the description of B in subsection (5.2), during a synthetic disposition period of a synthetic disposition arrangement in respect of that share.

  • (10) Subsections (1) to (5) apply in respect of dividends that are paid or become payable after February 26, 2018.

  • (11) Subsections (6) to (9) apply in respect of dispositions that occur after February 26, 2018.

  •  (1) The definition eligible individual in section 122.6 of the Act is amended by striking out “and” at the end of paragraph (g), by adding “and” at the end of paragraph (h) and by adding the following after paragraph (h):

    • (i) an individual shall not fail to qualify as a parent (within the meaning assigned by section 252) of another individual solely because of the receipt of a social assistance amount that is payable under a program of the Government of Canada or the government of a province for the benefit of the other individual; (particulier admissible)

  • (2) Subsection (1) is deemed to have come into force on January 1, 2008.

  •  (1) The definition working income in subsection 122.7(1) of the Act is replaced by the following:

    working income

    working income, of an individual for a taxation year, means the total of

    • (a) the total of all amounts each of which would, if this Act were read without reference to section 8, be the individual’s income for the taxation year from an office or employment,

    • (b) all amounts that are included because of paragraph 56(1)(n) or (o) or subparagraph 56(1)(r)(v) in computing the individual’s income for a period in the taxation year, and

    • (c) the total of all amounts each of which is the individual’s income for the taxation year from a business carried on by the individual otherwise than as a specified member of a partnership. (revenu de travail)

  • (2) Paragraph (a) of the definition adjusted net income in subsection 122.7(1) of the Act is repealed.

  • (3) Section 122.7 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Optional amounts

      (1.1) An individual may determine the total amount for the definition working income for both the individual and the individual’s eligible spouse, if applicable, for a taxation year as if the Act were read without reference to paragraph 81(1)(a) and subsection 81(4) and if so, the individual shall determine the total amount for the definition adjusted net income for both the individual and the individual’s eligible spouse, if applicable, for the taxation year as if the Act were read without reference to paragraph 81(1)(a) and subsection 81(4).

  • (4) The portion of subsection 122.7(2) of the Act before the formula is replaced by the following:

    • Marginal note:Deemed payment on account of tax

      (2) Subject to subsections (4) and (5), an eligible individual for a taxation year who files a return of income for the taxation year is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula

  • (5) Subsection 122.7(5) of the Act is replaced by the following:

    • Marginal note:Only one eligible individual

      (5) If an eligible individual has an eligible spouse for a taxation year and both those individuals would be, but for this subsection, eligible individuals for the purposes of subsection (2) in respect of the taxation year,

      • (a) if the individuals agree on which individual is the eligible individual for the taxation year, only that individual shall be an eligible individual for the purposes of subsection (2) in respect of the taxation year; and

      • (b) in any other case, only the individual that the Minister designates is the eligible individual for the purposes of subsection (2) in respect of the taxation year.

  • (6) Subsection 122.7(10) of the Act is replaced by the following:

    • Marginal note:Special rules for eligible dependant

      (10) For the purpose of applying subsections (2) and (3), if an individual (referred to in this subsection as the “child”) would be, but for this subsection, an eligible dependant of more than one eligible individual for a taxation year, the child is deemed only to be an eligible dependant of

      • (a) if the individuals agree, the agreed upon individual; and

      • (b) in any other case, the individual designated by the Minister.

  • (7) Subsections (1) to (6) come into force or are deemed to have come into force on January 1, 2019.

  •  (1) The Act is amended by adding the following after section 122.71:

    SUBDIVISION A.3Climate Action Incentive

    Marginal note:Definitions

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

      cohabiting spouse or common-law partner

      cohabiting spouse or common-law partner, of an individual at any time, has the same meaning as in section 122.6. (époux ou conjoint de fait visé)

      eligible individual

      eligible individual, for a taxation year, means an individual (other than a trust) who is, at the end of the taxation year,

      • (a) 18 years of age or older;

      • (b) a parent who resides with their child; or

      • (c) married or in a common-law partnership. (particulier admissible)

      qualified dependant

      qualified dependant, of an individual for a taxation year, means a person who, at the end of the taxation year,

      • (a) is the individual’s child or is dependent for support on the individual or on the individual’s cohabiting spouse or common-law partner;

      • (b) resides with the individual;

      • (c) is under the age of 18 years;

      • (d) is not an eligible individual for the taxation year; and

      • (e) is not a qualified relation of any individual for the taxation year. (personne à charge admissible)

      qualified relation

      qualified relation, of an individual for a taxation year, means the person, if any, who, at the end of the taxation year, is the individual’s cohabiting spouse or common-law partner. (proche admissible)

      return of income

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

    • Marginal note:Persons not eligible individuals, qualified relations or qualified dependants

      (2) Notwithstanding subsection (1), a person is not an eligible individual, is not a qualified relation and is not a qualified dependant, for a taxation year, if the person

      • (a) died before April of the year following the taxation year;

      • (b) is confined to a prison or similar institution for a period of at least 90 days during the taxation year;

      • (c) is a non-resident person at any time in the taxation year;

      • (d) is a person described in paragraph 149(1)(a) or (b) at any time in the taxation year; or

      • (e) is a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable at any time in the taxation year.

    • Marginal note:Residence

      (3) For the purposes of this section, an individual is considered to reside at any time only at their principal place of residence.

    • Marginal note:Deemed overpayment

      (4) An eligible individual 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 taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount determined by the formula

      (A + B + C × D) × E

      where

      A
      is the amount specified by the Minister of Finance for an eligible individual for the taxation year for the province (in this subsection and subsection (6) referred to as the “relevant province”) in which the eligible individual resides at the end of the taxation year;
      B
      is
      • (a) the amount specified by the Minister of Finance for a qualified relation for the taxation year for the relevant province, if

        • (i) the eligible individual has a qualified relation at the end of the taxation year, or

        • (ii) subparagraph (i) does not apply and the eligible individual has a qualified dependant at the end of the taxation year, and

      • (b) in any other case, nil;

      C
      is the amount specified by the Minister of Finance for a qualified dependant for the taxation year for the relevant province;
      D
      is the number of qualified dependants of the eligible individual at the end of the taxation year, other than a qualified dependant in respect of whom an amount is included because of subparagraph (a)(ii) of the description of B for the taxation year; and
      E
      is
      • (a) 1.1, if there is a census metropolitan area, as determined in the last census published by Statistics Canada before the taxation year, in the relevant province and the individual does not reside in a census metropolitan area at the end of the taxation year, and

      • (b) 1, in any other case.

    • Marginal note:Authority to specify amounts

      (5) The Minister of Finance may specify amounts for a province for a taxation year for the purposes of this section. If the Minister of Finance does not specify a particular amount that is relevant for the purposes of this section, that particular amount is deemed to be nil for the purpose of applying this section.

    • Marginal note:Deemed rebate in respect of fuel charges

      (6) The amount deemed by this section to have been paid on account of tax payable for a taxation year is deemed to have been paid in the year following the taxation year as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the relevant province.

    • Marginal note:Only one eligible individual

      (7) If an individual is a qualified relation of another individual for a taxation year and both those individuals would be, but for this subsection, eligible individuals for the taxation year, only the individual that the Minister designates is the eligible individual for the taxation year.

    • Marginal note:Exception — qualified dependant

      (8) If a person would, if this Act were read without reference to this subsection, be the qualified dependant of two or more individuals, for a taxation year,

      • (a) the person is deemed to be a qualified dependant, for the taxation year, of the one of those individuals on whom those individuals agree; and

      • (b) in any other case, the person is deemed to be, for the taxation year, a qualified dependant only of the individual that the Minister designates.

    • Marginal note:Effect of bankruptcy

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

  • (2) Subsection (1) applies to the 2018 and subsequent taxation years.

  •  (1) Section 128.1 of the Act is amended by adding the following after subsection (1.1):

    • Marginal note:Trusts and partnerships look-through rule

      (1.2) For the purposes of this subsection and paragraph (1)(c.1), if at any time shares of the capital stock of a corporation resident in Canada are owned by a trust or a partnership (each referred to in this subsection as a “conduit”), each person or partnership with an interest as a beneficiary under the conduit or that is a member of the conduit (each referred to in this subsection as a “holder”), as the case may be, is deemed to own the shares of each class of the capital stock of the corporation that are owned by the conduit the number of which is determined by the formula

      A × B/C

      where

      A
      is the total number of shares of the class of the capital stock of the corporation that is owned by the conduit at that time;
      B
      is the fair market value, at that time, of the holder’s interest in the conduit; and
      C
      is the total fair market value, at that time, of all interests in the conduit.
  • (2) Subsection (1) applies in respect of transactions or events that occur after February 26, 2018.

  •  (1) Section 129 of the Act is amended by adding the following after subsection (4):

    • Marginal note:Conditions for subsection (4.2)

      (4.1) Subsection (4.2) applies in respect of a particular taxation year of a particular corporation if the following conditions are met:

      • (a) the particular corporation has an amount of tax payable for the year under Part IV;

      • (b) the particular corporation has claimed amounts under paragraph 186(1)(c) or (d) in respect of the year; and

      • (c) the particular corporation would, in the absence of paragraphs 186(1)(c) and (d), have an amount determined, at the end of the year, under both paragraph (a) of the definition eligible refundable dividend tax on hand and paragraph (b) of the definition non-eligible refundable dividend tax on hand in subsection (4).

    • Marginal note:Part IV tax — allocation of losses

      (4.2) If this subsection applies in respect of a particular taxation year of a corporation, for the purpose of determining the amount under paragraph (a) of the definition eligible refundable dividend tax on hand in subsection (4), in respect of the corporation at the end of the year, the amount determined under subsection 186(1) in respect of the corporation for the year is deemed to be the amount determined by the formula

      A + B − C

      where

      A
      is the amount determined under paragraph 186(1)(a) in respect of the corporation for the year in respect of eligible dividends;
      B
      is the amount determined under paragraph 186(1)(b) in respect of the corporation for the year in respect of dividends that resulted in dividend refunds from the eligible refundable dividend tax on hand of other corporations; and
      C
      is the amount determined by the formula

      38 1/3% (D + E) − (F + G)

      where

      D
      is the amount claimed by the corporation under paragraph 186(1)(c) for the year,
      E
      is the amount claimed by the corporation under paragraph 186(1)(d) for the year,
      F
      is the amount determined under paragraph 186(1)(a) in respect of the corporation for the year in respect of taxable dividends (other than eligible dividends), and
      G
      is the amount determined under paragraph 186(1)(b) in respect of the corporation for the year in respect of dividends that resulted in dividend refunds from the non-eligible refundable dividend tax on hand of other corporations.
  • (2) Subsection (1) applies to taxation years that begin after 2018.

  •  (1) Section 142.5 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Proceeds — mark-to-market property

      (4) For greater certainty, if a taxpayer is a financial institution in a taxation year and disposes of a share that is mark-to-market property of the taxpayer for the year, the taxpayer’s proceeds from the disposition do not include any amount that would otherwise be proceeds from the disposition 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 by subparagraph 88(2)(b)(ii) not to be a dividend.

  • (2) Subsection (1) applies in respect of dispositions that occur after February 26, 2018.

  •  (1) The definition political activity in subsection 149.1(1) of the Act is repealed.

  • (2) The definition charitable purposes in subsection 149.1(1) of the Act is replaced by the following:

    charitable purposes

    charitable purposes includes the disbursement of funds to a qualified donee; (fins de bienfaisance)

  • (3) Paragraph (a) of the definition charitable organization in subsection 149.1(1) of the Act is replaced by the following:

    • (a) constituted and operated exclusively for charitable purposes,

    • (a.1) all the resources of which are devoted to charitable activities carried on by the organization itself,

  • (4) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:

    charitable activities

    charitable activities includes public policy dialogue and development activities carried on in furtherance of a charitable purpose; (activités de bienfaisance)

  • (5) The portion of subsection 149.1(1.1) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Exclusions

      (1.1) For the purposes of paragraphs (2)(b), (3)(b) and (4)(b) and subsection (21), the following shall be deemed to be neither an amount expended in a taxation year on charitable activities nor a gift made to a qualified donee:

  • (6) Subsection 149.1(1.1) of the Act is amended by adding “and” at the end of paragraph (a) and by repealing paragraph (b).

  • (7) Paragraphs 149.1(6)(b) and (c) of the Act are replaced by the following:

    • (b) in any taxation year, it disburses not more than 50% of its income for that year to qualified donees; or

    • (c) it disburses income to a registered charity that the Minister has designated in writing as a charity associated with it.

  • (8) Subsections 149.1(6.1) and (6.2) of the Act are replaced by the following:

    • Marginal note:Charitable purposes

      (6.1) For the purposes of the definition charitable foundation in subsection (1), a corporation or trust that devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office shall not be considered to be constituted and operated exclusively for charitable purposes.

    • Marginal note:Charitable purposes

      (6.2) For the purposes of the definition charitable organization in subsection (1), an organization that devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office shall not be considered to be constituted and operated exclusively for charitable purposes.

  • (9) Subsection 149.1(6.201) of the Act is replaced by the following:

    • Marginal note:Activities of Canadian amateur athletic associations

      (6.201) For the purposes of the definition Canadian amateur athletic association in subsection (1), an association that devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office shall not be considered to devote that part of its resources to its exclusive purpose and exclusive function.

  • (10) Subsection 149.1(10) of the Act is replaced by the following:

    • Marginal note:Deemed charitable activity

      (10) An amount paid by a charitable organization to a qualified donee that is not paid out of the income of the charitable organization is deemed to be a devotion of a resource of the charitable organization to a charitable activity carried on by it.

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

    • Marginal note:Public policy activities

      (10.1) Subject to subsections (6.1) and (6.2), public policy dialogue and development activities carried on by an organization, corporation or trust in support of its stated purposes shall be considered to be carried on in furtherance of those purposes and not for any other purpose.

  • (12) Subsections (1), (2), (7) and (10) are deemed to have come into force

    • (a) on June 29, 2012 in respect of organizations, corporations and trusts that are registered charities on September 14, 2018 and in respect of associations that are registered Canadian amateur athletic associations on that date; and

    • (b) on September 14, 2018 in any other case.

  • (13) Subsections (3), (4), (6), (8) and (11) are deemed to have come into force

    • (a) on January 1, 2008 in respect of organizations, corporations and trusts that are registered charities on September 14, 2018; and

    • (b) on September 14, 2018 in any other case.

  • (14) Subsection (9) is deemed to have come into force

    • (a) on January 1, 2012 in respect of associations that are registered Canadian amateur athletic associations on September 14, 2018; and

    • (b) on September 14, 2018 in any other case.

  •  (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(4), 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) Subparagraph 152(4)(b)(iii) of the French version of the Act is replaced by the following:

    • (iii) est établie par suite de la conclusion d’une opération impliquant le contribuable et une personne non-résidente avec laquelle il avait un lien de dépendance,

  • (3) Subparagraph 152(4)(b)(iii) of the Act is replaced by the following:

    • (iii) is made

      • (A) as a consequence of a transaction involving the taxpayer and a non-resident person with whom the taxpayer was not dealing at arm’s length, or

      • (B) in respect of any income, loss or other amount in relation to a foreign affiliate of the taxpayer,

  • (4) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.3):

    • (b.4) the assessment, reassessment or additional assessment is made before the day that is six years after the end of the normal reassessment period for the taxpayer in respect of the year if

      • (i) a reassessment of tax for the year was required under subsection (6), or would have been so required if the taxpayer had claimed an amount by filing the prescribed form referred to in that subsection on or before the day referred to in that subsection, in order to take into account a deduction claimed under section 111 in respect of a loss for a subsequent taxation year,

      • (ii) an assessment, reassessment, additional assessment of tax or notification that no tax is payable for the subsequent taxation year referred to in subparagraph (i) was made or issued after the normal reassessment period in respect of the subsequent taxation year as a consequence of a transaction involving the taxpayer and a non-resident person with whom the taxpayer was not dealing at arm’s length, and

      • (iii) the assessment, reassessment, additional assessment or notification that no tax is payable referred to in subparagraph (ii) reduced the amount of the loss for the subsequent taxation year;

  • (5) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Extended period of assessment

      (4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a), (b), (b.1), (b.3), (b.4) or (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,

  • (6) Subparagraph 152(4.01)(b)(iii) of the Act is replaced by the following:

    • (iii) the transaction, income, loss or other amount referred to in subparagraph (4)(b)(iii),

  • (7) Subsection 152(4.01) 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) if paragraph (4)(b.4) applies to the assessment, reassessment or additional assessment, the reduction under subparagraph (4)(b.4)(iii).

  • (8) 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(4), 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.

  • (9) Subsections (1) and (8) apply to the 2018 and subsequent taxation years.

  • (10) Subsection (2) is deemed to have come into force on February 27, 2018.

  • (11) Subsections (3) and (6) apply to taxation years of a taxpayer that begin after February 26, 2018.

  • (12) Subsections (4), (5) and (7) apply in respect of a taxation year if a reassessment of tax for the year was required under subsection 152(6) of the Act, or would have been so required if the taxpayer had claimed an amount by filing the prescribed form referred to in that subsection on or before the day referred to in that subsection, in order to take into account a deduction claimed under section 111 of the Act in respect of a loss for a subsequent taxation year that ends after February 26, 2018.

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

    • (c.4) the amount, if any, by which

      • (i) the total of all amounts each of which is an amount that would be deemed by section 122.8 to be paid by that person for the year or, where that person is the qualified relation of an individual for that year (within the meaning assigned by subsection 122.8(1)), by that individual, if that total were calculated by reference to the information provided in the person’s return of income (within the meaning assigned by subsection 122.8(1)) for the year

      exceeds

      • (ii) the total of all amounts each of which is an amount that is deemed by section 122.8 to be paid by that person or by an individual of whom the person is the qualified relation for the year (within the meaning assigned by subsection 122.8(1)),

  • (2) Subsection (1) applies to the 2018 and subsequent taxation years.

  •  (1) Subsection 188.2(2) of the Act is amended by adding “or” at the end of paragraph (d) and by replacing paragraphs (e) to (g) with the following:

    • (e) in the case of a person that is a registered charity or registered Canadian amateur athletic association, if the person devotes any part of its resources to the direct or indirect support of, or opposition to, any political party or candidate for public office.

  • (2) Subsection (1) is deemed to have come into force

    • (a) on June 29, 2012 in respect of organizations, corporations and trusts that are registered charities on September 14, 2018 and in respect of associations that are registered Canadian amateur athletic associations on that date; and

    • (b) on September 14, 2018 in any other case.

  •  (1) Subsection 212.1(1) of the Act is replaced by the following:

    Marginal note:Non-arm’s length sales of shares by non-residents

    • 212.1 (1) Subsection (1.1) applies if a non-resident person disposes of shares (in this section referred to as the “subject shares”) of any class of the capital stock of a corporation resident in Canada (in this section referred to as the “subject corporation”) to another corporation resident in Canada (in this section referred to as the “purchaser corporation”) with which the non-resident person does not (otherwise than because of a right referred to in paragraph 251(5)(b)) deal at arm’s length and, immediately after the disposition, the subject corporation is connected (within the meaning that would be assigned by subsection 186(4) if the references in that subsection to “payer corporation” and “particular corporation” were read as “subject corporation” and “purchaser corporation”, respectively, and if section 186 were read without reference to its subsection (6)) with the purchaser corporation.

  • (2) The portion of paragraph 212.1(1.1)(a) of the Act before subparagraph (i) is replaced by the following:

    • (a) the amount, if any, by which the fair market value of any consideration (other than any share of the capital stock of the purchaser corporation) received by the non-resident person referred to in subsection (1) from the purchaser corporation for the subject shares exceeds the paid-up capital in respect of the subject shares immediately before the disposition shall, for the purposes of this Act, be deemed to be a dividend

  • (3) Subsection 212.1(1.2) of the Act is replaced by the following:

    • Marginal note:Deemed consideration

      (1.2) For the purposes of subsections (1) and (1.1), if, in the absence of this subsection, no consideration would be received by the non-resident person referred to in subsection (1) from the purchaser corporation for the subject shares, the non-resident person is deemed to receive consideration other than shares of the capital stock of the purchaser corporation from the purchaser corporation for the subject shares, the fair market value of which is equal to the amount, if any, by which the fair market value of the subject shares disposed of by the non-resident person exceeds the amount of any increase because of the disposition in the fair market value of the shares of the capital stock of the purchaser corporation.

  • (4) The portion of paragraph 212.1(3)(a) of the Act before subparagraph (i) is replaced by the following:

    • (a) a non-resident person shall, for greater certainty, be deemed not to deal at arm’s length with a purchaser corporation at the time of a disposition described in subsection (1) if the non-resident person was,

  • (5) Paragraph 212.1(3)(b) of the Act is replaced by the following:

    • (b) for the purposes of determining whether or not a non-resident person referred to in paragraph (a) was a member of a group of less than six persons that controlled a corporation at any time, any shares of the capital stock of that corporation owned at that time by any of the following persons shall be deemed to be owned at that time by the non-resident person and not by the person who actually owned the shares at that time:

      • (i) the non-resident person’s child (within the meaning assigned by subsection 70(10)), who is under 18 years of age, or the non-resident person’s spouse or common-law partner,

      • (ii) a trust of which the non-resident person, a person described in subparagraph (i) or a corporation described in subparagraph (iii) is a beneficiary,

      • (iii) a corporation controlled by the non-resident person, a person described in subparagraph (i), a trust described in subparagraph (ii) or any combination thereof, and

      • (iv) a partnership of which the non-resident person or a person described in one of subparagraphs (i) to (iii) is a majority-interest partner or a member of a majority-interest group of partners (as defined in subsection 251.1(3));

  • (6) Subsection 212.1(3) of the Act is amended by adding “and” at the end of paragraph (d) and by repealing paragraph (e).

  • (7) The portion of paragraph 212.1(4)(b) of the Act before subparagraph (ii) is replaced by the following:

    • (b) it is not the case that, at the time of the disposition, or as part of a transaction or event or series of transactions or events that includes the disposition, a non-resident person

      • (i) holds, directly or indirectly, shares of the capital stock of the purchaser corporation, and

  • (8) Section 212.1 of the Act is amended by adding the following after subsection (4):

    • Marginal note:Tiered trusts and partnerships

      (5) For the purposes of this section and paragraph (k) of the definition proceeds of disposition in section 54, a person or partnership that is, at any time, a beneficiary under a trust (other than a trust that is the non-resident person referred to in subsection (1)), or a member of a partnership (such trust or partnership referred to in this subsection as the “particular conduit”), that is a beneficiary under a trust or member of a partnership (such trust or partnership referred to in this subsection as the “other conduit”) is deemed

      • (a) to be a beneficiary under or member of, as the case may be, the other conduit; and

      • (b) to hold the interest in the other conduit that is held by the particular conduit in the proportion expressed by the formula

        A/B

        where

        A
        is the portion of the fair market value, at that time, of the person or partnership’s interest in the particular conduit that is attributable to the interest in the other conduit held by the particular conduit, and
        B
        is the total fair market value, at that time, of all direct interests (determined without reference to this subsection) in the other conduit.
    • Marginal note:Trusts and partnerships look-through rule

      (6) The following rules apply for the following purposes:

      • (a) for the purposes of this subsection and subsections (1) and (1.1), if at any time an interest (in this paragraph referred to as the “pertinent interest”) in a trust or a partnership (each referred to in this subsection as a “conduit”) is disposed of by a person or partnership with an interest as a beneficiary under the conduit or that is a member of the conduit (each referred to in this subsection as a “holder”), as the case may be, to a purchaser and any portion of the fair market value of the pertinent interest is attributable to shares of the capital stock of a corporation resident in Canada held, directly or indirectly (unless all of the shares are held indirectly through one or more non-resident corporations), by the conduit (in this paragraph referred to as the “shares held by the conduit”), then

        • (i) the holder is deemed, on a class-by-class basis, to have disposed, at that time, of the shares held by the conduit to the purchaser, and the purchaser is deemed to have acquired the shares, in the proportion expressed by the formula

          A/B

          where

          A
          is the portion of the fair market value, at that time, of the pertinent interest that is attributable to the shares held by the conduit, and
          B
          is the total fair market value, at that time, of the shares held by the conduit, and
        • (ii) the holder is deemed to have received from the purchaser and the purchaser is deemed to have paid to the holder, as consideration for the shares deemed to have been disposed of in subparagraph (i), consideration (other than any share of the capital stock of the purchaser corporation) in an amount determined by the formula

          A × B/C

          where

          A
          is the fair market value of the consideration (other than any share of the capital stock of the purchaser corporation) that is received by the holder from the purchaser for the pertinent interest,
          B
          is the amount determined for A in subparagraph (i), and
          C
          is the total fair market value of the pertinent interest;
      • (b) for the purposes of subsections (1) and (1.1) and paragraph (c), if at any time a conduit (other than a non-resident trust) disposes of shares of the capital stock of a corporation resident in Canada to a purchaser, then

        • (i) each holder of an interest in the conduit is deemed, on a class-by-class basis, to have disposed, at that time, of the shares to the purchaser in the proportion expressed by the formula

          A/B

          where

          A
          is the fair market value, at that time, of the holder’s interest in the conduit, and
          B
          is the total fair market value, at that time, of all direct interests (determined without reference to subsection (5)) in the conduit, and
        • (ii) each holder of an interest in the conduit is deemed to have received from the purchaser and the purchaser is deemed to have paid to each such holder, as consideration for the shares deemed to have been disposed of in subparagraph (i), consideration (other than any share of the capital stock of the purchaser corporation) in an amount determined by the formula

          A × B/C

          where

          A
          is the fair market value of the consideration (other than any share of the capital stock of the purchaser corporation) that is received by the conduit from the purchaser for the shares,
          B
          is the amount determined for A in subparagraph (i), and
          C
          is the amount determined for B in subparagraph (i);
      • (c) for the purposes of subsections (1) and (1.1), if at any time a conduit acquires shares of the capital stock of a corporation resident in Canada from a vendor, then

        • (i) each holder of an interest in the conduit is deemed to have acquired, at that time, the shares from the vendor, on a class-by-class basis, in the proportion expressed by the formula

          A/B

          where

          A
          is the fair market value, at that time, of the holder’s interest in the conduit, and
          B
          is the total fair market value, at that time, of all direct interests (determined without reference to subsection (5)) in the conduit, and
        • (ii) each holder of an interest in the conduit is deemed to have paid to the vendor and the vendor is deemed to have received from each such holder, as consideration for the shares deemed to have been acquired in subparagraph (i), consideration (other than any share of the capital stock of the purchaser corporation) in an amount determined by the formula

          A × B/C

          where

          A
          is the fair market value of the consideration (other than any share of the capital stock of the purchaser corporation) that is paid by the conduit to the vendor for the shares,
          B
          is the amount determined for A in subparagraph (i), and
          C
          is the amount determined for B in subparagraph (i); and
      • (d) for the purpose of determining whether the subject corporation is connected with the purchaser corporation for the purposes of subsection (1) at any time, if at that time a conduit owns shares of the capital stock of the subject corporation, each holder of an interest in the conduit is deemed to own, at that time, the shares of each class of the capital stock of the subject corporation that are owned by the conduit the number of which is determined by the formula

        A × B/C

        where

        A
        is the total number of shares of the class of the capital stock of the subject corporation that are owned by the conduit at that time,
        B
        is the fair market value, at that time, of the holder’s interest in the conduit, and
        C
        is the total fair market value, at that time, of all direct interests (determined without reference to subsection (5)) in the conduit.
    • Marginal note:Avoidance of subsections (5) and (6)

      (7) The amounts determined for A and B in paragraph (5)(b), for A and B in subparagraph (6)(c)(i) and for B and C in paragraph (6)(d) are, in respect of an interest as a beneficiary under a trust held by a person or partnership, deemed to be equal to one if

      • (a) the person or partnership’s share of the accumulating income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, any discretionary power; and

      • (b) it can reasonably be considered that one of the reasons for the discretionary power is to avoid or limit the application of subsection (1.1).

  • (9) Subsections (1) to (8) apply in respect of dispositions that occur after February 26, 2018.

 The portion of section 231 of the Act before the first definition is replaced by the following:

Marginal note:Definitions

231 In sections 231.1 to 231.8,

 The portion of subsection 231.6(7) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Time period not to count

    (7) The period of time between the day on which an application for review of a requirement is made pursuant to subsection (4) and the day on which the application is finally disposed of shall not be counted in the computation of

 The Act is amended by adding the following after section 231.7:

Marginal note:Time period not to count

231.8 The following periods of time shall not be counted in the computation of the period of time within which an assessment may be made for a taxation year of a taxpayer under subsection 152(4):

  • (a) where the taxpayer is served a notice of a requirement under subsection 231.2(1), the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; and

  • (b) where an application is commenced by the Minister under subsection 231.7(1) to order the taxpayer to provide any access, assistance, information or document, the period of time between the day on which the taxpayer files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of.

  •  (1) Subsection 233.4(4) of the Act is replaced by the following:

    • Marginal note:Returns respecting foreign affiliates

      (4) A reporting entity for a taxation year or fiscal period shall file with the Minister for the year or period a return in prescribed form in respect of each foreign affiliate of the entity in the year or period within 12 months after the end of the year or period.

  • (2) Subsection 233.4(4) of the Act is replaced by the following:

    • Marginal note:Returns respecting foreign affiliates

      (4) A reporting entity for a taxation year or fiscal period shall file with the Minister for the year or period a return in prescribed form in respect of each foreign affiliate of the entity in the year or period within 10 months after the end of the year or period.

  • (3) Subsection (1) applies to taxation years of a taxpayer, and fiscal periods of a partnership, that begin in 2020.

  • (4) Subsection (2) applies to taxation years of a taxpayer, and fiscal periods of a partnership, that begin after 2020.

 Paragraph 241(4)(e) of the Act is amended by striking out “or” at the end of subparagraph (xi), by adding “or” at the end of subparagraph (xii) and by adding the following after subparagraph (xii):

  • (xiii) an order made under the Mutual Legal Assistance in Criminal Matters Act to gather or send information, for the purposes of an investigation or prosecution relating to an act or omission that, if it had occurred in Canada, would constitute an offence for which an order could be obtained under subsection 462.48(3) of the Criminal Code, in response to a request made pursuant to

  •  (1) The definition SLA compensation payment in subsection 260(1) of the Act is replaced by the following:

    SLA compensation payment

    SLA compensation payment means an amount paid pursuant to

    • (a) a securities lending arrangement as compensation for an underlying payment; or

    • (b) a specified securities lending arrangement as compensation for an underlying payment, including, if the property transferred or lent is described in subparagraph (a)(ii) of the definition specified securities lending arrangement, as compensation for a taxable dividend paid on a share described in subparagraph (a)(i) of that definition; (paiement compensatoire (MPVM))

  • (2) Subsection 260(1) of the Act is amended by adding the following in alphabetical order:

    specified securities lending arrangement

    specified securities lending arrangement means an arrangement, other than a securities lending arrangement, under which

    • (a) a particular person (referred to in this definition as a “transferor”) transfers or lends at any particular time a property to another person (referred to in this definition as a “transferee”) and the property is

      • (i) a particular share described in paragraph (a) of the definition qualified security, or

      • (ii) a property in respect of which the following conditions are met:

        • (A) the property is

          • (I) an interest in a partnership, or

          • (II) an interest as a beneficiary under a trust, and

        • (B) all or any part of the fair market value of the property, immediately before the particular time, is derived, directly or indirectly, from a share described in subparagraph (i),

    • (b) it may reasonably be expected, at the particular time, that the transferee — or a person that does not deal at arm’s length with, or is affiliated with, the transferee — will transfer or return after the particular time to the transferor — or a person that does not deal at arm’s length with, or is affiliated with, the transferor (referred to in this definition as a “substitute transferor”) — a property that is identical or substantially identical to the property so transferred or lent, and

    • (c) the transferor’s (together with any substitute transferor’s) risk of loss or opportunity for gain or profit with respect to the particular property is not changed in any material respect; (mécanisme de prêt de valeurs mobilières déterminé)

  • (3) The portion of subsection 260(5) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Where subsection (5.1) applies

      (5) Subsection (5.1) applies to a taxpayer for a taxation year in respect of a particular amount (other than an amount received as proceeds of disposition or an amount received by a person under an arrangement where it may reasonably be considered that one of the main reasons for the person entering into the arrangement was to enable the person to receive an SLA compensation payment pursuant to a securities lending arrangement, or a dealer compensation payment, that would be deductible in computing the taxable income, or not included in computing the income, for any taxation year of the person) received by the taxpayer in the taxation year

  • (4) Paragraph 260(6)(a) of the Act is replaced by the following:

    • (a) if the taxpayer is a registered securities dealer and the particular amount is deemed by subsection (5.1) to have been received as a taxable dividend, no more than 2/3 of the particular amount (unless, for greater certainty, the particular amount is an amount for which a deduction in computing income may be claimed under subsection (6.1) by the taxpayer); or

  • (5) The portion of subsection 260(6.1) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Deductible amount

      (6.1) There may be deducted in computing a corporation’s income under Part I from a business or property for a taxation year an amount equal to the lesser of

  • (6) Subsections (1) to (5) apply in respect of amounts paid or payable, or received or receivable, as compensation for dividends after February 26, 2018. However, subsections (1) to (5) do not apply in respect of amounts paid or payable, or received or receivable, as compensation for dividends after February 26, 2018 and before October 2018, if they are pursuant to a written arrangement entered into before February 27, 2018.

R.S., c. C-46Criminal Code

 Paragraph 462.48(2)(c) of the Criminal Code is replaced by the following:

  • (c) the type of information or book, record, writing, return or other document obtained by or on behalf of the Minister of National Revenue for the purposes of the Income Tax Act, Part IX of the Excise Tax Act or the Excise Act, 2001 to which access is sought or that is proposed to be examined or communicated; and

R.S., c. 30 (4th Supp.)Mutual Legal Assistance in Criminal Matters Act

 The definition agreement in subsection 2(1) of the Mutual Legal Assistance in Criminal Matters Act is replaced by the following:

agreement

agreement means

  • (a) a treaty, convention or other international agreement that is in force, to which Canada is a party and that contains a provision respecting mutual legal assistance in criminal matters, or

  • (b) to the extent of their application to criminal investigations or prosecutions and except for the purposes of Parts II and III of this Act, the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol or other international instrument, as ratified by Canada, or a comprehensive tax information exchange agreement that has effect and to which Canada is a party or a tax treaty, as defined in subsection 248(1) of the Income Tax Act; (accord)

 Subsection 5(1) of the Act is replaced by the following:

Marginal note:Publication in Canada Gazette

  • 5 (1) Unless the agreement has been published under subsection (2), an agreement referred to in paragraph (a) of the definition agreement in subsection 2(1) — or the provisions respecting mutual legal assistance in criminal matters contained in a convention or other international agreement — must be published in the Canada Gazette no later than 60 days after it comes into force.

 Section 7 of the Act is replaced by the following:

Marginal note:Functions of Minister

  • 7 (1) The Minister is responsible for the implementation of every agreement referred to in paragraph (a) of the definition agreement in subsection 2(1) and for the administration of this Act.

  • Marginal note:How request dealt with

    (2) When a request is made to the Minister under an agreement referred to in paragraph (a) of the definition agreement in subsection 2(1) by a state or entity or a Canadian competent authority, the Minister shall deal with the request in accordance with the agreement and this Act.

  • Marginal note:How request dealt with

    (3) When a request made by a state or entity under an agreement referred to in paragraph (b) of the definition agreement in subsection 2(1) is presented to the Minister by the Minister of National Revenue, the Minister shall deal with the request in accordance with the agreement and this Act.

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

Marginal note:Limitation — requests under agreements

  • 8 (1) If a request for mutual legal assistance is made under an agreement, the Minister may not give effect to the request by means of the provisions of this Part unless the agreement provides for assistance with respect to the subject-matter of the request.

 The Act is amended by adding the following after section 22.05:

Marginal note:Orders to gather tax information

  • 22.06 (1) A judge of the province to whom an application is made under subsection 17(2) with respect to an investigation or prosecution relating to an act or omission that, if it had occurred in Canada, would have constituted an offence referred to in subsection 462.48(1.1) of the Criminal Code may make an order for the gathering of the information or documents referred to in paragraph 462.48(2)(c) of that Act.

  • Marginal note:Criminal Code applies

    (2) Subject to subsection (3), an order made under subsection (1) may be obtained and made in accordance with subsections 462.48(1) to (5) of the Criminal Code and executed in the manner provided for in that Act, with any necessary modifications.

  • Marginal note:Provisions applicable to order

    (3) Paragraphs 18(2)(b) and (c), subsections 18(3) to (9) and sections 19 to 22, other than paragraph 19(1)(a), apply, with any necessary modifications, in respect of an order made under subsection (1) and prevail over any provisions of the Criminal Code that are inconsistent with them.

2016, c. 14An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

 Subsection 66(1) of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act is

  • (a) amended by replacing the clause 60(e)(ii)(A) that it enacts with the following:

    • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.‍1) or (1.‍2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

  • (b) amended by replacing the subparagraph 60(e.1)(i) that it enacts with the following:

    • (i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.‍1) or (1.‍2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

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

  •  (1) The Income Tax Regulations are amended by adding the following after section 202:

    Marginal note:Requirement to file

    203 Every institution that is a designated educational institution (as defined in subsection 118.6(1) of the Act) because of paragraph (a) of that definition shall make an information return in prescribed form in respect of each individual enrolled at that institution who is a qualifying student (as defined in subsection 118.6(1)) for a month in a taxation year.

  • (2) Subsection (1) applies to the 2019 and subsequent taxation years.

  •  (1) Subsection 205(3) of the Regulations is amended by adding the following in alphabetical order:

    Tuition and Enrolment Certificate
  • (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2019.

  •  (1) Subsection 205.1(1) of the Regulations is amended by adding the following in alphabetical order:

    Tuition and Enrolment Certificate
  • (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2019.

  •  (1) Subsection 209(1) of the Regulations is replaced by the following:

    • 209 (1) A person who is required by section 200, 201, 202, 203, 204, 212, 214, 215, 217 or 218, subsection 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer.

  • (2) Subsection 209(5) of the Regulations is replaced by the following:

    • (5) A person may provide a Statement of Remuneration Paid (T4) information return or a Tuition and Enrolment Certificate, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless

      • (a) the specified criteria referred to in section 221.01 of the Act are not met;

      • (b) the taxpayer has requested that the information return be provided in paper format; or

      • (c) at the time the return is required to be issued,

        • (i) if the return is a T4, the taxpayer is on extended leave or is no longer an employee of the person, or

        • (ii) the taxpayer cannot reasonably be expected to have access to the information return in electronic format.

  • (3) Subsections (1) and (2) come into force or are deemed to have come into force on January 1, 2019.

  •  (1) The definition designated person or partnership in subsection 5907(1) of the Regulations is replaced by the following:

    designated person or partnership

    designated person or partnership, in respect of a taxpayer at any time, means

    • (a) the taxpayer,

    • (b) a person or partnership that is at that time

      • (i) a person (other than a partnership) that does not, at that time, deal at arm’s length with the taxpayer, or

      • (ii) a partnership a member of which is, at that time, a designated person or partnership in respect of the taxpayer under this definition, and

    • (c) if a foreign affiliate of the taxpayer is an original corporation that undergoes a division in respect of which subsection 15(1.5) of the Act applies, a new corporation in respect of the division; (personne ou société de personnes désignée)

  • (2) The portion of subparagraph 5907(2)(f)(ii) of the Regulations before clause (A) is replaced by the following:

    • (ii) subject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,

  • (3) The portion of subparagraph 5907(2)(j)(iii) of the Regulations before clause (A) is replaced by the following:

    • (iii) subject to subsections (2.01) and (2.011), does not arise with respect to a disposition (other than a disposition to which subsection (9) applies), of property by the affiliate,

  • (4) Section 5907 of the Regulations is amended by adding the following after subsection (2.01):

    • (2.011) Subparagraphs (2)(f)(ii) and (j)(iii) and subsection (5.1) do not apply to a particular disposition of property (referred to in this subsection as the “affiliate property”) by a particular foreign affiliate of a taxpayer to another foreign affiliate of the taxpayer if

      • (a) the particular disposition is a disposition referred to in subparagraph 15(1.5)(c)(i) of the Act;

      • (b) all of the shares of the capital stock of the other affiliate are owned, at a particular time that is within 180 days after the day that includes the time of the particular disposition, by a person or partnership that at the particular time is not a designated person or partnership in respect of the taxpayer; and

      • (c) the affiliate property is not disposed of by the other affiliate as part of a series of transactions or events that includes the particular disposition.

  • (5) Subsection (1) is deemed to have come into force on July 27, 2018.

  • (6) Subsections (2) to (4) apply in respect of dispositions that occur after October 23, 2012.

Coordinating Amendments

Marginal note:2016, c. 14

  •  (1) If subsection 66(1) of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (in this section referred to as the “other Act”) comes into force before section 34 of this Act, then

    • (a) that section 34 is deemed never to have come into force and is repealed;

    • (b) clause 60(e)(ii)(A) of the Income Tax Act is replaced by the following:

      • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.‍1) or (1.‍2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

    • (c) subparagraph 60(e.1)(i) of the Act is replaced by the following:

      • (i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.‍1) or (1.‍2) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

  • (2) If subsection 66(1) of the other Act comes into force on the same day as section 34 of this Act, that section 34 is deemed to have come into force before that subsection 66(1).

PART 2Amendments to the Excise Tax Act (GST/HST Measures) and to Related Legislation

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

  •  (1) Subsection 123(1) of the Excise Tax Act is amended by adding the following in alphabetical order:

    emission allowance

    emission allowance means

    • (a) an allowance, credit or similar instrument (other than a prescribed allowance, credit or instrument) that

      • (i) is issued or created by, or on behalf of,

        • (A) a government, a government of a foreign country, a government of a political subdivision of a country, a supranational organization or an international organization (each of which is in this definition referred to as a “regulator”),

        • (B) a board, commission or other body established by a regulator, or

        • (C) an agency of a regulator,

      • (ii) can be used to satisfy a requirement under

        • (A) a scheme or arrangement implemented by, or on behalf of, a regulator to regulate greenhouse gas emissions, or

        • (B) a prescribed scheme or arrangement, and

      • (iii) represents a specific quantity of greenhouse gas emissions expressed as carbon dioxide equivalent, or

    • (b) a prescribed property; (unité d’émission)

    investment limited partnership

    investment limited partnership means a limited partnership, the primary purpose of which is to invest funds in property consisting primarily of financial instruments, if

    • (a) the limited partnership is, or forms part of an arrangement or structure that is, represented or promoted as a hedge fund, investment limited partnership, mutual fund, private equity fund, venture capital fund or other similar collective investment vehicle, or

    • (b) the total value of all interests in the limited partnership held by listed financial institutions is 50% or more of the total value of all interests in the limited partnership; (société en commandite de placement)

  • (2) The definition emission allowance, as enacted by subsection (1), is deemed to have come into force on June 27, 2018 but also applies in respect of any supply made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day.

  • (3) The definition investment limited partnership, as enacted by subsection (1), is deemed to have come into force on September 8, 2017.

  •  (1) Section 132 of the Act is amended by adding the following after subsection (5):

    • Marginal note:Residence of investment limited partnerships

      (6) For the purposes of this Part but subject to subsection (2), an investment limited partnership is deemed not to be resident in Canada at any time if, at that time, the total value of all interests in the partnership held by non-resident members of the partnership (other than prescribed members) is 95% or more of the total value of all interests in the partnership.

  • (2) Subsection (1) is deemed to have come into force on September 8, 2017.

  •  (1) Subsection 149(5) of the Act is amended by striking out “and” at the end of paragraph (f) and by adding the following after that paragraph:

    • (f.1) an investment limited partnership; and

  • (2) Subsection (1) applies in respect of

    • (a) any taxation year of a person that begins after 2018; and

    • (b) the taxation years of a person that begin in 2018 if the person elects to have subsection (1) apply in respect of those taxation years.

  • (3) An election under paragraph (2)(b) is to

    • (a) be made in prescribed form containing prescribed information; and

    • (b) be filed with the Minister of National Revenue in prescribed manner on or before the day that is 60 days after the day on which this Act receives royal assent or any later day that the Minister of National Revenue may allow.

  • (4) If a person makes an election under paragraph (2)(b), the references in subsection 244.1(4) of the Act, as enacted by subsection 46(1), to “2018” and “2019” are to be read as “2017” and “2018”, respectively, in applying that subsection 244.1(4) in respect of the person.

  •  (1) Section 221 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Exception — emission allowance

      (2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect tax under Division II payable by the recipient in respect of the supply.

  • (2) Subsection (1) is deemed to have come into force on June 27, 2018 but also applies in respect of any supply of an emission allowance made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 221(2.1) of the Act, as enacted by subsection (1), is to be read as follows:

    • (2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect any amount of tax under Division II that is payable by the recipient in respect of the supply and that was not collected before June 27, 2018.

  •  (1) The portion of subsection 228(4) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Real property and emission allowance — self-assessment

      (4) If tax under Division II is payable by a person in respect of a supply of property that is real property or an emission allowance and the supplier is not required to collect the tax and is not deemed to have collected the tax,

  • (2) Subsection (1) is deemed to have come into force on June 27, 2018 but also applies in respect of any supply of an emission allowance made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 228(4) of the Act, as amended by subsection (1), is to be read as follows:

    • (4) If a supply of an emission allowance is made to a person, the following rules apply in respect of the tax under Division II that is payable in respect of the supply and that has not been collected before June 27, 2018 (in this subsection referred to as the “uncollected tax”):

      • (a) to the extent that the uncollected tax became payable before June 27, 2018,

        • (i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period that includes June 27, 2018 is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and

        • (ii) in any other case, the person shall, on or before July 31, 2018, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information; and

      • (b) to the extent that the uncollected tax became payable after June 26, 2018,

        • (i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period in which the uncollected tax became payable is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and

        • (ii) in any other case, the person shall, on or before the last day of the month following the calendar month in which the uncollected tax became payable, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information.

  •  (1) Section 244.1 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Fiscal year — investment limited partnership

      (4) If a particular fiscal year of an investment limited partnership begins in 2018 and includes January 1, 2019 and the investment limited partnership would be a selected listed financial institution throughout a reporting period in the particular fiscal year if the particular fiscal year began on January 1, 2019 and ended on December 31, 2019, the following rules apply:

      • (a) the particular fiscal year ends on December 31, 2018;

      • (b) subject to subsection (2), the fiscal years of the investment limited partnership are calendar years as of January 1, 2019;

      • (c) any election made by the investment limited partnership under section 244 ceases to have effect as of January 1, 2019; and

      • (d) if the first taxation year of the investment limited partnership that begins after 2018 does not begin on January 1, 2019, for the purposes of this Part (other than section 149) the investment limited partnership is deemed, for the period beginning on January 1, 2019 and ending on the day preceding the first day of that taxation year, to be a financial institution, a listed financial institution and a person referred to in subparagraph 149(1)(a)(ix).

  • (2) Subsection (1) is deemed to have come into force on September 8, 2017.

  •  (1) Paragraphs 259.1(2)(a) and (b) of the Act are replaced by the following:

    • (a) in the case of a specified person described in paragraph (f) of the definition specified person in subsection (1), the person does not acquire or import the specified property for

      • (i) the purpose of making a supply by way of sale of the specified property for consideration, or

      • (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service for consideration; and

    • (b) in any other case, the person does not acquire or import the specified property for

      • (i) the purpose of making a supply by way of sale of the specified property, or

      • (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service.

  • (2) Subsection (1) applies to any acquisition or importation of property in respect of which tax

    • (a) becomes payable after July 27, 2018 without having been paid on or before that day; or

    • (b) is paid after July 27, 2018 without having become payable on or before that day.

  •  (1) The portion of subsection 261(1) of the English version of the Act after paragraph (b) is replaced by the following:

    tax, net tax, penalty, interest or other obligation under this Part in circumstances where the amount was not payable or remittable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) to (3), pay a rebate of that amount to the person.

  • (2) Section 261 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Restriction — emission allowance

      (2.1) A rebate in respect of an amount paid in respect of a supply of an emission allowance is not to be paid under subsection (1) to a person unless

      • (a) the person paid the amount to the Receiver General; or

      • (b) prescribed circumstances exist or prescribed conditions are met.

  • (3) Subsections (1) and (2) are deemed to have come into force on June 27, 2018 but do not apply in respect of an amount that was, before that day, paid as or on account of, or taken into account as, tax, net tax, penalty, interest or other obligation under Part IX of the Act.

  •  (1) Subsection 272.1(3) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

    • (b) in the case of management or administrative services that are rendered by a general partner of an investment limited partnership to the investment limited partnership under an agreement for the particular supply of those services,

      • (i) if subsection 136.1(2) applies in respect of the particular supply, for each separate supply of those services that is deemed under paragraph 136.1(2)(a) to be made by the general partner for a billing period (within the meaning of that subsection), the separate supply is deemed, despite paragraph 136.1(2)(c), to be made for consideration that becomes due on the last day of the billing period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the billing period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership, and

      • (ii) in any other case,

        • (A) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a separate supply of those services for each reporting period of the general partner during which those services are, or are to be, rendered under the agreement, and

        • (B) each separate supply of those services that is deemed to be made under clause (A) for a reporting period of the general partner is deemed to be made on the first day of the reporting period for consideration that becomes due on the last day of the reporting period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the reporting period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership; and

    • (c) in any other case, the supply is deemed to have been made for consideration that becomes due at the time the supply is made equal to the fair market value at that time of the property or service acquired by the partnership determined as if the person were not a member of the partnership and were dealing at arm’s length with the partnership.

  • (2) Section 272.1 of the Act is amended by adding the following after subsection (7):

    • Marginal note:Investment limited partnership — supply by general partner

      (8) For the purposes of this Part, if a general partner of an investment limited partnership renders a management or administrative service to the investment limited partnership,

      • (a) the rendering of the service is deemed not to be done by the general partner as a member of the investment limited partnership; and

      • (b) the supply by the general partner to the investment limited partnership that includes the service is deemed to have been made otherwise than in the course of the investment limited partnership’s activities.

  • (3) For the purposes of subsections (4) to (6) and Part IX of the Act, if management or administrative services are rendered by a general partner of an investment limited partnership to the investment limited partnership under a particular agreement entered into before September 8, 2017 and if some or all of those services are rendered on or after that day, the following rules apply:

    • (a) in respect of the management or administrative services that are rendered on or after September 8, 2017 (referred to in this paragraph as the “subsequent services”),

      • (i) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a particular supply of the subsequent services and the particular supply is deemed to have been made on September 8, 2017,

      • (ii) the subsequent services are deemed to have been rendered under an agreement for the particular supply and not under the particular agreement and the agreement for the particular supply is deemed to have been entered into on September 8, 2017,

      • (iii) any amount that is charged, collected or remitted at any time as or on account of tax under Part IX of the Act in respect of an amount of consideration that is reasonably attributable to the rendering of the subsequent services is deemed to be an amount of tax that is collected at that time in respect of the particular supply, and

      • (iv) if the total of all amounts of tax that are payable under Part IX of the Act in respect of the particular supply before February 27, 2018 is in excess of the total of the amounts that are deemed under subparagraph (iii) to be amounts collected before that day in respect of that supply, that excess is deemed, despite subsection 272.1(3) of the Act, to have become payable on February 27, 2018 and the general partner is deemed to have collected that excess on that day; and

    • (b) in respect of the management or administrative services, if any, that are rendered before September 8, 2017 (referred to in this paragraph as the “prior services”),

      • (i) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a supply of the prior services (referred to in this paragraph as the “earlier supply”) and the earlier supply is deemed to have been made on the day on which the particular agreement is entered into,

      • (ii) the prior services are deemed to have been rendered under an agreement for the earlier supply and not under the particular agreement and the agreement for the earlier supply is deemed to have been entered into on the day on which the particular agreement is entered into, and

      • (iii) any amount that is charged, collected or remitted at any time as or on account of tax under Part IX of the Act in respect of an amount of consideration that is reasonably attributable to the rendering of the prior services under the particular agreement is deemed to be an amount of tax that is collected at that time in respect of the earlier supply.

  • (4) Subsection (1) applies in respect of any supply made after September 7, 2017.

  • (5) Subsection (2) is deemed to have come into force on September 8, 2017 but also applies in respect of management or administrative services that are rendered under an agreement entered into before that day if an amount was, before that day, charged, collected or remitted as or on account of tax under Part IX of the Act in respect of those services or in respect of any supply made under the agreement.

  • (6) For the purposes of Part IX of the Act, if subsection 272.1(8) of the Act, as enacted by subsection (2), applies in respect of management or administrative services that are rendered before September 8, 2017 by a general partner of an investment limited partnership to the investment limited partnership under an agreement entered into before that day, the following rules apply:

    • (a) subsection 272.1(3) of the Act does not apply in respect of the supply of the management or administrative services made by the general partner to the investment limited partnership;

    • (b) any amount that the investment limited partnership pays or credits to the general partner after September 7, 2017 that is reasonably attributable to the management or administrative services is deemed to be consideration for the supply of those services by the general partner to the investment limited partnership that becomes due at the time the amount is paid or credited; and

    • (c) if an amount was charged, collected or remitted as or on account of tax in respect of a particular amount — being an amount that the investment limited partnership paid or credited to the general partner before September 8, 2017 and that is reasonably attributable to the management or administrative services — the particular amount is deemed to be consideration for a taxable supply of those services that becomes due at the time the amount is paid or credited.

 The Act is amended by adding the following after section 289.1:

Marginal note:Time period not to count

289.2 The following periods of time shall not be counted in the computation of the period of time within which an assessment of a person may be made under section 296 or 297:

  • (a) if the person is served a notice of a requirement under subsection 289(1), the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; and

  • (b) if an application is commenced by the Minister under subsection 289.1(1) to order the person to provide any access, assistance, information or document, the period of time between the day on which the person files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of.

 The portion of subsection 292(7) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Time period not to count

    (7) The period of time between the day on which an application for the review of a requirement is made under subsection (4) and the day on which the application is finally disposed of shall not be counted in the computation of

  •  (1) Paragraph 295(5)(d.1) of the Act is replaced by the following:

    • (d.1) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, under, and solely for the purpose of,

  • (2) Paragraph 295(5)(n) of the Act is replaced by the following:

    • (n) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a tax treaty (as defined in subsection 248(1) of the Income Tax Act) or in a listed international agreement; or

  •  (1) Paragraph 298(1)(b) of the Act is replaced by the following:

    • (b) in the case of an assessment of tax payable by the person under Division II in respect of a supply to which subsection 221(2) or (2.1) applies, more than four years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed;

  • (2) Subsection (1) is deemed to have come into force on June 27, 2018.

SOR/91-26; SOR/2011-56, s. 4; SOR/2013-71, s. 17Financial Services and Financial Institutions (GST/HST) Regulations

  •  (1) The Financial Services and Financial Institutions (GST/HST) Regulations are amended by adding the following after section 4:

    Prescribed Member for Subsection 132(6) of the Act

    4.1 For the purposes of subsection 132(6) of the Act, the following members of an investment limited partnership are prescribed members:

    • (a) a member that is a non-resident trust if the total value of the assets of the member in which one or more persons resident in Canada have a beneficial interest is more than 5% of the total value of the assets of the member; and

    • (b) a member that is a non-resident limited partnership if the total value of all interests in the member held by persons resident in Canada is more than 5% of the total value of all interests in the member.

  • (2) Subsection (1) is deemed to have come into force on September 8, 2017.

SOR/2001-171Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

  •  (1) The definition distributed investment plan in subsection 1(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations is amended by striking out “or” at the end of paragraph (g), by adding “or” at the end of paragraph (h) and by adding the following after paragraph (h):

    • (i) an investment limited partnership. (régime de placement par répartition)

  • (2) The definition permanent establishment in subsection 1(1) of the Regulations is amended by adding “and” at the end of paragraph (b) and by replacing paragraphs (c) and (d) by the following:

    • (c) in the case of a partnership that is not an investment plan,

      • (i) if all the members of the partnership are individuals or trusts, any permanent establishment that would be a permanent establishment of the partnership under subsection 2600(2) of the Income Tax Regulations if the partnership were an individual, and

      • (ii) if subparagraph (i) does not apply, any permanent establishment that would be a permanent establishment of the partnership under subsection 400(2) of the Income Tax Regulations if the partnership were a corporation. (établissement stable)

  • (3) The portion of paragraph (b) of the definition provincial series in subsection 1(1) of the Regulations before subparagraph (i) is replaced by the following:

    • (b) under the terms of the prospectus, registration statement, partnership agreement or other similar document for the series, or under the laws of Canada or a province, the conditions for a person owning or acquiring units of the series include the following:

  • (4) The definition series in subsection 1(1) of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

    • (c) in respect of a partnership, a class of units of the partnership. (série)

  • (5) The definition unit in subsection 1(1) of the Regulations is amended by striking out “and” at the end of paragraph (d) and by adding the following after that paragraph:

    • (d.1) in respect of a partnership, an interest of a person in the partnership;

    • (d.2) in respect of a series of a partnership, a unit of the partnership of that series; and

  • (6) Subsection (1) applies in respect of any reporting period of a person that begins

    • (a) after 2018; and

    • (b) in 2018 if the person is a listed financial institution throughout the reporting period of the person that includes January 1, 2018.

  • (7) Subsections (2) to (5) are deemed to have come into force on September 8, 2017.

  •  (1) The portion of section 2 of the Regulations before paragraph (a) is replaced by the following:

    Marginal note:Qualifying partnership

    2 For the purposes of these Regulations, a partnership that is not an investment plan is a qualifying partnership during a taxation year of the partnership if, at any time in the taxation year, the partnership has

  • (2) Subsection (1) is deemed to have come into force on September 8, 2017.

  •  (1) The portion of paragraph 11(b) of the Regulations before subparagraph (i) is replaced by the following:

    • (b) under the terms of the prospectus, registration statement, partnership agreement or other similar document for the financial institution, or under the laws of Canada or a province, the conditions for a person owning or acquiring units of the financial institution include

  • (2) Subsection (1) is deemed to have come into force on September 8, 2017.

  •  (1) The portion of the definition plan merger in subsection 16(1) of the Regulations before paragraph (a) is replaced by the following:

    plan merger

    plan merger means the merger or combination of two or more trusts, corporations or partnerships, each of which was, immediately before the merger or combination, a distributed investment plan and each of which is referred to in this definition as a “predecessor”, to form one trust, corporation or partnership (referred to in this definition as the “continuing plan”) in such a manner that

  • (2) Paragraph (c) of the definition plan merger in subsection 16(1) of the Regulations is replaced by the following:

    • (c) the merger or combination is otherwise than as a result of the acquisition of property of a particular trust, corporation or partnership by another trust, corporation or partnership, pursuant to the purchase of that property by the other trust, corporation or partnership or as a result of the distribution of that property to the other trust, corporation or partnership on the winding-up of the particular trust, corporation or partnership. (fusion de régimes)

  • (3) Subsections (1) and (2) are deemed to have come into force on September 8, 2017.

  •  (1) The Regulations are amended by adding the following after section 72:

    Transitional Rules for Investment Limited Partnerships

    Marginal note:Investment limited partnerships — 2019

    • 73 (1) A particular investment limited partnership to which subparagraph 149(1)(a)(ix) of the Act does not apply is deemed to be an investment plan that is a distributed investment plan for the following purposes:

      • (a) the purposes of determining under section 30 the percentage for a series of a selected listed financial institution or of another investment limited partnership described in subsection (2), for a participating province and for a particular period (as defined in subsection 16(1)) of the selected listed financial institution or other investment limited partnership and the purposes of determining under section 32 the percentage for a participating province and for a particular period (as defined in subsection 16(1)) of a selected listed financial institution or of another investment limited partnership described in subsection (2), but only if the percentage is to be used in the determination of

        • (i) the positive amount that the financial institution or other investment limited partnership is required to add, or the negative amount that the financial institution or other investment limited partnership is able to deduct, in determining its net tax under subsection 225.2(2) of the Act, having regard to any applicable adaptations made to that subsection under these Regulations, for a reporting period in a fiscal year of the financial institution or other investment limited partnership that begins in 2019,

        • (ii) the instalment base under subsection 237(2) of the Act, having regard to any applicable adaptations made to that subsection under these Regulations, for a reporting period in a fiscal year of the financial institution or other investment limited partnership that begins in 2019,

        • (iii) the interim net tax under subsection 228(2.1) of the Act, having regard to any applicable adaptations made to that subsection under these Regulations, for a reporting period in a fiscal year of the financial institution or other investment limited partnership that begins in 2019, or

        • (iv) if a joint election made under section 55 by the financial institution or other investment limited partnership and the manager of the financial institution or other investment limited partnership is in effect at any time in a fiscal year of the manager that begins in 2019,

          • (A) an amount that, under paragraph 55(2)(c), is a prescribed amount for the purposes of the description of G in subsection 225.2(2) of the Act for a reporting period in the fiscal year, or

          • (B) the positive amount that the manager is required to add, or the negative amount that the manager is able to deduct, in determining its net tax under subsection 225.2(2) of the Act, having regard to the adaptations made to that subsection under paragraph 55(2)(d), for a reporting period in the fiscal year;

      • (b) the purposes of determining under section 28 an investor percentage of the particular investment limited partnership as of a day in 2018; and

      • (c) the purposes of applying section 52 to the particular investment limited partnership in respect of any information that is requested under that section by a selected listed financial institution or by another investment limited partnership described in subsection (2), but only if the information is required for

        • (i) the determination of a percentage referred to in paragraph (a) of the financial institution or other investment limited partnership that is to be used in the determination of an amount described in any of subparagraphs (a)(i) to (iv), or

        • (ii) the determination under section 28 of an investor percentage of the financial institution or other investment limited partnership as of a day in 2018.

    • Marginal note:Investment limited partnerships — 2019

      (2) If an investment limited partnership is a selected listed financial institution throughout the reporting period of the investment limited partnership that includes January 1, 2019 but is not a selected listed financial institution throughout the preceding reporting period of the investment limited partnership, the following rules apply:

      • (a) for the purposes of determining under section 28 an investor percentage of the investment limited partnership as of a day in 2018, the investment limited partnership is deemed to be a selected listed financial institution;

      • (b) the investment limited partnership is deemed to be, throughout 2018, a selected listed financial institution and an investment plan that is a distributed investment plan for the purposes of determining under section 30 or 33 the investment limited partnership’s percentage for a series of the investment limited partnership, for a participating province and for a particular period (as defined in subsection 16(1)) of the investment limited partnership and for the purposes of determining under section 32 or 34 the investment limited partnership’s percentage for a participating province and for a particular period (as defined in subsection 16(1)) of the investment limited partnership, but only if the percentage is to be used in the determination of

        • (i) the positive amount that the investment limited partnership is required to add, or the negative amount that the investment limited partnership is able to deduct, in determining its net tax under subsection 225.2(2) of the Act, having regard to any applicable adaptations made to that subsection under these Regulations, for a reporting period in a fiscal year of the investment limited partnership that begins in 2019,

        • (ii) the instalment base under subsection 237(2) of the Act, having regard to any applicable adaptations made to that subsection under these Regulations, for a reporting period in a fiscal year of the investment limited partnership that begins in 2019,

        • (iii) the interim net tax under subsection 228(2.1) of the Act, having regard to any applicable adaptations made to that subsection under these Regulations, for a reporting period in a fiscal year of the investment limited partnership that begins in 2019, or

        • (iv) if a joint election made under section 55 by the investment limited partnership and the manager of the investment limited partnership is in effect at any time in a fiscal year of the manager that begins in 2019,

          • (A) an amount that, under paragraph 55(2)(c), is a prescribed amount for the purposes of the description of G in subsection 225.2(2) of the Act for a reporting period in the fiscal year, or

          • (B) the positive amount that the manager is required to add, or the negative amount that the manager is able to deduct, in determining its net tax under subsection 225.2(2) of the Act, having regard to the adaptations made to that subsection under paragraph 55(2)(d), for a reporting period in the fiscal year; and

      • (c) for the purposes of section 52, the investment limited partnership is deemed to be

        • (i) if the units of the investment limited partnership are issued in two or more series, a selected stratified investment plan throughout 2018, or

        • (ii) in any other case, a selected non-stratified investment plan throughout 2018.

  • (2) Subsection (1) is deemed to have come into force on September 8, 2017.

Transitional Provisions

  •  (1) Despite paragraph 298(1)(a) of the Excise Tax Act, the Minister of National Revenue may at any time assess under section 296 of that Act the net tax of a trust governed by a registered education savings plan (as defined in subsection 248(1) of the Income Tax Act) for a reporting period of the trust that ends after June 2010 but begins before July 22, 2016, provided that the assessment

    • (a) is made solely for the purpose of determining the amount for a province that, under subsection 225.2(2) of the Excise Tax Act, is required to be added to, or may be deducted from, that net tax; and

    • (b) is made on or before the day that is four years after the later of

      • (i) the day on which this Act receives royal assent, and

      • (ii) the day on which the return under section 238 of the Excise Tax Act for the reporting period was filed.

  • (2) Despite paragraph 298(1)(e) of the Excise Tax Act, the Minister of National Revenue may at any time assess under section 296 of that Act any penalty payable by a trust governed by a registered education savings plan (as defined in subsection 248(1) of the Income Tax Act), provided that

    • (a) the assessment relates solely to the amount for a province that, under subsection 225.2(2) of the Excise Tax Act, is required to be added to, or may be deducted from, the net tax for a reporting period of the trust that ends after June 2010 but begins before July 22, 2016; and

    • (b) if the penalty is other than a penalty under section 280.1, 285, 285.01 or 285.1 of the Excise Tax Act, the assessment is made on or before the day that is four years after the later of

      • (i) the day on which this Act receives royal assent, and

      • (ii) the day on which the trust becomes liable to pay the penalty.

  • (3) Despite paragraphs 298(1)(a) and (e) of the Excise Tax Act, if an election made under section 55 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations by a trust governed by a registered education savings plan (as defined in subsection 248(1) of the Income Tax Act) and a manager (as defined in subsection 1(1) of those Regulations) of the trust is in effect at any time in a particular reporting period of the manager that ends in a reporting period of the trust that ends after June 2010 but begins before July 22, 2016,

    • (a) the Minister of National Revenue may at any time assess the net tax of the manager for the particular reporting period, provided that the assessment

      • (i) is made solely for the purpose of determining the amount for a province and for the trust that, under subsection 225.2(2) of the Excise Tax Act and due to the application of section 55 of those Regulations, is required to be added to, or may be deducted from, that net tax, and

      • (ii) is made on or before the day that is four years after the later of

        • (A) the day on which this Act receives royal assent, and

        • (B) the day on which the return under section 238 of the Excise Tax Act for the particular reporting period was filed; and

    • (b) the Minister of National Revenue may at any time assess any penalty payable by the manager, provided that

      • (i) the assessment relates solely to the amount for a province and for the trust that, under subsection 225.2(2) of the Excise Tax Act and due to the application of section 55 of those Regulations, is required to be added to, or may be deducted from, the net tax of the manager for the particular reporting period, and

      • (ii) if the penalty is other than a penalty under section 280.1, 285, 285.01 or 285.1 of the Excise Tax Act, the assessment is made on or before the day that is four years after the later of

        • (A) the day on which this Act receives royal assent, and

        • (B) the day on which the manager becomes liable to pay the penalty.

PART 3Amendments to the Excise Tax Act (Excise Measures), the Air Travellers Security Charge Act and the Excise Act, 2001

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

  •  (1) Paragraph 68.01(1)(a) of the Excise Tax Act is amended by adding the following after subparagraph (i):

    • (i.1) to the vendor, if the quantity of the diesel fuel is at least 1,000 litres, the vendor applies for the payment and the purchaser certifies that, and the vendor reasonably believes that, the purchaser will use the diesel fuel exclusively to generate electricity other than in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation, or

  • (2) Paragraph 68.01(1)(b) of the Act is replaced by the following:

    • (b) to a purchaser that applies for the payment and that uses the diesel fuel to generate electricity (other than in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation), if no application in respect of the diesel fuel can be made by the vendor under subparagraph (a)(i.1).

  • (3) Paragraph 68.01(3)(a) of the Act is replaced by the following:

    • (a) the vendor described in subparagraph (1)(a)(i) or (i.1) applies for it within two years after the vendor sells the diesel fuel to the purchaser described in subparagraph (1)(a)(i) or (i.1), as the case may be; or

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

 The portion of subsection 38(6) of the Air Travellers Security Charge Act before paragraph (a) is replaced by the following:

  • Marginal note:Time period not to count

    (6) The period between the day on which an application for the review of a requirement is made and the day on which the application is finally disposed of shall not be counted in the computation of

2002, c. 22Excise Act, 2001

  •  (1) The Excise Act, 2001 is amended by adding the following after section 2:

    Marginal note:Dutiable amount — consideration

    2.1 The following rules apply in determining an amount of consideration for the purposes of the definition dutiable amount in section 2:

    • (a) if a provision of Part IX of the Excise Tax Act deems the consideration, or part of the consideration, for a supply not to be consideration for the supply, a supply to be made for no consideration or a supply not to have been made by a person, that deeming does not apply for that determination; and

    • (b) subsection 155(1) of that Act is to be read without reference to “and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient,”.

  • (2) Subsection (1) is deemed to have come into force on September 17, 2018.

 The Act is amended by adding the following after section 209:

Marginal note:Time period not to count

209.1 The following periods of time shall not be counted in the computation of the period of time within which an assessment of a person may be made under section 188 or 189:

  • (a) if the person is served a notice of a requirement under subsection 208(1), the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; and

  • (b) if an application is commenced by the Minister under subsection 209(1) to order the person to provide any access, assistance, information or record, the period of time between the day on which the person files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of.

 The portion of subsection 210(7) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Time period not to count

    (7) The period between the day on which an application for the review of a requirement is made and the day on which the application is finally disposed of shall not be counted in the computation of

  •  (1) Paragraph 211(6)(d.1) of the Act is replaced by the following:

    • (d.1) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, under, and solely for the purpose of,

  • (2) Paragraph 211(6)(l) of the Act is replaced by the following:

    • (l) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a tax treaty (as defined in subsection 248(1) of the Income Tax Act) or in a listed international agreement;

  •  (1) Paragraph (a) of the description of B in section 233.1 of the Act is replaced by the following:

    • (a) if the contravention occurred in a specified province, 300% of the amount determined for A, and

  • (2) Paragraph (a) of the description of C in section 233.1 of the Act is replaced by the following:

    • (a) if the contravention occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

  •  (1) Paragraph (a) of the description of B in section 234.1 of the Act is replaced by the following:

    • (a) if the contravention occurred in a specified province, 300% of the amount determined for A, and

  • (2) Paragraph (a) of the description of C in section 234.1 of the Act is replaced by the following:

    • (a) if the contravention occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

PART 4Various Measures

DIVISION 1Customs Tariff Simplification

Amendments to the Customs Tariff

  •  (1) The definitions beer or malt liquor and wine in section 21 of the Customs Tariff are replaced by the following:

    beer

    beer or malt liquor means beer or malt liquor, within the meaning of section 4 of the Excise Act, of tariff item No. 2202.91.00 or heading 22.03, that is classified under that heading or tariff item or with the container in which it is imported. (bière ou liqueur de malt)

    wine

    wine means wine, as defined in section 2 of the Excise Act, 2001, of heading 22.04, 22.05 or 22.06, other than of tariff item No. 2204.10.90, 2204.21.32, 2204.21.49, 2204.22.32, 2204.22.49, 2204.29.32, 2204.29.49, 2204.30.90, 2205.10.30, 2205.90.30, 2206.00.19, 2206.00.22, 2206.00.39, 2206.00.49, 2206.00.72 or 2206.00.93, that is classified under that heading or with the container in which it is imported. (vin)

  • (2) Paragraph (a) of the definition spirits in section 21 of the Act is replaced by the following:

    • (a) of an alcoholic strength by volume exceeding 22.9%, of tariff item No. 2204.10.90, 2204.21.32, 2204.21.49, 2204.22.32, 2204.22.49, 2204.29.32, 2204.29.49, 2204.30.90, 2205.10.30, 2205.90.30, 2206.00.19, 2206.00.22, 2206.00.39, 2206.00.49, 2206.00.72 or 2206.00.93, that are classified under that tariff item or with the container in which they are imported;

 Paragraph 69(5)(b) of the Act is replaced by the following:

  • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

 Paragraph 70(7)(b) of the Act is replaced by the following:

  • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

 Paragraph 71(7)(b) of the Act is replaced by the following:

  • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

 Paragraph 71.1(8)(b) of the Act is replaced by the following:

  • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

  •  (1) Paragraph 71.2(3)(a) of the Act is replaced by the following:

    • (a) may not, in the case of tariff item Nos. 8901.20.90, 8902.00.10, 8905.20.11, 8905.20.19, 8905.20.20, 8905.90.11, 8905.90.19 and 8906.90.99, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 10 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and

  • (2) Paragraph 71.2(7)(b) of the Act is replaced by the following:

    • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

  •  (1) Paragraph 71.3(3)(a) of the Act is replaced by the following:

    • (a) may not, in the case of tariff item Nos. 8901.20.90, 8902.00.10, 8905.20.11, 8905.20.19, 8905.20.20, 8905.90.11, 8905.90.19 and 8906.90.99, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 10 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and

  • (2) Paragraph 71.3(7)(b) of the Act is replaced by the following:

    • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

  •  (1) Paragraph 71.4(3)(a) of the Act is replaced by the following:

    • (a) may not, in the case of tariff item Nos. 8901.20.90, 8902.00.10, 8905.20.11, 8905.20.19, 8905.20.20, 8905.90.11, 8905.90.19 and 8906.90.99, be made more than once during the period beginning on the day that is three years after the day on which this subsection comes into force and ending on the day before the day that is 10 years after the day on which this subsection comes into force in respect of goods of a particular kind and, if made during that period, remains in effect for the period, not exceeding three years, specified in the order; and

  • (2) Paragraph 71.4(7)(b) of the Act is replaced by the following:

    • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

 Paragraph 71.6(6)(b) of the Act is replaced by the following:

  • (b) in respect of a fresh fruit, the rate of customs duty applicable to that fruit set out in the applicable tariff item referred to in Supplementary Note 3(b) in Chapter 8 of the List of Tariff Provisions.

 Subsection 134(2) of the Act is replaced by the following:

  • Marginal note:Other orders

    (2) The Minister of Public Safety and Emergency Preparedness or President of the Canada Border Services Agency may, by order, suspend for a specified period a tariff item referred to in Supplementary Note 3(c) of Chapter 8 of the List of Tariff Provisions, and bring into force for the period one or more tariff items referred to in Supplementary Note 3(b) of that Chapter, in respect of goods that are imported through a customs office in a region or part of Canada specified in the order during that period.

 The Description of Goods in the preamble preceding tariff item No. 0306.31.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is replaced by the following:

-Vivants, frais ou réfrigérés :

 The Description of Goods of tariff item No. 0307.39.10 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “Fumés” with a reference to “Fumées”.

  •  (1) The Description of Goods in the preamble preceding tariff item No. 0702.00.21 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

    - - -Cherry tomatoes, other than for processing:

  • (2) The Description of Goods of tariff item No. 0702.00.21 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “Cherry tomatoes imported during such period” with “Imported during such period”.

 The Description of Goods of tariff item No. 0702.00.29 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “Other cherry tomatoes” with “Other”.

  •  (1) Supplementary Note 3(a) to Chapter 8 of the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “Supplementary Note 4 (c)” and “Supplementary Note 4 (b)” with a reference to “Supplementary Note 3 (c)” and “Supplementary Note 3 (b)”, respectively.

  • (2) Supplementary Note 3(b) to Chapter 8 of the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “0809.40.31, 0810.10.91 or 0810.20.11” with a reference to “0809.40.31 or 0810.10.91”.

  • (3) Supplementary Note 3(c) to Chapter 8 of the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “0809.40.39, 0810.10.99 or 0810.20.19” with a reference to “0809.40.39 or 0810.10.99”.

  • (4) Supplementary Note 3(d) to Chapter 8 of the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “Supplementary Note 4 (a)” with a reference to “Supplementary Note 3 (a)”.

 The Description of Goods in the preamble preceding tariff item No. 1107.20.11 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing “Autres” with “Entier”.

 The Description of Goods in the preamble preceding tariff item No. 1605.61.00 in the List of Tariff Provisions set out in the schedule to the English version of the Act is amended by replacing the reference to “acquatic” with a reference to “aquatic”.

 The Description of Goods in the preamble preceding tariff item No. 2106.90.51 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - -Egg preparations, containing 50% or more by weight of eggs:

 The Description of Goods of tariff item No. 2202.99.32 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “non conditionnés” with a reference to “non conditionnées”.

 The Description of Goods of tariff item No. 2202.99.33 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “non conditionnés” with a reference to “non conditionnées”.

 The Description of Goods of tariff item No. 3402.20.10 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “lave-vaiselle” with a reference to “lave-vaisselle”.

 Chapter 38 of the List of Tariff Provisions set out in the schedule to the Act is amended by deleting Supplementary Note 1 and the heading before it.

 The Description of Goods of tariff item No. 4011.90.10 in the List of Tariff Provisions set out in the schedule to the English version of the Act is amended by replacing the reference to “Of a size of 3,600 x 51 or 4,000 x 57” with a reference to “Of a size of 3600 X 51 or 4000 X 57”.

 The Description of Goods of tariff item No. 4012.20.10 in the List of Tariff Provisions set out in the schedule to the English version of the Act is amended by replacing the reference to “Of a size of 3600 x 51 or 4000 x 57” with a reference to “Of a size of 3600 X 51 or 4000 X 57”.

 The Description of Goods of tariff item No. 4203.29.10 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - -Gloves of goat (including kid) and/or hair sheep

 The Description of Goods in the preamble preceding tariff item No. 4401.31.00 in the List of Tariff Provisions set out in the schedule to the English version of the Act is amended by replacing the reference to “agglomerated, in logs” with a reference to “agglomerated in logs”.

 The Description of Goods of tariff item No. 4421.99.10 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “Rais de formes” with a reference to “Rais et formes”.

 Note 4 to Chapter 48 of the List of Tariff Provisions set out in the schedule to the English version of the Act is amended by replacing the reference to “apply” with a reference to “applies”.

 The Description of Goods of tariff item No. 5104.00.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “Éffilochés” with a reference to “Effilochés”.

 The Description of Goods of tariff item No. 5208.13.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “la croisé” with a reference to “le croisé”.

 The Description of Goods of tariff item Nos. 5208.43.00 and 5210.32.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “le croisé dont le rapport” with a reference to “le croisé, dont le rapport”.

 The Description of Goods of tariff item No. 6117.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “No. 6006.23.10” with a reference to “No. 6006.23.90”.

 The Description of Goods of tariff item No. 6303.92.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “No. 5407.61.19” with a reference to “No. 5407.61.10”.

 The Description of Goods in the preamble preceding tariff item No. 6305.32.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “our” with a reference to “ou”.

 The Description of Goods of tariff item No. 6305.33.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “similaries” with a reference to “similaires”.

 The Description of Goods of tariff item No. 6401.99.11 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - - -Riding boots solely of rubber

 The Description of Goods of tariff item No. 6403.40.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “à l’avant une coquille” with a reference to “à l’avant, une coquille”.

 The Description of Goods of tariff item No. 6406.90.20 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - -Crampons for climbing or mountaineering

 The Description of Goods of tariff item Nos. 7210.61.00, 7616.91.00 and 9913.00.00 in the List of Tariff Provisions set out in the schedule to the English version of the Act is amended by replacing the reference to “aluminium” with a reference to “aluminum”.

 The Description of Goods of tariff item No. 8302.41.10 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “le réparation” with a reference to “la réparation”.

 The Description of Goods of tariff item Nos. 8507.20.10, 8507.30.20, 8507.40.10, 8507.50.10, 8507.60.10, 8507.60.20 and 8507.80.20 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “de la sous-position” with a reference to “des sous-positions”.

 The Description of Goods of tariff item No. 8531.10.10 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - -Indicating or automatic alarm equipment for detecting or indicating noxious gases or noxious vapours in the atmosphere;

Smoke detectors

 The Description of Goods of tariff item No. 8539.90.10 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “8539.39.10” with a reference to “8539.39.00”.

 The Description of Goods of heading 85.48 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “éléctrique” with a reference to “électriques”.

 The Description of Goods of tariff item No. 8703.21.10 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “tout-terrains” with a reference to “tout-terrain”.

 The Description of Goods of tariff item No. 8714.94.00 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “Freins y compris” with a reference to “Freins, y compris”.

 The Description of Goods of heading 89.01 in the List of Tariff Provisions set out in the schedule to the French version of the Act is amended by replacing the reference to “transbordeurs cargos” with a reference to “transbordeurs, cargos”.

 The Description of Goods of tariff item No. 9032.10.10 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - -For use with machinery or equipment of Section XVI

 The Description of Goods of tariff item No. 9897.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) the references to “9808.00.00, 9809.00.00 or 9810.00.00” with references to “9808.00.00 or 9810.00.00”; and

  • (b) the references to “9803.00.00, 9809.00.00 or 9810.00.00” with references to “9803.00.00 or 9810.00.00”.

 The Description of Goods of tariff item No. 9934.00.00 in the List of Tariff Provisions set out in the schedule to the Act is replaced the following:

Scarves of textile materials, in rolls, merely needing separation by cutting dividing threads.

 The Description of Goods of tariff item No. 9948.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing

  • (a) the reference to “Automatic data processing machines and units thereof, magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data;” with “Goods of heading 84.71”; and

  • (b) the reference to “Power supplies of automatic data processing machines and units thereof;” with “Power supplies of automatic data processing machines, and units thereof, of heading 84.71;”.

 The Description of Goods of tariff item No. 9979.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “assist persons with disabilities in alleviating the effects of those disabilities,” with a reference to “ alleviate the specific effects of a disability,”.

 The following tariff provisions of the List of Tariff Provisions set out in the schedule to the Act are repealed:

Subheading 0204.22, tariff item Nos. 0204.22.10, 0204.22.20, subheading 0511.99, tariff item Nos. 0511.99.10, 0511.99.90, subheading 0713.90, tariff item Nos. 0713.90.10, 0713.90.90, subheading 0810.20, the preamble preceding tariff item No. 0810.20.11, tariff item Nos, 0810.20.11, 0810.20.19, 0810.20.90, subheading 0810.40, tariff item Nos. 0810.40.10, 0810.40.90, subheading 1106.10, tariff item Nos. 1106.10.10, 1106.10.90, subheading 2009.11, tariff item Nos. 2009.11.10, 2009.11.90, subheading 2009.19, tariff item Nos. 2009.19.10, 2009.19.90, subheading 2207.10, tariff item Nos. 2207.10.10, 2207.10.90, subheading 2917.19, tariff item No. 2917.19.10, the preamble preceding tariff item No. 2917.19.91, tariff item Nos. 2917.19.91, 2917.19.99, subheading 3302.10, the preamble preceding tariff item No. 3302.10.11, tariff item Nos. 3302.10.11, 3302.10.12, 3302.10.90, subheading 3506.91, tariff item Nos. 3506.91.10, 3506.91.90, subheading 3701.30, tariff item Nos. 3701.30.10, 3701.30.20, the preamble preceding tariff item No. 3701.30.31, tariff item Nos. 3701.30.31, 3701.30.39, subheading 3701.99, tariff item Nos. 3701.99.10, 3701.99.20, 3701.99.30, subheading 3707.90, tariff item Nos. 3707.90.10, 3707.90.90, subheading 3901.10, tariff item Nos. 3901.10.10, 3901.10.20, 3901.10.90, subheading 3901.20, tariff item Nos. 3901.20.10, 3901.20.90, subheading 3902.90, tariff item Nos. 3902.90.10, 3902.90.90, subheading 3909.20, tariff item Nos. 3909.20.10, 3909.20.90, subheading 3923.10, tariff item Nos. 3923.10.10, 3923.10.90, subheading 4105.10, the preamble preceding tariff item No. 4105.10.11, tariff item Nos. 4105.10.11, 4105.10.12, 4105.10.19, the preamble preceding tariff item No. 4105.10.21, tariff item Nos. 4105.10.21, 4105.10.29, the preamble preceding tariff item No. 4105.10.91, tariff item Nos. 4105.10.91, 4105.10.99, subheading 4106.21, tariff item No. 4106.21.10, the preamble preceding tariff item No. 4106.21.21, tariff item Nos. 4106.21.21, 4106.21.29, the preamble preceding tariff item No. 4106.21.91, tariff item Nos. 4106.21.91, 4106.21.92, 4106.21.99, subheading 4106.31, tariff item No. 4106.31.10, the preamble preceding tariff item No. 4106.31.91, tariff item Nos. 4106.31.91, 4106.31.92, 4106.31.99, subheading 4203.21, tariff item Nos. 4203.21.10, 4203.21.90, subheading 4408.10, tariff item Nos. 4408.10.10, 4408.10.90, subheading 4408.90, tariff item Nos. 4408.90.10, 4408.90.90, subheading 4412.10, tariff item Nos. 4412.10.10, 4412.10.90, subheading 4412.94, tariff item Nos. 4412.94.10, 4412.94.90, subheading 5106.10, tariff item Nos. 5106.10.10, 5106.10.90, subheading 5107.10, tariff item Nos. 5107.10.10, 5107.10.90, subheading 5107.20, tariff item Nos. 5107.20.10, 5107.20.90, subheading 5111.11, tariff item Nos. 5111.11.10, 5111.11.40, 5111.11.50, 5111.11.90, subheading 5204.11, tariff item Nos. 5204.11.10, 5204.11.90, subheading 5205.11, tariff item Nos. 5205.11.10, 5205.11.20, 5205.11.90, subheading 5205.12, tariff item Nos. 5205.12.10, 5205.12.90, subheading 5205.13, tariff item Nos. 5205.13.10, 5205.13.90, subheading 5205.14, tariff item Nos. 5205.14.10, 5205.14.20, 5205.14.30, 5205.14.90, subheading 5205.21, tariff item Nos. 5205.21.10, 5205.21.90, subheading 5205.22, tariff item Nos. 5205.22.10, 5205.22.20, 5205.22.90, subheading 5205.23, tariff item Nos. 5205.23.10, 5205.23.90, subheading 5205.24, tariff item Nos. 5205.24.10, 5205.24.20, 5205.24.30, 5205.24.40, 5205.24.90, subheading 5205.31, tariff item Nos. 5205.31.10, 5205.31.90, subheading 5205.32, tariff item Nos. 5205.32.10, 5205.32.90, subheading 5205.41, tariff item Nos. 5205.41.10, 5205.41.90, subheading 5205.42, tariff items Nos. 5205.42.10, 5205.42.90, subheading 5210.49, the preamble preceding tariff item No. 5210.49.11, tariff item Nos. 5210.49.11, 5210.49.19, 5210.49.90, subheading 5211.12, tariff item Nos. 5211.12.10, 5211.12.90, subheading 5211.20, the preamble preceding tariff item No. 5211.20.11, tariff item Nos. 5211.20.11, 5211.20.19, 5211.20.90, subheading 5211.32, tariff item Nos. 5211.32.10, 5211.32.90, subheading 5211.41, tariff item Nos. 5211.41.10, 5211.41.90, subheading 5211.43, tariff item Nos. 5211.43.10, 5211.43.90, subheading 5211.52, tariff item Nos. 5211.52.10, 5211.52.90, subheading 5212.11, tariff item Nos. 5212.11.20, 5212.11.30, 5212.11.90, subheading 5212.12, tariff item Nos. 5212.12.20, 5212.12.30, 5212.12.90, subheading 5212.13, tariff item Nos. 5212.13.30, 5212.13.40, 5212.13.90, subheading 5212.14, tariff item Nos. 5212.14.30, 5212.14.40, 5212.14.90, subheading 5212.15, tariff item Nos. 5212.15.20, 5212.15.30, 5212.15.90, subheading 5212.21, tariff item Nos. 5212.21.20, 5212.21.30, 5212.21.90, subheading 5212.22, tariff item Nos. 5212.22.20, 5212.22.30, 5212.22.90, subheading 5212.23, tariff item Nos. 5212.23.20, 5212.23.30, 5212.23.90, subheading 5212.24, tariff items Nos. 5212.24.20, 5212.24.30, 5212.24.90, subheading 5212.25, tariff item Nos. 5212.25.20, 5212.25.30, 5212.25.90, subheading 5308.90, tariff item Nos. 5308.90.10, 5308.90.90, subheading 5402.11, tariff item Nos. 5402.11.10, 5402.11.90, subheading 5402.19, tariff item Nos. 5402.19.10, 5402.19.90, subheading 5402.20, tariff item Nos. 5402.20.10, 5402.20.20, 5402.20.90, subheading 5402.31, tariff item Nos. 5402.31.10, 5402.31.20, 5402.31.30, 5402.31.90, subheading 5402.32, tariff item Nos. 5402.32.10, 5402.32.90, subheading 5402.33, tariff item Nos. 5402.33.10, 5402.33.20, 5402.33.90, subheading 5402.34, tariff item Nos. 5402.34.10, 5402.34.20, 5402.34.90, subheading 5402.51, tariff item Nos. 5402.51.10, 5402.51.90, subheading 5402.62, tariff item Nos. 5402.62.10, 5402.62.90, subheading 5407.10, tariff item Nos. 5407.10.10, 5407.10.20, 5407.10.90, subheading 5407.30, tariff item Nos. 5407.30.10, 5407.30.90, subheading 5407.41, tariff item Nos. 5407.41.10, 5407.41.90, subheading 5407.42, tariff item Nos. 5407.42.10, 5407.42.20, 5407.42.90, subheading 5407.52, the preamble preceding tariff item No. 5407.52.11, tariff item Nos. 5407.52.11, 5407.52.19, 5407.52.20, 5407.52.30, 5407.52.90, the preamble preceding tariff item No. 5407.61.11, tariff item Nos. 5407.61.11, 5407.61.19, 5407.61.20, the preamble preceding tariff item No. 5407.61.93, tariff item Nos. 5407.61.93, 5407.61.94, 5407.61.95, 5407.61.96, 5407.61.97, 5407.61.99, subheading 5407.69, tariff item Nos. 5407.69.10, 5407.69.20, 5407.69.30, 5407.69.40, 5407.69.50, 5407.69.90, subheading 5407.73, tariff item Nos. 5407.73.10, 5407.73.90, subheading 5407.82, tariff item No. 5407.82.10, the preamble preceding tariff item No. 5407.82.91, tariff item Nos. 5407.82.91, 5407.82.99, subheading 5407.91, tariff item Nos. 5407.91.10, 5407.91.20, 5407.91.90, subheading 5407.94, tariff item Nos. 5407.94.10, 5407.94.90, the preamble preceding tariff item No. 5408.22.11, tariff item Nos. 5408.22.11, 5408.22.19, the preamble preceding tariff item No. 5408.22.23, tariff item Nos. 5408.22.23, 5408.22.29, the preamble preceding tariff item No. 5408.22.91, tariff item Nos. 5408.22.91, 5408.22.99, the preamble preceding tariff item No. 5408.23.11, tariff item Nos. 5408.23.11, 5408.23.19, the preamble preceding tariff item No. 5408.23.91, tariff item Nos. 5408.23.91, 5408.23.99, the preamble preceding tariff item No. 5408.24.12, tariff item Nos. 5408.24.12, 5408.24.19, the preamble preceding tariff item No. 5408.24.92, tariff item Nos. 5408.24.92, 5408.24.99, subheading 5508.10, tariff item Nos. 5508.10.10, 5508.10.90, subheading 5509.12, tariff item Nos. 5509.12.10, 5509.12.90, subheading 5509.21, tariff item Nos. 5509.21.10, 5509.21.90, subheading 5509.22, tariff item Nos. 5509.22.20, 5509.22.30, 5509.22.90, subheading 5509.32, tariff item Nos. 5509.32.10, 5509.32.90, subheading 5509.41, tariff item Nos. 5509.41.10, 5509.41.90, subheading 5509.52, tariff item Nos. 5509.52.10, 5509.52.90, subheading 5509.53, tariff item Nos. 5509.53.10, 5509.53.20, 5509.53.30, 5509.53.40, 5509.53.90, subheading 5510.11, tariff item Nos. 5510.11.10, 5510.11.90, subheading 5510.12, tariff item Nos. 5510.12.10, 5510.12.90, subheading 5510.20, tariff item Nos. 5510.20.10, 5510.20.90, subheading 5510.30, tariff item Nos. 5510.30.10, 5510.30.90, subheading 5512.11, tariff item Nos. 5512.11.10, 5512.11.30, the preamble preceding tariff item No. 5512.11.91, tariff item Nos. 5512.11.91, 5512.11.99, subheading 5512.19, tariff item No. 5512.19.10, the preamble preceding tariff item No. 5512.19.91, tariff item Nos. 5512.19.91, 5512.19.99, subheading 5512.21, tariff item Nos. 5512.21.10, 5512.21.90, subheading 5512.29, tariff item No. 5512.29.10, the preamble preceding tariff item No. 5512.29.91, tariff item Nos. 5512.29.91, 5512.29.99, subheading 5512.91, tariff item Nos. 5512.91.10, 5512.91.90, subheading 5512.99, tariff item No. 5512.99.10, the preamble preceding tariff item No. 5512.99.91, tariff item Nos. 5512.99.91, 5512.99.99, subheading 5513.11, tariff item Nos. 5513.11.20, 5513.11.30, the preamble preceding tariff item No. 5513.11.91, tariff item Nos. 5513.11.91, 5513.11.99, subheading 5513.12, tariff item No. 5513.12.10, the preamble preceding tariff item No. 5513.12.91, tariff item Nos. 5513.12.91, 5513.12.99, subheading 5513.13, tariff item No. 5513.13.10, the preamble preceding tariff item No. 5513.13.91, tariff item Nos. 5513.13.91, 5513.13.99, subheading 5513.23, the preamble preceding tariff item No. 5513.23.11, tariff item Nos. 5513.23.11, 5513.23.19, the preamble preceding tariff item No. 5513.23.91, tariff item Nos. 5513.23.91, 5513.23.99, subheading 5513.31, tariff item Nos. 5513.31.20, 5513.31.90, subheading 5513.39, the preamble preceding tariff item No. 5513.39.11, tariff item Nos. 5513.39.11, 5513.39.19, the preamble preceding tariff item No. 5513.39.91, tariff item Nos. 5513.39.91, 5513.39.99, subheading 5513.41, tariff item Nos. 5513.41.10, 5513.41.20, 5513.41.30, 5513.41.90, subheading 5514.23, tariff item Nos. 5514.23.10, 5514.23.90, subheading 5514.43, tariff item Nos. 5514.43.10, 5514.43.90, subheading 5514.49, tariff item Nos. 5514.49.10, 5514.49.90, subheading 5515.11, tariff item Nos. 5515.11.10, 5515.11.20, 5515.11.30, 5515.11.90, subheading 5515.19, tariff item Nos. 5515.19.10, 5515.19.90, subheading 5515.21, tariff item Nos. 5515.21.10, 5515.21.90, subheading 5515.29, tariff item Nos. 5515.29.10, 5515.29.90, subheading 5515.91, tariff item Nos. 5515.91.10, 5515.91.90, subheading 5515.99, the preamble preceding tariff item No. 5515.99.11, tariff item Nos. 5515.99.11, 5515.99.19, the preamble preceding tariff item No. 5515.99.91, tariff item Nos. 5515.99.91, 5515.99.99, subheading 5516.12, tariff item No. 5516.12.10, the preamble preceding tariff item No. 5516.12.91, tariff item Nos. 5516.12.91, 5516.12.99, subheading 5516.13, tariff item Nos. 5516.13.10, 5516.13.90, subheading 5516.14, tariff item Nos. 5516.14.20, 5516.14.90, subheading 5516.21, tariff item No. 5516.21.10, the preamble preceding tariff item No. 5516.21.91, tariff item Nos. 5516.21.91, 5516.21.99, subheading 5516.23, tariff item No. 5516.23.10, the preamble preceding tariff item No. 5516.23.91, tariff item Nos. 5516.23.91, 5516.23.99, subheading 5516.24, tariff item Nos. 5516.24.10, 5516.24.90, subheading 5516.91, tariff item No. 5516.91.10, the preamble preceding tariff item No. 5516.91.91, tariff item Nos. 5516.91.91, 5516.91.92, 5516.91.99, subheading 5516.94, tariff item Nos. 5516.94.10, 5516.94.90, subheading 5602.10, tariff item Nos. 5602.10.10, 5602.10.20, 5602.10.90, subheading 5602.21, tariff item No. 5602.21.10, the preamble preceding tariff item No. 5602.21.91, tariff item Nos. 5602.21.91, 5602.21.99, subheading 5602.90, tariff item Nos. 5602.90.10, 5602.90.90, subheading 5604.90, tariff item Nos. 5604.90.10, 5604.90.20, 5604.90.90, subheading 5811.00, tariff item No. 5811.00.10, the preamble preceding tariff item No. 5811.00.21, tariff item Nos. 5811.00.21, 5811.00.29, 5811.00.90, subheading 5901.10, tariff item Nos. 5901.10.10, 5901.10.90, the preamble preceding tariff item No. 5903.10.11, tariff item Nos. 5903.10.11, 5903.10.19, the preamble preceding tariff item No. 5903.10.21, tariff item Nos. 5903.10.21, 5903.10.29, the preamble preceding tariff item No. 5903.20.11, tariff item Nos. 5903.20.11, 5903.20.19, the preamble preceding tariff item No. 5903.20.21, tariff item Nos. 5903.20.21, 5903.20.22, 5903.20.23, 5903.20.24, 5903.20.25, 5903.20.29, the preamble preceding tariff item No. 5903.90.21, tariff item Nos. 5903.90.21, 5903.90.22, 5903.90.23, 5903.90.24, 5903.90.25, 5903.90.26, 5903.90.27, 5903.90.29, subheading 5906.10, tariff item Nos. 5906.10.10, 5906.10.90, subheading 5906.91, tariff item No. 5906.91.10, the preamble preceding tariff item No. 5906.91.91, tariff item Nos. 5906.91.91, 5906.91.99, the preamble preceding tariff item No. 5906.99.11, tariff item Nos. 5906.99.11, 5906.99.19, the preamble preceding tariff item No. 5906.99.21, tariff item Nos. 5906.99.21, 5906.99.22, 5906.99.23, 5906.99.24, 5906.99.29, the preamble preceding tariff item No. 5907.00.11, tariff item Nos. 5907.00.11, 5907.00.12, 5907.00.13, 5907.00.16, 5907.00.17, 5907.00.18, 5907.00.19, subheading 5911.10, tariff item Nos. 5911.10.10, 5911.10.20, 5911.10.90, subheading 5911.20, 5911.20.10, 5911.20.90, subheading 5911.40, tariff item Nos. 5911.40.10, 5911.40.90, subheading 6001.10, tariff item Nos. 6001.10.10, 6001.10.90, subheading 6001.29, tariff item Nos. 6001.29.10, 6001.29.90, subheading 6001.92, tariff item Nos. 6001.92.10, 6001.92.20, 6001.92.30, 6001.92.40, 6001.92.90, subheading 6001.99, tariff item Nos. 6001.99.10, 6001.99.90, subheading 6002.40, tariff item Nos. 6002.40.30, 6002.40.40, 6002.40.90, subheading 6002.90, the preamble preceding tariff item No. 6002.90.11, tariff item Nos. 6002.90.11, 6002.90.19, 6002.90.90, subheading 6003.10, tariff item No. 6003.10.10, the preamble preceding tariff item No. 6003.10.91, tariff item Nos. 6003.10.91, 6003.10.99, subheading 6003.20, tariff item Nos. 6003.20.20, 6003.20.30, 6003.20.40, 6003.20.90, subheading 6003.30, tariff item No. 6003.30.10, the preamble preceding tariff item No. 6003.30.91, tariff item Nos. 6003.30.91, 6003.30.99, subheading 6003.40, tariff item No. 6003.40.10, the preamble preceding tariff item No. 6003.40.91, tariff item Nos. 6003.40.91, 6003.40.99, subheading 6003.90, tariff item Nos. 6003.90.20, 6003.90.30, 6003.90.40, 6003.90.90, subheading 6004.10, the preamble preceding tariff item No. 6004.10.11, tariff item Nos. 6004.10.11, 6004.10.19, 6004.10.20, 6004.10.90, subheading 6004.90, tariff item Nos. 6004.90.20, 6004.90.30, 6004.90.90, subheading 6005.21, tariff item Nos. 6005.21.20, 6005.21.30, 6005.21.90, subheading 6005.22, tariff item Nos. 6005.22.20, 6005.22.30, 6005.22.90, subheading 6005.23, tariff item Nos. 6005.23.20, 6005.23.30, 6005.23.90, subheading 6005.24, tariff item Nos. 6005.24.20, 6005.24.30, 6005.24.90, subheading 6005.36, tariff item Nos. 6005.36.10, 6005.36.20, 6005.36.90, subheading 6005.37, tariff item Nos. 6005.37.10, 6005.37.20, 6005.37.90, subheading 6005.38, tariff item Nos. 6005.38.10, 6005.38.20, 6005.38.90, subheading 6005.39, tariff item Nos. 6005.39.10, 6005.39.20, 6005.39.30, 6005.39.90, subheading 6005.41, tariff item Nos. 6005.41.10, 6005.41.90, subheading 6005.42, tariff item Nos. 6005.42.10, 6005.42.90, subheading 6005.43, tariff item No. 6005.43.10, the preamble preceding tariff item No. 6005.43.91, tariff item Nos. 6005.43.91, 6005.43.99, subheading 6005.44, tariff item Nos. 6005.44.10, 6005.44.20, 6005.44.90, subheading 6005.90, the preamble preceding tariff item No. 6005.90.21, tariff item Nos. 6005.90.21, 6005.90.29, the preamble preceding tariff item No. 6005.90.91, tariff item Nos. 6005.90.91, 6005.90.92, 6005.90.99, 6006.22.20, 6006.23.10, the preamble preceding tariff item No. 6006.23.21, tariff item Nos. 6006.23.21, 6006.23.29, subheading 6006.31, tariff item Nos. 6006.31.10, 6006.31.90, subheading 6006.32, tariff item Nos. 6006.32.10, 6006.32.90, subheading 6006.33, tariff item Nos. 6006.33.10, 6006.33.90, subheading 6006.34, tariff item Nos. 6006.34.10, 6006.34.90, subheading 6006.41, tariff item Nos. 6006.41.10, 6006.41.90, subheading 6006.42, tariff item Nos. 6006.42.10, 6006.42.90, subheading 6006.43, tariff item Nos. 6006.43.10, 6006.43.90, subheading 6006.44, tariff item Nos. 6006.44.10, 6006.44.90, subheading 6006.90, tariff item Nos. 6006.90.10, 6006.90.90, subheading 6209.90, tariff item Nos. 6209.90.10, 6209.90.90, subheading 6211.33, tariff item Nos. 6211.33.10, 6211.33.90, 6211.43.20, 6211.49.20, subheading 6217.10, tariff item Nos. 6217.10.10, 6217.10.90, subheading 6217.90, tariff item Nos. 6217.90.10, 6217.90.90, subheading 6302.53, tariff item Nos. 6302.53.10, 6302.53.90, 6307.90.20, 6401.92.30, subheading 6402.12, tariff item Nos. 6402.12.10, 6402.12.20, 6402.12.30, subheading 6403.12, tariff item Nos. 6403.12.10, 6403.12.20, 6403.12.30, 6404.19.20, subheading 7019.40, tariff item Nos. 7019.40.10, 7019.40.20, the preamble preceding tariff item No. 7019.40.91, tariff item Nos. 7019.40.91, 7019.40.99, subheading 7101.10, tariff item Nos. 7101.10.10, 7101.10.90, subheading 7101.22, tariff item Nos. 7101.22.10, 7101.22.90, subheading 7304.41, the preamble preceding tariff item No. 7304.41.11, tariff item Nos. 7304.41.11, 7304.41.19, the preamble preceding tariff item No. 7304.41.91, tariff item Nos. 7304.41.91, 7304.41.99, the preamble preceding tariff item No. 7407.10.11, tariff item Nos. 7407.10.11, 7407.10.12, the preamble preceding tariff item No. 7407.10.21, tariff item Nos. 7407.10.21, 7407.10.29, 7407.21.10, the preamble preceding tariff item No. 7407.21.21, tariff item Nos. 7407.21.21, 7407.21.22, subheading 7407.29, the preamble preceding tariff item No. 7407.29.21, tariff item Nos. 7407.29.21, 7407.29.29, 7407.29.90, the preamble preceding tariff item No. 7408.11.11, tariff item Nos. 7408.11.11, 7408.11.12, the preamble preceding tariff item No. 7408.11.31, tariff item Nos. 7408.11.31, 7408.11.32, subheading 7607.20, tariff item Nos. 7607.20.10, 7607.20.90, subheading 8102.95, tariff item Nos. 8102.95.10, 8102.95.20, subheading 8111.00, the preamble preceding tariff item No. 8111.00.11, tariff item Nos. 8111.00.11, 8111.00.12, the preamble preceding tariff item No. 8111.00.21, tariff item Nos. 8111.00.21, 8111.00.22, 8111.00.40, subheading 8410.11, tariff item Nos. 8410.11.10, 8410.11.20, subheading 8410.12, tariff item Nos. 8410.12.10, 8410.12.20, subheading 8410.13, tariff item Nos. 8410.13.10, 8410.13.20, subheading 8410.90, tariff item Nos. 8410.90.10, 8410.90.20, 8410.90.30, subheading 8411.82, tariff item Nos. 8411.82.10, 8411.82.20, 8411.82.90, subheading 8413.70, tariff item No. 8413.70.10, the preamble preceding tariff item No. 8413.70.91, tariff item Nos. 8413.70.91, 8413.70.99, the preamble preceding tariff item No. 8415.90.11, tariff item Nos. 8415.90.11, 8415.90.19, the preamble preceding tariff item No. 8415.90.21, tariff item Nos. 8415.90.21, 8415.90.22, 8415.90.23, 8415.90.29, subheading 8421.31, tariff item Nos. 8421.31.10, 8421.31.90, 8421.39.10, the preamble preceding tariff item No. 8427.20.11, tariff item Nos. 8427.20.11, 8427.20.19, the preamble preceding tariff item No. 8461.50.11, tariff item Nos. 8461.50.11, 8461.50.19, the preamble preceding tariff item No. 8461.50.91, tariff item Nos. 8461.50.91, 8461.50.99, the preamble preceding tariff item No. 8462.91.91, tariff item Nos. 8462.91.91, 8462.91.99, the preamble preceding tariff item No. 8462.99.11, tariff item Nos. 8462.99.11, 8462.99.19, subheading 8476.89, tariff item Nos. 8476.89.10, 8476.89.90, subheading 8477.80, tariff item No. 8477.80.10, the preamble preceding tariff item No. 8477.80.91, tariff item Nos. 8477.80.91, 8477.80.99, the preamble preceding tariff item No. 8482.99.11, tariff item Nos. 8482.99.11, 8482.99.19, 8501.32.10, subheading 8502.39, tariff item Nos. 8502.39.10, 8502.39.90, 8504.40.10, 8504.40.20, subheading 8508.70, tariff item Nos. 8508.70.10, 8508.70.90, subheading 8517.69, tariff item Nos. 8517.69.10, 8517.69.20, 8517.69.90, subheading 8518.29, tariff item Nos. 8518.29.10, 8518.29.20, 8518.29.90, the preamble preceding tariff item No. 8518.30.91, tariff item Nos. 8518.30.91, 8518.30.99, subheading 8518.40, tariff item Nos. 8518.40.10, 8518.40.90, subheading 8518.90, tariff item Nos. 8518.90.10, 8518.90.20, 8518.90.30, 8518.90.90, subheading 8519.81, tariff item No. 8519.81.10, the preamble preceding tariff item No. 8519.81.21, tariff item Nos. 8519.81.21, 8519.81.29, the preamble preceding tariff item No. 8519.81.31, tariff item Nos. 8519.81.31, 8519.81.39, the preamble preceding tariff item No. 8519.81.91, tariff item Nos. 8519.81.91, 8519.81.99, subheading 8519.89, tariff item Nos. 8519.89.10, 8519.89.90, subheading 8521.90, tariff item Nos. 8521.90.10, 8521.90.90, subheading 8523.29, tariff item Nos. 8523.29.10, 8523.29.20, 8523.29.90, subheading 8523.41, tariff item Nos. 8523.41.10, 8523.41.90, subheading 8523.49, tariff item Nos. 8523.49.10, 8523.49.90, subheading 8523.51, tariff item Nos. 8523.51.10, 8523.51.90, subheading 8523.59, tariff item Nos. 8523.59.10, 8523.59.90, subheading 8523.80, tariff item Nos. 8523.80.10, 8523.80.90, subheading 8527.12, tariff item Nos. 8527.12.10, 8527.12.90, subheading 8527.13, tariff item Nos. 8527.13.10, 8527.13.90, subheading 8527.91, tariff item Nos. 8527.91.10, 8527.91.90, subheading 8527.92, tariff item Nos. 8527.92.10, 8527.92.90, subheading 8527.99, tariff item Nos. 8527.99.10, 8527.99.90, subheading 8528.49, the preamble preceding tariff item No. 8528.49.11, tariff item Nos. 8528.49.11, 8528.49.19, 8528.49.20, 8528.49.30, 8528.49.90, subheading 8528.71, tariff item Nos. 8528.71.10, 8528.71.20, 8528.71.40, 8528.71.90, the preamble preceding tariff item No. 8529.90.11, tariff item Nos. 8529.90.11, 8529.90.12, 8529.90.19, 8529.90.40, the preamble preceding tariff item No. 8529.90.61, tariff item Nos. 8529.90.61, 8529.90.69, subheading 8531.90, tariff item Nos. 8531.90.10, 8531.90.90, 8535.90.10, 8535.90.20, the preamble preceding tariff item No. 8536.50.11, tariff item Nos. 8536.50.11, 8536.50.12, 8536.50.19, 8536.50.20, the preamble preceding tariff item No. 8536.50.91, tariff item Nos. 8536.50.91, 8536.50.92, 8536.50.99, subheading 8539.39, tariff item Nos. 8539.39.10, 8539.39.90, subheading 8544.60, tariff item No. 8544.60.10, the preamble preceding tariff item No. 8544.60.91, tariff item Nos. 8544.60.91, 8544.60.99, subheading 8802.60, tariff item Nos. 8802.60.10, 8802.60.90, subheading 9001.90, tariff item Nos. 9001.90.10, 9001.90.90, subheading 9002.19, tariff item Nos. 9002.19.10, 9002.19.90, subheading 9002.20, tariff item Nos. 9002.20.10, 9002.20.90, subheading 9002.90, tariff item Nos. 9002.90.10, 9002.90.90, subheading 9010.50, tariff item Nos. 9010.50.10, 9010.50.90, subheading 9014.10, tariff item Nos. 9014.10.10, 9014.10.90, subheading 9014.80, tariff item Nos. 9014.80.10, 9014.80.90, subheading 9015.80, tariff item Nos. 9015.80.10, 9015.80.20, 9015.80.90, 9018.19.20, subheading 9025.80, tariff item Nos. 9025.80.10, 9025.80.90, subheading 9027.80, the preamble preceding tariff item No. 9027.80.11, tariff item Nos. 9027.80.11, 9027.80.19, 9027.80.20, 9027.80.90, subheading 9028.90, tariff item Nos. 9028.90.10, 9028.90.90, subheading 9506.11, tariff item Nos. 9506.11.10, 9506.11.90, subheading 9506.32, tariff item Nos. 9506.32.10, 9506.32.90, subheading 9506.39, tariff item Nos. 9506.39.10, 9506.39.20, 9506.39.30, 9506.39.90, subheading 9506.62, tariff item Nos. 9506.62.10, 9506.62.90, subheading 9506.69, tariff item Nos. 9506.69.10, 9506.69.20, 9506.69.90, subheading 9506.91, tariff item Nos. 9506.91.10, 9506.91.90, subheading 9506.99, tariff item Nos. 9506.99.10, 9506.99.20, the preamble preceding tariff item No. 9506.99.31, tariff item Nos. 9506.99.31, 9506.99.39, 9506.99.40, 9506.99.50, 9506.99.90, 9915.00.00, 9922.00.00, 9931.00.00, 9933.00.00, 9935.00.00, 9940.00.00, 9941.00.00, 9942.00.00, 9943.00.00, 9944.00.00 and 9997.00.00.

 The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 1 to this Act.

 The following tariff items in the List of Intermediate and Final Rates for the Tariff Items of the “F” Staging Category set out in the schedule to the Act are repealed:

1106.10.90, 2207.10.10, 2207.10.90, 2917.19.10, 2917.19.99, 3302.10.11, 3302.10.12, 3302.10.90, 3506.91.90, 3701.30.20, 3701.30.39, 3701.99.20, 3701.99.30, 3707.90.90, 3901.10.90, 3901.20.90, 3902.90.10, 3909.20.90, 3923.10.90, 4105.10.12, 4105.10.19, 4105.10.29, 4105.10.99, 4106.21.29, 4106.21.92, 4106.21.99, 4106.31.10, 4106.31.92, 4106.31.99, 4203.21.10, 4203.21.90, 4408.10.10, 4408.90.10, 4412.10.10, 4412.10.90, 4412.94.90, 5106.10.90, 5107.10.90, 5107.20.90, 5111.11.50, 5111.11.90, 5204.11.10, 5204.11.90, 5205.11.20, 5205.11.90, 5205.12.90, 5205.13.90, 5205.14.90, 5205.21.90, 5205.22.20, 5205.22.90, 5205.23.90, 5205.24.90, 5205.31.10, 5205.31.90, 5205.32.10, 5205.32.90, 5205.41.10, 5205.41.90, 5205.42.10, 5205.42.90, 5210.49.19, 5210.49.90, 5211.12.90, 5211.20.19, 5211.20.90, 5211.32.90, 5211.41.90, 5211.43.90, 5211.52.90, 5212.11.30, 5212.11.90, 5212.12.30, 5212.12.90, 5212.13.40, 5212.13.90, 5212.14.40, 5212.14.90, 5212.15.30, 5212.15.90, 5212.21.30, 5212.21.90, 5212.22.30, 5212.22.90, 5212.23.30, 5212.23.90, 5212.24.30, 5212.24.90, 5212.25.30, 5212.25.90, 5308.90.10, 5308.90.90, 5402.11.90, 5402.19.90, 5402.20.90, 5402.31.90, 5402.32.90, 5402.33.90, 5402.34.90, 5402.51.90, 5402.62.90, 5407.10.20, 5407.10.90, 5407.30.90, 5407.41.90, 5407.42.90, 5407.52.19, 5407.52.90, 5407.61.11, 5407.61.19, 5407.61.93, 5407.61.99, 5407.69.90, 5407.73.90, 5407.82.99, 5407.91.90, 5407.94.90, 5408.22.29, 5408.22.99, 5408.23.19, 5408.23.99, 5408.24.19, 5408.24.99, 5508.10.10, 5509.12.90, 5509.21.90, 5509.22.30, 5509.22.90, 5509.32.90, 5509.41.90, 5509.52.90, 5509.53.90, 5510.11.90, 5510.12.90, 5510.20.90, 5510.30.90, 5512.11.99, 5512.19.99, 5512.21.90, 5512.29.99, 5512.91.90, 5512.99.99, 5513.11.99, 5513.12.99, 5513.13.99, 5513.23.19, 5513.23.99, 5513.31.90, 5513.39.19, 5513.39.99, 5513.41.90, 5514.23.90, 5514.43.90, 5514.49.90, 5515.11.90, 5515.19.90, 5515.21.90, 5515.29.90, 5515.91.90, 5515.99.19, 5515.99.99, 5516.12.99, 5516.13.90, 5516.14.90, 5516.21.99, 5516.23.99, 5516.24.90, 5516.91.99, 5516.94.90, 5602.10.90, 5602.21.99, 5602.90.90, 5604.90.10, 5811.00.10, 5811.00.29, 5811.00.90, 5901.10.90, 5903.10.19, 5903.10.29, 5903.20.19, 5903.20.23, 5903.20.29, 5903.90.29, 5906.10.90, 5906.91.99, 5906.99.19, 5906.99.22, 5906.99.29, 5907.00.13, 5907.00.18, 5907.00.19, 5911.10.10, 5911.10.90, 5911.20.90, 5911.40.90, 6001.10.90, 6001.29.90, 6001.92.90, 6001.99.90, 6002.40.40, 6002.40.90, 6002.90.19, 6002.90.90, 6003.10.99, 6003.20.40, 6003.20.90, 6003.30.99, 6003.40.99, 6003.90.40, 6003.90.90, 6004.10.19, 6004.10.90, 6004.90.30, 6004.90.90, 6005.21.30, 6005.21.90, 6005.22.30, 6005.22.90, 6005.23.30, 6005.23.90, 6005.24.30, 6005.24.90, 6005.41.90, 6005.42.90, 6005.43.99, 6005.44.90, 6005.90.29, 6005.90.99, 6006.23.29, 6006.31.90, 6006.32.90, 6006.33.90, 6006.34.90, 6006.41.90, 6006.42.90, 6006.43.90, 6006.44.90, 6006.90.90, 6209.90.10, 6209.90.90, 6217.90.90, 6402.12.20, 6402.12.30, 6403.12.20, 6403.12.30, 7019.40.20, 7019.40.99, 7407.10.11, 7407.10.12, 7407.10.21, 7407.10.29, 7407.21.21, 7407.21.22, 7407.29.21, 7407.29.29, 7407.29.90, 7408.11.31, 7408.11.32, 7607.20.90, 8102.95.10, 8102.95.20, 8111.00.12, 8111.00.22, 8111.00.40, 8410.11.10, 8410.11.20, 8410.12.10, 8410.12.20, 8410.13.10, 8410.13.20, 8410.90.20, 8410.90.30, 8411.82.20, 8411.82.90, 8413.70.99, 8415.90.22, 8415.90.29, 8421.31.90, 8427.20.11, 8461.50.11, 8461.50.91, 8462.91.99, 8462.99.19, 8476.89.10, 8477.80.91, 8482.99.11, 8502.39.10, 8504.40.10, 8508.70.90, 8517.69.90, 8518.29.20, 8518.29.90, 8518.30.99, 8518.40.10, 8518.40.90, 8518.90.20, 8518.90.30, 8518.90.90, 8519.81.29, 8519.81.31, 8519.81.99, 8519.89.90, 8521.90.90, 8523.29.20, 8523.41.90, 8523.49.90, 8523.51.90, 8523.59.90, 8523.80.90, 8527.12.90, 8527.13.90, 8527.91.90, 8527.92.90, 8527.99.90, 8528.49.11, 8528.49.19, 8528.49.20, 8528.49.30, 8528.49.90, 8528.71.10, 8528.71.40, 8528.71.90, 8535.90.20, 8536.50.12, 8536.50.19, 8536.50.20, 8536.50.92, 8539.39.90, 8544.60.91, 8544.60.99, 8802.60.10, 9001.90.90, 9002.19.90, 9002.20.90, 9002.90.90, 9010.50.90, 9014.10.90, 9014.80.90, 9015.80.20, 9015.80.90, 9025.80.10, 9027.80.19, 9028.90.10, 9506.11.90, 9506.32.10, 9506.32.90, 9506.39.20, 9506.39.30, 9506.39.90, 9506.62.90, 9506.69.10, 9506.69.90, 9506.91.90, 9506.99.20, 9506.99.31, 9506.99.40, 9506.99.50, 9506.99.90.

Coordinating Amendments

Marginal note:2018, c. 23

  •  (1) In this section, other Act means the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act.

  • (2) On the first day on which both section 122 of this Act and subsection 47(1) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT”, a reference to “CPTPT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT”, a reference to “CPTPT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPTPT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPTPT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPTPT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X1)” after the abbreviation “CPTPT:” for tariff item No. 6211.33.00.

  • (3) On the first day on which both section 122 of this Act and subsection 47(2) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPTPT”, a reference to “CPAUT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPTPT”, a reference to “CPAUT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPAUT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPAUT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPAUT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X8)” after the abbreviation “CPAUT:” for tariff item No. 6211.33.00.

  • (4) On the first day on which both section 122 of this Act and subsection 47(3) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPAUT”, a reference to “CPBNT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPAUT”, a reference to “CPBNT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPBNT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPBNT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPBNT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X15)” after the abbreviation “CPBNT:” for tariff item No. 6211.33.00.

  • (5) On first the day on which both section 122 of this Act and subsection 47(4) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPBNT”, a reference to “CPCLT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPBNT”, a reference to “CPCLT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPCLT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPCLT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPCLT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X22)” after the abbreviation “CPCLT:” for tariff item No. 6211.33.00.

  • (6) On the first day on which both section 122 of this Act and subsection 47(5) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPCLT”, a reference to “CPJPT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPCLT”, a reference to “CPJPT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPJPT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPJPT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPJPT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X29)” after the abbreviation “CPJPT:” for tariff item No. 6211.33.00.

  • (7) On the first day on which both section 122 of this Act and subsection 47(6) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPJPT”, a reference to “CPMYT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPJPT”, a reference to “CPMYT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPMYT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPMYT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPMYT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X36)” after the abbreviation “CPMYT:” for tariff item No. 6211.33.00.

  • (8) On the first day on which both section 122 of this Act and subsection 47(7) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPMYT”, a reference to “CPMXT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPMYT”, a reference to “CPMXT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPMXT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPMXT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPMXT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X43)” after the abbreviation “CPMXT:” for tariff item No. 6211.33.00.

  • (9) On the first day on which both section 122 of this Act and subsection 47(8) of the other Act are both in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPMXT”, a reference to “CPNZT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPMXT”, a reference to “CPNZT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPNZT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPNZT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPNZT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X50)” after the abbreviation “CPNZT:” for tariff item No. 6211.33.00.

  • (10) On the first day on which both section 122 of this Act and subsection 47(9) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPNZT”, a reference to “CPPET:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPNZT”, a reference to “CPPET:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPPET:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPPET:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPPET:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X57)” after the abbreviation “CPPET:” for tariff item No. 6211.33.00.

  • (11) On the first day on which both section 122 of this Act and subsection 47(10) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPPET”, a reference to “CPSGT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPPET”, a reference to “CPSGT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPSGT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPSGT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPSGT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X64)” after the abbreviation “CPSGT:” for tariff item No. 6211.33.00.

  • (12) On the first day on which both section 122 of this Act and subsection 47(11) of the other Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by

    • (a) adding in the column “Preferential Tariff / Initial Rate”, below the reference to “CPSGT”, a reference to “CPVNT:” for all tariff items set out in Schedule 1 to this Act;

    • (b) adding in the column “Preferential Tariff / Final Rate”, below the reference to “CPSGT”, a reference to “CPVNT:” for all tariff items set out in Schedule 1 to this Act;

    • (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPVNT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPVNT:” for all tariff items set out in Schedule 1 to this Act, except for tariff item No. 6211.33.00; and

    • (d) adding in the column “Preferential Tariff / Initial Rate” a reference to “18%” after the abbreviation “CPVNT:” and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (X71)” after the abbreviation “CPVNT:” for tariff item No. 6211.33.00.

Marginal note:Bill C-85

 If Bill C-85, introduced in the 1st session of the 42nd Parliament and entitled the An Act to amend the Canada-Israel Free Trade Agreement Implementation Act and to make related amendments to other Acts, receives royal assent, then on the day on which both subsection 10(3) of that Act and section 122 of this Act are in force, the List of Tariff Provisions set out in the schedule to the Customs Tariff is amended by replacing

  • (a) in the column “Preferential Tariff / Initial Rate” the reference to “N/A” after the abbreviation “CIAT:” with a reference to “Free” for tariff item Nos. 0204.22.00, 0511.99.00 and 0713.90.00; and

  • (b) in the column “Preferential Tariff / Final Rate” the reference to “N/A” after the abbreviation “CIAT:” with a reference to “Free (A)” for tariff item Nos. 0204.22.00, 0511.99.00 and 0713.90.00.

Coming into Force

Marginal note:January 1, 2019

 Sections 69 to 123 come into force on January 1, 2019.

DIVISION 2R.S., c. C-8Canada Pension Plan

Amendments to the Act

 Section 53.3 of the Canada Pension Plan is amended by adding the following after subsection (3):

  • Marginal note:Year in which first additional contributory period begins or ends

    (4) For the purposes of subsection (1), for a year in which the contributor’s first additional contributory period begins or ends, the amount to be attributed to the contributor is equal to that proportion of the amount determined in accordance with subsection (1) that the number of months that are included in the contributor’s first additional contributory period in that year is of 12.

 Section 53.4 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Year in which second additional contributory period begins or ends

    (3) For the purposes of subsection (1), for a year in which the contributor’s second additional contributory period begins or ends, the amount to be attributed to the contributor is equal to that proportion of the amount determined in accordance with subsection (1) that the number of months that are included in the contributor’s second additional contributory period in that year is of 12.

Coming into Force

Marginal note:Subsection 114(2) of Canada Pension Plan does not apply

  •  (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in this Division.

  • Marginal note:Order in council

    (2) This Division comes into force in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council, but that day must not be before the day on which section 380 of the Budget Implementation Act, 2018, No. 1 comes into force.

DIVISION 3Financial Sector

SUBDIVISION AFinancial Institutions

Materiality Threshold
1991, c. 45Trust and Loan Companies Act
  •  (1) Subsection 453(7) of the Trust and Loan Companies Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):

    • (d) subject to subsection (7.1), the company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(b) or (c) and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of
      • (i) the target entity’s consolidated assets,

      • (ii) the assets of the company and of any subsidiary of the company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and

      • (iii) the consolidated assets of any entity referred to in paragraph (4)(b) or (c) the control of which is acquired by the company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c),

      B
      is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and
      C
      is
      • (i) 0.01, in the case of a company with equity of 12 billion dollars or more, or

      • (ii) 0.02, in the case of any other company; or

    • (e) the company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of
      • (i) the shares of, or other ownership interests in, the target entity that the company or a subsidiary of the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity,

      • (ii) the shares of, or other ownership interests in, the target entity that are held by the company or a subsidiary of the company and that were acquired by the company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and

      • (iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the company the control of which was acquired by the company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii),

      B
      is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and
      C
      is
      • (i) 0.005, in the case of a company with equity of 12 billion dollars or more, or

      • (ii) 0.01, in the case of any other company.

  • (2) Section 453 of the Act is amended by adding the following after subsection (7):

    • Marginal note:No exception for deemed acquisition

      (7.1) The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 451(7).

1991, c. 46Bank Act
  •  (1) Subsection 468(7) of the Bank Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):

    • (d) subject to subsection (7.1), the bank is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(c) or (d) and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the bank’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of
      • (i) the target entity’s consolidated assets,

      • (ii) the assets of the bank and of any subsidiary of the bank that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and

      • (iii) the consolidated assets of any entity referred to in paragraph (4)(c) or (d) the control of which is acquired by the bank at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c),

      B
      is the value of the bank’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and
      C
      is
      • (i) 0.01, in the case of a bank with equity of 12 billion dollars or more, or

      • (ii) 0.02, in the case of any other bank; or

    • (e) the bank is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the bank’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of
      • (i) the shares of, or other ownership interests in, the target entity that the bank or a subsidiary of the bank is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the bank is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity,

      • (ii) the shares of, or other ownership interests in, the target entity that are held by the bank or a subsidiary of the bank and that were acquired by the bank or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and

      • (iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the bank the control of which was acquired by the bank within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii),

      B
      is the value of the bank’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and
      C
      is
      • (i) 0.005, in the case of a bank with equity of 12 billion dollars or more, or

      • (ii) 0.01, in the case of any other bank.

  • (2) Section 468 of the Act is amended by adding the following after subsection (7):

    • Marginal note:No exception for deemed acquisition

      (7.1) The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 466(7).

  •  (1) Subsection 930(7) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):

    • (d) subject to subsection (7.1), the bank holding company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(c) or (d) and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the bank holding company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of
      • (i) the target entity’s consolidated assets,

      • (ii) the assets of the bank holding company and of any subsidiary of the bank holding company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and

      • (iii) the consolidated assets of any entity referred to in paragraph 4(c) or (d) the control of which is acquired by the bank holding company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c),

      B
      is the value of the bank holding company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and
      C
      is
      • (i) 0.01, in the case of a bank holding company with equity of 12 billion dollars or more, or

      • (ii) 0.02, in the case of any other bank holding company; or

    • (e) the bank holding company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the bank holding company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of
      • (i) the shares of, or other ownership interests in, the target entity that the bank holding company or a subsidiary of the bank holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the bank holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity,

      • (ii) the shares of, or other ownership interests in, the target entity that are held by the bank holding company or a subsidiary of the bank holding company and that were acquired by the bank holding company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and

      • (iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the bank holding company the control of which was acquired by the bank holding company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii),

      B
      is the value of the bank holding company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and
      C
      is
      • (i) 0.005, in the case of a bank holding company with equity of 12 billion dollars or more, or

      • (ii) 0.01, in the case of any other bank holding company.

  • (2) Section 930 of the Act is amended by adding the following after subsection (7):

    • Marginal note:No exception for deemed acquisition

      (7.1) The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 928(6).

1991, c. 47Insurance Companies Act
  •  (1) Subsection 495(9) of the Insurance Companies Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):

    • (d) subject to subsection (9.1), the company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (6)(b) or (c) and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of
      • (i) the target entity’s consolidated assets,

      • (ii) the assets of the company and of any subsidiary of the company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and

      • (iii) the consolidated assets of any entity referred to in paragraph (6)(b) or (c) the control of which is acquired by the company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c),

      B
      is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and
      C
      is
      • (i) 0.01, in the case of a company with equity of 12 billion dollars or more, or

      • (ii) 0.02, in the case of any other company; or

    • (e) the company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of
      • (i) the shares of, or other ownership interests in, the target entity that the company or a subsidiary of the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity,

      • (ii) the shares of, or other ownership interests in, the target entity that are held by the company or a subsidiary of the company and that were acquired by the company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and

      • (iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the company the control of which was acquired by the company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii),

      B
      is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and
      C
      is
      • (i) 0.005, in the case of a company with equity of 12 billion dollars or more, or

      • (ii) 0.01, in the case of any other company.

  • (2) Section 495 of the Act is amended by adding the following after subsection (9):

    • Marginal note:No exception for deemed acquisition

      (9.1) The exception in paragraph (9)(d) does not apply with respect to a deemed acquisition of control under subsection 493(7).

  •  (1) Subsection 971(7) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):

    • (d) subject to subsection (7.1), the insurance holding company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(b) or (c) and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the insurance holding company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of
      • (i) the target entity’s consolidated assets,

      • (ii) the assets of the insurance holding company and of any subsidiary of the insurance holding company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and

      • (iii) the consolidated assets of any entity referred to in paragraph (4)(b) or (c) the control of which is acquired by the insurance holding company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c),

      B
      is the value of the insurance holding company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and
      C
      is
      • (i) 0.01, in the case of an insurance holding company with equity of 12 billion dollars or more, or

      • (ii) 0.02, in the case of any other insurance holding company; or

    • (e) the insurance holding company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and

      A/B < C

      where

      A
      is the aggregate of the values, as they would have been reported in the insurance holding company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of
      • (i) the shares of, or other ownership interests in, the target entity that the insurance holding company or a subsidiary of the insurance holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the insurance holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity,

      • (ii) the shares of, or other ownership interests in, the target entity that are held by the insurance holding company or a subsidiary of the insurance holding company and that were acquired by the insurance holding company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and

      • (iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the insurance holding company the control of which was acquired by the insurance holding company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii),

      B
      is the value of the insurance holding company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and
      C
      is
      • (i) 0.005, in the case of an insurance holding company with equity of 12 billion dollars or more, or

      • (ii) 0.01, in the case of any other insurance holding company.

  • (2) Section 971 of the Act is amended by adding the following after subsection (7):

    • Marginal note:No exception for deemed acquisition

      (7.1) The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 969(6).

Business Growth Fund
1991, c. 45Trust and Loan Companies Act

 Subsection 449(1) of the Trust and Loan Companies Act is amended by adding the following in alphabetical order:

business growth fund

business growth fund means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)

 The Act is amended by adding the following after section 450:

Marginal note:Limit — business growth fund

  • 450.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a company and its subsidiaries hold must not exceed $200,000,000.

  • Marginal note:Application

    (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.

  •  (1) Subsection 451(1) of the Act is replaced by the following:

    Marginal note:Restriction on control and substantial investments

    • 451 (1) Subject to subsections (2) to (4.4), no company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.

  • (2) Section 451 of the Act is amended by adding the following after subsection (4):

    • Marginal note:Business growth fund

      (4.1) Subject to section 450.1, subsections (4.2) to (4.4) and Part XI, a company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.

    • Marginal note:For greater certainty

      (4.2) For greater certainty, a company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.

    • Marginal note:Prohibition — entity

      (4.3) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:

      • (a) an entity referred to in any of paragraphs 453(1)(a) to (j);

      • (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;

      • (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;

      • (d) an entity that acts as an insurance broker or agent in Canada; or

      • (e) an entity that is engaged in any prescribed activity.

    • Marginal note:Prohibition — capital and loans

      (4.4) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:

      • (a) all ownership interests that are held by the company, the company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and

      • (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.

1991, c. 46Bank Act

 Subsection 464(1) of the Bank Act is amended by adding the following in alphabetical order:

business growth fund

business growth fund means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)

 The Act is amended by adding the following after section 465:

Marginal note:Limit — business growth fund

  • 465.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a bank and its subsidiaries hold must not exceed $200,000,000.

  • Marginal note:Application

    (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.

  •  (1) Subsection 466(1) of the Act is replaced by the following:

    Marginal note:Restriction on control and substantial investments

    • 466 (1) Subject to subsections (2) to (4.4), no bank shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.

  • (2) Section 466 of the Act is amended by adding the following after subsection (4):

    • Marginal note:Business growth fund

      (4.1) Subject to section 465.1, subsections (4.2) to (4.4) and Part XI, a bank may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.

    • Marginal note:For greater certainty

      (4.2) For greater certainty, a bank is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.

    • Marginal note:Prohibition — entity

      (4.3) A bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:

      • (a) an entity referred to in any of paragraphs 468(1)(a) to (j);

      • (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;

      • (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;

      • (d) an entity that acts as an insurance broker or agent in Canada; or

      • (e) an entity that is engaged in any prescribed activity.

    • Marginal note:Prohibition — capital and loans

      (4.4) A bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:

      • (a) all ownership interests that are held by the bank, the bank’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and

      • (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.

 Subsection 507(1) of the Act is amended by adding the following in alphabetical order:

business growth fund

business growth fund means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)

 The Act is amended by adding the following after section 510:

Marginal note:Limit — business growth fund

  • 510.01 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a foreign bank and the entities associated with it hold must not exceed $200,000,000.

  • Marginal note:Application

    (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.

Marginal note:Business growth fund

  • 510.02 (1) Subject to section 510.01 and subsections (2) to (4), a foreign bank or an entity associated with a foreign bank may hold or acquire a substantial investment in the business growth fund or a Canadian entity that the business growth fund controls.

  • Marginal note:For greater certainty

    (2) For greater certainty, a foreign bank or an entity associated with a foreign bank is prohibited from acquiring control of the business growth fund or any Canadian entity that the business growth fund controls.

  • Marginal note:Prohibition — entity

    (3) A foreign bank or an entity associated with a foreign bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any Canadian entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:

    • (a) an entity referred to in any of paragraphs 468(1)(a) to (j);

    • (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;

    • (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;

    • (d) an entity that acts as an insurance broker or agent in Canada; or

    • (e) an entity that is engaged in any prescribed activity.

  • Marginal note:Prohibition — capital and loans

    (4) A foreign bank or an entity associated with a foreign bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any Canadian entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:

    • (a) all ownership interests that are held by the foreign bank, the entities associated with the foreign bank, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and

    • (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.

 The Act is amended by adding the following after section 927:

Marginal note:Limit — business growth fund

  • 927.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a bank holding company and its subsidiaries hold must not exceed $200,000,000.

  • Marginal note:Application

    (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.

  •  (1) Subsection 928(1) of the Act is replaced by the following:

    Marginal note:Restriction on control and substantial investments

    • 928 (1) Subject to subsections (2) to (3.4), no bank holding company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.

  • (2) Section 928 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Business growth fund

      (3.1) Subject to section 927.1 and subsections (3.2) to (3.4), a bank holding company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.

    • Marginal note:For greater certainty

      (3.2) For greater certainty, a bank holding company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.

    • Marginal note:Prohibition — entity

      (3.3) A bank holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls hold or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:

      • (a) an entity referred to in any of paragraphs 930(1)(a) to (j);

      • (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;

      • (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;

      • (d) an entity that acts as an insurance broker or agent in Canada; or

      • (e) an entity that is engaged in any prescribed activity.

    • Marginal note:Prohibition — capital and loans

      (3.4) A bank holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:

      • (a) all ownership interests that are held by the bank holding company, the bank holding company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and

      • (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.

1991, c. 47Insurance Companies Act

 Subsection 490(1) of the Insurance Companies Act is amended by adding the following in alphabetical order:

business growth fund

business growth fund means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)

 The Act is amended by adding the following after section 492:

Marginal note:Limit — business growth fund

  • 492.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a company and its subsidiaries hold must not exceed $200,000,000.

  • Marginal note:Application

    (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.

  •  (1) Subsection 493(1) of the Act is replaced by the following:

    Marginal note:Restriction on control and substantial investments

    • 493 (1) Subject to subsections (2) to (4.4), no company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.

  • (2) Section 493 of the Act is amended by adding the following after subsection (4):

    • Marginal note:Business growth fund

      (4.1) Subject to section 492.1, subsections (4.2) to (4.4) and Part XI, a company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.

    • Marginal note:For greater certainty

      (4.2) For greater certainty, a company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.

    • Marginal note:Prohibition — entity

      (4.3) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:

      • (a) an entity referred to in any of paragraphs 495(1)(a) to (j);

      • (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;

      • (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;

      • (d) an entity that acts as an insurance broker or agent in Canada; or

      • (e) an entity that is engaged in any prescribed activity.

    • Marginal note:Prohibition — capital and loans

      (4.4) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:

      • (a) all ownership interests that are held by the company, the company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and

      • (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.

 The Act is amended by adding the following after section 551:

Marginal note:Limit — business growth fund

  • 551.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a society and its subsidiaries hold must not exceed $200,000,000.

  • Marginal note:Application

    (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.

  •  (1) Subsection 552(1) of the Act is replaced by the following:

    Marginal note:Restriction on control and substantial investments

    • 552 (1) Subject to subsections (2) to (3.4), no society shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.

  • (2) Section 552 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Business growth fund

      (3.1) Subject to section 551.1 and subsections (3.2) to (3.4), a society may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.

    • Marginal note:For greater certainty

      (3.2) For greater certainty, a society is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.

    • Marginal note:Prohibition — entity

      (3.3) A society is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:

      • (a) an entity referred to in any of paragraphs 495(1)(a) to (j);

      • (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;

      • (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;

      • (d) an entity that acts as an insurance broker or agent in Canada; or

      • (e) an entity that is engaged in any prescribed activity.

    • Marginal note:Prohibition — capital and loans

      (3.4) A society is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:

      • (a) all ownership interests that are held by the society, the society’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and

      • (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.

 The Act is amended by adding the following after section 968:

Marginal note:Limit — business growth fund

  • 968.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that an insurance holding company and its subsidiaries hold must not exceed $200,000,000.

  • Marginal note:Application

    (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.

  •  (1) Subsection 969(1) of the Act is replaced by the following:

    Marginal note:Restriction on control and substantial investments

    • 969 (1) Subject to subsections (2) to (3.4), no insurance holding company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.

  • (2) Section 969 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Business growth fund

      (3.1) Subject to section 968.1 and subsections (3.2) to (3.4), an insurance holding company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.

    • Marginal note:For greater certainty

      (3.2) For greater certainty, an insurance holding company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.

    • Marginal note:Prohibition — entity

      (3.3) An insurance holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:

      • (a) an entity referred to in any of paragraphs 971(1)(a) to (j);

      • (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;

      • (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;

      • (d) an entity that acts as an insurance broker or agent in Canada; or

      • (e) an entity that is engaged in any prescribed activity.

    • Marginal note:Prohibition — capital and loans

      (3.4) An insurance holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:

      • (a) all ownership interests that are held by the insurance holding company, the insurance holding company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and

      • (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.

Electronic Consent
1991, c. 45Trust and Loan Companies Act

 Section 539.04 of the Trust and Loan Companies Act is amended by adding the following after subsection (1):

  • Marginal note:Consent and notice in electronic form

    (1.1) Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form.

1991, c. 46Bank Act

 Section 995 of the Bank Act is amended by adding the following after subsection (1):

  • Marginal note:Consent and notice in electronic form

    (1.1) Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form.

1991, c. 47Insurance Companies Act

 Section 1037 of the Insurance Companies Act is amended by adding the following after subsection (1):

  • Marginal note:Consent and notice in electronic form

    (1.1) Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form.

Technical Amendments
2018, c. 12Budget Implementation Act, 2018, No. 1

 Subsection 331(3) of the English version of the Budget Implementation Act, 2018, No. 1 is amended by replacing the paragraphs 495(4.2)(a) and (b) that it enacts with the following:

  • (a) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, under subsection (4.1); and

  • (b) respecting the circumstances in which a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (4.1).

Coordinating Amendments

Marginal note:2018, c. 12

  •  (1) In this section, other Act means the Budget Implementation Act, 2018, No. 1.

  • (2) If subsection 331(3) of the other Act comes into force before section 155 of this Act, then

    • (a) that section 155 is deemed never to have come into force and is repealed; and

    • (b) paragraphs 495(4.2)(a) and (b) of the English version of the Insurance Companies Act are replaced by the following:

      • (a) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, under subsection (4.1); and

      • (b) respecting the circumstances in which a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (4.1).

  • (3) If subsection 331(3) of the other Act comes into force on the same day as section 155 of this Act, then that section 155 is deemed to have come into force before that subsection 331(3).

SUBDIVISION BAmendments related to Canada Deposit Insurance Corporation Act

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

 Paragraphs 10(1)(d) and (e) of the Canada Deposit Insurance Corporation Act are replaced by the following:

  • (d) assume the costs of a winding-up of a member institution when the Corporation is appointed to act as a liquidator in the winding-up, or assume the costs of the receiver when the Corporation is appointed to act as such;

  • (e) guarantee the payment of the fees of, and the costs incurred by any person as, the liquidator or receiver of a member institution when that person is appointed as such;

 The portion of subsection 10.1(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Total indebtedness

    (3) The total principal indebtedness outstanding at any time in respect of borrowings by the Corporation under subsections (1) and (2), excluding the borrowings under paragraph 60.2(2)(c) of the Financial Administration Act, shall not exceed

 Section 12.1 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Deemed withdrawal from pre-existing deposit

    (5) During the transition period, any withdrawal — up to the amount of the pre-existing deposit — is deemed, for the purposes of deposit insurance with the Corporation, to be withdrawn from the pre-existing deposit.

  •  (1) Subsection 13(1) of the Act is replaced by the following:

    Marginal note:Deposits with amalgamating institutions

    • 13 (1) When a person has deposits with two or more member institutions that amalgamate and continue in operation as one member institution, in this section referred to as the “amalgamated institution”, a deposit of that person with an amalgamating institution on the day on which the amalgamated institution is formed, less any withdrawals from the deposit, shall, for the purposes of deposit insurance with the Corporation, be deemed to be and continue to be separate from any deposit of that person on that day with the other amalgamating institution or institutions that become part of the amalgamated institution for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of the term deposit.

  • (2) Section 13 of the Act is amended by adding the following after subsection (4):

    • Marginal note:Deemed withdrawal from deposit

      (5) During the period referred to in subsection (1), any withdrawal by a person — up to the total amount, on the day on which the amalgamated institution is formed, of that person’s deposits with the two or more member institutions that amalgamate — shall, for the purposes of deposit insurance with the Corporation, be deemed to be withdrawn from those deposits.

 Section 14 of the Act is amended by adding the following after subsection (4.1):

  • Marginal note:No set-off or compensation

    (4.2) Despite section 73 of the Winding-up and Restructuring Act, if the Corporation makes a payment under this section in respect of any deposit with a member institution, the law of set-off or compensation does not apply to a claim by the Corporation on the estate of the member institution in respect of that payment.

 Section 20 of the Act is replaced by the following:

Marginal note:Funds

20 The Corporation shall maintain funds for the purpose of carrying out its objects.

 Subsection 21(5) of the Act is replaced by the following:

  • Marginal note:Calculation of deposits

    (5) For the purposes of this section, a member institution may use any method approved by the Corporation for that premium year to determine or estimate the aggregate amount of its deposits that are considered to be insured by the Corporation.

 Subsection 26(1) of the Act is repealed.

2012, c. 5Financial System Review Act
Amendments to the Act

 Sections 191 and 192 of the Financial System Review Act are repealed.

Coordinating Amendments

Marginal note:2012, c. 5

  •  (1) In this section, other Act means the Financial System Review Act.

  • (2) If section 191 of the other Act comes into force before section 165 of this Act, then

    • (a) that section 165 is deemed never to have come into force and is repealed;

    • (b) section 192 of the other Act is repealed;

    • (c) subsection 21(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:

      Marginal note:Assessment and collection of premiums

      • 21 (1) The Corporation shall, for each premium year, assess and collect from each member institution an annual premium in an amount equal to the lesser of

        • (a) the annual premium for that member institution determined under the by-laws, and

        • (b) the maximum annual premium.

    • (d) paragraph 21(2)(d) of the Act is repealed; and

    • (e) subsection 21(4) of the Act is replaced by the following:

      • Marginal note:Maximum annual premium

        (4) In this section, maximum annual premium means, in respect of a member institution, the greater of

        • (a) $5,000, and

        • (b) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.

  • (3) If section 191 of the other Act comes into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before that section 191.

  • (4) If section 192 of the other Act comes into force before section 165 of this Act, then

    • (a) that section 165 is deemed never to have come into force and is repealed;

    • (b) section 191 of the other Act is repealed; and

    • (c) subsection 23(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:

      Marginal note:Calculation of first premium

      • 23 (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the lesser of the following as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365:

        • (a) the annual premium for that member determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, and

        • (b) the greater of

          • (i) $5,000, and

          • (ii) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution.

  • (5) If section 192 of the other Act comes into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before that section 192.

  • (6) If sections 191 and 192 of the other Act come into force before section 165 of this Act, then

    • (a) that section 165 is deemed never to have come into force and is repealed;

    • (b) subsection 21(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:

      Marginal note:Assessment and collection of premiums

      • 21 (1) The Corporation shall, for each premium year, assess and collect from each member institution an annual premium in an amount equal to the lesser of

        • (a) the annual premium for that member institution determined under the by-laws, and

        • (b) the maximum annual premium.

    • (c) paragraph 21(2)(d) of the Act is repealed;

    • (d) subsection 21(4) of the Act is replaced by the following:

      • Marginal note:Maximum annual premium

        (4) In this section, maximum annual premium means, in respect of a member institution, the greater of

        • (a) $5,000, and

        • (b) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.

    • (e) subsection 23(1) of the Act is replaced by the following:

      Marginal note:Calculation of first premium

      • 23 (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the lesser of the following as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365:

        • (a) the annual premium for that member determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, and

        • (b) the greater of

          • (i) $5,000, and

          • (ii) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution.

  • (7) If sections 191 and 192 of the other Act come into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before those sections 191 and 192.

SUBDIVISION CPrivileged information

R.S., c. 18 (3rd Supp.), Part IOffice of the Superintendent of Financial Institutions Act

 Section 37 of the Office of the Superintendent of Financial Institutions Act is amended by adding the following after subsection (2):

  • Marginal note:No use of privileged information

    (3) The Superintendent shall not use privileged information as evidence in a proceeding in respect of a violation if the privileged information was disclosed to the Superintendent by

    • (a) a financial institution, bank holding company or insurance holding company; or

    • (b) a person who controls, or an entity that is affiliated with, an entity referred to in paragraph (a).

  • Marginal note:Definition of privileged information

    (4) In subsection (3), privileged information means information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege.

1991, c. 45Trust and Loan Companies Act

 The Trust and Loan Companies Act is amended by adding the following after section 504:

Marginal note:No waiver

  • 504.01 (1) For greater certainty, the disclosure by a company — or by a person who controls a company or by an entity that is affiliated with a company — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.

  • Marginal note:No disclosure

    (2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include

    • (a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or

    • (b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).

1991, c. 46Bank Act

 The Act is amended by adding the following after section 608:

Marginal note:No waiver

  • 608.1 (1) For greater certainty, the disclosure by an authorized foreign bank — or by a person who controls an authorized foreign bank or by an entity that is affiliated with an authorized foreign bank — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.

  • Marginal note:No disclosure

    (2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include

    • (a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or

    • (b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).

 The Act is amended by adding the following after section 638:

Marginal note:No waiver

  • 638.1 (1) For greater certainty, the disclosure by a bank — or by a person who controls a bank or by an entity that is affiliated with a bank — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.

  • Marginal note:No disclosure

    (2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include

    • (a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or

    • (b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).

 The Act is amended by adding the following after section 956.1:

Marginal note:No waiver

  • 956.2 (1) For greater certainty, the disclosure by a bank holding company — or by a person who controls a bank holding company or by an entity that is affiliated with a bank holding company — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.

  • Marginal note:No disclosure

    (2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include

    • (a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or

    • (b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).

1991, c. 47Insurance Companies Act

 The Insurance Companies Act is amended by adding the following after section 672.2:

Marginal note:No waiver

  • 672.3 (1) For greater certainty, the disclosure by a company, society, foreign company or provincial company — or by a person who controls one or by an entity that is affiliated with one — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.

  • Marginal note:No disclosure

    (2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include

    • (a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or

    • (b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).

 The Act is amended by adding the following after section 999.1:

Marginal note:No waiver

  • 999.2 (1) For greater certainty, the disclosure by an insurance holding company — or by a person who controls an insurance holding company or by an entity that is affiliated with an insurance holding company — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.

  • Marginal note:No disclosure

    (2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include

    • (a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or

    • (b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).

DIVISION 4 2000, c. 17Proceeds of Crime (Money Laundering) and Terrorist Financing Act

 Section 13 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is repealed.

  •  (1) Subsection 14(3) of the Act is replaced by the following:

    • Marginal note:Limitation

      (3) Currency or monetary instruments may no longer be retained under subsection (1) if the officer is satisfied that the currency or monetary instruments have been reported under subsection 12(1).

  • (2) Paragraph 14(4)(b) of the Act is replaced by the following:

    • (b) that if, within that period, the currency or monetary instruments are reported under subsection 12(1), they may no longer be retained; and

DIVISION 5Greenhouse Gas Emissions Pricing and Other Topics Relating to Offshore Area

1987, c. 3Canada–Newfoundland and Labrador Atlantic Accord Implementation Act

 Section 29.3 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act is replaced by the following:

Marginal note:Remittance of fees and charges: shared

  • 29.3 (1) Subject to subsection (2), one half of the amounts of the fees and charges obtained in accordance with regulations made under section 29.1 shall be paid to the credit of the Receiver General and the other half shall be paid to the credit of Her Majesty in right of the Province, in the time and manner prescribed under those regulations.

  • Marginal note:Remittance of fees and charges to the Province

    (2) If the fees and charges referred to in subsection (1) are related to the powers, duties or functions of the Board for the administration of the pricing mechanisms for greenhouse gas emissions referred to in subsection 164.3(1), they shall be paid in their entirety to the credit of Her Majesty in right of the Province.

 The Act is amended by adding the following after section 164:

Pricing for Greenhouse Gas Emissions

Marginal note:Definitions

164.1 The following definitions apply in sections 164.2 and 164.3.

greenhouse gas

greenhouse gas has the same meaning as the definition of greenhouse gas in paragraph 2(f) of the Management of Greenhouse Gas Act, S.N.L. 2016, c. M-1.001. (gaz à effet de serre)

Management of Greenhouse Gas Act

Management of Greenhouse Gas Act means the Management of Greenhouse Gas Act, S.N.L. 2016, c. M-1.001, and its regulations, as amended from time to time. (texte provincial)

Marginal note:Application

  • 164.2 (1) Subject to subsection (2), the provisions of the Management of Greenhouse Gas Act relating to greenhouse gas emissions pricing apply, with any modifications that the circumstances require and that may be prescribed, to a work or activity authorized under this Part that is carried out within the offshore area.

  • Marginal note:Limitation

    (2) Subsection (1) does not apply to any provision of the Management of Greenhouse Gas Act that imposes a tax.

  • Marginal note:Statutory Instruments Act

    (3) The Statutory Instruments Act does not apply to any instrument made by a provincial official or body under the authority of the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1).

  • Marginal note:Service Fees Act

    (4) For greater certainty, the Service Fees Act does not apply to any fee, charge or levy that is fixed under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1).

  • Marginal note:Federal Courts Act

    (5) Any official or body that exercises a power or performs a duty or function under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1) is not a federal board, commission or other tribunal for the purposes of the Federal Courts Act.

  • Marginal note:Review or appeal in Provincial courts

    (6) If a power is conferred or a duty or function is imposed by the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1), the exercise of the power or the performance of the duty or function is subject to review by, or appeal to, the courts of the Province in the same manner and to the same extent as if the laws of the Province applied.

  • Marginal note:Amounts collected

    (7) Payments collected by an official or body under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1) belong to Her Majesty in right of the Province and are not public money for the purposes of the Financial Administration Act.

Marginal note:Powers, duties and functions of Board

  • 164.3 (1) The Board may, under an agreement with the appropriate provincial Minister or in accordance with the Management of Greenhouse Gas Act, exercise any power or perform any duty or function set out in that agreement or Act to ensure, within the offshore area, the administration and enforcement of the pricing mechanisms for greenhouse gas emissions set out in the provisions of that Act that are incorporated by reference under subsection 164.2(1).

  • Marginal note:Liability for acts and omissions

    (2) In respect of any act or omission occurring in the exercise of a power or the performance of a duty or function under subsection (1),

    • (a) Her Majesty in right of Canada is entitled to the same limits on liability, defences and immunities as those that would apply to Her Majesty in right of the Province when Her Majesty in right of the Province exercises such a power or performs such a duty or function under the law that applies in the Province; and

    • (b) any person or body exercising the power or performing the duty or function is entitled to the same limits on liability, defences and immunities as those that would apply to a person or body when the person or body exercises such a power or performs such a duty or function under the law that applies in the Province.

  • Marginal note:Disclosure of information

    (3) In exercising its powers and performing its duties and functions under subsection (1), the Board may obtain from the appropriate provincial Minister and disclose to that Minister any information with respect to the administration of the Management of Greenhouse Gas Act.

2018, c. 12Greenhouse Gas Pollution Pricing Act

 The Greenhouse Gas Pollution Pricing Act is amended by adding the following after section 189:

Marginal note:Non-application

189.1 Despite section 164.2 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, if the offshore area, as defined in section 2 of that Act, is mentioned in Part 2 of Schedule 1 to this Act, section 164.2 of that Act does not apply.

2014, c. 13Offshore Health and Safety Act

 Subsection 53(5) of the Offshore Health and Safety Act is replaced by the following:

  • Marginal note:Repeal

    (5) Unless repealed on an earlier date, the Canada–Newfoundland and Labrador Offshore Marine Installations and Structures Occupational Health and Safety Transitional Regulations, the Canada–Newfoundland and Labrador Offshore Marine Installations and Structures Transitional Regulations and the Canada–Newfoundland and Labrador Offshore Area Diving Operations Safety Transitional Regulations are repealed on the expiry of six years after the day on which this section comes into force.

 Subsection 92(5) of the Act is replaced by the following:

  • Marginal note:Repeal

    (5) Unless repealed on an earlier date, the Canada–Nova Scotia Offshore Marine Installations and Structures Occupational Health and Safety Transitional Regulations, the Canada–Nova Scotia Offshore Marine Installations and Structures Transitional Regulations and the Canada–Nova Scotia Offshore Area Diving Operations Safety Transitional Regulations are repealed on the expiry of six years after the day on which this section comes into force.

Coming into Force

Marginal note:Order in council

 Sections 176 to 178 come into force or are deemed to have come into force on a day to be fixed by order of the Governor in Council, but that day must not be before January 1, 2019.

DIVISION 6R.S., c. C-44Canada Business Corporations Act

Amendments to the Act

 The Canada Business Corporations Act is amended by adding the following after section 2:

Marginal note:Individual with significant control

  • 2.1 (1) For the purposes of this Act, any of the following individuals is an individual with significant control over a corporation:

    • (a) an individual who has any of the following interests or rights, or any combination of them, in respect of a significant number of shares of the corporation:

      • (i) the individual is the registered holder of them,

      • (ii) the individual is the beneficial owner of them, or

      • (iii) the individual has direct or indirect control or direction over them;

    • (b) an individual who has any direct or indirect influence that, if exercised, would result in control in fact of the corporation; or

    • (c) an individual to whom prescribed circumstances apply.

  • Marginal note:Joint ownership or control

    (2) Two or more individuals are each considered to be an individual with significant control over a corporation if, in respect of a significant number of shares of the corporation,

    • (a) an interest or right, or a combination of interests or rights, referred to in paragraph (1)(a) is held jointly by those individuals; or

    • (b) a right, or combination of rights, referred to in paragraph (1)(a) is subject to any agreement or arrangement under which the right or rights are to be exercised jointly or in concert by those individuals.

  • Marginal note:Significant number of shares

    (3) For the purposes of this section, a significant number of shares of a corporation is

    • (a) any number of shares that carry 25% or more of the voting rights attached to all of the corporation’s outstanding voting shares; or

    • (b) any number of shares that is equal to 25% or more of all of the corporation’s outstanding shares measured by fair market value.

 The Act is amended by adding the following after section 21:

Marginal note:Register

  • 21.1 (1) The corporation shall prepare and maintain, at its registered office or at any other place in Canada designated by the directors, a register of individuals with significant control over the corporation that contains

    • (a) the names, the dates of birth and the latest known address of each individual with significant control;

    • (b) the jurisdiction of residence for tax purposes of each individual with significant control;

    • (c) the day on which each individual became or ceased to be an individual with significant control, as the case may be;

    • (d) a description of how each individual is an individual with significant control over the corporation, including, as applicable, a description of their interests and rights in respect of shares of the corporation;

    • (e) any other prescribed information; and

    • (f) a description of each step taken in accordance with subsection (2).

  • Marginal note:Updating of information

    (2) At least once during each financial year of the corporation, the corporation shall take reasonable steps to ensure that it has identified all individuals with significant control over the corporation and that the information in the register is accurate, complete and up-to-date.

  • Marginal note:Recording of information

    (3) If the corporation becomes aware of any information referred to in paragraphs (1)(a) to (e) as a result of steps taken in accordance with subsection (2) or through any other means, the corporation shall record that information in the register within 15 days of becoming aware of it.

  • Marginal note:Information from shareholders

    (4) If the corporation requests information referred to in any of paragraphs (1)(a) to (e) from one of its shareholders, the shareholder shall, to the best of their knowledge, reply accurately and completely as soon as feasible.

  • Marginal note:Disposal of personal information

    (5) Within one year after the sixth anniversary of the day on which an individual ceases to be an individual with significant control over the corporation, the corporation shall — subject to any other Act of Parliament and to any Act of the legislature of a province that provides for a longer retention period — dispose of any of that individual’s personal information, as defined in subsection 2(1) of the Personal Information Protection and Electronic Documents Act, that is recorded in the register.

  • Marginal note:Offence

    (6) A corporation that, without reasonable cause, contravenes this section is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

  • Marginal note:Non-application

    (7) This section does not apply to a corporation that

    • (a) is a reporting issuer or an émetteur assujetti under an Act of the legislature of a province relating to the regulation of securities;

    • (b) is listed on a designated stock exchange, as defined in subsection 248(1) of the Income Tax Act; or

    • (c) is a member of a prescribed class.

Marginal note:Inability to identify individuals

21.2 A corporation to which section 21.1 applies shall take prescribed steps if it is unable to identify any individuals with significant control over the corporation.

Marginal note:Disclosure to Director

  • 21.3 (1) A corporation to which section 21.1 applies shall disclose to the Director, on request, any information in its register of individuals with significant control.

  • Marginal note:Access — affidavit

    (2) Shareholders and creditors of the corporation or their personal representatives, on sending to the corporation or its agent or mandatary the affidavit referred to in subsection (3), may on application require the corporation or its agent or mandatary to allow the applicant access to the register of the corporation referred to in subsection 21.1(1) during the usual business hours of the corporation and, on payment of a reasonable fee, provide the applicant with an extract from that register.

  • Marginal note:Affidavit

    (3) The affidavit required under subsection (2) shall contain

    • (a) the name and address of the applicant;

    • (b) the name and address for service of the body corporate, if the applicant is a body corporate; and

    • (c) a statement that any information obtained under subsection (2) will not be used except as permitted under subsection (5).

  • Marginal note:Application by body corporate

    (4) If the applicant is a body corporate, the affidavit shall be made by a director or officer of the body corporate.

  • Marginal note:Use of information

    (5) Information obtained under subsection (2) shall not be used by any person except in connection with

    • (a) an effort to influence the voting of shareholders of the corporation;

    • (b) an offer to acquire securities of the corporation; or

    • (c) any other matter relating to the affairs of the corporation.

  • Marginal note:Offence

    (6) A person who, without reasonable cause, contravenes subsection (5) is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding six months, or to both.

Marginal note:Offence — preparation and maintenance of register

  • 21.4 (1) Every director or officer of a corporation who knowingly authorizes, permits or acquiesces in the contravention of subsection 21.1(1) by that corporation commits an offence, whether or not the corporation has been prosecuted or convicted.

  • Marginal note:Offence — recording of false or misleading information

    (2) Every director or officer of a corporation who knowingly records or knowingly authorizes, permits or acquiesces in the recording of false or misleading information in the register of the corporation referred to in subsection 21.1(1) commits an offence.

  • Marginal note:Offence — provision of false or misleading information

    (3) Every director or officer of a corporation who knowingly provides or knowingly authorizes, permits or acquiesces in the provision to any person or entity of false or misleading information in relation to the register of the corporation referred to in subsection 21.1(1) commits an offence.

  • Marginal note:Offence — subsection 21.1(4)

    (4) Every shareholder who knowingly contravenes subsection 21.1(4) commits an offence.

  • Marginal note:Penalty

    (5) A person who commits an offence under any of subsections (1) to (4) is liable on summary conviction to a fine not exceeding $200,000 or to imprisonment for a term not exceeding six months, or to both.

 Section 250 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Register of individuals with significant control

    (4) For greater certainty, a register referred to in subsection 21.1(1) or an extract from it is not a report, return, notice or other document for the purposes of this section.

 Subsection 261(1) of the Act is amended by adding the following after paragraph (c):

  • (c.01) prescribing the form of the register referred to in subsection 21.1(1) and the manner of preparing and maintaining it;

  • (c.02) respecting steps to be taken by a corporation for the purposes of subsection 21.1(2);

Coming into Force

Marginal note:Six months after royal assent

 Sections 182 to 185 come into force on the day that, in the sixth month after the month in which this Act receives royal assent, has the same calendar number as the day on which it receives royal assent or, if that sixth month has no day with that number, the last day of that sixth month.

DIVISION 7Intellectual Property Strategy

SUBDIVISION AR.S., c. P-4Patent Act

Amendments to the Act
  •  (1) Subsection 10(1) of the Patent Act is replaced by the following:

    Marginal note:Inspection by the public

    • 10 (1) Subject to subsections (2) to (6) and section 20, all patents, applications for patents and documents relating to patents or applications for patents that are in the possession of the Patent Office shall be open to public inspection at the Patent Office, under any conditions that may be prescribed.

  • (2) Subsection 10(2) of the English version of the Act is replaced by the following:

    • Marginal note:Confidentiality period

      (2) Except with the approval of the applicant, an application for a patent, or a document relating to the application, shall not be open to public inspection before a confidentiality period of 18 months has expired.

 Subsection 27(5) of the Act is replaced by the following:

  • Marginal note:Separate claims

    (5) For greater certainty, if a claim defines the subject-matter of an invention in the alternative, each alternative is a separate claim for the purposes of sections 2, 28.1 to 28.3, 56 and 78.3.

 Subsection 36(4) of the Act is replaced by the following:

  • Marginal note:Separate applications

    (4) A divisional application shall be deemed to be a separate and distinct application under this Act, to which its provisions apply as fully as may be, and separate fees shall be paid on the divisional application and, except for the purposes of subsections 27(6) and (7), it shall have the same filing date as the original application.

 The Act is amended by adding the following after section 52:

Standard-Essential Patents

Marginal note:Subsequent patentee or holder bound

  • 52.1 (1) A licensing commitment in respect of a standard-essential patent that binds the patentee, binds any subsequent patentee and any holder of any certificate of supplementary protection that sets out that patent.

  • Marginal note:Subsequent holder bound

    (2) If a certificate of supplementary protection sets out a standard-essential patent, a licensing commitment that binds the holder of that certificate of supplementary protection, binds any subsequent holder of the certificate of supplementary protection.

  • Marginal note:Application

    (3) Subsections (1) and (2) apply despite any other Act of Parliament and any decision or order made under such an Act.

Marginal note:Regulations

52.2 The Governor in Council may make regulations, for the purposes of section 52.1, respecting what constitutes, or does not constitute, a licensing commitment or a standard-essential patent.

 The Act is amended by adding the following after section 53:

Marginal note:Admissible in evidence

  • 53.1 (1) In any action or proceeding respecting a patent, a written communication, or any part of such a communication, may be admitted into evidence to rebut any representation made by the patentee in the action or proceeding as to the construction of a claim in the patent if

    • (a) it is prepared in respect of

      • (i) the prosecution of the application for the patent,

      • (ii) a disclaimer made in respect of the patent, or

      • (iii) a request for re-examination, or a re-examination proceeding, in respect of the patent; and

    • (b) it is between

      • (i) the applicant for the patent or the patentee; and

      • (ii) the Commissioner, an officer or employee of the Patent Office or a member of a re-examination board.

  • Marginal note:Divisional application

    (2) For the purposes of this section, the prosecution of a divisional application is deemed to include the prosecution of the original application before that divisional application is filed.

  • Marginal note:Reissued patent

    (3) For the purposes of this section, a written communication is deemed to be prepared in respect of the prosecution of the application for a reissued patent if it is prepared in respect of

    • (a) the prosecution of the application for the patent that was surrendered and from which the reissued patent results; or

    • (b) the application for reissuance.

 Subsection 55.2(6) of the Act is replaced by the following:

  • Marginal note:For greater certainty

    (6) For greater certainty, subsection (1) does not affect any exception to the exclusive property or privilege granted by a patent that exists at law in respect of acts done privately and on a non-commercial scale or for a non-commercial purpose.

 The Act is amended by adding the following after section 55.2:

Marginal note:Exception — experimentation

  • 55.3 (1) An act committed for the purpose of experimentation relating to the subject-matter of a patent is not an infringement of the patent.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations respecting

    • (a) factors that the court may consider, must consider or is not permitted to consider in determining whether an act is, or is not, committed for the purpose set out in subsection (1); and

    • (b) circumstances in which an act is, or is not, committed for the purpose set out in subsection (1).

 Section 56 of the Act is replaced by the following:

Marginal note:Exception — prior use

  • 56 (1) Subject to subsection (2), if — before the claim date of a claim in a patent — a person, in good faith, committed an act that would otherwise constitute an infringement of the patent in respect of that claim, or made serious and effective preparations to commit such an act, it is not an infringement of the patent or any certificate of supplementary protection that sets out the patent, in respect of that claim, if the person commits the same act on or after that claim date.

  • Marginal note:Transfer

    (2) If the act referred to in subsection (1) is committed or the preparations to commit it are made in the course of a business and that business, or the part of that business in the course of which the act was committed or the preparations were made, is subsequently transferred,

    • (a) subsection (1) or paragraph (b), as the case may be, does not apply to an act committed by the transferor after the transfer; and

    • (b) it is not an infringement of the patent or any certificate of supplementary protection that sets out the patent, in respect of the claim, if the transferee commits the act after the transfer.

  • Marginal note:Exception — use or sale of article

    (3) The use or sale of an article is not an infringement of a patent or any certificate of supplementary protection that sets out the patent if that article was acquired, directly or indirectly, from a person who, at the time they disposed of it, could sell it without infringing the patent or the certificate

    • (a) because the person, before the claim date of a claim in the patent, in good faith, committed an act that would otherwise constitute an infringement of the patent in respect of that claim and they disposed of the article before that claim date; or

    • (b) under subsection (1) or paragraph (2)(b).

  • Marginal note:Exception — use of service

    (4) The use of a service is not an infringement of a patent if the service is provided by a person who, under subsection (1) or paragraph (2)(b), is able to provide it without infringing the patent.

  • Marginal note:Non-application

    (5) Subsection (1) or paragraph (3)(a) does not apply if the person referred to in that subsection or that paragraph was able, as the case may be, to commit the act or make the preparations to commit the act only because they obtained knowledge of the subject-matter defined by the claim, directly or indirectly, from the applicant of the application on the basis of which the patent was granted and they knew that the applicant was the source of the knowledge.

  • Marginal note:Exception — use of article

    (6) Subject to subsection (7), the use of an article is not an infringement of a patent or any certificate of supplementary protection that sets out the patent, in respect of a claim, if the article was acquired, directly or indirectly, from a person who, before the claim date of that claim, in good faith, made or sold, or made serious and effective preparations to make or sell, an article that is substantially the same as the one used, for that use.

  • Marginal note:Transfer

    (7) If the making or selling referred to in subsection (6) was done or the preparations to do so were made in the course of a business and that business, or the part of that business in the course of which the making or selling was done or the preparations were made, is subsequently transferred, then

    • (a) subsection (6) or paragraph (b), as the case may be, does not apply in respect of an article that is made or sold by the transferor after the transfer; and

    • (b) it is not an infringement of the patent or any certificate of supplementary protection that sets out the patent, in respect of a claim referred to in subsection (6), to use an article for the use referred to in that subsection if it was made or sold for that use by the transferee after the transfer.

  • Marginal note:Non-application

    (8) Subsection (6) does not apply if the person referred to in that subsection was able to make or sell, or to make the preparations to make or sell, the article only because they obtained knowledge of the use defined by the claim, directly or indirectly, from the applicant of the application on the basis of which the patent was granted and they knew that the applicant was the source of the knowledge.

  • Marginal note:Exception — use of service

    (9) Subject to subsection (10), the use of a service is not an infringement of a patent in respect of a claim if the service is provided by a person who, before the claim date of that claim, in good faith, provided, or made serious and effective preparations to provide, a service that is substantially the same as the one used, for that use.

  • Marginal note:Transfer

    (10) If the service referred to in subsection (9) was provided or the preparations to provide it were made in the course of a business and that business, or the part of that business in the course of which the service was provided or the preparations to do so were made, is subsequently transferred, then, after the transfer

    • (a) the transferor is deemed to no longer be the person referred to in subsection (9) for the purposes of that subsection; and

    • (b) the transferee is deemed to be the person who provided the service for the purposes of subsection (9).

  • Marginal note:Non-application

    (11) Subsection (9) does not apply if the person referred to in that subsection was able to provide the service or make the preparations to provide it only because they obtained knowledge of the use defined by the claim, directly or indirectly, from the applicant of the application on the basis of which the patent was granted and they knew that the applicant was the source of the knowledge.

 The Act is amended by adding the following after section 76.1:

Written Demands

Marginal note:Requirements

  • 76.2 (1) Any written demand received by a person in Canada, that relates to an invention that is patented in Canada or elsewhere or that is protected by a certificate of supplementary protection in Canada or by analogous rights granted elsewhere, must comply with the prescribed requirements.

  • Marginal note:Federal Court

    (2) Any person who receives a written demand that does not comply with the prescribed requirements, and any person who is aggrieved as a result of the receipt by another person of such a written demand, may bring a proceeding in the Federal Court.

  • Marginal note:Relief

    (3) If the Federal Court is satisfied that the written demand does not comply with the prescribed requirements, it may grant any relief that it considers appropriate, including by way of recovery of damages, punitive damages, an injunction, a declaration or an award of costs.

  • Marginal note:Liability — special case

    (4) If a corporation sends a written demand that does not comply with the prescribed requirements, is notified of those requirements and of the demand’s defects in respect of those requirements and does not, within a reasonable time after receiving the notice of those defects, remedy them, the corporation’s officers, directors, agents or mandataries are jointly and severally, or solidarily, liable with the corporation if they directed, authorized, assented to, acquiesced in or participated in the sending of the demand.

  • Marginal note:Due diligence

    (5) A person is not to be found liable under subsection (4) if they establish that they exercised due diligence to ensure that the written demand complies with the prescribed requirements.

Marginal note:Regulations

76.3 The Governor in Council may make regulations for the purposes of section 76.2, including regulations

  • (a) respecting what constitutes a written demand or an aggrievement;

  • (b) respecting the requirements with which a written demand must comply;

  • (c) respecting factors that the Federal Court may consider, must consider or is not permitted to consider in making an order under subsection 76.2(3); and

  • (d) respecting the circumstances in which a defendant is not to be found liable in a proceeding brought under subsection 76.2(2).

 Section 78.2 of the Act is replaced by the following:

Marginal note:Special case

  • 78.2 (1) Subject to subsections (2) and (3), any matter arising on or after the day on which this subsection comes into force in respect of a patent issued on the basis of an application whose filing date is before October 1, 1989 shall be dealt with and disposed of in accordance with sections 38.1, 45, 46 and 48.1 to 48.5 and with the provisions of this Act, other than sections 46 and 56, as they read immediately before October 1, 1989.

  • Marginal note:Application of amendments to Act

    (2) The provisions of this Act that apply as provided in subsection (1) shall be read subject to any amendments to this Act, other than the amendments that came into force on October 1, 1989 or October 1, 1996 or that were made by sections 188, 189, and 195 of the Budget Implementation Act, 2018, No 2.

  • Marginal note:October 1, 1996

    (3) Section 56 of the Patent Act, as it read immediately before October 1, 1989, applies in respect of a purchase, construction or acquisition made before October 1, 1996 of an invention for which a patent is issued on the basis of an application filed before October 1, 1989.

 The Act is amended by adding the following after section 123:

Legal Proceedings in Respect of Certificates of Supplementary Protection

Marginal note:Admissible in evidence

123.1 A written communication, or any part of such a communication, that is admissible under section 53.1 in respect of a patent set out in a certificate of supplementary protection may be admitted into evidence to any action or proceeding respecting the certificate of supplementary protection to rebut any representation made by the holder of the certificate of supplementary protection in the action or proceeding as to the construction of a claim in the patent set out in the certificate of supplementary protection.

  •  (1) Paragraph 124(1)(f) of the Act is replaced by the following:

    • (f) subsection 55.3(1), with any reference to “patent” to be read as a reference to “certificate of supplementary protection”;

  • (2) Section 124 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Regulations

      (2.1) The Governor in Council may make regulations respecting

      • (a) factors that the court may consider, must consider or is not permitted to consider in determining whether an act is, or is not, committed for the purpose of experimentation relating to the subject-matter of the certificate of supplementary protection; and

      • (b) circumstances in which an act is, or is not, committed for the purpose of experimentation relating to the subject-matter of the certificate of supplementary protection.

 Paragraph 134(1)(f) of the English version of the Act is replaced by the following:

  • (f) respecting the circumstances in which any patentee or holder of a certificate of supplementary protection may or must be represented by another person in respect of a certificate of supplementary protection or an application for such a certificate;

Transitional Provisions

Marginal note:Section 52.1 of Patent Act

 Section 52.1 of the Patent Act applies in respect of any action or proceeding that has not been finally disposed of on the coming into force of that section.

Marginal note:Sections 53.1 and 123.1 of Patent Act

 Sections 53.1 and 123.1 of the Patent Act apply in respect of any action or proceeding that has not been finally disposed of on the coming into force of that section 53.1.

Marginal note:Section 55.3 of Patent Act

 Section 55.3 and paragraph 124(1)(f) of the Patent Act apply in respect of any action or proceeding that has not been finally disposed of on the coming into force of that section 55.3.

Marginal note:Section 56 of Patent Act

  •  (1) Section 56 of the Patent Act, as enacted by section 194 of this Act, applies only in respect of an action or proceeding in respect of a patent issued on the basis of an application whose filing date is on or after October 1, 1989 that is commenced on or after October 29, 2018.

  • Marginal note:Section 56 — previous version

    (2) Section 56 of the Patent Act, as it read immediately before the coming into force of section 194 of this Act, applies in respect of any action or proceeding that is in respect of a patent issued on the basis of an application whose filing date is on or after October 1, 1989 and that is commenced before October 29, 2018.

2014, c. 39Related Amendments to the Economic Action Plan 2014 Act, No. 2

 Subsection 118(5) of the Economic Action Plan 2014 Act, No. 2 is amended by replacing the paragraph 12(1)(j.75) that it enacts with the following:

  • (j.75) establishing a period for the purposes of subsections 55.11(3), (7) and (9);

 Section 119 of the Act is amended by repealing the section 15.1 that it enacts.

 Subsection 125(1) of the Act is amended by replacing the subsection 28.4(2.1) that it enacts with the following:

  • Marginal note:Request deemed never filed

    (2.1) Except for the purposes of subsection 10(3), a request for priority is deemed never to have been made if the request is not made in accordance with the regulations or if the applicant does not submit the information, other than the number of each previously regularly filed application, required under subsection (2).

  •  (1) Section 136 of the Act is amended by replacing the portion of the subsection 55.11(1) before paragraph (a) that it enacts with the following:

    Marginal note:Exception — third party rights

    • 55.11 (1) This section applies only in respect of the following patents and certificates of supplementary protection that set out the following patents:

  • (2) Section 136 of the Act is amended by replacing the subsections 55.11(2) to (4) that it enacts with the following:

    • Marginal note:Act committed during period

      (2) If, during a period that is established by regulations made under paragraph 12(1)(j.74) that relates to a patent, a person, in good faith, committed an act that would otherwise constitute an infringement of that patent, that act is not an infringement of the patent.

    • Marginal note:Act committed after period

      (3) Subject to subsection (4), if — during a period established by regulations made under paragraph 12(1)(j.75) that relates to a patent — a person, in good faith, committed an act that would otherwise constitute an infringement of that patent or made serious and effective preparations to commit that act, it is not an infringement of the patent or any certificate of supplementary protection that sets out the patent if the person commits the act after that period.

    • Marginal note:Transfer

      (4) If the act referred to in subsection (3) is committed or the preparations to commit it are made in the course of a business and that business, or the part of that business in the course of which the act was committed or the preparations were made, is subsequently transferred,

      • (a) subsection (3) or paragraph (b), as the case may be, does not apply in respect of an act committed by the transferor after the transfer; and

      • (b) it is not an infringement of the patent or any certificate of supplementary protection that sets out the patent if the transferee commits the act after the transfer.

    • Marginal note:Use or sale of article

      (5) The use or sale of an article is not an infringement of a patent or any certificate of supplementary protection that sets out the patent if that article was acquired, directly or indirectly, from a person who, at the time they disposed of it, could, under subsection (2) or (3) or paragraph (4)(b), sell the article without infringing the patent or the certificate.

    • Marginal note:Use of service

      (6) The use of a service is not an infringement of a patent if the service is provided by a person who, under subsection (2) or (3) or paragraph (4)(b), is able to provide it without infringing the patent.

    • Marginal note:Use of article

      (7) Subject to subsection (8), the use of an article is not an infringement of a patent or any certificate of supplementary protection that sets out the patent if the article was acquired, directly or indirectly, from a person who, during a period that is established by regulations made under paragraph 12(1)(j.75) that relates to that patent, in good faith, made or sold, or made serious and effective preparations to make or sell, an article that is substantially the same as the one used, for that use.

    • Marginal note:Transfer

      (8) If the making or selling referred to in subsection (7) was done or the preparations to do so were made in the course of a business and that business, or the part of that business in the course of which the making or selling was done or the preparations were made, is subsequently transferred, then

      • (a) subsection (7) or paragraph (b), as the case may be, does not apply in respect of an article that is made or sold by the transferor after the transfer; and

      • (b) it is not an infringement of a patent or a certificate of supplemental protection referred to in subsection (7) to use an article for the use referred to in that subsection if it was made or sold for that use by the transferee after the transfer.

    • Marginal note:Use of service

      (9) Subject to subsection (10), the use of a service is not an infringement of a patent if the service is provided by a person who, during a period that is established by regulations made under paragraph 12(1)(j.75) that relates to that patent, provided, or made serious and effective preparations to provide, a service that is substantially the same as the one used, for that use.

    • Marginal note:Transfer

      (10) If, during the period referred to in subsection (9), the service was provided or the preparations to provide it were made in the course of a business and that business, or the part of that business in the course of which the service was provided or the preparations to do so were made, is subsequently transferred, then, after the transfer

      • (a) the transferor is deemed to no longer be the person referred to in subsection (9) for the purposes of that subsection; and

      • (b) the transferee is deemed to be the person who provided the service for the purposes of subsection (9).

 Section 140 of the Act is amended by replacing the section 78.53 that it enacts with the following:

Marginal note:Patents — filing date before October 1, 1989

  • 78.53 (1) Subject to subsection 78.55(2), any matter arising on or after the coming-into-force date, in respect of a patent granted on the basis of an application whose filing date is before October 1, 1989, shall be dealt with and disposed of in accordance with

    • (a) the provisions of this Act, other than the definitions claim date, filing date and request for priority in section 2, sections 10, 27 to 28.4, 34.1 to 36, 38.2 and 55, paragraphs 55.11(1)(a) and (b) and section 56; and

    • (b) sections 10 and 55 and subsections 61(1) and (3), as they read immediately before October 1, 1989.

  • Marginal note:Special case

    (2) Section 56 of the Patent Act, as it read immediately before October 1, 1989, applies in respect of a purchase, construction or acquisition made before October 1, 1996 of an invention for which a patent is issued on the basis of an application filed before October 1, 1989.

2017, c. 6Consequential Amendment to the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act

 Subsection 135(11) of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act is repealed.

Coordinating Amendments

Marginal note:2014, c. 39

  •  (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 2.

  • (2) If section 139 of the other Act comes into force before section 196 of this Act, then that section 196 is deemed never to have come into force and is repealed.

  • (3) If section 139 of the other Act comes into force on the same day as section 196 of this Act, then that section 196 is deemed to have come into force before that section 139.

  • (4) If subsection 118(5) of the other Act comes into force before section 204 of this Act, then

    • (a) that section 204 is deemed never to have come into force and is repealed; and

    • (b) paragraph 12(1)(j.75) of the Patent Act is replaced with the following:

      • (j.75) establishing a period for the purposes of subsections 55.11(3), (7) and (9);

  • (5) If subsection 118(5) of the other Act comes into force on the same day as section 204 of this Act, then that section 204 is deemed to have come into force before that subsection 118(5).

  • (6) If section 119 of the other Act comes into force before section 205 of this Act, then

    • (a) that section 205 is deemed never to have come into force and is repealed; and

    • (b) section 15.1 of the Patent Act is repealed.

  • (7) If section 119 of the other Act comes into force on the same day as section 205 of this Act, then that section 205 is deemed to have come into force before that section 119.

  • (8) If subsection 125(1) of the other Act comes into force before section 206 of this Act, then

    • (a) that section 206 is deemed never to have come into force and is repealed; and

    • (b) subsection 28.4(2.1) of the Patent Act is replaced by the following:

      • Marginal note:Request deemed never filed

        (2.1) Except for the purposes of subsection 10(3), a request for priority is deemed never to have been made if the request is not made in accordance with the regulations or if the applicant does not submit the information, other than the number of each previously regularly filed application, required under subsection (2).

  • (9) If subsection 125(1) of the other Act comes into force on the same day as section 206 of this Act, then that section 206 is deemed to have come into force before that subsection 125(1).

  • (10) If section 136 of the other Act comes into force before section 207 of this Act, then

    • (a) that section 207 is deemed never to have come into force and is repealed;

    • (b) the portion of subsection 55.11(1) of the Patent Act before paragraph (a) is replaced by the following:

      Marginal note:Exception — third party rights

      • 55.11 (1) This section applies only in respect of the following patents and certificates of supplementary protection that set out the following patents:

    • (c) subsections 55.11(2) to (10) of the Patent Act are replaced by the following:

      • Marginal note:Act committed during period

        (2) If, during a period that is established by regulations made under paragraph 12(1)(j.74) that relates to a patent, a person, in good faith, committed an act that would otherwise constitute an infringement of that patent, that act is not an infringement of the patent.

      • Marginal note:Act committed after period

        (3) Subject to subsection (4), if — during a period established by regulations made under paragraph 12(1)(j.75) that relates to a patent — a person, in good faith, committed an act that would otherwise constitute an infringement of that patent or made serious and effective preparations to commit that act, it is not an infringement of the patent or any certificate of supplementary protection that sets out the patent if the person commits the act after that period.

      • Marginal note:Transfer

        (4) If the act referred to in subsection (3) is committed or the preparations to commit it are made in the course of a business and that business, or the part of that business in the course of which the act was committed or the preparations were made, is subsequently transferred,

        • (a) subsection (3) or paragraph (b), as the case may be, does not apply in respect of an act committed by the transferor after the transfer; and

        • (b) it is not an infringement of the patent or any certificate of supplementary protection that sets out the patent if the transferee commits the act after the transfer.

      • Marginal note:Use of sale of article

        (5) The use or sale of an article is not an infringement of a patent or any certificate of supplementary protection that sets out the patent if that article was acquired, directly or indirectly, from a person who, at the time they disposed of it, could, under subsection (2) or (3) or paragraph (4)(b), sell the article without infringing the patent or the certificate.

      • Marginal note:Use of service

        (6) The use of a service is not an infringement of a patent if the service is provided by a person who, under subsection (2) or (3) or paragraph (4)(b), is able to provide it without infringing the patent.

      • Marginal note:User of article

        (7) Subject to subsection (8), the use of an article is not an infringement of a patent or any certificate of supplementary protection that sets out the patent if the article was acquired, directly or indirectly, from a person who, during a period that is established by regulations made under paragraph 12(1)(j.75) that relates to that patent, in good faith, made or sold, or made serious and effective preparations to make or sell, an article that is substantially the same as the one used, for that use.

      • Marginal note:Transfer

        (8) If the making or selling referred to in subsection (7) was done or the preparations to do so were made in the course of a business and that business, or the part of that business in the course of which the making or selling was done or the preparations were made, is subsequently transferred, then

        • (a) subsection (7) or paragraph (b), as the case may be, does not apply in respect of an article that is made or sold by the transferor after the transfer; and

        • (b) it is not an infringement of a patent or a certificate of supplemental protection referred to in subsection (7) to use an article for the use referred to in that subsection if it was made or sold for that use by the transferee after the transfer.

      • Marginal note:Use of service

        (9) Subject to subsection (10), the use of a service is not an infringement of a patent if the service is provided by a person who, during a period that is established by regulations made under paragraph 12(1)(j.75) that relates to that patent, provided, or made serious and effective preparations to provide, a service that is substantially the same as the one used, for that use.

      • Marginal note:Transfer

        (10) If, during the period referred to in subsection (9), the service was provided or the preparations to provide it were made in the course of a business and that business, or the part of that business in the course of which the service was provided or the preparations to do so were made, is subsequently transferred, then, after the transfer

        • (a) the transferor is deemed to no longer be the person referred to in subsection (9) for the purposes of that subsection; and

        • (b) the transferee is deemed to be the person who provided the service for the purposes of subsection (9).

  • (11) If section 136 of the other Act and section 207 of this Act come into force on the same day, then that section 207 is deemed to have come into force before that section 136.

  • (12) If section 140 of the other Act comes into force before section 208 of this Act, then

    • (a) that section 208 is deemed never to have come into force and is repealed; and

    • (b) section 78.53 of the Patent Act is replaced by the following:

      Marginal note:Patents — filing date before October 1, 1989

      • 78.53 (1) Subject to subsection 78.55(2), any matter arising on or after the coming-into-force date, in respect of a patent granted on the basis of an application whose filing date is before October 1, 1989, shall be dealt with and disposed of in accordance with

        • (a) the provisions of this Act, other than the definitions claim date, filing date and request for priority in section 2, sections 10, 27 to 28.4, 34.1 to 36, 38.2 and 55, paragraphs 55.11(1)(a) and (b) and section 56; and

        • (b) sections 10 and 55 and subsections 61(1) and (3), as they read immediately before October 1, 1989.

      • Marginal note:Special case

        (2) Section 56 of the Patent Act, as it read immediately before October 1, 1989, applies in respect of a purchase, construction or acquisition made before October 1, 1996, of an invention for which a patent is issued on the basis of an application filed before October 1, 1989.

  • (13) If section 140 of the other Act and section 208 of this Act come into force on the same day, then that section 208 is deemed to have come into force before that section 140.

Marginal note:2015, c. 36

  •  (1) In this section, other Act means the Economic Action Plan 2015 Act, No. 1.

  • (2) If section 65 of the other Act comes into force before section 189 of this Act, then

    • (a) that section 189 is deemed never to have come into force and is repealed; and

    • (b) subsection 36(4) of the Patent Act is replaced by the following:

      • Marginal note:Separate applications

        (4) A divisional application shall be deemed to be a separate and distinct application under this Act, to which its provisions apply as fully as may be, and separate fees shall be paid on the divisional application and, except for the purposes of subsections 27(6) and (7), it shall have the same filing date as the original application.

  • (3) If section 65 of the other Act comes into force on the same day as section 189 of this Act, then that section 189 is deemed to have come into force before that section 65.

  • (4) On the first day on which both section 65 of the other Act and section 191 of this Act are in force, subsection 53.1(2) of the French version of the Patent Act is replaced by the following:

    • Marginal note:Demande divisionnaire

      (2) Pour l’application du présent article, la poursuite de toute demande divisionnaire est réputée comprendre la poursuite de la demande originale avant le dépôt de cette demande divisionnaire.

Marginal note:2017, c. 6

  •  (1) In this section, other Act means the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act.

  • (2) If subsection 135(11) of the other Act produces its effects before section 209 of this Act, then

    • (a) that section 209 is deemed never to have come into force and is repealed; and

    • (b) paragraph 124(1)(d.1) of the Patent Act is repealed.

  • (3) If subsection 135(11) of the other Act produces its effects on the day on which section 209 of this Act comes into force, then that subsection 135(11) is deemed to have produced its effects before that section 209 comes into force.

Coming into Force

Marginal note:2014, c. 39 or royal assent

  •  (1) Section 189 and subsection 198(2) come into force on the day on which subsection 120(2) and section 136 of the Economic Action Plan 2014 Act, No. 2 come into force or, if it is later, on the day on which this Act receives royal assent.

  • Marginal note:September 21, 2017

    (2) Section 199 is deemed to have come into force on September 21, 2017.

SUBDIVISION BTrade-marks

R.S., c. T-13Trade-marks Act

 Paragraph (a) of the definition pays d’origine in section 2 of the French version of the Trade-marks Act is replaced by the following:

  • a) Le pays de l’Union où l’auteur d’une demande d’enregistrement d’une marque de commerce avait, à la date de la demande, un établissement industriel ou commercial effectif et sérieux;

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

  • Marginal note:For greater certainty

    (3) For greater certainty, and despite any public notice of adoption and use given by the Registrar under paragraph (1)(n), subparagraph (1)(n)(iii) does not apply with respect to a badge, crest, emblem or mark if the entity that made the request for the public notice is not a public authority or no longer exists.

  • Marginal note:Notice of non-application

    (4) In the circumstances set out in subsection (3), the Registrar may, on his or her own initiative or at the request of a person who pays a prescribed fee, give public notice that subparagraph (1)(n)(iii) does not apply with respect to the badge, crest, emblem or mark.

 The Act is amended by adding the following after section 11:

Marginal note:Exception

11.01 Despite section 11, a person may use a badge, crest, emblem or mark described in subparagraph 9(1)(n)(iii) if, at the time of use, the entity that made the request for a public notice under paragraph 9(1)(n) with respect to the badge, crest, emblem or mark is not a public authority or no longer exists.

  •  (1) Section 11.13 of the Act is amended by adding the following after subsection (6.1):

    • Marginal note:Withdrawal of objection

      (6.2) If, in the opinion of the Registrar, an objector is in default in the continuation of an objection, the Registrar may, after giving notice to the objector of the default, treat the objection as withdrawn unless the default is remedied within the time specified in the notice.

  • (2) Section 11.13 of the Act is amended by adding the following after subsection (8):

    • Marginal note:Costs

      (9) Subject to the regulations, the Registrar may, by order, award costs in a proceeding under this section.

    • Marginal note:Order of Federal Court

      (10) A certified copy of an order made under subsection (9) may be filed in the Federal Court and, on being filed, the order becomes and may be enforced as an order of that Court.

 Subsection 18(1) of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) the application for registration was filed in bad faith.

 The Act is amended by adding the following after section 36:

Marginal note:Withdrawal of opposition

36.1 If, in the opinion of the Registrar, an opponent is in default in the continuation of an opposition referred to in section 38, the Registrar may, after giving notice to the opponent of the default, treat the opposition as withdrawn unless the default is remedied within the time specified in the notice.

 Subsection 38(2) of the Act is amended by adding the following after paragraph (a):

  • (a.1) that the application was filed in bad faith;

 The Act is amended by adding the following after section 38:

Marginal note:Costs

  • 38.1 (1) Subject to the regulations, the Registrar may, by order, award costs in a proceeding under section 38.

  • Marginal note:Order of Federal Court

    (2) A certified copy of an order made under subsection (1) may be filed in the Federal Court and, on being filed, the order becomes and may be enforced as an order of that Court.

 Section 45 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Costs

    (4.1) Subject to the regulations, the Registrar may, by order, award costs in a proceeding under this section.

  • Marginal note:Order of Federal Court

    (4.2) A certified copy of an order made under subsection (4.1) may be filed in the Federal Court and, on being filed, the order becomes and may be enforced as an order of that Court.

 The Act is amended by adding the following after section 45:

Confidentiality Orders

Marginal note:Request to keep evidence confidential

  • 45.1 (1) A party to a proceeding under section 11.13, 38 or 45 may make a request to the Registrar, in accordance with the regulations, that some or all of the evidence that they intend to submit to the Registrar be kept confidential.

  • Marginal note:Restriction

    (2) The Registrar shall not consider a request if the party who makes it submits the evidence to the Registrar before the Registrar either gives notice under subsection (3) or makes an order under subsection (4).

  • Marginal note:Registrar not satisfied

    (3) If the Registrar is not satisfied that the evidence should be kept confidential, the Registrar shall notify the party who made the request accordingly.

  • Marginal note:Confidentiality order

    (4) If the Registrar is satisfied that the evidence should be kept confidential, he or she may, on any terms that he or she considers appropriate, order that the evidence be kept confidential.

  • Marginal note:Consequences of order

    (5) If the Registrar makes an order under subsection (4),

    • (a) the party who made the request may submit the evidence to the Registrar and, if it is submitted, shall serve it on the other party in accordance with the order;

    • (b) subsections 11.13(5.1), 38(9) and 45(2.1) do not apply with respect to the evidence;

    • (c) section 29 does not apply to the evidence; and

    • (d) the Registrar shall take measures to ensure that the evidence is kept confidential when the evidence or a copy of the evidence is transmitted to the Federal Court under section 60.

  • Marginal note:Order of Federal Court

    (6) A certified copy of an order made under subsection (4) may be filed in the Federal Court and, on being filed, the order becomes and may be enforced as an order of that Court.

 The Act is amended by adding the following after section 46:

Marginal note:Renewal for goods or services

46.1 The registration of a trademark may be renewed for any of the goods or services in respect of which the trademark is registered.

 Section 53.2 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Exception

    (1.1) If, within a period of three years beginning on the date of registration of a trademark, the owner of the registered trademark makes an application claiming that an act has been done contrary to section 19, 20 or 22, the owner is not entitled to relief unless the trademark was in use in Canada at any time during that period or special circumstances exist that excuse the absence of use in Canada during that period.

 Subsection 56(5) of the Act is replaced by the following:

  • Marginal note:Additional evidence

    (5) If, on an appeal under subsection (1), the Federal Court grants leave to adduce evidence in addition to that adduced before the Registrar, the Court may exercise, with respect to that additional evidence, any discretion vested in the Registrar.

 Section 65 of the Act is amended by striking out “and” at the end of paragraph (m) and by replacing paragraph (n) with the following:

  • (n) respecting the awarding of costs under subsections 11.13(9), 38.1(1) and 45(4.1);

  • (o) respecting requests made under subsection 45.1(1); and

  • (p) prescribing anything that by this Act is to be prescribed.

 The Act is amended by adding the following after section 65.2:

Marginal note:Case management

  • 65.3 (1) For greater certainty, the Governor in Council may make regulations under paragraphs 65(i) and 65.2(b) respecting the case management by the Registrar of proceedings referred to in those paragraphs.

  • Marginal note:Time or manner

    (2) The Governor in Council may make regulations authorizing the Registrar to fix, despite any time or manner that is provided for under this Act with respect to any of the proceedings referred to in subsection (1), the time by which or the manner in which any step in a case-managed proceeding is to be completed and, in that case, the provisions of this Act and the regulations apply with respect to the proceeding with any modifications that the circumstances require.

 The Act is amended by adding the following after section 68.1:

Marginal note:Non-application of paragraph 38(2)(a.1)

68.2 No person shall oppose an application for registration of a trademark on the ground set out in paragraph 38(2)(a.1) if the application was advertised under subsection 37(1) before the day on which that paragraph comes into force.

 Subsection 70(2) of the Act is replaced by the following:

  • Marginal note:Regulations

    (2) For greater certainty, a regulation made under this Act applies to an application referred to in subsection (1), unless the regulation provides otherwise.

2014, c. 20Economic Action Plan 2014 Act, No. 1

 Subsection 326(4) of the Economic Action Plan 2014 Act, No. 1 is amended by replacing the subsection 12(3) that it enacts with the following:

  • Marginal note:Registrable if distinctive

    (3) A trademark that is not registrable by reason of paragraph (1)(a) or (b) is registrable if it is distinctive at the filing date of an application for its registration, determined without taking into account subsection 34(1), having regard to all the circumstances of the case including the length of time during which it has been used.

 Section 339 of the Act is amended by replacing the portion of subsection 32(1) before paragraph (a) that it enacts with the following:

Marginal note:Further evidence in certain cases

  • 32 (1) An applicant shall furnish the Registrar with any evidence that the Registrar may require establishing that the trademark is distinctive at the filing date of the application for its registration, determined without taking into account subsection 34(1), if any of the following apply:

 Subsection 343(2) of the Act is amended by replacing the paragraphs 38(2)(e) and (f) that it enacts with the following:

  • (e) that, at the filing date of the application in Canada, determined without taking into account subsection 34(1), the applicant was not using and did not propose to use the trademark in Canada in association with the goods or services specified in the application; or

  • (f) that, at the filing date of the application in Canada, determined without taking into account subsection 34(1), the applicant was not entitled to use the trademark in Canada in association with those goods or services.

 Section 344 of the Act is amended by replacing the paragraphs 39(1)(a) and (b) that it enacts with the following:

  • (a) within the scope of the original application on its filing date, determined without taking into account subsection 34(1); and

  • (b) within the scope of the original application on the day on which the divisional application is filed, if the divisional application is filed on or after the day on which the original application is advertised under subsection 37(1).

 Subsection 367(60) of the Act is amended by replacing the paragraphs 39(1)(a) and (b) that it enacts with the following:

  • (a) within the scope of the original application on its filing date, determined without taking into account subsection 34(1); and

  • (b) within the scope of the original application on the day on which the divisional application is filed, if the divisional application is filed on or after the day on which the original application is advertised under subsection 37(1).

2014, c. 32Combating Counterfeit Products Act

 Subsection 15(4) of the Combating Counterfeit Products Act is amended by replacing the subsection 12(3) that it enacts with the following:

  • Marginal note:Registrable if distinctive

    (3) A trade-mark that is not registrable by reason of paragraph (1)(a) or (b) is registrable if it is distinctive at the filing date of an application for its registration, determined without taking into account subsection 34(1), having regard to all the circumstances of the case including the length of time during which it has been used.

 Section 31 of the Act is amended by replacing the portion of subsection 32(1) before paragraph (a) that it enacts with the following:

Marginal note:Further evidence in certain cases

  • 32 (1) An applicant shall furnish the Registrar with any evidence that the Registrar may require establishing that the trade-mark is distinctive at the filing date of the application for its registration, determined without taking into account subsection 34(1), if any of the following apply:

 Section 36 of the Act is amended by replacing the paragraphs 39.1(1)(a) and (b) that it enacts with the following:

  • (a) within the scope of the original application on its filing date, determined without taking into account subsection 34(1); and

  • (b) within the scope of the original application on the day on which the divisional application is filed, if the divisional application is filed on or after the day on which the original application is advertised under subsection 37(1).

Coordinating Amendments

Marginal note:2015, c. 36

  •  (1) In this section, other Act means the Economic Action Plan 2015 Act, No. 1.

  • (2) If section 230 of this Act comes into force before subsection 69(2) of the other Act, then that subsection 69(2) is repealed.

  • (3) If section 230 of this Act comes into force on the same day as subsection 69(2) of the other Act, then that subsection 69(2) is deemed never to have come into force and is repealed.

  • (4) On the first day on which both subsection 70(7) of the other Act has produced its effects and section 215 of this Act is in force, subsection 70(1) of the Trade-marks Act is amended by, if necessary, striking out “and” at the end of paragraph (b) and adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

    • (d) subsections 9(3) and (4), sections 36.1, 38.1 and 45.1, and subsection 56(5), as enacted by the Budget Implementation Act, 2018, No. 2.

Marginal note:2014, c. 20

  •  (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1.

  • (2) If subsection 343(2) of the other Act comes into force before the day on which this Act receives royal assent, then

    • (a) section 233 of this Act is deemed never to have come into force and is repealed; and

    • (b) paragraphs 38(2)(e) and (f) of the Trade-marks Act are replaced by the following:

      • (e) that, at the filing date of the application in Canada, determined without taking into account subsection 34(1), the applicant was not using and did not propose to use the trademark in Canada in association with the goods or services specified in the application; or

      • (f) that, at the filing date of the application in Canada, determined without taking into account subsection 34(1), the applicant was not entitled to use the trademark in Canada in association with those goods or services.

  • (3) If subsection 343(2) of the other Act comes into force on the day on which this Act receives royal assent, then section 233 of this Act is deemed to come into force before that subsection 343(2).

  • (4) If section 357 of the other Act comes into force on the same day as section 227 of this Act, then that section 357 is deemed to have come into force before that section 227.

Marginal note:2014, c. 20 and c. 32

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

    first Act

    first Act means the Economic Action Plan 2014 Act, No. 1. (première loi)

    second Act

    second Act means the Combating Counterfeit Products Act. (deuxième loi)

  • (2) If subsection 326(4) of the first Act or subsection 15(4) of the second Act comes into force on or before the day on which this Act receives royal assent, then

    • (a) sections 231 and 236 of this Act are deemed never to have come into force and are repealed; and

    • (b) subsection 12(3) of the Trade-marks Act is replaced by the following:

      • Marginal note:Registrable if distinctive

        (3) A trademark that is not registrable by reason of paragraph (1)(a) or (b) is registrable if it is distinctive at the filing date of an application for its registration, determined without taking into account subsection 34(1), having regard to all the circumstances of the case including the length of time during which it has been used.

  • (3) If subsection 367(48) of the first Act produces its effects on or before the day on which this Act receives royal assent, or if section 339 of the first Act and section 31 of the second Act are both in force on that day, then

    • (a) sections 232 and 237 of this Act are deemed never to have come into force and are repealed; and

    • (b) the portion of subsection 32(1) of the Trademarks Act before paragraph (a) is replaced by the following:

      Marginal note:Further evidence in certain cases

      • 32 (1) An applicant shall furnish the Registrar with any evidence that the Registrar may require establishing that the trademark is distinctive at the filing date of the application for its registration, determined without taking into account subsection 34(1), if any of the following apply:

  • (4) If section 31 of the second Act comes into force on or before the day on which this Act receives royal assent and section 339 of the first Act is not in force on that day, then

    • (a) section 237 of this Act is deemed never to have come into force and is repealed; and

    • (b) the portion of subsection 32(1) of the Trade-marks Act before paragraph (a) is replaced by the following:

      Marginal note:Further evidence in certain cases

      • 32 (1) An applicant shall furnish the Registrar with any evidence that the Registrar may require establishing that the trade-mark is distinctive at the filing date of the application for its registration, determined without taking into account subsection 34(1), if any of the following apply:

  • (5) If section 344 of the first Act and section 36 of the second Act are both in force on the day on which this Act receives royal assent, or if subsection 367(59) or (61) of the first Act has produced its effects on or before that day, then

    • (a) sections 234, 235 and 238 of this Act are deemed never to have come into force and are repealed; and

    • (b) paragraphs 39(1)(a) and (b) of the Trade-marks Act are replaced by the following:

      • (a) within the scope of the original application on its filing date, determined without taking into account subsection 34(1); and

      • (b) within the scope of the original application on the day on which the divisional application is filed, if the divisional application is filed on or after the day on which the original application is advertised under subsection 37(1).

  • (6) If section 36 of the second Act comes into force on or before the day on which this Act receives royal assent and section 344 of the first Act is not in force on that day, then

    • (a) sections 234, 235 and 238 of this Act are deemed never to have come into force and are repealed;

    • (b) paragraphs 39.1(1)(a) and (b) of the Trade-marks Act are replaced by the following:

      • (a) within the scope of the original application on its filing date, determined without taking into account subsection 34(1); and

      • (b) within the scope of the original application on the day on which the divisional application is filed, if the divisional application is filed on or after the day on which the original application is advertised under subsection 37(1).

    • (c) section 344 of the first Act is amended by replacing the paragraphs 39(1)(a) and (b) that it enacts by the following:

      • (a) within the scope of the original application on its filing date, determined without taking into account subsection 34(1); and

      • (b) within the scope of the original application on the day on which the divisional application is filed, if the divisional application is filed on or after the day on which the original application is advertised under subsection 37(1).

Coming into Force

Marginal note:2014, c. 20 and c. 32

  •  (1) Section 214 comes into force on the first day on which both section 340 of the Economic Action Plan 2014 Act, No. 1 and section 33 of the Combating Counterfeit Products Act are in force or, if it is later, on the day on which this Act receives royal assent.

  • Marginal note:Order in council

    (2) Sections 215 to 217, 219, 221 to 223 and 225 to 228 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day fixed under subsection 368(1) of the Economic Action Plan 2014 Act, No. 1.

  • Marginal note:2014, c. 20 or royal assent

    (3) Sections 220, 224, 229 and 230 come into force on the day fixed under subsection 368(1) of the Economic Action Plan 2014 Act, No. 1 or, if it is later, on the day on which this Act receives royal assent.

SUBDIVISION CR.S., c. C-42Copyright Act (notices of claimed infringement)

 Section 41.25 of the Copyright Act is amended by adding the following after subsection (2):

  • Marginal note:Prohibited content

    (3) A notice of claimed infringement shall not contain

    • (a) an offer to settle the claimed infringement;

    • (b) a request or demand, made in relation to the claimed infringement, for payment or for personal information;

    • (c) a reference, including by way of hyperlink, to such an offer, request or demand; and

    • (d) any other information that may be prescribed by regulation.

 The portion of subsection 41.26(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Obligations related to notice

  • 41.26 (1) A person described in paragraph 41.25(1)(a) or (b) who receives a notice of claimed infringement that complies with subsections 41.25(2) and (3) shall, on being paid any fee that the person has lawfully charged for doing so,

 Subsection 41.27(3) of the Act is replaced by the following:

  • Marginal note:Limitation

    (3) If the provider receives a notice of claimed infringement, relating to a work or other subject-matter, that complies with subsections 41.25(2) and (3) after the work or other subject-matter has been removed from the electronic location set out in the notice, then subsection (1) applies, with respect to reproductions made from that electronic location, only to infringements that occurred before the day that is 30 days — or the period that may be prescribed by regulation — after the day on which the provider receives the notice.

 Paragraph 62(1)(c) of the Act is replaced by the following:

  • (c) prescribing the form of a notice of claimed infringement referred to in section 41.25 and prescribing the information that must be and that is not permitted to be contained in it;

SUBDIVISION DCollege of Patent Agents and Trade-mark Agents Act

Enactment of Act

Marginal note:Enactment

 The College of Patent Agents and Trade-mark Agents Act is enacted as follows:

An Act to establish the College of Patent Agents and Trade-mark Agents

Short Title

Marginal note:Short title

1 This Act may be cited as the College of Patent Agents and Trade-mark Agents Act.

Interpretation and Application

Marginal note:Definitions

2 The following definitions apply in this Act.

Board

Board means the board of directors established under section 13. (conseil)

College

College means the College of Patent Agents and Trade-mark Agents established by section 5. (Collège)

investigator

investigator means an individual designated under section 42. (enquêteur)

licence

licence means a licence issued under this Act. (permis)

licensee

licensee means a patent agent or a trade-mark agent. (titulaire de permis)

Minister

Minister means the federal minister designated under section 4. (ministre)

patent agent

patent agent means an individual who holds a patent agent licence or a patent agent in training licence issued under section 26. (agent de brevets)

privileged

privileged means protected by litigation privilege, by solicitor-client privilege, by the professional secrecy of advocates and notaries or by the privilege set out in section 16.1 of the Patent Act or section 51.13 of the Trade-marks Act. (protégé)

Registrar

Registrar means the Registrar of the College appointed under section 22. (registraire)

trade-mark agent

trade-mark agent means an individual who holds a trade-mark agent licence or a trade-mark agent in training licence issued under section 29. (agent de marques de commerce)

Marginal note:Binding on Her Majesty

3 This Act is binding on Her Majesty in right of Canada or a province.

Marginal note:Designation of Minister

4 The Governor in Council may, by order, designate any federal minister to be the Minister for the purposes of this Act.

Establishment and Organization

College

Marginal note:Establishment

  • 5 (1) A corporation without share capital is established, to be known as the College of Patent Agents and Trade-mark Agents.

  • Marginal note:Act not applicable to College

    (2) The Canada Not-for-profit Corporations Act does not apply to the College.

Marginal note:Purpose

6 The purpose of the College is to regulate patent agents and trade-mark agents in the public interest, in order to enhance the public’s ability to secure the rights provided for under the Patent Act and the Trade-marks Act.

Marginal note:Head office

7 The head office of the College is to be in the National Capital Region, as described in the schedule to the National Capital Act.

Marginal note:Capacity

8 In carrying out its purpose, the College has the capacity and the rights, powers and privileges of a natural person.

Marginal note:Not Crown agent

9 The College is not an agent of Her Majesty, and the College’s directors, the members of its committees, the Registrar, the investigators and any officers, employees, agents and mandataries of the College are not part of the federal public administration.

Marginal note:Official Languages Act

10 The Official Languages Act applies to the College.

Marginal note:Members

11 The members of the College are the licensees.

Marginal note:Annual general meeting

12 The College must hold an annual general meeting of members within six months after the end of each calendar year, at a time and place in Canada fixed by the Board.

Board of Directors

Marginal note:Composition

  • 13 (1) The College has a board of directors composed of at least seven directors, including the Chairperson.

  • Marginal note:Order fixing number of directors

    (2) The Minister must, by order, fix the number of directors.

  • Marginal note:Appointed directors

    (3) The Minister may, by order, fix the number of directors that are to be appointed to the Board and appoint those directors.

  • Marginal note:Maximum number of appointed directors

    (4) The number of appointed directors fixed under subsection (3) must not be greater than the minimum number that is required to constitute a majority of directors on the Board.

  • Marginal note:Elected directors

    (5) The remaining directors are to be licensees elected in accordance with the by-laws, and at least one elected director must be a patent agent and at least one must be a trade-mark agent.

Marginal note:Ineligibility

14 An individual is not eligible to be appointed or elected as a director if they

  • (a) are less than 18 years of age;

  • (b) have the status of bankrupt;

  • (c) are a member of an association whose primary purpose is to represent the interests of persons who provide advice on patents or trade-marks;

  • (d) were, within the preceding 12 months, a member of a governing body or a steering committee of an association referred to in paragraph (c);

  • (e) in the case of an appointment to the Board,

  • (f) in the case of election to the Board,

    • (i) have a licence that is suspended, or

    • (ii) meet any other ineligibility criteria set out in the by-laws.

Marginal note:Term

  • 15 (1) Each director is to be appointed or elected for a term of not more than three years, and may be reappointed or re-elected for subsequent terms of not more than three years each.

  • Marginal note:Determination of term

    (2) The length of a director’s term is

    • (a) set out by the Minister in the order appointing the director, if the director is appointed; or

    • (b) determined in accordance with the by-laws, if the director is elected.

  • Marginal note:Staggered terms

    (3) For greater certainty, it is not necessary that all directors hold office for terms that begin or end on the same day.

  • Marginal note:Continuation in office — appointed directors

    (4) Despite subsection (1) and subject to section 17, an appointed director continues to hold office until they are re-appointed or their successor is appointed.

Marginal note:Removal — appointed directors

  • 16 (1) An appointed director holds office during good behaviour and may be removed for cause by the Minister.

  • Marginal note:Removal — elected directors

    (2) An elected director may be removed in accordance with the by-laws.

Marginal note:Ceases to be director

17 A director ceases to be a director if they

  • (a) die;

  • (b) resign;

  • (c) become bankrupt;

  • (d) become a member of an association whose primary purpose is to represent the interests of persons who provide advice on patents or trade-marks;

  • (e) become a member of a governing body or a steering committee of an association referred to in paragraph (d);

  • (f) are removed from office under section 16;

  • (g) in the case of an appointed director,

  • (h) in the case of an elected director,

    • (i) have a licence that is suspended,

    • (ii) cease to be a licensee, or

    • (iii) meet the ineligibility criteria set out in the by-laws.

Marginal note:Remuneration

18 The College may pay to the directors the remuneration and expenses that are determined in accordance with the by-laws.

Marginal note:Chairperson

  • 19 (1) The Chairperson is to be elected by the Board from among the directors in accordance with the by-laws.

  • Marginal note:Duties

    (2) The Chairperson presides over meetings of the Board and performs any other duties that are assigned to the Chairperson by the by-laws.

  • Marginal note:Removal

    (3) The Board may remove the Chairperson in accordance with the by-laws.

Marginal note:Meetings

  • 20 (1) The Board must hold a meeting at least once every calendar year.

  • Marginal note:Open to public

    (2) Subject to the by-laws, meetings of the Board are open to the public.

Committees, Registrar and Chief Executive Officer

Marginal note:Investigations Committee and Discipline Committee

  • 21 (1) Two committees of the College are established, to be known as the Investigations Committee and the Discipline Committee.

  • Marginal note:Appointment

    (2) The members of each committee are to be appointed by the Board in accordance with the regulations.

  • Marginal note:Limitation

    (3) An individual is not permitted to be a member of either committee if

    • (a) they are a member of an association whose primary purpose is to represent the interests of persons who provide advice on patents or trade-marks; or

    • (b) they are a member of a governing body or a committee of an association referred to in paragraph (a).

  • Marginal note:Limitation

    (4) An individual is not permitted to be a member of the Discipline Committee and the Investigations Committee at the same time.

Marginal note:Registrar

22 The Board must appoint a Registrar of the College, who is responsible for the Register of Patent Agents and the Register of Trade-mark Agents.

Marginal note:Chief Executive Officer

23 The Board may appoint a Chief Executive Officer, who is responsible for the College’s day-to-day operations.

Powers of Minister and Report

Marginal note:Powers of Minister

  • 24 (1) The Minister may

    • (a) review the Board’s activities and require the Board to provide reports and information, other than privileged information, to the Minister; or

    • (b) require the Board to do anything — including to make, amend or repeal a regulation or by-law — that, in the Minister’s opinion, is advisable to carry out the purposes of this Act.

  • Marginal note:Deemed best interests

    (2) Compliance by a director of the Board with a requirement of the Minister is deemed to be in the best interests of the College.

Marginal note:Annual report

  • 25 (1) On or before March 31 of each year, the College must submit to the Minister a report on the College’s activities during the preceding calendar year.

  • Marginal note:Tabling report

    (2) The Minister must cause a copy of the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the Minister receives it.

Licensees

Patent Agents

Marginal note:Patent agent licence

  • 26 (1) On application, the Registrar must issue a patent agent licence to an individual who meets the requirements under the regulations.

  • Marginal note:Patent agent in training licence

    (2) On application, the Registrar must issue a patent agent in training licence to an individual who meets the requirements under the regulations.

  • Marginal note:Conditions

    (3) A licence issued under this section is subject to any conditions imposed under this Act.

Marginal note:Representation before Patent Office

27 Subject to any restrictions imposed under this Act, a patent agent whose licence is not suspended is entitled to represent persons in the presentation and prosecution of applications for patents or in other business before the Patent Office.

Marginal note:Register

  • 28 (1) The Register of Patent Agents must include the following information:

    • (a) the name and contact information of every patent agent and the name and contact information of any firm of which the patent agent is a member;

    • (b) for every patent agent, any conditions that are imposed on their licence under this Act and any restrictions that are imposed under this Act on their entitlement to provide representation;

    • (c) in the case of a patent agent whose licence is suspended, an indication that their licence is suspended and the date on which it was suspended;

    • (d) for every patent agent, all disciplinary measures imposed on them by the Discipline Committee;

    • (e) the name of every individual whose patent agent licence or patent agent in training licence was surrendered or revoked; and

    • (f) any other information required by the regulations or by-laws.

  • Marginal note:Updated information

    (2) The Registrar must ensure that the information included in the Register is updated in a timely manner.

  • Marginal note:Available to public

    (3) The Register must be made available to the public on the College’s website in a searchable format.

  • Marginal note:Information for Commissioner of Patents

    (4) The Registrar must provide the Commissioner of Patents, within the time and in the form and manner that are specified by the Commissioner, with the most recent information referred to in paragraph (1)(a), other than information relating to a patent agent whose licence is suspended.

Trade-mark Agents

Marginal note:Trade-mark agent licence

  • 29 (1) On application, the Registrar must issue a trade-mark agent licence to an individual who meets the requirements under the regulations.

  • Marginal note:Trade-mark agent in training licence

    (2) On application, the Registrar must issue a trade-mark agent in training licence to an individual who meets the requirements under the regulations.

  • Marginal note:Conditions

    (3) A licence issued under this section is subject to any conditions imposed under this Act.

Marginal note:Representation before Office of the Registrar of Trade-marks

30 Subject to any restrictions imposed under this Act, a trade-mark agent whose licence is not suspended is entitled to represent persons in the presentation and prosecution of applications for the registration of trade-marks or in other business before the Office of the Registrar of Trade-marks.

Marginal note:Register

  • 31 (1) The Register of Trade-mark Agents must include the following information:

    • (a) the name and contact information of every trade-mark agent and the name and contact information of any firm of which the trade-mark agent is a member;

    • (b) for every trade-mark agent, any conditions that are imposed on their licence under this Act and any restrictions that are imposed under this Act on their entitlement to provide representation;

    • (c) in the case of a trade-mark agent whose licence is suspended, an indication that their licence is suspended and the date on which it was suspended;

    • (d) for every trade-mark agent, all disciplinary measures imposed on them by the Discipline Committee;

    • (e) the name of every individual whose trade-mark agent licence or trade-mark agent in training licence was surrendered or revoked; and

    • (f) any other information required by the regulations or by-laws.

  • Marginal note:Updated information

    (2) The Registrar must ensure that the information included in the Register is updated in a timely manner.

  • Marginal note:Register available to public

    (3) The Register must be made available to the public on the College’s website in a searchable format.

  • Marginal note:Information for Registrar of Trade-marks

    (4) The Registrar must provide the Registrar of Trade-marks, within the time and in the form and manner that are specified by the Registrar of Trade-marks, with the most recent information referred to in paragraph (1)(a), other than information relating to a trade-mark agent whose licence is suspended.

Obligations

Marginal note:Standards of professional conduct and competence

32 A licensee must meet the standards of professional conduct and competence that are established by the code of professional conduct. A licensee who fails to meet those standards commits professional misconduct or is incompetent.

Marginal note:Code of professional conduct

  • 33 (1) The Minister must, by regulation, establish a code of professional conduct for licensees.

  • Marginal note:Amendment or repeal

    (2) Only the Board may, by regulation and with the Minister’s prior written approval, amend or repeal the regulations establishing the code.

Marginal note:Professional liability insurance

  • 34 (1) Subject to subsections (2) and (3), a licensee must be insured against professional liability.

  • Marginal note:Exception — employee of Her Majesty

    (2) A licensee who is employed by Her Majesty in right of Canada or a province, or by an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province, is not required to be insured against professional liability for work done as a licensee within the scope of that employment.

  • Marginal note:Exception — by-laws

    (3) A licensee may be exempted by the by-laws from the application of subsection (1).

Suspension, Revocation and Surrender of Licences

Marginal note:Suspension

  • 35 (1) The Registrar may, in accordance with the by-laws, suspend a licence if the licensee fails to

    • (a) pay the annual fee in accordance with the by-laws;

    • (b) pay, within the time and in the manner provided for under this Act, any other fee or amount that the licensee is required to pay under this Act;

    • (c) provide any information or document in accordance with the by-laws;

    • (d) comply with any requirement that is imposed by the by-laws with respect to continuing professional development;

    • (e) comply with a condition of their licence that is imposed under this Act;

    • (f) comply with any requirement with respect to professional liability insurance that is imposed under this Act; or

    • (g) comply with any other requirement that is imposed under the by-laws.

  • Marginal note:Notification

    (2) The Registrar must notify a licensee in writing if their licence is suspended under this section.

  • Marginal note:Length of suspension

    (3) A licence is suspended under this section until the licensee complies with the requirements set out in the by-laws to address the failure that led to the suspension or until the licence is revoked by the Registrar under subsection (4).

  • Marginal note:Revocation

    (4) The Registrar may, in accordance with the by-laws, revoke a suspended licence if it has been suspended under this section for the applicable period of time that is specified in the by-laws.

Marginal note:Surrender of licence

36 The Registrar may, in accordance with by-laws, approve the surrender of a licence on application by a licensee made in accordance with the by-laws.

Investigations

Duty to Investigate

Marginal note:Investigation

37 The Investigations Committee must, on the basis of a complaint or on its own initiative, conduct an investigation into a licensee’s conduct and activities if it has reasonable grounds to believe that the licensee has committed professional misconduct or was incompetent.

Marginal note:Notice to licensee

38 The Investigations Committee must give notice, before the conclusion of the investigation and in accordance with the by-laws, of the nature of an investigation to the licensee who is its subject and give the licensee a period of at least 30 days after the date of the notice within which they may make written representations to the Committee.

Complaints

Marginal note:Consideration of complaints

39 The Investigations Committee must consider all complaints received by the College that, in the opinion of the Committee, relate to professional misconduct or incompetence by a licensee.

Marginal note:Conclusion of consideration

  • 40 (1) If, after considering a complaint, the Investigations Committee does not have reasonable grounds to believe that the licensee has committed professional misconduct or was incompetent, the Committee must dismiss the complaint and notify the complainant in writing of the dismissal and the reasons for it.

  • Marginal note:Limitation

    (2) The Investigations Committee is not permitted to disclose privileged information in its notice to the complainant.

Marginal note:Referral

41 With the complainant’s consent, the Investigations Committee may refer a complaint that it has dismissed to a body that has a statutory duty to regulate a profession.

Conduct of Investigation

Marginal note:Investigator

  • 42 (1) The Investigations Committee may designate an individual as an investigator to conduct an investigation under the Committee’s direction.

  • Marginal note:Revocation

    (2) The Investigations Committee may revoke the designation.

Marginal note:Powers of investigator

  • 43 (1) For the purpose of investigating a licensee’s conduct and activities, an investigator may

    • (a) subject to subsection (3), enter the licensee’s business premises at any reasonable time and require the production of any document or other thing that is relevant to the investigation, and examine or copy the document or thing or remove it for examination or copying; and

    • (b) require the licensee, or a business partner or employee of the licensee or any person employed by the same employer as the licensee, to provide any information that is relevant to the investigation.

  • Marginal note:Privileged information

    (2) An investigator may take any action under subsection (1) with respect to any privileged information, including privileged information contained in a document or other thing, unless the information

    • (a) is subject to litigation privilege or solicitor-client privilege or the professional secrecy of advocates and notaries;

    • (b) is not protected by the privilege set out in section 16.1 of the Patent Act or section 51.13 of the Trade-marks Act; and

    • (c) is not related to a patent, a trade-mark, a geographical indication or a mark referred to in paragraph 9(1)(e), (i), (i.1), (i.3), (n) or (n.1) of the Trade-marks Act.

  • Marginal note:Warrant to enter dwelling-house

    (3) If the licensee’s business premises are in a dwelling-house, the investigator may enter them only with the occupant’s consent or under the authority of a warrant issued under section 44.

  • Marginal note:Receipt

    (4) An investigator may remove a document or other thing from business premises under paragraph (1)(a) only if the investigator gives a person who appears to be in control of the premises a receipt for the document or thing.

Marginal note:Warrant

  • 44 (1) On the application of an investigator, the Federal Court may issue a warrant authorizing an investigator to do anything set out in subsection (2) if the Court is satisfied by information on oath that

    • (a) there are reasonable grounds to believe that a licensee has committed professional misconduct or was incompetent;

    • (b) there are reasonable grounds to believe that there are documents or things in a place, including a dwelling-house, that are relevant to an investigation into the licensee’s conduct or activities; and

    • (c) the warrant is necessary because

      • (i) there are reasonable grounds to believe that the matter is urgent and that it would be impractical to carry out the investigation using only other investigative procedures,

      • (ii) there are reasonable grounds to believe that the powers conferred by section 43 have been or are likely to be ineffective,

      • (iii) there are reasonable grounds to believe that information in the documents or other things meets all the conditions set out in paragraphs 43(2)(a) to (c), or

      • (iv) section 43 does not authorize the investigator to enter the place.

  • Marginal note:Powers

    (2) A warrant may authorize an investigator, subject to any conditions set out in the warrant, to

    • (a) enter and search the place referred to in paragraph (1)(b);

    • (b) examine or copy any document or other thing that is relevant to the investigation and that is in the place, including any document or thing that contains information that is privileged; and

    • (c) remove from the place any document or other thing that is relevant to the investigation, including any document or thing that contains information that is privileged.

  • Marginal note:Receipt

    (3) An investigator who removes a document or other thing from a place under the warrant must give a receipt for the document or thing to a person who appears to be in control of the place.

  • Marginal note:Use of force

    (4) In executing a warrant, an investigator may use force only if they are named in the warrant, are expressly authorized by it to use force and are accompanied by a peace officer.

  • Marginal note:Ex parte application

    (5) An application under subsection (1) may be made ex parte.

Marginal note:Order — document or information

  • 45 (1) On the application of an investigator, the Federal Court may make an order requiring a person to produce any document or other thing for examination, copying or removal by an investigator or to provide any information to an investigator, subject to any conditions that are specified in the order, if the Court is satisfied by information on oath that

    • (a) there are reasonable grounds to believe that a licensee has committed professional misconduct or was incompetent;

    • (b) there are reasonable grounds to believe that the document, thing or information is relevant to an investigation into the licensee’s conduct or activities; and

    • (c) the order is necessary because

      • (i) there are reasonable grounds to believe that the matter is urgent and that it would be impractical to carry out the investigation using only other investigative procedures,

      • (ii) there are reasonable grounds to believe that the powers conferred by section 43 have been or are likely to be ineffective,

      • (iii) paragraph 43(1)(b) does not authorize the investigator to require the person to provide the information, or

      • (iv) there are reasonable grounds to believe that the document or thing contains information that meets, or the information meets, all the conditions set out in paragraphs 43(2)(a) to (c).

  • Marginal note:Privileged information

    (2) An order under subsection (1) may be made with respect to any privileged information, including privileged information contained in a document or other thing.

  • Marginal note:Ex parte application

    (3) An application under subsection (1) may be made ex parte.

  • Marginal note:Receipt

    (4) An investigator who removes a document or other thing produced under an order must give a receipt for the document or thing to the person who produces it.

Marginal note:Sealing and notification — legal counsel

  • 46 (1) If an investigator requires the production of a document or other thing — or is about to examine, copy or remove it — under section 43, under a warrant issued under section 44 or under an order made under section 45, and the document or thing is in the possession of legal counsel or a firm of legal counsel,

    • (a) the investigator must not examine or copy the document or thing;

    • (b) legal counsel or a representative of the firm must place the document or thing in a package and seal and identify the package in accordance with the regulations;

    • (c) the investigator must retain and remove the package once it is sealed; and

    • (d) legal counsel or the firm must take all reasonable steps

      • (i) to notify the holder of a privilege with respect to the document or thing within the period prescribed by regulation, or

      • (ii) if the holder cannot be located within that period, to immediately notify the law society of the applicable province or the Chambre des notaires du Québec, as the case may be.

  • Marginal note:Objection

    (2) If an investigator requires the production of a document or other thing — or is about to examine, copy or remove it — under section 43, under a warrant issued under section 44 or under an order made under section 45, a person in possession of the document or thing may object to its production, examination, copying or removal on one or more of the following grounds:

    • (a) the document or thing is not relevant to the investigation;

    • (b) if the investigator is acting under section 43, the document or thing contains information that meets all the conditions set out in paragraphs 43(2)(a) to (c);

    • (c) if the investigator is acting under the authority of a warrant or order, the production, examination, copying or removal of the document or thing is not authorized by the warrant or order.

  • Marginal note:Objection — sealing and notification

    (3) If the person makes an objection under subsection (2),

    • (a) the investigator must not examine or copy the document or thing;

    • (b) the person must place the document or thing in a package and seal and identify the package in accordance with the regulations;

    • (c) the investigator must retain and remove the package once it is sealed; and

    • (d) if the person is not the owner of the document or thing or the holder of a privilege with respect to it, the person must immediately notify the owner or holder of the objection.

  • Marginal note:Application to Federal Court

    (4) The legal counsel or firm referred to in subsection (1), the person who makes the objection under subsection (2) or any other person who has a right or interest in the document or other thing that is sealed may apply to the Federal Court in accordance with the regulations for a determination of whether any of the grounds set out in paragraphs (2)(a) to (c) apply with respect to the document or thing.

  • Marginal note:Handling of sealed package

    (5) The sealed package is to be retained, opened or returned only in accordance with the regulations.

Marginal note:Return or application for retention order

  • 47 (1) An investigator who, as a result of the application of any of sections 43 to 45 or the regulations referred to in subsection 46(5), is in possession of a document or other thing that is not in a sealed package must, within the applicable period determined in accordance with the regulations made under paragraph 76(1)(i), return the document or thing or apply to the Federal Court for a retention order under subsection (2).

  • Marginal note:Retention order

    (2) On application by the investigator, the Federal Court may order that the document or thing may be retained by the investigator until no later than the conclusion of the investigation or, if an application is made to the Discipline Committee under subsection 49(1), until the final disposition of the proceedings before the Discipline Committee and any appeals. If the Court does not order that the document or thing be retained, the document or thing must be returned as soon as feasible.

Marginal note:Application for return

  • 48 (1) A person who has a right or interest in a document or other thing that, as a result of the application of any of sections 43 to 45 or the regulations referred to in subsection 46(5), is in the possession of an investigator and that is not in a sealed package may, on giving notice to the Investigations Committee, apply to the Federal Court for an order that the document or thing be returned or that any copies of the document or thing made by or on behalf of the Committee or an investigator be destroyed.

  • Marginal note:Order

    (2) The Court may order, on any conditions that it considers appropriate,

    • (a) that the document or thing be returned; and

    • (b) that any copies of the document or thing made by or on behalf of the Investigations Committee or an investigator be destroyed, if the removal of the document or thing by an investigator was not authorized under this Act.

Conclusion of Investigation

Marginal note:Application or dismissal

  • 49 (1) If, at the conclusion of an investigation, the Investigations Committee is satisfied that there is sufficient evidence that the licensee has committed professional misconduct or was incompetent, the Committee must apply to the Discipline Committee for a decision as to whether the licensee committed professional misconduct or was incompetent. Otherwise, the Investigations Committee must dismiss the matter.

  • Marginal note:Written representations

    (2) The Investigations Committee must consider any written representations made by the licensee under section 38 before the conclusion of the investigation.

  • Marginal note:Notice of application or dismissal

    (3) The Investigations Committee must, in writing, notify the licensee and any complainant of the application or dismissal and, in the case of dismissal, the reasons for it.

  • Marginal note:Limitation

    (4) The Investigations Committee is not permitted to disclose privileged information in its notice to the licensee or complainant.

Marginal note:Withdrawal of application

50 The Investigations Committee may withdraw an application to the Discipline Committee only if the Investigations Committee is no longer satisfied that there is sufficient evidence that the licensee has committed professional misconduct or was incompetent.

Disciplinary Proceedings

Marginal note:Oral hearing

51 The Discipline Committee must hold an oral hearing for every application made by the Investigations Committee in order to determine whether a licensee committed professional misconduct or was incompetent.

Marginal note:Hearings open to public

52 Except to the extent necessary to protect privileged or confidential information, the hearings of the Discipline Committee are open to the public.

Marginal note:Parties

53 The Investigations Committee and the licensee are parties to the application.

Marginal note:Right of complainant to make submissions

54 If the application results from a complaint, the complainant is entitled to make oral and written submissions to the Discipline Committee.

Marginal note:Powers

  • 55 (1) The Discipline Committee has the power

    • (a) to summon and enforce the appearance of persons and compel them to give oral or written evidence on oath and to produce any document or other thing that the Committee considers necessary to decide the application, in the same manner and to the same extent as a superior court of record;

    • (b) to administer oaths; and

    • (c) to accept any evidence, whether admissible in a court of law or not.

  • Marginal note:Privileged information

    (2) The Discipline Committee may take any action referred to in subsection (1) with respect to information that is privileged.

Marginal note:Powers before decision

  • 56 (1) Before making a decision under section 57, the Discipline Committee may take any action referred to in any of paragraphs 57(3)(a) to (c) if the Discipline Committee is satisfied that it is necessary for the protection of the public.

  • Marginal note:Action is provisional

    (2) Any action taken under subsection (1) is provisional and ceases to have effect

    • (a) after the decision on the application is made, unless the action is confirmed in the decision; or

    • (b) if the application is withdrawn.

Marginal note:Decision on application

  • 57 (1) After the hearing of an application, the Discipline Committee must decide whether the licensee has committed professional misconduct or was incompetent.

  • Marginal note:No professional misconduct or incompetence

    (2) If the Discipline Committee decides that the licensee did not commit professional misconduct or was not incompetent, the Committee must dismiss the application.

  • Marginal note:Professional misconduct or incompetence

    (3) If the Discipline Committee decides that the licensee has committed professional misconduct or was incompetent, the Committee may, in its decision,

    • (a) impose conditions on a licence of the licensee;

    • (b) impose restrictions on the licensee’s entitlement to represent persons under section 27 or 30;

    • (c) suspend a licence of the licensee for a period of not more than two years or until specified conditions are met, or both;

    • (d) revoke a licence of the licensee;

    • (e) reprimand the licensee;

    • (f) require the licensee to pay a penalty of not more than $10,000 to the College;

    • (g) require the licensee to pay to the College or any complainant all or a portion of the costs incurred by them during the application before the Committee;

    • (h) require the licensee to reimburse all or a portion of the fees or disbursements paid to the licensee by a client; and

    • (i) take or require any other action that the Committee considers appropriate in the circumstances.

  • Marginal note:Decision and reasons in writing

    (4) The Discipline Committee must give its decision and the reasons for it in writing.

  • Marginal note:Decision and reasons available to public

    (5) A decision and the reasons for it, other than any privileged and confidential information contained in the decision or reasons, must be made available to the public on the College’s website.

Marginal note:Notice to Registrar

  • 58 (1) The Discipline Committee must provide a copy of every decision made under section 57 to the Registrar.

  • Marginal note:Notice to licensees — revocation or suspension

    (2) The Registrar must notify all licensees of every decision made under subsection 57(3) to revoke or suspend a licence.

  • Marginal note:Notice to licensees — dismissal of application

    (3) The Registrar must, if requested by the licensee who was the subject of an application to the Discipline Committee that was dismissed, notify all licensees of the dismissal.

Marginal note:Appeal to Federal Court

59 A party to an application may appeal a decision of the Discipline Committee made under section 57 to the Federal Court within 30 days after the day on which the decision is made.

Marginal note:Filing of decision in Federal Court

  • 60 (1) The College may file in the Federal Court a certified copy of a final decision of the Discipline Committee made under section 57 that is not subject to appeal.

  • Marginal note:Effect of filing

    (2) On the certified copy being filed, the decision becomes and may be enforced as an order of the Federal Court.

Marginal note:Suspension lifted if conditions met

  • 61 (1) If the Discipline Committee suspends a licence under paragraph 57(3)(c) until specified conditions are met, the Committee must, on application by the licensee, lift the suspension if the Committee is satisfied that the conditions are met.

  • Marginal note:Ex parte application

    (2) An application under subsection (1) may be made ex parte.

  • Marginal note:Notice to Registrar

    (3) The Discipline Committee must provide written notice to the Registrar as soon as feasible after it lifts the suspension.

  • Marginal note:Revocation by Registrar

    (4) The Registrar may, at any time after the second anniversary of the day on which a licence is suspended under paragraph 57(3)(c) until specified conditions are met and after giving at least 30 days’ written notice to the licensee, revoke the licence if the suspension has not been lifted under subsection (1).

  • Marginal note:Notification

    (5) The Registrar must notify the licensee in writing as soon as feasible after their licence is revoked.

Marginal note:Amounts paid as penalty

62 Amounts paid to the College as a penalty under paragraph 57(3)(f) may be expended only for the purpose of supporting the mental health of licensees.

Marginal note:Rules of procedure

63 The Discipline Committee may make rules respecting the practice and procedure before it and rules for carrying out its work and for the management of its internal affairs.

Confidentiality

Marginal note:No waiver

64 For greater certainty, the disclosure of privileged information to the College, including to the Investigations Committee or to the Discipline Committee, or to an investigator does not constitute a waiver of the privilege.

Marginal note:No disclosure

  • 65 (1) Subject to subsection (2), the following persons must not disclose a complaint received by the College or any privileged or confidential information obtained in the course of an investigation or proceeding under this Act:

    • (a) a current or former director of the Board;

    • (b) a current or former member of the Investigations Committee or of the Discipline Committee;

    • (c) the Registrar or a former Registrar;

    • (d) a current or former investigator;

    • (e) a current or former officer, employee, agent or mandatary of the College;

    • (f) a person who is or has been engaged by the College.

  • Marginal note:Exceptions

    (2) A person referred to in subsection (1) may disclose a complaint or information referred to in that subsection if

    • (a) the disclosure is for the purpose of permitting the exercise of powers or the performance of duties or functions under this Act, including in connection with a proceeding under this Act;

    • (b) the information is available to the public;

    • (c) the disclosure is to the person’s legal counsel;

    • (d) the person has obtained the written consent of all persons whose rights or interests might reasonably be affected by the disclosure; or

    • (e) there are reasonable grounds to believe that

      • (i) there is a significant risk of harm to any person if the disclosure is not made, and

      • (ii) making the disclosure is likely to reduce the risk.

  • Marginal note:Testimony and production

    (3) A person referred to in subsection (1) is not required, in any proceeding other than a proceeding under this Act,

    • (a) to give testimony on a complaint received by the College or on any privileged or confidential information that the person is prohibited from disclosing under that subsection; or

    • (b) to produce such a complaint or any document or other thing that contains any such privileged or confidential information.

Marginal note:Application for order authorizing disclosure

  • 66 (1) The College may apply to the Federal Court for an order authorizing the disclosure of confidential information that would be prohibited by section 65 to a law enforcement agency or other public authority.

  • Marginal note:Limitation

    (2) The Court must not make an order if the information is privileged or if it was obtained by the College as a result of a person making, in the course of an investigation or proceeding under this Act, an oral or written statement that may tend to incriminate the person.

  • Marginal note:Documents and other things

    (3) An order that authorizes the disclosure of information may also authorize the delivery of documents or other things that are in the possession of the College and that relate to the information.

Prohibitions and Offences

Marginal note:Claiming to be patent agent

67 A person, other than a patent agent whose licence is not suspended, must not

  • (a) use the title “patent agent” or a variation or abbreviation of that title, or any words, name or designation, in a manner that leads to a reasonable belief that the person is a patent agent; or

  • (b) represent themselves, in any way or by any means, to be a patent agent.

Marginal note:Claiming to be trade-mark agent

68 A person, other than a trade-mark agent whose licence is not suspended, must not

  • (a) use the title “trade-mark agent” or a variation or abbreviation of that title, or any words, name or designation, in a manner that leads to a reasonable belief that the person is a trade-mark agent; or

  • (b) represent themselves, in any way or by any means, to be a trade-mark agent.

Marginal note:Offence and punishment — section 67 or 68

  • 69 (1) Every person who contravenes section 67 or 68 is guilty of an offence and liable on summary conviction to a fine of not more than

    • (a) $25,000 for a first offence; and

    • (b) $50,000 for a second or subsequent offence.

  • Marginal note:Imprisonment precluded

    (2) If a person is convicted of an offence under subsection (1), no imprisonment is to be imposed as punishment for the offence or in default of payment of any fine imposed as punishment in relation to the offence.

  • Marginal note:Due diligence

    (3) A person is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.

Marginal note:Unauthorized representation before Patent Office

  • 70 (1) Subject to subsection (2) and the regulations, a person must not represent another person in the presentation and prosecution of applications for patents or in other business before the Patent Office.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to a patent agent whose licence is not suspended, to legal counsel who is providing legal services as authorized by law or to a person who is part of a class of persons exempted under the regulations.

Marginal note:Unauthorized representation before Office of the Registrar of Trade-marks

  • 71 (1) Subject to subsection (2) and the regulations, a person must not represent another person in the presentation and prosecution of applications for the registration of trade-marks or in other business before the Office of the Registrar of Trade-marks.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to a trade-mark agent whose licence is not suspended, to legal counsel who is providing legal services as authorized by law or to a person who is part of a class of persons exempted under the regulations.

Marginal note:Regulations

72 The Governor in Council may make regulations exempting an activity, a class of persons or an activity that is performed by a class of persons from the application of subsection 70(1) or 71(1).

Marginal note:Offence and punishment — section 70 or 71

  • 73 (1) Every person who contravenes section 70 or 71 is guilty of an offence and liable on summary conviction

    • (a) for a first offence, to a fine of not more than $25,000 or to imprisonment for a term of not more than six months, or to both; and

    • (b) for a second or subsequent offence, to a fine of not more than $50,000 or to imprisonment for a term of not more than six months, or to both.

  • Marginal note:Due diligence

    (2) A person is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.

Marginal note:Injunction

74 On application by the College, if the Federal Court is satisfied that a contravention of section 67, 68, 70 or 71 is being or is likely to be committed, the Court may grant an injunction, subject to any conditions that it considers appropriate, ordering any person to cease or refrain from any activity related to that contravention or ordering the person to take any measure that the Court considers appropriate.

By-laws and Regulations

Marginal note:By-laws

  • 75 (1) The Board may make by-laws respecting any matter necessary to carry on the activities of the College, including by-laws

    • (a) respecting the election of directors, the terms of elected directors and their removal;

    • (b) establishing ineligibility criteria for the purposes of subparagraphs 14(f)(ii) and 17(h)(iii);

    • (c) respecting the filling of vacancies caused by the temporary absence or incapacity of elected directors;

    • (d) respecting the remuneration and expenses of directors;

    • (e) respecting the election and removal of the Chairperson of the Board and the Chairperson’s duties;

    • (f) respecting the duties and functions of the Board and the meetings of the Board, including quorum;

    • (g) respecting the conflicts of interest of directors, members of the Investigations Committee and members of the Discipline Committee;

    • (h) respecting the duties and functions of the Registrar;

    • (i) respecting the maintenance of the Register of Patent Agents and the Register of Trade-mark Agents and information that is required to be included in those Registers;

    • (j) respecting the classes of firm in connection with which a licensee may work as a licensee;

    • (k) fixing the annual fee — or the manner of determining the annual fee — that is to be paid by licensees;

    • (l) fixing any other fee — or the manner of determining any other fee — that is to be paid by licensees, including any fee for the late payment of another fee;

    • (m) establishing the time within which and the manner in which any fees or other amounts are to be paid;

    • (n) respecting the information and documents that licensees must provide to the College;

    • (o) respecting continuing professional development requirements for licensees;

    • (p) respecting requirements for licensees to do pro bono work;

    • (q) respecting the professional liability insurance that licensees are required to maintain;

    • (r) exempting licensees from the requirement to be insured against professional liability;

    • (s) respecting the suspension and revocation of licences under section 35;

    • (t) respecting the surrender of licences and applications for a surrender; and

    • (u) respecting the notification of licensees under section 38.

  • Marginal note:Different treatment

    (2) The by-laws made under paragraphs (1)(j) to (u) may distinguish among classes of licensees or licences.

  • Marginal note:For greater certainty

    (3) For greater certainty, by-laws made under paragraphs (1)(j) to (u) are regulations for the purposes of the Statutory Instruments Act.

Marginal note:Regulations — Governor in Council

  • 76 (1) The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations

    • (a) respecting the Investigations Committee, the Discipline Committee and other committees of the College, including the composition of those committees, the eligibility for membership in them, the terms of the members and their removal;

    • (b) respecting the reports and information that must be provided or submitted to the Minister;

    • (c) respecting conditions to be imposed on licences or classes of licences;

    • (d) respecting the requirements that individuals or classes of individuals must meet under section 26 or 29, including requirements in relation to qualifying examinations and in relation to fees with respect to qualifying examinations;

    • (e) respecting what constitutes representation for the purposes of sections 27 and 70 or for the purposes of sections 30 and 71;

    • (f) respecting restrictions on the entitlement of licensees or classes of licensees to provide representation under section 27 or 30;

    • (g) respecting the information to be included in the Register of Patent Agents or the Register of Trade-mark Agents;

    • (h) respecting the sealing of documents and other things and objections under section 46, including in relation to notifications, the identification of sealed packages, applications to the Federal Court and the retention, opening and return of sealed packages; and

    • (i) respecting the determination of the applicable periods referred to in subsection 47(1).

  • Marginal note:Authorization

    (2) Regulations made under paragraphs (1)(c), (d), (f) and (g) may authorize the College to make by-laws with respect to all or part of the subject matter of the regulations and, for greater certainty, those by-laws are regulations for the purposes of the Statutory Instruments Act.

  • Marginal note:Regulations — sealed packages

    (3) Regulations made under paragraph (1)(h) may authorize the Federal Court to make orders respecting the retention, opening or return of sealed packages.

Marginal note:Regulations prevail

77 The regulations prevail over the by-laws to the extent of an inconsistency or conflict between them.

Transitional Provisions

Marginal note:Definition of coming-into-force day

78 In sections 79 to 86, coming-into-force day means the day on which section 13 comes into force.

Marginal note:Initial organization of board

  • 79 (1) Before the coming-into-force day, the College’s board of directors is to be composed of five directors appointed by the Minister of Industry.

  • Marginal note:Appointment on recommendation

    (2) Two of the directors are to be appointed on the recommendation of the Intellectual Property Institute of Canada, with one to be an individual whose name is on the register kept under section 15 of the Patent Act and the other to be an individual whose name is on the list of trade-mark agents kept under section 28 of the Trade-marks Act.

  • Marginal note:Chairperson

    (3) The Minister of Industry must designate a Chairperson from among the directors.

  • Marginal note:Deemed election or appointment

    (4) The directors appointed on the recommendation of the Intellectual Property Institute of Canada who hold office on the coming-into-force day are deemed to have been elected under subsection 13(5) on that day, for a term that ends on the earlier of the day on which the first election is held under that subsection and the first anniversary of the coming-into-force day. The other directors who hold office on the coming-into-force day are deemed to have been appointed under subsection 13(3) on that day for a term that ends on the first anniversary of that day.

  • Marginal note:For greater certainty

    (5) For greater certainty, section 17 applies as of the coming-into-force day with respect to directors who are deemed to be elected or appointed under subsection (4).

  • Marginal note:Removal for cause

    (6) Before the coming-into-force day, a director appointed under subsection (1) may be removed for cause by the Minister of Industry.

  • Marginal note:Remuneration

    (7) Before the coming-into-force day, the College may pay the remuneration and expenses that it fixes to the directors.

  • Marginal note:Reference to the Board

    (8) Any reference in this Act to the Board is, until the coming-into-force day, a reference to the board of directors as constituted under this section.

Marginal note:Confirmation of by-laws

80 Any by-laws that are made by the Board before the first election is held under subsection 13(5) are repealed on the 180th day after the day on which the first election is held, unless they are confirmed by a resolution of the Board, as it is constituted after that election, before that 180th day.

Marginal note:College not a Crown Corporation

81 Despite Part X of the Financial Administration Act, the College is not a Crown corporation within the meaning of that Act.

Marginal note:Deemed issued patent agent licence

82 An individual is deemed to have been issued a patent agent licence under subsection 26(1) on the coming-into-force day if their name was, on the day before the coming-into-force day, on the register kept under section 15 of the Patent Act.

Marginal note:Deemed issued trade-mark agent licence

83 An individual is deemed to have been issued a trade-mark agent licence under subsection 29(1) on the coming-into-force day if their name was, on the day before the coming-into-force day, on the list of trade-mark agents kept under section 28 of the Trade-marks Act.

Marginal note:Provision of information — patents

84 The Commissioner of Patents may, for the purpose of enabling the College or the Registrar to exercise their powers or perform their duties and functions under this Act, provide the Registrar with information relating to an individual or firm whose name is or was on the register kept under section 15 of the Patent Act, an individual who has sat for the qualifying examination for patent agents or an individual who has notified the Commissioner in writing of their intention to sit for the examination, including

  • (a) the individual’s or firm’s name and contact information and, in the case of an individual, the name of any firm of which they are a member;

  • (b) whether the Commissioner has refused to recognize the individual or firm as a patent agent or attorney under section 16 of the Patent Act;

  • (c) any complaints against the individual or firm; and

  • (d) the results of any qualifying examinations for patent agents.

Marginal note:Provision of information — trade-marks

85 The Registrar of Trade-marks may, for the purpose of enabling the College or the Registrar to exercise their powers or perform their duties and functions under this Act, provide the Registrar with information relating to an individual or firm whose name is or was on the list of trade-mark agents kept under section 28 of the Trade-marks Act, an individual who has sat for the qualifying examination for trade-mark agents or an individual who has notified the Registrar of Trade-marks in writing of their intention to sit for the examination, including

  • (a) the individual’s or firm’s name and contact information and, in the case of an individual, the name of any firm of which they are a member;

  • (b) any complaints against the individual or firm; and

  • (c) the results of any qualifying examinations for trade-mark agents.

Marginal note:Regulations — transitional matters

86 Without limiting the generality of section 76, the Governor in Council may make regulations respecting transitional matters relating to

  • (a) qualifying examinations for patent agents and trade-mark agents;

  • (b) the requirements to be met under section 26 by an individual who has sat for the qualifying examination for patent agents before the coming-into-force day or who has, before that day, notified the Commissioner of Patents in writing of their intention to sit for the examination but whose name was not, on the day before that day, on the register kept under section 15 of the Patent Act; and

  • (c) the requirements to be met under section 29 by an individual who has sat for the qualifying examination for trade-mark agents before the coming-into-force day or who has, before that day, notified the Registrar of Trade-marks in writing of their intention to sit for the examination but whose name was not, on the day before that day, on the list of trade-mark agents kept under section 28 of the Trade-marks Act.

Consequential Amendments
R.S., c. A-1Access to Information Act

 Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:

  • College of Patent Agents and Trade-mark Agents

    Collège des agents de brevets et des agents de marques de commerce

R.S., c. P-4Patent Act

 Section 2 of the Patent Act is amended by adding the following in alphabetical order:

patent agent

patent agent has the same meaning as in section 2 of the College of Patent Agents and Trade-mark Agents Act; (agent de brevets)

  •  (1) Paragraph 12(1)(j) of the Act is repealed.

  • (2) Subsection 12(1) of the Act is amended by adding the following after paragraph (j):

    • (j.001) respecting the submission, including in electronic form and by electronic means, of documents and information to the Commissioner or the Patent Office, including the time at which they are deemed to be received by the Commissioner or the Patent Office;

    • (j.002) respecting communications between the Commissioner and any other person;

  • (3) Subsection 12(1) of the Act is amended by adding the following after paragraph (j.002):

    • (j.003) respecting the circumstances in which an applicant, patentee or other person may or must be represented in business before the Patent Office by a patent agent whose licence is not suspended or by another person;

 Sections 15 and 16 of the Act are repealed.

  •  (1) Paragraph 16.1(1)(a) of the Act is replaced by the following:

    • (a) it is between a patent agent and their client;

  • (2) Subsections 16.1(4) and (5) of the Act are replaced by the following:

    • Marginal note:Patent agents — country other than Canada

      (4) A communication between an individual who is authorized to act as the equivalent of a patent agent under the law of a country other than Canada and that individual’s client that is privileged under the law of that other country and that would be privileged under subsection (1) had it been made between a patent agent and their client is deemed to be a communication that meets the conditions set out in paragraphs (1)(a) to (c).

    • Marginal note:Individual acting on behalf of patent agent or client

      (5) For the purposes of this section, a patent agent or an individual who is authorized to act as the equivalent of a patent agent under the law of a country other than Canada includes an individual acting on their behalf and a client includes an individual acting on the client’s behalf.

 Section 78.1 of the Act is replaced by the following:

Marginal note:Patent applications filed before October 1, 1989

78.1 Applications for patents in Canada filed before October 1, 1989 shall be dealt with and disposed of in accordance with section 38.1 and with the provisions of this Act, other than section 15, as they read immediately before October 1, 1989.

R.S., c. P-21Privacy Act

 The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:

  • College of Patent Agents and Trade-mark Agents

    Collège des agents de brevets et des agents de marques de commerce

R.S., c. T-13Trade-marks Act

 Section 28 of the Trade-marks Act is repealed.

  •  (1) Paragraph 29(1)(c) of the Act is repealed.

  • (2) Subsection 29(2) of the Act is replaced by the following:

    • Marginal note:Certified copies

      (2) The Registrar shall, on request and on payment of the prescribed fee, furnish a copy certified by the Registrar of any entry in the register or list, or of any of those applications, requests or documents.

  •  (1) Paragraph 51.13(1)(a) of the Act is replaced by the following:

    • (a) it is between a trade-mark agent and their client;

  • (2) Subsections 51.13(4) and (5) of the Act are replaced by the following:

    • Marginal note:Trade-mark agents — country other than Canada

      (4) A communication between an individual who is authorized to act as the equivalent of a trade-mark agent under the law of a country other than Canada and that individual’s client that is privileged under the law of that other country and that would be privileged under subsection (1) had it been made between a trade-mark agent and their client is deemed to be a communication that meets the conditions set out in paragraphs (1)(a) to (c).

    • Marginal note:Individual acting on behalf of trade-mark agent or client

      (5) For the purposes of this section, a trade-mark agent or an individual who is authorized to act as the equivalent of a trade-mark agent under the law of a country other than Canada includes an individual acting on their behalf and a client includes an individual acting on the client’s behalf.

  • (3) Section 51.13 of the Act is amended by adding the following after subsection (6):

    • Marginal note:Definition of trade-mark agent

      (7) In this section, trade-mark agent has the same meaning as in section 2 of the College of Patent Agents and Trade-mark Agents Act.

  •  (1) Paragraph 65(c.1) of the Act is repealed.

  • (2) Section 65 of the Act is amended by striking out “and” at the end of paragraph (d.1) and by adding the following after paragraph (e):

    • (f) the provision of documents, fees and information to the Registrar, including the time at which they are deemed to be received by the Registrar; and

    • (g) communications between the Registrar and any other person.

Coordinating Amendments

Marginal note:2014, c. 39

  •  (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 2.

  • (2) If subsection 118(4) of the other Act comes into force before subsection 250(2) of this Act, then that subsection 250(2) is deemed never to have come into force and is repealed.

  • (3) If subsection 250(2) of this Act comes into force before subsection 118(4) of the other Act, then, on the day on which that subsection 118(4) comes into force, paragraphs 12(1)(j.001) and (j.002) of the Patent Act are repealed.

  • (4) If subsection 118(4) of the other Act comes into force on the same day as subsection 250(2) of this Act, then that subsection 250(2) is deemed never to come into force and is repealed.

  • (5) If subsection 118(4) of the other Act comes into force before subsection 250(3) of this Act, then

    • (a) that subsection 250(3) is repealed; and

    • (b) on the day on which section 249 of this Act comes into force, paragraph 12(1)(j.01) of the Patent Act is replaced by the following:

      • (j.01) respecting the circumstances in which an applicant, patentee or other person may or must be represented in business before the Patent Office by a patent agent whose licence is not suspended or by another person;

  • (6) If subsection 250(3) of this Act comes into force before subsection 118(4) of the other Act, then, on the day on which that subsection 118(4) comes into force,

    • (a) paragraph 12(1)(j.003) of the Patent Act is repealed; and

    • (b) paragraph 12(1)(j.01) of the Patent Act is replaced by the following:

      • (j.01) respecting the circumstances in which an applicant, patentee or other person may or must be represented in business before the Patent Office by a patent agent whose licence is not suspended or by another person;

  • (7) If subsection 118(4) of the other Act comes into force on the same day as subsection 250(3) of this Act, then

    • (a) that subsection 250(3) is deemed never to have come into force and is repealed; and

    • (b) paragraph 12(1)(j.01) of the Patent Act is replaced by the following:

      • (j.01) respecting the circumstances in which an applicant, patentee or other person may or must be represented in business before the Patent Office by a patent agent whose licence is not suspended or by another person;

  • (8) If section 251 of this Act comes into force before section 119 of the other Act, then that section 119 is repealed.

  • (9) If section 119 of the other Act comes into force on the same day as section 251 of this Act, then that section 119 is deemed never to have come into force and is repealed.

  • (10) If section 139 of the other Act comes into force before section 253 of this Act, then that section 253 is repealed.

  • (11) If section 139 of the other Act comes into force on the same day as section 253 of this Act, then that section 253 is deemed never to have come into force and is repealed.

Marginal note:2014, c. 39 and 2015, c. 36

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

    first Act

    first Act means the Economic Action Plan 2014 Act, No. 2. (première loi)

    second Act

    second Act means the Economic Action Plan 2015 Act, No. 1. (deuxième loi)

  • (2) On the first day on which both section 139 of the first Act and section 251 of this Act are in force,

    • (a) paragraph 78.22(b) of the Patent Act is amended by striking out the reference to “15” and by making any grammatical changes that the circumstances require; and

    • (b) section 64 of the second Act, if it is not in force on that day, is amended by striking out the reference to “15” in the paragraph 78.22(b) that it enacts and by making any grammatical changes to that paragraph that the circumstances require.

  • (3) If subsection (2) produces its effects on the day on which section 64 of the second Act comes into force, then that section 64 is deemed to have come into force before that subsection produces its effects.

  • (4) On the first day on which section 139 of the first Act is in force and either section 205 of this Act is in force or subsection 210(6) of this Act has produced its effects,

    • (a) paragraph 78.22(b) of the Patent Act is amended by striking out the reference to “15.1” and by making any grammatical changes that the circumstances require; and

    • (b) section 64 of the second Act, if it is not in force on that day, is amended by striking out the reference to “15.1” in the paragraph 78.22(b) that it enacts and by making any grammatical changes to that paragraph that the circumstances require.

  • (5) If subsection (4) produces its effects on the day on which section 64 of the second Act comes into force, then that section 64 is deemed to have come into force before that subsection produces its effects.

Marginal note:2014, c. 20

  •  (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1.

  • (2) If section 255 of this Act comes into force before section 338 of the other Act, then that section 338 is repealed.

  • (3) If section 338 of the other Act comes into force on the same day as section 255 of this Act, then that section 338 is deemed to have come into force before that section 255.

  • (4) If section 357 of the other Act comes into force before subsection 258(1) of this Act, then that subsection 258(1) is replaced by the following:

    • 258 (1) Paragraph 65(f) of the Act is repealed.

  • (5) If subsection 258(1) of this Act comes into force before section 357 of the other Act, then that section 357 is amended by repealing the paragraph 65(f) that it enacts.

  • (6) If section 357 of the other Act comes into force on the same day as subsection 258(1) of this Act, then that section 357 is deemed to have come into force before that subsection 258(1) and subsection (4) applies as a consequence.

Marginal note:2014, c. 20 and c. 32

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

    first Act

    first Act means the Economic Action Plan 2014 Act, No. 1. (première loi)

    second Act

    second Act means the Combating Counterfeit Products Act. (deuxième loi)

  • (2) If section 357 of the first Act comes into force on or before the day on which subsection 258(2) of this Act comes into force, then

    • (a) that subsection 258(2) is deemed never to have come into force and is repealed; and

    • (b) paragraph 65(l) of the English version of the Trade-marks Act is replaced by the following:

      • (l) respecting communications between the Registrar and any other person;

  • (3) If subsection 50(3) of the second Act comes into force on or before the day on which subsection 258(2) of this Act comes into force and section 357 of the first Act is not in force on that day, then

    • (a) that subsection 258(2) is deemed never to have come into force and is repealed;

    • (b) section 65 of the Trade-marks Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f):

      • (g) communications between the Registrar and any other person.

    • (c) on the day on which section 357 of the first Act comes into force, paragraph 65(l) of the English version of the Trade-marks Act is replaced by the following:

      • (l) respecting communications between the Registrar and any other person;

  • (4) If subsection 258(2) of this Act comes into force before section 357 of the first Act and subsection 50(3) of the second Act, then

    • (a) that subsection 50(3) is repealed;

    • (b) subsections 367(85) and (86) of the first Act are repealed; and

    • (c) on the day on which that section 357 comes into force, paragraph 65(l) of the English version of the Trade-marks Act is replaced by the following:

      • (l) respecting communications between the Registrar and any other person;

Marginal note:2015, c. 36

  •  (1) In this section, other Act means the Economic Action Plan 2015 Act, No. 1.

  • (2) If subsection 70(7) of the other Act produces its effects before section 255 of this Act comes into force, then

    • (a) paragraphs 70(1)(a) and (b) of the Trade-marks Act are replaced by the following:

      • (a) the provisions of this Act as they read immediately before the day on which section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force, other than subsections 6(2) to (4), sections 28 and 36, subsections 38(6) to (8) and sections 39, 40 and 66;

      • (b) the definition Nice Classification in section 2, subsections 6(2) to (4), sections 28 and 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1; and

    • (b) on the day on which that section 255 comes into force, paragraph 70(1)(b) of the Trade-marks Act is replaced by the following:

      • (b) the definition Nice Classification in section 2, subsections 6(2) to (4), section 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1;

  • (3) If section 255 of this Act comes into force before subsection 70(7) of the other Act produces its effects, then, on the day on which that subsection 70(7) produces its effects, paragraphs 70(1)(a) and (b) of the Trade-marks Act are replaced by the following:

    • (a) the provisions of this Act as they read immediately before the day on which section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force, other than subsections 6(2) to (4), section 36, subsections 38(6) to (8) and sections 39, 40 and 66;

    • (b) the definition Nice Classification in section 2, subsections 6(2) to (4), section 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1;

  • (4) If subsection 70(7) of the other Act produces its effects on the same day as section 255 of this Act comes into force, then paragraphs 70(1)(a) and (b) of the Trade-marks Act are replaced by the following:

    • (a) the provisions of this Act as they read immediately before the day on which section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force, other than subsections 6(2) to (4), sections 28 and 36, subsections 38(6) to (8) and sections 39, 40 and 66;

    • (b) the definition Nice Classification in section 2, subsections 6(2) to (4), section 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1;

Coming into Force

Marginal note:Order in council

 The following provisions come into force on a day to be fixed by order of the Governor in Council:

  • (a) the definition Board in section 2, sections 11 to 20, 25 to 32, 34 to 62 and 64 to 74 and paragraphs 76(1)(c) to (f), (h) and (i) of the College of Patent Agents and Trade-mark Agents Act, as enacted by section 247; and

  • (b) section 249, subsections 250(1) and (3), sections 251 to 253 and 255 to 257 and subsection 258(1).

SUBDIVISION EAmendments relating to preservation of usage rights

R.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act

 Subsection 65.11(7) of the French version of the Bankruptcy and Insolvency Act is replaced by the following:

  • Marginal note:Propriété intellectuelle

    (7) Si le débiteur a autorisé par contrat une personne à utiliser un droit de propriété intellectuelle, la résiliation n’empêche pas la personne de l’utiliser ni d’en faire respecter l’utilisation exclusive, à condition qu’elle respecte ses obligations contractuelles à l’égard de l’utilisation de ce droit, et ce, pour la période prévue au contrat et pour toute prolongation de celle-ci dont elle se prévaut de plein droit.

 Section 65.13 of the Act is amended by adding the following after subsection (8):

  • Marginal note:Restriction — intellectual property

    (9) If, on the day on which a notice of intention is filed under section 50.4 or a copy of the proposal is filed under subsection 62(1), the insolvent person is a party to an agreement that grants to another party a right to use intellectual property that is included in a sale or disposition authorized under subsection (7), that sale or disposition does not affect the other party’s right to use the intellectual property — including the other party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the other party extends the agreement as of right, as long as the other party continues to perform its obligations under the agreement in relation to the use of the intellectual property.

 The Act is amended by adding the following after section 72:

Marginal note:Intellectual property — sale or disposition

  • 72.1 (1) If the bankrupt is a party to an agreement that grants to another party a right to use intellectual property that is included in a sale or disposition by the trustee, that sale or disposition does not affect that other party’s right to use the intellectual property — including the other party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the other party extends the agreement as of right, as long as the other party continues to perform its obligations under the agreement in relation to the use of the intellectual property.

  • Marginal note:Intellectual property — disclaimer or resiliation

    (2) If the bankrupt is a party to an agreement that grants to another party a right to use intellectual property, the disclaimer or resiliation of that agreement by the trustee does not affect that other party’s right to use the intellectual property — including the other party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the other party extends the agreement as of right, as long as the other party continues to perform its obligations under the agreement in relation to the use of the intellectual property.

 The Act is amended by adding the following after section 246:

Marginal note:Intellectual property — sale or disposition

  • 246.1 (1) If the insolvent person or the bankrupt is a party to an agreement that grants to another party a right to use intellectual property that is included in a sale or disposition by the receiver, that sale or disposition does not affect that other party’s right to use the intellectual property — including the other party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the other party extends the agreement as of right, as long as the other party continues to perform its obligations under the agreement in relation to the use of the intellectual property.

  • Marginal note:Intellectual property — disclaimer or resiliation

    (2) If the insolvent person or the bankrupt is a party to an agreement that grants to another party a right to use intellectual property, the disclaimer or resiliation of that agreement by the receiver does not affect that other party’s right to use the intellectual property — including the other party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the other party extends the agreement as of right, as long as the other party continues to perform its obligations under the agreement in relation to the use of the intellectual property.

R.S., c. C-36Companies’ Creditors Arrangement Act

 Section 36 of the Companies’ Creditors Arrangement Act is amended by adding the following after subsection (7):

  • Marginal note:Restriction — intellectual property

    (8) If, on the day on which an order is made under this Act in respect of the company, the company is a party to an agreement that grants to another party a right to use intellectual property that is included in a sale or disposition authorized under subsection (6), that sale or disposition does not affect that other party’s right to use the intellectual property — including the other party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the other party extends the agreement as of right, as long as the other party continues to perform its obligations under the agreement in relation to the use of the intellectual property.

Transitional Provisions

Marginal note:Bankruptcy and Insolvency Act

 Subsections 65.11(7) and 65.13(9) and sections 72.1 and 246.1 of the Bankruptcy and Insolvency Act, as enacted by sections 265 to 268, apply only in respect of proceedings that are commenced under that Act on or after the day on which this section comes into force.

Marginal note:Companies’ Creditors Arrangement Act

 Subsection 36(8) of the Companies’ Creditors Arrangement Act, as enacted by section 269, applies only in respect of proceedings that are commenced under that Act on or after the day on which this section comes into force.

Coming into Force

Marginal note:Order in council

 This Subdivision comes into force on a day to be fixed by order of the Governor in Council.

SUBDIVISION FPrivileged Information

R.S., c. A-1Access to Information Act

 The Access to Information Act is amended by adding the following after section 23:

Marginal note:Protected information — patents and trade-marks

23.1 The head of a government institution may refuse to disclose any record requested under this Act that contains information that is subject to the privilege set out in section 16.1 of the Patent Act or section 51.13 of the Trade-marks Act.

R.S., c. P-21Privacy Act

 The Privacy Act is amended by adding the following after section 27:

Marginal note:Protected information — patents and trade-marks

27.1 The head of a government institution may refuse to disclose any personal information requested under subsection 12(1) that is subject to the privilege set out in section 16.1 of the Patent Act or section 51.13 of the Trade-marks Act.

2002, c. 28Related Amendment to the Pest Control Products Act

 Paragraph 42(2)(g) of the Pest Control Products Act is replaced by the following:

  • (g) any advice from a person or body referred to in paragraph 44(1)(f), unless disclosure of the advice may be refused under section 23 or 23.1 of the Access to Information Act;

Coordinating Amendments

Marginal note:2014, c. 20

  •  (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1.

  • (2) If subsection 366(1) of the other Act comes into force before the day on which this Act receives royal assent, then, on that day, the English version of this Act, other than this section, is amended by replacing “trade-mark”, “trade-marks”, “Trade-mark” and “Trade-marks” with “trademark”, “trademarks”, “Trademark” and “Trademarks”, respectively.

  • (3) If subsection 366(1) of the other Act comes into force on the day on which this Act receives royal assent, then this Act is deemed to have received royal assent before that subsection 366(1) comes into force.

Marginal note:Bill C-58

 If Bill C-58, introduced in the 1st session of the 42nd Parliament and entitled An Act to amend the Access to Information Act and the Privacy Act and to make consequential amendments to other Acts, receives royal assent, then, on the first day on which both section 10 of that Act and section 273 of this Act are in force, section 23.1 of the English version of the Access to Information Act is replaced by the following:

Marginal note:Protected information — patents and trade-marks

23.1 The head of a government institution may refuse to disclose any record requested under this Part that contains information that is subject to the privilege set out in section 16.1 of the Patent Act or section 51.13 of the Trade-marks Act.

SUBDIVISION GR.S., c. N-15National Research Council Act

 Subsection 3(2) of the National Research Council Act is replaced by the following:

  • Marginal note:Council incorporated

    (2) The Council is a corporation that has power to acquire, hold, sell or otherwise dispose of and loan or lease real, personal, movable and immovable property for the purposes of and subject to this Act.

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

    • (l) license, sell or otherwise grant or make available to others, and receive royalties, fees and payment for, any intellectual property right — including any patent, copyright, industrial design, trade-mark, trade secret, know-how or other similar right and any such future right that is described under a written agreement — that is held, developed, administered or controlled by the Council, whether vested in Her Majesty in right of Canada or in the Council; and

  • (2) Section 5 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Public Servants Inventions Act

      (3) Despite section 9 of the Public Servants Inventions Act, the administration and control of any invention made by a public servant, as defined in section 2 of that Act, who is employed by the Council, and vested in Her Majesty by that Act, and any patent issued with respect to the invention, are vested in the Council.

SUBDIVISION HR.S., c. C-42Copyright Act (Copyright Board Reform)

Amendments to the Act

 Paragraph (b) of the definition collective society in section 2 of the Copyright Act is replaced by the following:

  • (b) carries on the business of collecting and distributing royalties or levies payable under this Act in relation to a repertoire of works, performer’s performances, sound recordings or communication signals of more than one author, performer, sound recording maker or broadcaster; (société de gestion)

 Paragraph 19(2)(a) of the Act is replaced by the following:

  • (a) in the case of a sound recording of a musical work, to the collective society authorized under Part VII.1 to collect them; or

 Paragraph 29.9(2)(c) of the Act is replaced by the following:

  • (c) respecting the sending of information to collective societies that carry on the business of collecting royalties referred to in subsection 29.7(2) or (3).

 Paragraph 30.02(4)(b) of the Act is replaced by the following:

  • (b) there is a tariff approved under section 70 that is applicable to the digital reproduction of the work, to the communication of the digital reproduction by telecommunication to persons acting under the authority of the institution and to the printing by those persons of at least one copy of the work; or

  •  (1) Subparagraphs 30.03(2)(a)(i) and (ii) of the English version of the Act are replaced by the following:

    • (i) the amount of royalties that the institution would have had to pay for the digital reproduction of that work if the tariff had been approved on the day on which the institution first made a digital reproduction under paragraph 30.02(1)(a), and

    • (ii) the amount of royalties that the institution paid to the society under paragraph 30.02(3)(a) for the digital reproduction of that work from the day on which that paragraph comes into force until the day on which the tariff is approved; and

  • (2) Subparagraphs 30.03(2)(b)(i) and (ii) of the English version of the Act are replaced by the following:

    • (i) the amount of royalties that the institution paid to the society under paragraph 30.02(3)(a) for the digital reproduction of that work from the day on which that paragraph comes into force until the day on which the tariff is approved, and

    • (ii) the amount of royalties that the institution would have had to pay for the digital reproduction of that work if the tariff had been approved on the day on which the institution first made a digital reproduction under paragraph 30.02(1)(a).

 Paragraphs 30.3(2)(b) to (d) of the Act are replaced by the following:

  • (b) the Board has, in accordance with subsection 71(2), fixed the royalty rates and related terms and conditions;

  • (c) a tariff has been approved in accordance with section 70; or

  • (d) a collective society has filed a proposed tariff in accordance with section 68.

 Subparagraphs 34(4)(c)(i) and (ii) of the Act are replaced by the following:

  • (i) a tariff approved by the Board under Part VII.1 or VIII, or

  • (ii) agreements referred to in subsection 67(3).

 Subsection 38.1(4) of the Act is replaced by the following:

  • Marginal note:Limitation — certain acts

    (4) A collective society or copyright owner who has authorized a collective society to act on their behalf may make an election under this section with respect to an act set out in subsection (4.1) only if applicable royalties are set out in an approved tariff or fixed under subsection 71(2) and the defendant has not paid them. If they make the election, the collective society or copyright owner may only recover, in lieu of any other remedy of a monetary nature provided by this Act, an award of statutory damages in respect of such acts in a sum of not less than three and not more than ten times the amount of the applicable royalties, as the court considers just.

  • Marginal note:Acts for the purposes of subsection (4)

    (4.1) Subsection (4) applies with respect to the following acts:

    • (a) the performance in public of musical works or dramatico-musical works, of performer’s performances of such works, or of sound recordings embodying such works or performances; and

    • (b) the communication to the public by telecommunication of musical works or dramatico-musical works, other than as described in subsection 31(2), of performer’s performances of such works, or of sound recordings embodying such works or performances.

 Paragraph 38.2(1)(b) of the Act is replaced by the following:

  • (b) under a tariff approved by the Board under section 70.

 The headings before section 66 of the Act are replaced by the following:

PART VIICopyright Board

  •  (1) Subsection 66(1) of the English version of the Act is replaced by the following:

    Marginal note:Establishment

    • 66 (1) There is established a Board to be known as the Copyright Board, consisting of not more than five members, including a Chair and a Vice-chair, to be appointed by the Governor in Council.

  • (2) Subsection 66(3) of the Act is replaced by the following:

    • Marginal note:Chair

      (3) The Chair must be a judge, either sitting or retired, of a superior court.

  • (3) The portion of subsection 66(7) of the English version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Members deemed public service employees

      (7) A full-time member of the Board, other than the Chair, is deemed to be employed in

 Section 66.1 of the English version of the Act is replaced by the following:

Marginal note:Duties of Chair

  • 66.1 (1) The Chair shall direct the work of the Board and apportion its work among its members.

  • Marginal note:Absence or incapacity of Chair

    (2) If the Chair is absent or incapacitated or if the office of Chair is vacant, the Vice-chair has all the powers and functions of the Chair during the absence, incapacity or vacancy.

  • Marginal note:Duties of Vice-chair

    (3) The Vice-chair is the chief executive officer of the Board and has supervision over and direction of the Board and its staff.

 The Act is amended by adding the following after section 66.5:

Marginal note:Fair and equitable

66.501 The Board shall fix royalty and levy rates and any related terms and conditions under this Act that are fair and equitable, in consideration of

  • (a) what would have been agreed upon between a willing buyer and a willing seller acting in a competitive market with all relevant information, at arm’s length and free of external constraints;

  • (b) the public interest;

  • (c) any regulation made under subsection 66.91(1); and

  • (d) any other criterion that the Board considers appropriate.

Marginal note:Informal and expeditious

66.502 All matters before the Board shall be dealt with as informally and expeditiously as the circumstances and considerations of fairness permit but, in any case, within any period or no later than any day provided for under this Act.

Marginal note:For greater certainty

66.503 For greater certainty, any person or entity may authorize any other person or entity to act on their behalf in any matter before the Board.

Marginal note:Case manager

  • 66.504 (1) The Chair may assign a member, officer or employee of the Board or a person engaged under subsection 66.4(3) to act as a case manager of a matter before the Board.

  • Marginal note:Powers

    (2) The case manager may give any directions or make any orders with respect to the case management of the matter, but is not permitted to make a direction or order that is inconsistent with

    • (a) this Act;

    • (b) regulations made under subsection 66.6(1), unless authorized to do so under regulations made under paragraph 66.6(1.1)(b); or

    • (c) regulations made under paragraph 66.91(2)(a) to (c), unless authorized to do so under regulations made under paragraph 66.91(2)(d).

  • Marginal note:Deemed direction or order of Board

    (3) A direction given, or an order made, by a case manager is deemed to be a direction or order of the Board, including for the purposes of paragraph 28(1)(j) of the Federal Courts Act.

  • Marginal note:Delegation

    (4) The Chair may delegate his or her power under subsection (1) to the Vice-chair.

 Section 66.52 of the Act is replaced by the following:

Marginal note:Variation of decisions

66.52 A decision of the Board respecting royalties or their related terms and conditions that is made under subsection 70(1), 71(2), 76.1(1) or 83(8) may, on application, be varied by the Board if, in its opinion, there has been a material change in circumstances since the decision was made.

 Subsection 66.6(2) of the Act is replaced by the following:

  • Marginal note:Case management

    (1.1) The Board may, with the approval of the Governor in Council, make regulations governing the case management of matters before the Board, including regulations

    • (a) governing the directions a case manager may give and the orders they may make; and

    • (b) authorizing a case manager to give a direction or make an order that adapts, restricts or excludes the application of any provision of regulations made under subsection (1) to a matter or any step in a matter.

  • Marginal note:Publication of proposed regulations

    (2) A copy of each regulation that the Board proposes to make under subsection (1) or (1.1) shall be published in the Canada Gazette at least 60 days before the regulation’s proposed effective date, and a reasonable opportunity shall be given to interested persons to make representations with respect to the regulation.

 Section 66.91 of the Act is renumbered as subsection 66.91(1) and is amended by adding the following:

  • Marginal note:Regulations regarding time

    (2) The Governor in Council may make regulations

    • (a) establishing the day by which, or the period within which, a matter before the Board — and any procedural step in the matter, whether set out in a provision of this Act or not — must be completed;

    • (b) establishing the minimum length of the effective period for the purposes of subsections 68.1(2) and 83(4);

    • (c) establishing a day for the purposes of paragraph 73.4(b); and

    • (d) authorizing the Board or a case manager to give a direction or make an order that adapts, restricts or excludes the application of any provision of regulations made under any of paragraphs (a) to (c) to a matter or any step in a matter.

  • Marginal note:Inconsistency or conflict

    (3) Regulations made under subsection (2) prevail over regulations made under subsection 66.6(1) or (1.1) to the extent of an inconsistency or conflict between them.

 The heading before section 67 and sections 67 to 76 of the Act are replaced by the following:

PART VII.1Collective Administration of Copyright

Collective Societies

Marginal note:Filing of proposed tariffs

  • 67 (1) A collective society may file a proposed tariff with the Board for the purpose of establishing royalties with respect to rights the collective society administers under section 3, 15, 18, 19 or 21.

  • Marginal note:Mandatory filing for certain royalties

    (2) However, a collective society shall file a proposed tariff with the Board for the purpose of establishing royalties referred to in subsection 29.7(2) or (3) or paragraph 31(2)(d).

  • Marginal note:Entering into agreements

    (3) A collective society may enter into agreements for the purpose of establishing royalties with respect to rights the collective society administers under section 3, 15, 18, 19 or 21, other than royalties referred to in subsection 29.7(2) or (3) or paragraph 31(2)(d).

Marginal note:Designation of collective society — paragraph 19(2)(a)

67.1 On application by a collective society, the Board may designate the collective society as the sole collective society authorized to collect all royalties referred to in paragraph 19(2)(a) with respect to a sound recording of a musical work.

Marginal note:Requests regarding repertoire

67.2 A collective society shall answer, within a reasonable time, all reasonable requests from any person for information about its repertoire of works, performer’s performances, sound recordings or communication signals.

Tariffs

Proposed Tariffs

Marginal note:Filing

68 A proposed tariff must be filed no later than October 15 of the second calendar year before the calendar year in which the proposed tariff is to take effect or, if a day is established under regulations made under subsection 66.91(2), no later than that day.

Marginal note:Form and content

  • 68.1 (1) A proposed tariff must be filed in both official languages and include

    • (a) the acts to which the tariff is to apply;

    • (b) the proposed royalty rates and any related terms and conditions; and

    • (c) the effective period of the proposed tariff.

  • Marginal note:Minimum effective period

    (2) A proposed tariff’s effective period must be at least three calendar years or, if a minimum period is established under regulations made under subsection 66.91(2), at least that minimum period.

Marginal note:Publication and notification

68.2 The Board, in the manner that it sees fit,

  • (a) shall publish the proposed tariff as well as a notice that any objection to the proposed tariff must be filed within the period set out in subsection 68.3(2); and

  • (b) may distribute a notice — or cause it to be distributed or published, on any terms and conditions that the Board sees fit — of the publication of the tariff and of the notice referred to in paragraph (a) to any person affected by the proposed tariff.

Marginal note:Filing of objection

  • 68.3 (1) An objection to a proposed tariff may be filed with the Board by

    • (a) an educational institution, if the proposed tariff is filed for the purpose of collecting royalties referred to in subsection 29.7(2) or (3);

    • (b) a retransmitter, as defined in subsection 31(1), if the proposed tariff is filed for the purpose of collecting royalties referred to in paragraph 31(2)(d); or

    • (c) any user, in any other case.

  • Marginal note:Time for filing objection

    (2) An objection shall be filed no later than the 30th day after the day on which the Board published the proposed tariff under paragraph 68.2(a) or, if a day is established under the regulations made under subsection 66.91(2), no later than that day.

  • Marginal note:Copy to collective society

    (3) The Board shall provide a copy of the filed objection to the collective society.

Marginal note:Reply to objection

  • 68.4 (1) The collective society may file a reply to an objection with the Board.

  • Marginal note:Copy to be provided

    (2) The Board shall provide a copy of the filed reply to the person or entity that filed the objection.

Withdrawal or Amendment of Proposed Tariff

Marginal note:Request to withdraw or amend

69 A collective society may, before a proposed tariff filed by it has been approved by the Board, make an application to the Board requesting that

  • (a) the proposed tariff be withdrawn; or

  • (b) a reference to an act set out in the proposed tariff be excluded from the approved tariff for all of the proposed effective period or, despite subsection 68.1(2), for a portion of that period.

Marginal note:Approval by Board

  • 69.1 (1) The Board shall approve an application made under section 69 if it is satisfied that

    • (a) the collective society has provided sufficient public notice of its intention to make the application;

    • (b) every person who, in respect of the proposed effective period, has paid royalties that would not be payable if the application were approved has

      • (i) consented to the application,

      • (ii) received a refund of the royalties, or

      • (iii) entered into an agreement under subsection 67(3) that covers the act, repertoire or proposed effective period that is the subject of the application; and

    • (c) in the case of an application made under paragraph 69(b) with respect to a portion of the proposed effective period, the application is not made for the purpose of improperly circumventing the required minimum effective period.

  • Marginal note:For greater certainty

    (2) For greater certainty, the approval of an application made under section 69 does not preclude the collective society from filing, in accordance with this Act, a proposed tariff that deals in whole or in part with the act, repertoire or proposed effective period that was the subject of the application.

Approval of Tariffs

Marginal note:Approval

  • 70 (1) The Board shall — within the period, if any, that is established under regulations made under subsection 66.91(2) — approve the proposed tariff after making any alterations to the royalty rates and the related terms and conditions, or fixing any new related terms and conditions, that the Board considers appropriate.

  • Marginal note:Factors — performances of musical works and sound recordings

    (2) In approving a proposed tariff for the performance in public or the communication to the public by telecommunication of performer’s performances of musical works, or of sound recordings embodying such performer’s performances, the Board shall ensure that

    • (a) the tariff applies in respect of performer’s performances and sound recordings only in the situations referred to in the provisions of section 20 other than subsections 20(3) and (4);

    • (b) the tariff does not, because of linguistic and content requirements of Canada’s broadcasting policy set out in section 3 of the Broadcasting Act, place some users that are subject to that Act at a greater financial disadvantage than others; and

    • (c) the payment of royalties by users under section 19 will be made in a single payment.

  • Marginal note:Small cable transmission system

    (3) The Board shall fix a preferential royalty rate for small cable transmission systems in approving a tariff for

    • (a) the performance in public of musical works or dramatico-musical works, of performer’s performances of such works, or of sound recordings embodying such works; or

    • (b) the communication to the public by telecommunication of musical works or dramatico-musical works, other than as described in subsection 31(2), of performer’s performances of such works, or of sound recordings embodying such works.

  • Marginal note:Small retransmission systems

    (4) The Board shall fix a preferential royalty rate for small retransmission systems in approving a tariff for royalties referred to in paragraph 31(2)(d).

  • Marginal note:For greater certainty

    (5) For greater certainty, the Board may determine, in respect of any tariff that it approves, the portion of the royalties that is to be paid to each collective society.

  • Marginal note:No discrimination

    (6) For greater certainty, the Board must not discriminate between owners of copyright on the ground of their nationality or residence in approving a tariff for royalties referred to in subsection 29.7(2) or (3) or paragraph 31(2)(d).

  • Marginal note:Regulations

    (7) The Governor in Council may make regulations defining “small cable transmission system” and “small retransmission system” for the purposes of this section.

Marginal note:Publication of approved tariff

70.1 The Board shall publish the approved tariff in the Canada Gazette and provide a copy of it, together with the reasons for the Board’s decision, to

  • (a) the collective society that filed the proposed tariff;

  • (b) every collective society that is authorized to collect royalties under the tariff;

  • (c) every person or entity that filed an objection under section 68.3; and

  • (d) any other person or entity that, in the Board’s opinion, ought to receive the copy and reasons.

Fixing of Royalty Rates in Individual Cases

Marginal note:Application to fix

  • 71 (1) If a collective society and a user are unable to agree on royalties to be paid with respect to rights under section 3, 15, 18, 19 or 21, other than royalties referred to in subsection 29.7(2) or (3) or paragraph 31(2)(d), or are unable to agree on any related terms and conditions, the collective society or user may, after giving notice to the other party, apply to the Board to fix the royalty rates or any related terms and conditions, or both.

  • Marginal note:Fixing royalties, etc.

    (2) The Board may, for a period that the Board may specify, fix the royalty rates or their related terms and conditions, or both, as the case may be.

  • Marginal note:Application of subsections 70(2) and (3)

    (3) Subsections 70(2) and (3) apply, with any necessary modifications, to the fixing of royalty rates or terms and conditions, or both, by the Board under subsection (2).

  • Marginal note:For greater certainty

    (4) For greater certainty, the Board may deny an application made under subsection (1) or any part of one.

  • Marginal note:Copy of decision and reasons

    (5) The Board shall send a copy of the decision and the reasons for it to the collective society and the user.

  • Marginal note:Definition of user

    (6) In this section, user means

    • (a) a user who is not otherwise authorized to do an act referred to in section 3, 15, 18 or 21 in respect of the works, performer’s performances, sound recordings or communication signals included in a collective society’s repertoire; or

    • (b) a user who is required to pay, in respect of sound recordings included in a collective society’s repertoire, a royalty referred to in section 19 that has not otherwise been fixed or agreed on.

Marginal note:Agreement

71.1 The Board shall not proceed with an application under section 71 in respect of any matter in issue on which an agreement has been reached, if a notice is filed with the Board that such an agreement has been reached.

Special Rules Related to Royalty Rates

Marginal note:Special royalty rates

  • 72 (1) Subsections (2) and (3) apply despite the tariffs approved by the Board under section 70, or despite the royalty rates fixed under subsection 71(2), for the performance in public or the communication to the public by telecommunication of performer’s performances of musical works or of sound recordings embodying such performer’s performances.

  • Marginal note:Wireless transmission systems

    (2) For wireless transmission systems, other than community systems and public transmission systems, broadcasters shall pay

    • (a) $100 on the first $1.25 million of annual advertising revenues in respect of each year; and

    • (b) 100% of the royalties set out in the approved tariff or fixed under subsection 71(2) for that year on any portion of annual advertising revenues exceeding $1.25 million.

  • Marginal note:Community systems

    (3) For community systems, broadcasters shall pay royalties of $100 in respect of each year.

  • Marginal note:Effect of paying royalties

    (4) The payment of the royalties set out in subsection (2) or (3) fully discharges all liabilities of the system in question in respect of the approved tariffs or the royalties fixed under subsection 71(2).

  • Marginal note:Definition of advertising revenues

    (5) The Board may, by regulation, define “advertising revenues” for the purposes of subsection (2).

  • Marginal note:Regulations

    (6) The Governor in Council may make regulations defining “community system”, “public transmission system” and “wireless transmission system” for the purposes of this section.

Marginal note:Radio performances in places other than theatres

  • 72.1 (1) In respect of public performances by means of any radio receiving set in any place other than a theatre that is ordinarily and regularly used for entertainments to which an admission charge is made, no royalties shall be collectable from the owner or user of the radio receiving set, but the Board shall, in so far as possible, provide for the collection in advance from radio broadcasting stations of royalties appropiate to the conditions produced by the provisions of this subsection and shall fix the amount of the same.

  • Marginal note:Expenses to be taken into account

    (2) In fixing royalties under subsection (1), the Board shall take into account all expenses of collection and other outlays, if any, saved or savable by, for or on behalf of the owner of the copyright or performing right concerned or their agents, in consequence of that subsection.

Effects Related to Tariffs and Fixing of Royalty Rates

Permitted Acts and Enforcement

Marginal note:Effect of fixing royalties

73 Without prejudice to any other remedies available to it, the collective society concerned may collect the royalties specified in an approved tariff or fixed by the Board under subsection 71(2) for the applicable period and, in default of their payment, recover them in a court of competent jurisdiction.

Marginal note:Order — compliance with terms and conditions

73.1 Without prejudice to any other remedies available to it, the collective society concerned may apply to a court of competent jurisdiction for an order directing a person to comply with any terms and conditions that are set out in an approved tariff or that are fixed by the Board under subsection 71(2).

Marginal note:Continuation of rights

73.2 If a proposed tariff’s effective period begins before the proposed tariff is approved, and immediately after the expiry of the previous tariff, then, from the start of the effective period of the proposed tariff until the earlier of its approval and the end of its effective period,

  • (a) any person authorized under the previous tariff to do an act that is referred to in section 3, 15, 18 or 21 and that is covered by the proposed tariff may do so; and

  • (b) the collective society may collect the royalties in accordance with the previous tariff.

Marginal note:Proceedings barred — tariff

73.3 No proceedings may be brought against a person for the infringement of a right with respect to an act referred to in section 3, 15, 18 or 21 if

  • (a) the person has paid or offered to pay the royalties set out in an approved tariff that apply with respect to that act;

  • (b) in the case where section 73.2 applies with respect to that act, the person has paid or offered to pay the royalties referred to in paragraph 73.2(b); or

  • (c) in the case where no tariff has been approved with respect to that act and section 73.2 does not apply with respect to it, the person has offered to pay the royalties that are included in a proposed tariff and that will apply to that act once the tariff is approved.

Marginal note:Approval of request made under section 69

73.4 If the Board approves an application made under section 69, no proceedings may be brought against a person for the infringement of a right with respect to an act referred to in section 3, 15, 18 or 21 if

  • (a) the proposed tariff, if approved, will not apply to the act as a result of the Board’s approval of the application; and

  • (b) the act occurs during the effective period set out in the proposed tariff and before the first anniversary of the day on which the collective society made its application under section 69 or, if a day has been established by regulations made under subsection 66.91(2), before that day.

Marginal note:Effect of fixing of royalties

  • 73.5 (1) If any royalties or related terms and conditions are fixed under subsection 71(2) in respect of a person, the person may, during the applicable period and on paying or offering to pay the applicable royalties, do the act referred to in section 3, 15, 18 or 21 with respect to which the royalties or related terms and conditions are fixed, subject to those related terms and conditions and to the terms and conditions established by the collective society and the person.

  • Marginal note:Authority during application

    (2) If an application is made under subsection 71(1), a person in respect of whom royalties or terms and conditions may be fixed may, until the Board’s final decision on the application, do an act referred to in section 3, 15, 18 or 21 to which the application applies if the person has offered to pay the applicable royalties in accordance with any applicable related terms and conditions.

Effects of Agreement

Marginal note:No application

74 An approved tariff and any royalty rates and related terms and conditions fixed by the Board under subsection 71(2), as well as sections 73.2 to 73.5, do not apply to a person in respect of the matters covered by an agreement referred to in subsection 67(3) that applies to the person.

Claim by Copyright Owner — Particular Royalties

Marginal note:Claims by non-members

  • 75 (1) An owner of copyright who does not authorize a collective society to collect, for that person’s benefit, royalties referred to in paragraph 31(2)(d) is, if the work is communicated to the public by telecommunication during a period when an approved tariff that is applicable to that kind of work is effective, entitled to be paid those royalties by the collective society that is designated by the Board, of its own motion or on application, subject to the same conditions as those to which a person who has so authorized that collective society is subject.

  • Marginal note:Payment to non-members

    (2) An owner of copyright who does not authorize a collective society to collect, for that person’s benefit, royalties referred to in subsection 29.7(2) or (3) is, if such royalties are payable during a period when an approved tariff that is applicable to that kind of work or other subject matter is effective, entitled to be paid those royalties by the collective society that is designated by the Board, of its own motion or on application, subject to the same conditions as those to which a person who has so authorized that collective society is subject.

  • Marginal note:Exclusion of other remedies

    (3) The entitlement referred to in subsections (1) and (2) is the only remedy of the owner of the copyright for the payment of royalties for the communication, making of the copy or sound recording or performance in public, as the case may be.

  • Marginal note:Measures

    (4) The Board may, for the purposes of this section,

    • (a) require a collective society to file with the Board information relating to payments of royalties collected by it to the persons who have authorized it to collect those royalties; and

    • (b) by regulation, establish periods of not less than 12 months within which the entitlements referred to in subsections (1) and (2) must be exercised, beginning on

      • (i) the making of the copy, in the case of royalties referred to in subsection 29.7(2),

      • (ii) the performance in public, in the case of royalties referred to in subsection 29.7(3), or

      • (iii) the communication to the public by telecommunication, in the case of royalties referred to in paragraph 31(2)(d).

Examination of Agreements

Marginal note:Definition of Commissioner

  • 76 (1) For the purposes of this section and section 76.1, Commissioner means the Commissioner of Competition appointed under the Competition Act.

  • Marginal note:Filing agreement with the Board

    (2) If a collective society enters into an agreement under subsection 67(3) with a user, either party may file a copy of the agreement with the Board within 15 days after it is entered into.

  • Marginal note:Non-application of section 45 of Competition Act

    (3) Section 45 of the Competition Act does not apply in respect of any royalties or related terms and conditions arising under an agreement filed in accordance with subsection (2).

  • Marginal note:Access by Commissioner

    (4) The Commissioner may have access to the copy of an agreement filed in accordance with subsection (2).

  • Marginal note:Request for examination

    (5) If the Commissioner considers that an agreement filed in accordance with subsection (2) is contrary to the public interest, he or she may, after advising the parties, request that the Board examine it.

Marginal note:Examination and fixing of royalty

  • 76.1 (1) The Board shall consider a request by the Commissioner to examine an agreement and may, after giving the Commissioner and the parties to the agreement an opportunity to present their arguments, alter the royalties and any related terms and conditions arising under the agreement or fix new related terms and conditions.

  • Marginal note:Copy of decision and reasons

    (2) The Board shall send a copy of the decision and the reasons for it to the parties and to the Commissioner.

PART VII.2Certain Applications to Board

 Subsections 83(2) to (10) of the Act are replaced by the following:

  • Marginal note:Filing of proposed tariff

    (2) A proposed tariff must be filed no later than October 15 of the second calendar year before the calendar year in which the proposed tariff is to take effect or, if a day is established under regulations made under subsection 66.91(2), no later than that day.

  • Marginal note:Form and content

    (3) A proposed tariff must be filed in both official languages and include

    • (a) the proposed levy rates and any related terms and conditions; and

    • (b) the effective period of the proposed tariff.

    It may also include a suggestion as to whom the Board should designate under paragraph (8)(b).

  • Marginal note:Minimum effective period

    (4) A proposed tariff’s effective period must be at least three calendar years or, if a minimum period is established under regulations made under subsection 66.91(2), at least that minimum period.

  • Marginal note:Publication

    (5) The Board, in the manner that it sees fit, shall publish the proposed tariff and a notice that any person or entity who files an objection must do so no later than the 30th day after the day on which the Board made the proposed tariff public or, if a day is established under regulations made under subsection 66.91(2), no later than that day.

  • Marginal note:Copy of objection

    (6) The Board shall provide a copy of the filed objection to each collective society concerned.

  • Marginal note:Reply

    (7) Each collective society concerned may file a reply to an objection with the Board.

  • Marginal note:Copy to objector

    (7.1) The Board shall provide a copy of the filed reply to the person or entity that filed the objection.

  • Marginal note:Approval

    (8) The Board shall, within the period that is established under regulations made under subsection 66.91(2),

    • (a) approve a proposed tariff, after making any alterations to the levy rates and the related terms and conditions, or fixing any new related terms and conditions, that the Board considers appropriate; and

    • (b) subject to subsection (8.2), designate as the collecting body the collective society or other society, association or corporation that, in the Board’s opinion, will best fulfil the objects of sections 82, 84 and 86.

  • Marginal note:Terms and conditions

    (8.1) The related terms and conditions may include terms and conditions such as the form, content and frequency of the statements of account referred to in subsection 82(1), measures for the protection of confidential information contained in those statements, and the times at which the levies are payable.

  • Marginal note:Designation

    (8.2) The Board is not obligated to designate a collecting body under paragraph (8)(b) if it has previously done so, and a designation under that paragraph remains in effect until the Board, under a proposed tariff or on a separate application, makes another designation.

  • Marginal note:Publication of approved tariffs

    (9) The Board shall publish the approved tariff in the Canada Gazette and provide a copy of it, together with the reasons for the Board’s decision, to

    • (a) the collecting body;

    • (b) each collective society that filed a proposed tariff;

    • (c) every person or entity that filed an objection under subsection (5); and

    • (d) any other person or entity that, in the Board’s opinion, ought to receive the copy and reasons.

  • Marginal note:Continuation of rights

    (10) If a proposed tariff’s effective period begins before the proposed tariff is approved and that effective period begins immediately after the expiry of the previous tariff, then — from the start of the effective period of the proposed tariff until the earlier of its approval and the end of its effective period — the collecting body may collect the levies in accordance with the previous tariff.

Consequential Amendments

Marginal note:Repeals

 The following provisions are repealed:

  • (a) section 27 of the Copyright Act, R.S., 1985, c. 10 (4th Supp.);

  • (b) section 149 of the Canada – United States Free Trade Implementation Act, S.C. 1988, c. 65;

  • (c) sections 6 and 7 of An Act to amend the Copyright Act, S.C. 1993, c. 23; and

  • (d) subsections 20(3) and 22(2) and sections 53 and 53.1 of An Act to amend the Copyright Act, S.C. 1997, c. 24.

Transitional Provisions

Marginal note:Paragraphs 66.501(a) and (b)

 The Copyright Board is not required to consider the criteria set out in paragraphs 66.501(a) and (b) of the Copyright Act, as enacted by section 292 of this Act, in a matter in which it fixes royalty rates, levies or any related terms and conditions if the matter is commenced before the day on which this section comes into force.

Marginal note:Subsections 68.1(2) and 83(4)

 Neither subsection 68.1(2) nor subsection 83(4) of the Copyright Act, as enacted by sections 296 and 297 of this Act, respectively, applies with respect to a proposed tariff filed before the day on which this section comes into force.

Marginal note:Subsection 67.1(4)

 Subsection 67.1(4) of the Copyright Act, as it read immediately before the day on which this section comes into force, continues to apply with respect to

  • (a) an infringement referred to in that subsection that occurred before that day; and

  • (b) the recovery of royalties to be paid under section 19 of that Act in relation to an act that occurred before that day.

Coming into Force

Marginal note:Royal assent or April 1, 2019

 This Subdivision comes into force on the later of the day on which this Act receives royal assent and April 1, 2019.

DIVISION 8Parental Benefits and Related Leave

1996, c. 23Employment Insurance Act

Amendments to the Act
  •  (1) Paragraph 12(4)(b) of the Employment Insurance Act is replaced by the following:

    • (b) for the care of one or more new-born or adopted children as a result of a single pregnancy or placement is,

      • (i) if the maximum number of weeks that has been elected under subsection 23(1.1) is established under subparagraph (3)(b)(i), 35 or, if the weeks for which benefits may be paid are divided in accordance with section 23, 40, or

      • (ii) if the maximum number of weeks that has been elected under subsection 23(1.1) is established under subparagraph (3)(b)(ii), 61 or, if the weeks for which benefits may be paid are divided in accordance with section 23, 69.

  • (2) Subsection 12(4.01) of the Act is replaced by the following:

    • Marginal note:Maximum — parental benefits

      (4.01) If a claim is made under this Part in respect of a child or children referred to in paragraph (4)(b) and a claim is made under section 152.05 in respect of the same child or children, the maximum number of weeks of benefits payable under this Act in respect of the child or children is,

      • (a) if the maximum number of weeks that has been elected under subsection 23(1.1) is established under subparagraph (3)(b)(i), 35 or, if the weeks for which benefits may be paid are divided in accordance with section 23, 40; or

      • (b) if the maximum number of weeks that has been elected under subsection 23(1.1) is established under subparagraph (3)(b)(ii), 61 or, if the weeks for which benefits may be paid are divided in accordance with section 23, 69.

 Subsections 23(4) and (4.1) of the Act are replaced by the following:

  • Marginal note:Division of weeks of benefits

    (4) If two major attachment claimants each make a claim for benefits under this section — or if one major attachment claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.05 — in respect of the same child or children, the weeks of benefits payable under this section, under section 152.05 or under both those sections may be divided between them up to a maximum of 40, if the maximum number of weeks that has been elected under subsection (1.1) or 152.05(1.1) is established under subparagraph 12(3)(b)(i) or 152.14(1)(b)(i), or up to a maximum of 69, if that number of weeks is established under subparagraph 12(3)(b)(ii) or 152.14(1)(b)(ii). If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules.

  • Marginal note:Maximum number of weeks that can be divided

    (4.1) For greater certainty, if, in respect of the same child or children, a major attachment claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.05, the total number of weeks of benefits payable under this section and section 152.05 that may be divided between them may not exceed

    • (a) 40, if the maximum number of weeks that has been elected under subsection (1.1) or 152.05(1.1) is established under subparagraph 12(3)(b)(i) or 152.14(1)(b)(i); or

    • (b) 69, if that number of weeks is established under subparagraph 12(3)(b)(ii) or 152.14(1)(b)(ii).

  • Marginal note:Maximum number of weeks per claimant

    (4.11) Even if the weeks of benefits payable are divided in accordance with subsections (4) and (4.1), the maximum number of weeks for which benefits may be paid to a claimant is 35 or 61 weeks, in accordance with the election made under subsection (1.1) or 152.05(1.1).

 Subsections 152.05(12) and (13) of the Act are replaced by the following:

  • Marginal note:Division of weeks of benefits

    (12) If two self-employed persons each make a claim for benefits under this section — or if one self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23 — in respect of the same child or children, the weeks of benefits payable under this section, under section 23 or under both those sections may be divided between them up to a maximum of 40, if the maximum number of weeks that has been elected under subsection (1.1) or 23(1.1) is established under subparagraph 152.14(1)(b)(i) or 12(3)(b)(i), or up to a maximum of 69, if that number of weeks is established under subparagraph 152.14(1)(b)(ii) or 12(3)(b)(ii). If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules.

  • Marginal note:Maximum number of weeks that can be divided

    (13) For greater certainty, if, in respect of the same child or children, a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 23, the total number of weeks of benefits payable under this section and section 23 that may be divided between them may not exceed

    • (a) 40, if the maximum number of weeks that has been elected under subsection (1.1) or 23(1.1) is established under subparagraph 152.14(1)(b)(i) or 12(3)(b)(i); or

    • (b) 69, if that number of weeks is established under subparagraph 152.14(1)(b)(ii) or 12(3)(b)(ii).

  • Marginal note:Maximum number of weeks per claimant

    (13.01) Even if the weeks of benefits payable are divided in accordance with subsections (12) and (13), the maximum number of weeks for which benefits may be paid to a claimant is 35 or 61 weeks, in accordance with the election made under subsection (1.1) or 23(1.1).

  •  (1) The portion of subsection 152.14(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Maximum — single pregnancy or placement

      (2) The maximum number of weeks for which benefits under this Part may be paid

  • (2) Paragraph 152.14(2)(b) of the Act is replaced by the following:

    • (b) for the care of one or more new-born or adopted children as a result of a single pregnancy or placement is,

      • (i) if the maximum number of weeks that has been elected under subsection 152.05(1.1) is established under subparagraph (1)(b)(i), 35 or, if the weeks for which benefits may be paid are divided in accordance with section 152.05, 40, or

      • (ii) if the maximum number of weeks that has been elected under subsection 152.05(1.1) is established under subparagraph (1)(b)(ii), 61 or, if the weeks for which benefits may be paid are divided in accordance with section 152.05, 69.

  • (3) Subsection 152.14(4) of the Act is replaced by the following:

    • Marginal note:Maximum — parental benefits

      (4) If a claim is made under this Part in respect of a child or children referred to in paragraph (2)(b) and a claim is made under section 23 in respect of the same child or children, the maximum number of weeks of benefits payable under this Act in respect of the child or children is,

      • (a) if the maximum number of weeks that has been elected under subsection 152.05(1.1) is established under subparagraph (1)(b)(i), 35 or, if the weeks for which benefits may be paid are divided in accordance with section 152.05, 40; or

      • (b) if the maximum number of weeks that has been elected under subsection 152.05(1.1) is established under subparagraph (1)(b)(ii), 61 or, if the weeks for which benefits may be paid are divided in accordance with section 152.05, 69.

Transitional Provision

Marginal note:Birth or placement for adoption

 The Employment Insurance Act, as it read immediately before the day on which this section comes into force, continues to apply to a claimant for the purpose of paying benefits under section 23 or 152.‍05 of that Act in respect of a child or children who are, before that day, born or placed with the claimant for the purpose of adoption.

Coordinating Amendments

Marginal note:2000, c. 12

  •  (1) In this section, other Act means the Modernization of Benefits and Obligations Act.

  • (2) If section 304 of this Act comes into force before subsection 107(3) of the other Act, then the portion of that subsection 107(3) before the subsection (4.2) that it enacts is replaced by the following:

    • (3) Section 23 of the Act is amended by adding the following after subsection (4.11):

  • (3) If section 304 of this Act comes into force on the same day as subsection 107(3) of the other Act, then that subsection 107(3) is deemed to have come into force before that section 304.

Marginal note:2009, c. 33

  •  (1) In this section, other Act means the Fairness for the Self-Employed Act.

  • (2) If section 305 of this Act comes into force before the day on which section 35 of the other Act produces its effects, then the portion of that section 35 before the subsection (13.1) that it enacts is replaced by the following:

    Marginal note:2000, c. 12

    35 On the first day on which both subsection 107(3) of the Modernization of Benefits and Obligations Act and section 16 of this Act are in force, section 152.05 of the Employment Insurance Act is amended by adding the following after subsection (13.01):

  • (3) If section 305 of this Act comes into force on the same day as section 35 of the other Act produces its effects, then that section 35 is deemed to have produced its effects before the day on which that section 305 comes into force.

R.S., c. L-2Canada Labour Code

Amendments to the Act

 Subsection 206.1(3) of the Canada Labour Code is replaced by the following:

  • Marginal note:Aggregate leave — employees

    (3) The aggregate amount of leave that may be taken by more than one employee under this section in respect of the same birth or adoption shall not exceed 71 weeks, but the amount of leave that may be taken by one employee under this section in respect of the same birth or adoption shall not exceed 63 weeks.

 Section 206.2 of the Act is replaced by the following:

Marginal note:Aggregate leave — maternity and parental

206.2 The aggregate amount of leave that may be taken by more than one employee under sections 206 and 206.1 in respect of the same birth shall not exceed 86 weeks, but the aggregate amount of leave that may be taken by one employee under those sections in respect of the same birth shall not exceed 78 weeks.

Coordinating Amendment

Marginal note:2012, c. 27

 On the first day on which both section 35 of the Helping Families in Need Act has produced its effects and section 310 of this Act is in force, subsection 206.1(3) of the Canada Labour Code is replaced by the following:

  • Marginal note:Aggregate leave — employees

    (3) The aggregate amount of leave that may be taken by more than one employee under this section in respect of the same event, as described in paragraphs (1)(a) to (c), shall not exceed 71 weeks, but the amount of leave that may be taken by one employee under this section in respect of the same event shall not exceed 63 weeks.

Coming into Force

Marginal note:Order in council

 Sections 303 to 307 and 310 and 311 come into force on a day to be fixed by order of the Governor in Council.

DIVISION 9Canadian Gender Budgeting Act

Marginal note:Enactment of Act

 The Canadian Gender Budgeting Act is enacted as follows:

An Act respecting the consideration of gender equality and diversity in the budget process

Preamble

Whereas Canada’s long-term economic success depends on an inclusive society in which all individuals have the ability to contribute to their full potential, regardless of gender or other identity factors;

Whereas taxation, the allocation of public resources and other policy decisions may produce various impacts on diverse groups, with the potential to create, sustain or reduce inequalities within society;

Whereas building an economy that benefits all Canadians requires that the Government of Canada pursue economic and social policies and make budgetary decisions with full consideration of their impacts in terms of gender and diversity;

And whereas improved gender and diversity information and analysis contribute to improved, evidence-based decision-making;

Now, therefore, 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

1 This Act may be cited as the Canadian Gender Budgeting Act.

Gender Budgeting Policy

Marginal note:Policy statement

2 It is declared to be the policy of the Government of Canada to

  • (a) promote the principle of gender equality and greater inclusiveness in society as part of the annual federal budget, in support of Canada’s long-term economic growth and prosperity;

  • (b) consider gender and diversity in taxation and resource allocation decisions, including in respect of direct spending and transfers to persons and other levels of government;

  • (c) make information available to the public on the impacts of Government decisions in terms of gender and diversity, in order to enhance transparency and accountability; and

  • (d) strengthen the ongoing capacity of departments named in Schedule VI to the Financial Administration Act to consider gender and diversity in the development of policy in a budgetary context, including through guidance, best practices and expertise provided by the Minister for Women and Gender Equality.

Implementation of Policy

Marginal note:Report — new budget measures

3 The Minister of Finance must table, before each House of Parliament, on any of the first 30 days on which that House is sitting after the day on which a budget plan is tabled in Parliament, a report on the impacts in terms of gender and diversity of all new budget measures described in the plan, if an assessment of the impacts is not included in the budget plan or any related documents that the Minister has made public.

Marginal note:Analysis — tax expenditures

4 Once a year, the Minister of Finance must make available to the public analysis of impacts in terms of gender and diversity of the tax expenditures, such as tax exemptions, deductions or credits, that the Minister considers appropriate.

Marginal note:Analysis — programs

5 Once a year, the President of the Treasury Board must make available to the public analysis of impacts in terms of gender and diversity of the existing Government of Canada expenditure programs that the President, in consultation with the Minister of Finance, considers appropriate.

DIVISION 10Financial Consumer Protection Framework

1991, c. 46Bank Act

Amendments to the Act

 The definition external complaints body in section 2 of the Bank Act is replaced by the following:

external complaints body

external complaints body means a body corporate approved under subsection 627.48(1) or designated under subsection 627.51(1); (organisme externe de traitement des plaintes)

 Paragraphs 157(2)(e) and (f) of the Act are replaced by the following:

  • (e) designate a committee of the board of directors to perform the duties set out in section 195.1; and

 The Act is amended by adding the following after section 195:

Marginal note:Committee

  • 195.1 (1) The committee designated under paragraph 157(2)(e) shall consist of at least three directors.

  • Marginal note:Membership

    (2) A majority of the members of the committee shall consist of directors who are not persons affiliated with the bank, and none of the members of the committee may be officers or employees of the bank or a subsidiary of the bank.

  • Marginal note:Duties of committee

    (3) The committee shall

    • (a) require the management of the bank to establish procedures for complying with the consumer provisions;

    • (b) review those procedures to determine whether they are appropriate to ensure that the bank is complying with the consumer provisions; and

    • (c) require the management of the bank to report at least annually to the committee on the implementation of the procedures and on any other activities that the bank carries out in relation to the protection of its customers.

  • Marginal note:Bank’s report to Commissioner

    (4) A bank shall report to the Commissioner on the mandate and responsibilities of the committee and the procedures referred to in paragraph (3)(a).

  • Marginal note:Committee’s report to directors

    (5) After each meeting of the committee, the committee shall report to the directors of the bank on matters reviewed by the committee.

  • Marginal note:Directors’ report to Commissioner

    (6) Within 90 days after the end of each financial year, the directors of a bank shall report to the Commissioner on what the committee did during the year in performing its duties under subsection (3).

 Subsection 330(1) of the Act is replaced by the following:

Marginal note:Auditors’ attendance

  • 330 (1) The auditors of a bank are entitled to receive notice of every meeting of the committee designated under paragraph 157(2)(e), if that committee is to perform the duties set out in section 195.1 in that meeting, of the audit committee and of the conduct review committee and, at the expense of the bank, to attend and be heard at that meeting.

 Section 413.1 of the Act is repealed.

 Subsection 418.1(3) of the Act is repealed.

 The heading before section 439.1 and sections 439.1 to 459.5 of the Act are replaced by the following:

Miscellaneous

 Subsection 524(2) of the Act is replaced by the following:

  • Marginal note:Restrictions and requirements

    (2) The order may be made subject to the restrictions referred to in subsection 540(1) and the requirements referred to in section 627.74.

 Subsections 540(2) and (3) of the Act are repealed.

 Paragraph 541(2)(b) of the Act is replaced by the following:

  • (b) sections 627.68 to 627.72 and 627.85.

  •  (1) Subsections 545(4) and (5) of the Act are repealed.

  • (2) Subsection 545(6) of the Act is amended by adding “and” at the end of paragraph (a) and by repealing paragraphs (b) and (c).

 Subsection 552(3) of the Act is repealed.

 The heading before section 559 and sections 559 to 576.3 of the Act are replaced by the following:

Miscellaneous

 Section 611 of the Act is replaced by the following:

Marginal note:Exceptions to disclosure

611 Subject to any regulations made under paragraph 627.998(n), information obtained by an authorized foreign bank regarding any of its customers shall not be disclosed or made available under subsection 609(1) or section 610.

 The Act is amended by adding the following after section 627:

PART XII.2Dealings with Customers and the Public

DIVISION 1Interpretation

Marginal note:Definitions

  • 627.01 (1) The following definitions apply in this Part.

    business day

    business day does not include a Saturday or a holiday. (jour ouvrable)

    charge

    charge includes interest and, for greater certainty, a fee. (frais)

    complaint

    complaint means dissatisfaction, whether justified or not, expressed to an institution with respect to

    • (a) a product or service in Canada that is offered, sold or provided by the institution; or

    • (b) the manner in which a product or service in Canada is offered, sold or provided by the institution. (plainte)

    credit agreement

    credit agreement includes an agreement for a line of credit, a credit card or any other kind of loan that is repayable in Canada. (convention de crédit)

    deposit-type instrument

    deposit-type instrument means a product that is issued in Canada by an institution, that is related to a deposit and that specifies a fixed investment period and either

    • (a) a fixed rate of interest; or

    • (b) a variable rate of interest that is calculated on the basis of the institution’s prime lending rate or bankers’ acceptance rate. (instrument de type dépôt)

    eligible enterprise

    eligible enterprise means a business with authorized credit of less than $1,000,000, fewer than 500 employees and annual revenues of less than $50,000,000. (entreprise admissible)

    institution

    institution means a bank or an authorized foreign bank. (institution)

    interest

    interest, in relation to an agreement for a deposit-type instrument, a principal-protected note or a prescribed product, includes any return payable by an institution under the agreement. (intérêt)

    maintenance charge

    maintenance charge means a charge in relation to a prepaid payment product that is imposed after the product has been purchased, other than a charge associated with the use of the product or of any service related to it. (frais de tenue de compte)

    member bank

    member bank means a bank that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act. (banque membre)

    optional product or service

    optional product or service means a product or service that is provided in Canada by an institution, an affiliate that the institution controls or an agent or representative of the institution or affiliate, for an additional charge, as a supplement to another product or service that is offered or provided by the institution. (produit ou service optionnel)

    personal authentication information

    personal authentication information means a personal identification number or any other password or information that a borrower creates or adopts to be used to authenticate their identity in relation to a credit card or credit card account. (authentifiant personnel)

    personal deposit account

    personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons other than for business purposes. (compte de dépôt personnel)

    point of service

    point of service means a physical location to which the public has access and at which an institution carries on business with the public through natural persons in Canada. (point de service)

    prepaid payment product

    prepaid payment product means a physical or electronic product that is issued in Canada by an institution, that is or can be loaded with funds and that can be used to make withdrawals or purchase goods or services. (produit de paiement prépayé)

    principal-protected note

    principal-protected note means a financial instrument that is issued in Canada by an institution to a person and that

    • (a) provides for one or more payments to be made by the institution that are determined, in whole or in part, by reference to an index or reference point, including

      • (i) the market price of a security, commodity, investment fund or other financial instrument, and

      • (ii) the exchange rate between any two currencies; and

    • (b) provides that the principal amount that the institution is obligated to repay at or before the note’s maturity is equal to or greater than the total paid by the person for the note.

    A principal-protected note does not include a financial instrument that specifies that the interest or return on the instrument is determined solely on the basis of a fixed rate of interest or return or a variable rate of interest or return that is calculated on the basis of the institution’s prime lending rate or bankers’ acceptance rate. (billet à capital protégé)

    promotional product

    promotional product means a prepaid payment product that is purchased by an entity and distributed as part of a promotional, loyalty or award program. (produit promotionnel)

    registered product

    registered product means a registered education savings plan, a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan or any other plan, arrangement or fund to which Division G of Part I of the Income Tax Act applies that is provided by an institution to a natural person. (produit enregistré)

    residential mortgage

    residential mortgage means a loan made in Canada on the security of residential property that has four or fewer residential units. (hypothèque résidentielle)

    retail deposit account

    retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or of less than any greater prescribed amount. (compte de dépôt de détail)

    retail deposit-taking branch

    retail deposit-taking branch means a branch or office in Canada of a financial institution at which the financial institution, through a natural person, opens retail deposit accounts and disburses cash to customers. (succursale de dépôt de détail)

    rural area

    rural area means an area located in Canada outside an urban area. (zone rurale)

    undue pressure

    undue pressure means any pressure, imposed in the form of a practice or communication or otherwise, that could be reasonably considered to be excessive or persistent in the circumstances. (pressions indues)

    urban area

    urban area, on a particular day, means a population centre, as defined in the census dictionary published by Statistics Canada for the purpose of the most recent general census whose results have been published before that day, that has a minimum population of 10,000 natural persons on the basis of that census. (zone urbaine)

  • Marginal note:Business purposes

    (2) For greater certainty, a reference to “business purposes” in a provision of this Part is a reference to the business purposes of the natural person referred to in the provision.

DIVISION 2Fair and Equitable Dealings

Responsible Business Conduct
General Requirements

Marginal note:Training

627.02 An institution shall ensure that its officers and employees in Canada, and any person who offers or sells the institution’s products or services in Canada, are trained with respect to the policies and procedures that it has established for complying with the consumer provisions.

Marginal note:False or misleading information

627.03 No institution shall communicate or otherwise provide false or misleading information to a customer, the public or the Commissioner.

Marginal note:Prohibited conduct

627.04 An institution shall not, in its dealings in Canada with its customers and the public,

  • (a) impose undue pressure on a person, or coerce a person, for any purpose, including to obtain a product or service from a particular person — including the institution and any of its affiliates — as a condition for obtaining another product or service from the institution;

  • (b) take advantage of a person; or

  • (c) engage in any prescribed conduct.

Marginal note:For greater certainty

  • 627.05 (1) For greater certainty, an institution may offer a product or service to a person on more favourable terms or conditions than it would otherwise offer, if the more favourable terms and conditions are offered on the condition that the person obtain another product or service from any particular person.

  • Marginal note:For greater certainty

    (2) For greater certainty, an affiliate of an institution may offer a product or service to a person on more favourable terms or conditions than the affiliate would otherwise offer, if the more favourable terms and conditions are offered on the condition that the person obtain another product or service from the institution.

  • Marginal note:Approval by institution

    (3) If a product or service is obtained by a borrower from a particular person as security for a loan from an institution, the institution may require that the product or service meet with its approval. That approval shall not be unreasonably withheld.

Marginal note:Policies and procedures — appropriate products or services

627.06 An institution shall establish and implement policies and procedures to ensure that the products or services in Canada that it offers or sells to a natural person other than for business purposes are appropriate for the person having regard to their circumstances, including their financial needs.

Marginal note:Remuneration, payment or benefit

627.07 An institution shall ensure that the remuneration of its officers and employees in Canada — and of any person who offers or sells its products or services in Canada — as well as any payment or benefit that the institution offers to them, does not interfere with the person’s ability to comply with the policies and procedures referred to in section 627.06.

Marginal note:No provision without express consent and agreement

  • 627.08 (1) Subject to any regulations, an institution shall not provide a person with a product or service in Canada without first

    • (a) obtaining the person’s express consent to do so;

    • (b) entering into an agreement with the person for it to be provided; and

    • (c) providing the person with a copy of the agreement, if the agreement is for a product or service to be provided on an ongoing basis.

  • Marginal note:Oral consent — written confirmation

    (2) If the consent is given orally, the institution shall provide the person with written confirmation of that consent without delay.

  • Marginal note:Use not consent

    (3) Use by the person of the product or service does not constitute express consent for the purpose of subsection (1).

Marginal note:Obtaining express consent

627.09 Any communication from an institution seeking a person’s express consent shall be made in a manner, and using language, that is clear, simple and not misleading.

Marginal note:Cancellation periods — products or services

  • 627.1 (1) If an institution enters into an agreement with a person in respect of a product or service in Canada — other than a prescribed product or service or a product or service referred to in section 627.11 — to be provided on an ongoing basis, the institution shall allow the person to cancel the agreement,

    • (a) if it was entered into by mail or orally by telephone, within the prescribed period or, if there is no prescribed period, until the end of the 14th business day after the day on which the agreement is entered into; or

    • (b) if it was entered into in any other manner, within the prescribed period or, if there is no prescribed period, until the end of the third business day after the day on which the agreement is entered into.

  • Marginal note:Obligations of institution

    (2) If a person notifies an institution that they are cancelling an agreement within the applicable period referred to in subsection (1), the institution shall

    • (a) in writing and without delay, acknowledge receipt of the person’s notice of cancellation and confirm what it intends to recover under subsection (3); and

    • (b) without delay, refund to the person any amount that it received in respect of the provision of the product or service.

  • Marginal note:Limited recovery

    (3) In the event of a cancellation within the applicable period referred to in subsection (1), an institution shall waive any cancellation charge and may recover only

    • (a) any amounts related to the person’s use of the product or service prior to the cancellation;

    • (b) any expense that the institution has reasonably incurred in providing the product or service; and

    • (c) any prescribed amount.

Marginal note:Cancellation — certain products or services

  • 627.11 (1) If an institution enters into an agreement with a person in respect of a retail deposit account, deposit-type instrument, credit card account or any prescribed product or service in Canada, the institution shall allow the person to cancel the agreement in accordance with any prescribed requirements.

  • Marginal note:Obligation of institution

    (2) If the person cancels the agreement, the institution shall meet any prescribed requirements.

Marginal note:Imposition of charges or penalties

  • 627.12 (1) An institution shall not impose on a person a charge or penalty in relation to a product or service in Canada unless

    • (a) the institution has obtained from the person the express consent referred to in paragraph 627.08(1)(a);

    • (b) the agreement in respect of the product or service provides for its imposition; and

    • (c) the institution discloses the charge or penalty in accordance with this Part.

  • Marginal note:Court order

    (2) Subsection (1) does not preclude the institution from receiving an amount in relation to a product or service that is determined under an order of a court.

Marginal note:Alert

  • 627.13 (1) An institution shall, without delay, send to a natural person an alert, by electronic means,

    • (a) if the balance of the person’s personal deposit account that is opened in Canada falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100; or

    • (b) if the amount of credit available on the person’s line of credit that is extended — or credit card account that is opened — in Canada other than for business purposes falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100.

  • Marginal note:Exception

    (2) Subsection (1) does not apply if the person has opted out, in writing, of receiving the alert or does not provide the contact information required to receive the alert.

  • Marginal note:Content

    (3) The alert shall indicate that the balance of the personal deposit account, or the amount of credit available on the line of credit or credit card account, has fallen below the amount communicated to the institution, below the prescribed amount or below $100, as the case may be, and that, in accordance with the agreement in respect of the product or service, charges or penalties may be imposed for the most recent transaction, or for any subsequent transaction, made on the account or line of credit. The alert shall also indicate what the person may do to avoid charges or penalties and the time within which it is to be done, and include any prescribed information.

Marginal note:Advertisements

627.14 Any advertisement in Canada that is made by an institution shall be accurate, clear and not misleading.

Marginal note:Arrangements with affiliates, etc.

627.15 An institution shall not enter into any arrangement or otherwise cooperate with any of its representatives, agents or other intermediaries, with any of its affiliates that are controlled by a bank or a bank holding company and that are a finance entity as defined in subsection 464(1) or other prescribed entity, or with any of the representatives, agents or other intermediaries of such an affiliate, to sell or further the sale of a product or service of the institution or the affiliate unless

  • (a) the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to institutions, as if it were an institution, to the extent that those provisions are applicable to its activities;

  • (b) the persons who request or receive the product or service have access to the institution’s procedures established for dealing with complaints under paragraph 627.43(1)(a) as if the product or service had been requested or received from the institution;

  • (c) the employees of the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be,

    • (i) may report particulars under subsection 979.2(1) to the affiliate or the representative, agent or other intermediary of the institution or the affiliate as if they were an employee of a bank, and

    • (ii) have access to the procedures established under section 979.3; and

  • (d) the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies with section 979.4 as if it were a bank.

Marginal note:Intermediary for another entity

627.16 If an institution is acting in the capacity of a representative, agent or other intermediary for another entity in respect of a product or service provided by the entity, the institution shall ensure that an agreement in respect of that product or service complies with the prescribed requirements.

Access to Basic Banking Services
Retail Deposit Accounts

Marginal note:Opening

  • 627.17 (1) Subject to subsection (2), a member bank shall, at any point of service or any branch in Canada at which it opens retail deposit accounts through natural persons, open a retail deposit account on the request, made there in person, of a natural person who

    • (a) presents to the member bank

      • (i) two documents from a reliable source — one of which indicates the person’s name and address and the other the person’s name and date of birth — including

        • (A) identification issued by the Government of Canada or the government of a province,

        • (B) recent notices of tax assessments issued by the Government of Canada or the government of a province or municipality,

        • (C) recent statements of benefits from the Government of Canada or the government of a province,

        • (D) recent Canadian public utility bills,

        • (E) recent bank account or credit card statements,

        • (F) foreign passports, and

        • (G) any prescribed document, or

      • (ii) any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the point of service or branch is located;

    • (b) if the member bank so requests, consents to the member bank’s verifying whether any of the circumstances set out in paragraphs 627.18(1)(a) to (d) applies to the person, and to the member bank’s verifying the documents presented by the person;

    • (c) if the member bank — based on its verification of the circumstances set out in paragraphs 627.18(1)(a) to (d) or of the documents presented by the person or based on any information provided by the person in connection with the request — has reasonable grounds to suspect that the person is misrepresenting their identity, presents to the member bank one piece of identification issued by the Government of Canada or the government of a province that bears the person’s photograph and signature;

    • (d) if the member bank is a federal credit union and so requests, becomes a member of the bank; and

    • (e) meets any prescribed condition.

  • Marginal note:Opening at another location

    (2) If a natural person who meets the conditions set out in subsection (1) requests the opening of a retail deposit account at a point of service at which the opening of such an account can only be initiated, the member bank is not required to open the account at that point of service; however, the bank shall open the account at another physical location.

  • Marginal note:Request made in other manner

    (3) A member bank shall open a retail deposit account for any natural person who requests it in any prescribed manner and who meets any prescribed condition.

  • Marginal note:No minimum deposit or balance required

    (4) A member bank shall not require the natural person to make an initial minimum deposit or maintain a minimum balance.

Marginal note:Non-application

  • 627.18 (1) Subsections 627.17(1) to (3) do not apply

    • (a) if the member bank has reasonable grounds to believe that the retail deposit account will be used for illegal or fraudulent purposes;

    • (b) if the natural person has a history of illegal or fraudulent activity in relation to providers of financial services and the most recent instance of such an activity occurred less than seven years before the day on which the request to open a retail deposit account is made;

    • (c) if the member bank has reasonable grounds to believe that the natural person, for the purpose of opening the retail deposit account, knowingly made a material misrepresentation in the information provided to the member bank;

    • (d) if the member bank has reasonable grounds to believe that it is necessary to refuse to open the retail deposit account in order to protect the customers or employees of the member bank from physical harm, harassment or other abuse;

    • (e) if the request is made at a branch or point of service of a member bank at which the only retail deposit accounts offered are those that are linked to an account at another financial institution; or

    • (f) in any prescribed circumstances.

  • Marginal note:Bankruptcy

    (2) For greater certainty and for the purpose of paragraph (1)(a), the fact that the natural person is or has been a bankrupt does not, by itself without any evidence of fraud or any other illegal activity in relation to the bankruptcy, constitute reasonable grounds for a member bank to believe that an account for the person will be used for illegal or fraudulent purposes.

Marginal note:Refusal to open

627.19 A member bank that refuses to open a retail deposit account for a natural person shall provide the person with

  • (a) a written statement that indicates that it will not be opening the account; and

  • (b) the information referred to in paragraphs 627.65(a) to (c).

Funds

Marginal note:Application

627.2 Sections 627.21 and 627.22 apply only with respect to paper-based cheques or other paper-based instruments deposited in Canada that are

  • (a) encoded with magnetic ink to allow for character recognition;

  • (b) not damaged or mutilated to the extent that they are unreadable by cheque-clearing systems;

  • (c) drawn on an institution’s branch in Canada; and

  • (d) issued in Canadian dollars.

Marginal note:Availability

627.21 An institution shall make available for withdrawal any funds deposited by cheque or other instrument into a retail deposit account or into a deposit account held by an eligible enterprise

  • (a) in the case of a cheque or other instrument in an amount that is not greater than the prescribed amount,

    • (i) if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than four business days after the day of the deposit, or

    • (ii) if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than five business days after the day of the deposit; and

  • (b) in the case of a cheque or other instrument in an amount that is greater than the prescribed amount,

    • (i) if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than seven business days after the day of the deposit, or

    • (ii) if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than eight business days after the day of the deposit.

Marginal note:First amount available

627.22 An institution shall make the prescribed amount of funds deposited or, if there is no prescribed amount, the first $100 of all funds deposited by a cheque or other instrument into a retail deposit account available for withdrawal

  • (a) immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service; or

  • (b) on the business day following the day of the deposit, if the deposit is made in any other manner.

Marginal note:Non-application

627.23 Section 627.21 does not apply in respect of a deposit that is made by an eligible enterprise if the institution has reasonable grounds to believe that there is a material increased credit risk, having regard to the following factors, among others:

  • (a) an escalating overdraft balance that is not being reduced by deposits received;

  • (b) a negative change in the credit score or other behaviour scores that may impact the enterprise’s credit risk;

  • (c) an unexplained change in the history of cheques or other instruments deposited into the account;

  • (d) a high number of cheques or other instruments deposited that are returned as dishonoured items from other institutions, which may impact the available balance in the account;

  • (e) notice of bankruptcy or of creditor action against the enterprise; and

  • (f) any prescribed factor.

Marginal note:Non-application

  • 627.24 (1) Sections 627.21 and 627.22 do not apply

    • (a) if the institution has reasonable grounds to believe that the deposit is being made for illegal or fraudulent purposes in relation to the depositor’s account;

    • (b) if the account has been open for fewer than 90 days;

    • (c) if the cheque or other instrument has been endorsed more than once;

    • (d) if the cheque or other instrument is deposited at least six months after the date of the cheque or other instrument; or

    • (e) in any prescribed circumstances.

  • Marginal note:Refusal to make funds available

    (2) An institution that relies on subsection (1) as grounds for not complying with section 627.21 or 627.22 shall — immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service or on request of the depositor if the deposit is made in any other manner — provide the depositor with

    • (a) a written statement that indicates that it will not be making the funds available; and

    • (b) the information referred to in paragraphs 627.65(a) to (c).

Cashing Government Cheques or Other Instruments

Marginal note:Cashing

  • 627.25 (1) A member bank shall, at any branch in Canada at which it, through natural persons, opens retail deposit accounts and disburses cash to customers, cash a cheque or other instrument on the request of a natural person made there in person if

    • (a) the cheque or other instrument is drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada or in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament, or is any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund;

    • (b) the person presents to the member bank

      • (i) the documents referred to in subparagraph 627.17(1)(a)(i),

      • (ii) one piece of identification that is issued by the Government of Canada or the government of a province and that bears the person’s signature and photograph, or

      • (iii) any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the branch is located;

    • (c) the amount of the cheque or other instrument is not greater than the prescribed amount; and

    • (d) any prescribed condition is met.

  • Marginal note:Non-application

    (2) Subsection (1) does not apply

    • (a) if there is evidence that the cheque or other instrument has been altered in any way or is counterfeit;

    • (b) if the member bank has reasonable grounds to believe that there has been illegal or fraudulent activity in relation to the cheque or other instrument; or

    • (c) in any prescribed circumstances.

  • Marginal note:Refusal to cash

    (3) A member bank that refuses to cash for a natural person a cheque or other instrument that meets the conditions set out in paragraphs (1)(a), (c) and (d) shall provide the person with

    • (a) a written statement that indicates that it will not be cashing the cheque or other instrument; and

    • (b) the information referred to in paragraphs 627.65(a) to (c).

Marginal note:No charges

  • 627.26 (1) An institution shall not impose a charge

    • (a) for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament or in any authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), in respect of its business in Canada;

    • (b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or

    • (c) in respect of any cheque or other instrument that is

      • (i) drawn in favour of the Receiver General, the Government of Canada or any department of it or any public officer acting in the capacity of a public officer, and

      • (ii) tendered for deposit to the credit of the Receiver General.

  • Marginal note:Deposits of Government of Canada

    (2) Nothing in subsection (1) precludes any arrangement between the Government of Canada and an institution concerning

    • (a) compensation for services performed by the institution for the Government of Canada; or

    • (b) interest to be paid on any or all deposits of the Government of Canada with the institution.

Documents

Marginal note:General

  • 627.27 (1) For greater certainty, any documents required to be presented by a natural person under any of sections 627.17 to 627.26 and subsection (2) shall be

    • (a) original, valid and not substantially defaced; and

    • (b) in the case of a piece of identification issued by the government of a province, usable for identification purposes under the law of the province.

  • Marginal note:Different names

    (2) If any document presented by a natural person bears a former name of the person, the person shall present a certificate evidencing the change of name that has occurred or a certified copy of that certificate.

Credit

Marginal note:Prepayment

  • 627.28 (1) An institution shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment on the money advanced before its due date.

  • Marginal note:Non-application

    (2) Subsection (1) does not apply in respect of a loan that

    • (a) is secured by a mortgage on real property; or

    • (b) is made for business purposes and has a principal amount of more than the prescribed amount or, if there is no prescribed amount, $100,000.

  • Marginal note:Prepayment of certain loans

    (3) If an institution enters into a credit agreement with a natural person other than for business purposes, the institution shall allow the person

    • (a) in the case of a loan for a fixed amount, other than a loan that is secured by a mortgage on real property,

      • (i) to prepay the outstanding balance under the agreement, at any time, without incurring any charge or penalty for making the prepayment, or

      • (ii) to prepay a part of the outstanding balance

        • (A) on the date of any scheduled payment, if payments are scheduled once a month or more often, or

        • (B) at any time but only once a month, in any other case; and

    • (b) in the case of any prescribed credit agreement, to prepay any prescribed amount at any prescribed time if the person meets any prescribed requirements.

  • Marginal note:Refund or credit

    (4) If a person makes a prepayment referred to in paragraph (3)(a) or (b), the institution shall refund or credit to the person the prescribed amount of any prescribed charge other than any interest or discount applicable to the loan.

Marginal note:No minimum credit balance without express consent

627.29 An institution shall not make a loan or advance in Canada to a natural person subject to the condition that the person maintain a minimum credit balance with the institution without first obtaining the person’s express consent to do so.

Marginal note:Default charges

627.3 If a natural person fails to make a payment when it becomes due under a credit agreement that the person entered into other than for business purposes or fails to comply with any other obligation in the agreement an institution may impose, in addition to interest, other charges for the sole purpose of recovering the costs reasonably incurred

  • (a) for legal services retained to collect or attempt to collect the payment;

  • (b) in realizing on any security interest taken under the credit agreement or in protecting such a security interest, including the cost of legal services retained for that purpose;

  • (c) in processing a cheque or other instrument that the person used to make a payment under the loan but that was dishonoured; or

  • (d) for any prescribed purpose.

Marginal note:Renewal of mortgages

627.31 If a natural person enters into a credit agreement other than for business purposes with an institution for a loan that is secured by a mortgage on real property and that is to be renewed on a specified day,

  • (a) the institution shall not, during any prescribed period, make a change to the agreement that increases the cost of borrowing; and

  • (b) the person’s rights under the agreement continue, and the renewal does not take effect, until the prescribed day.

Marginal note:No increase or provision without express consent

  • 627.32 (1) Subject to any regulations, an institution shall not

    • (a) increase the credit limit on a line of credit that is extended — or a credit card account that is opened — in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so; or

    • (b) provide cheques that are issued on a credit card account that is opened in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so.

  • Marginal note:Oral consent — written confirmation

    (2) If the consent is given orally, the institution shall provide the person with written confirmation of the consent not later than the date of the first statement of account that is provided after the date of that consent.

  • Marginal note:Use not consent

    (3) Use by the person of the line of credit or the credit card account, or of any service related to the line of credit or credit card account, does not constitute express consent for the purpose of subsection (1).

Marginal note:Liability for unauthorized use

  • 627.33 (1) The maximum liability of a borrower for the unauthorized use of a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account is $50, unless the borrower has demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the credit card, the account information or the personal authentication information.

  • Marginal note:Report of unauthorized use

    (2) If a borrower reports to an institution that a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account has been lost or stolen or is otherwise at risk of being used in an unauthorized manner, the borrower shall not be liable for any unauthorized use of the credit card, the account information or the personal authentication information after the report is received.

  • Marginal note:Personal authentication information

    (3) The unauthorized use of a credit card issued to a borrower in Canada, or of account information of the credit card, by means of the personal authentication information created or adopted in relation to the credit card or credit card account does not by itself establish that the borrower demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the personal authentication information.

Marginal note:Credit card statement

  • 627.34 (1) Subject to any regulations, an institution shall, for a credit card issued in Canada to a natural person other than for business purposes, send a statement of account in respect of each billing cycle to the person. The statement is to be sent without delay after the last day of the billing cycle.

  • Marginal note:Minimum payment — due date

    (2) An institution shall not require a minimum payment in respect of the outstanding balance owing for a particular billing cycle on the credit card account to be made by the person less than 21 days after the last day of that billing cycle.

  • Marginal note:Non-business day

    (3) If the due date for a minimum payment in respect of the outstanding balance owing on the credit card account does not fall on a business day, the institution shall consider a payment made on the next business day as being made on time.

  • Marginal note:No interest if balance paid in full

    (4) An institution shall not impose interest on purchases of goods or services made during a particular billing cycle on the credit card account if the person pays the outstanding balance owing on the credit card account in full on or before the due date.

Marginal note:Different interest rates — allocation of payment

  • 627.35 (1) If different interest rates apply to different amounts owing for a particular billing cycle on a credit card account that is opened in Canada by a natural person other than for business purposes, the institution shall allocate any payment made by the person that is greater than the required minimum payment for that billing cycle among those amounts using one of the following methods:

    • (a) by allocating that payment first to the amount with the highest interest rate and then allocating any remaining portion of the payment to the other amounts in descending order, based on their applicable interest rates; or

    • (b) by allocating that payment among those amounts in the same proportion as each amount bears to the outstanding balance owing on the credit card account.

  • Marginal note:Rounding and adjustments

    (2) For the purpose of paragraph (1)(b), if the payment that the institution allocates to an amount owing on a credit card account contains a fraction of a dollar, the institution may round up that amount to the nearest dollar if the fraction of the dollar is equal to or greater than 50 cents, round down that amount to the nearest dollar if the fraction is less than 50 cents and, if necessary, make corresponding adjustments to the other amounts that are being allocated.

Marginal note:No charge — holds

  • 627.36 (1) An institution shall not impose a charge on a natural person for exceeding their credit limit as a result of a hold on a credit card that was issued in Canada to the person other than for business purposes.

  • Marginal note:Non-application

    (2) Subsection (1) does not apply if the person would, in any case, have exceeded their credit limit during the period in which the hold was in effect.

Marginal note:Debt recovery

627.37 In its dealings with a natural person who owes it a debt under a credit agreement entered into other than for business purposes, an institution

  • (a) shall not communicate or attempt to communicate with the person, any member of the person’s family or household, any relative, neighbour, friend or acquaintance of the person or the person’s employer by any means that constitutes harassment, in a manner that constitutes harassment or with a frequency that constitutes harassment, including by

    • (i) using threatening, profane, intimidating or coercive language,

    • (ii) using undue pressure, or

    • (iii) making public, or threatening to make public, the person’s failure to pay; and

  • (b) shall comply with any other prescribed debt collection practices.

Prepaid Payment Products

Marginal note:No expiry unless promotional product

627.38 An institution shall not impose an expiry date on the right of a person with whom it entered into an agreement for the issuance of a prepaid payment product to use the funds that are loaded on the product unless it is a promotional product.

Marginal note:Maintenance charges

627.39 An institution shall not impose any maintenance charges in respect of a prepaid payment product for the period of 12 months after the day on which the product is activated unless it is

  • (a) a promotional product; or

  • (b) a reloadable product for which the institution has obtained the express consent of the person with whom it entered into an agreement for the issuance of the product to the imposition of the charge.

Marginal note:No overdraft charges without express consent

  • 627.4 (1) An i