First Session, Thirty-eighth Parliament,
53-54 Elizabeth II, 2004-2005
STATUTES OF CANADA 2005CHAPTER 30
An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005
ASSENTED TO
29th JUNE, 2005
BILL C-43
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 “An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005”.
SUMMARY
Part 1 amends the Income Tax Act and the Income Tax Application Rules to
(a) increase the amount that Canadians can earn tax free;
(b) increase the annual limits on contributions to tax-deferred retirement savings plans;
(c) eliminate the foreign property limitations on tax-deferred retirement savings plans;
(d) increase the Child Disability Benefit supplement to the Canada Child Tax Benefit;
(e) allow for a longer period for the existence of and contributions to a Registered Education Savings Plan in certain circumstances where the plan beneficiary is eligible for the disability tax credit;
(f) increase the maximum refundable medical expense supplement;
(g) exclude emergency medical services vehicles from the standby charge;
(h) extend to January 11, 2005 the date for charitable giving in respect of the 2004 taxation year for the tsunami relief effort;
(i) eliminate the corporate surtax; and
(j) extend the SR&ED tax incentives to SR&ED performed in Canada’s exclusive economic zone.
Part 2 amends the Air Travellers Security Charge Act to reduce the air travellers security charge for domestic air travel to $5 for one-way travel and to $10 for round-trip travel, for transborder air travel to $8.50 and for other international air travel to $17, applicable to air travel purchased on or after March 1, 2005.
Part 3 amends Part IX of the Excise Tax Act to extend the application of the 83 per cent rebate of the goods and services tax (GST) and the federal component of the harmonized sales tax (HST) to eligible charities and non-profit organizations in respect of the tax they pay on their purchases to provide exempt health care supplies similar to those traditionally provided in hospitals. It also amends that Act to provide that a director of a corporation may, under certain conditions, be held liable not only for unremitted net GST/HST amounts, but also for GST/HST net tax refund amounts to which the corporation is not entitled. Finally, it amends that Act to allow, under strict conditions, the creation of a Web-based GST/HST registry to facilitate the verification of a supplier’s registration by a registrant for the purposes of claiming input tax credits.
Part 4 amends Schedule I to the Excise Tax Act to phase out the excise tax on jewellery through a series of rate reductions over the next four years.
Part 5 amends the Federal-Provincial Fiscal Arrangements Act to authorize the Minister of Finance to pay funds to a trust established to provide the provinces with funding for the purpose of early learning and child care.
Part 6 authorizes the Minister of Finance to pay funds to a trust established to provide the Territories with funding for the purpose of assisting them to achieve the goals of the Northern Strategy.
Part 7 amends the Auditor General Act to permit the Auditor General to conduct inquiries into and report on the affairs of certain corporations that have received at least $100,000,000 in funding from Her Majesty in right of Canada. This Part also amends the Financial Administration Act to extend the application of financial management and control provisions in that Act to wholly-owned subsidiaries of parent Crown corporations and certain parent Crown corporations.
Part 8 authorizes the payment of funds to various foundations, including the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.
Part 9 amends the Asia-Pacific Foundation of Canada Act to focus the mandate of the Foundation, to modify its governance structure, to establish qualifications for the appointment of the directors and the President, to impose a duty of care on the directors and the President and to require that the Foundation offer its services in both official languages. It also amends the Act to specify the type of funds the Foundation may receive and the appropriate use of those funds and to require that those funds be invested in accordance with policies, standards and procedures established by the board. In addition, the provisions of the Act respecting auditing, annual reports and winding-up have been expanded.
Part 10 amends Part 1 of the Budget Implementation Act, 1998 to broaden the category of persons to whom the Canada Millennium Scholarship Foundation may grant scholarships and bursaries to include not only persons who are Canadian citizens or permanent residents of Canada within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act but also persons who are protected persons within the meaning of subsection 95(2) of that Act, for example, Convention refugees.
Part 11 authorizes the Minister of State (Infrastructure and Communities), pursuant to the initiative commonly known as “A New Deal for Cities and Communities”, to make payments for the purpose of providing funding, in the fiscal year 2005-2006, to cities and communities for environmentally sustainable infrastructure initiatives, in accordance with agreements to be negotiated with provinces, territories and first nations.
Part 12 enacts the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act. The legislation will implement the arrangements of February 14, 2005 reached with Newfoundland and Labrador and Nova Scotia on offshore revenues. To do this, the legislation will
(a) authorize the payment of equalization offset payments to Newfoundland and Labrador and Nova Scotia for 2004-05 to 2011-12, set out the conditions under which payments will be extended to any of fiscal years 2012-13 to 2019-20, and authorize payments for that period should those conditions be met;
(b) set out the manner in which the offset payments are to be calculated;
(c) authorize the making of a cash pre-payment in the amount of $2 billion in respect of the agreement with Newfoundland and Labrador and a cash pre-payment in the amount of $830 million in respect of the agreement with Nova Scotia; and
(d) implement all other aspects of the agreements.
Consequential amendments to the Budget Implementation Act, 2004 respecting offset payments to Nova Scotia will also be required to ensure that 100 per cent offset is being provided for in fiscal years 2004-05 and 2005-06.
Part 13 establishes an Agency, to be called the Canada Emission Reduction Incentives Agency, to acquire greenhouse emission reduction and removal credits on behalf of the Government of Canada.
Part 14 enacts the Greenhouse Gas Technology Investment Fund Act. That Act establishes an account in the accounts of Canada called the Greenhouse Gas Technology Investment Fund to which are to be charged amounts paid by the Minister of Natural Resources for the purpose of
(a) research into, or the development or demonstration of, technologies or processes intended to reduce emissions of greenhouse gases from industrial sources or to remove greenhouse gases from the atmosphere in the course of an industrial operation; or
(b) creating elements of the infrastructure that are necessary to support research into, or the development or demonstration of, those technologies or processes.
The Act also provides for the creation of technology investment units in respect of amounts that are contributed to Her Majesty for those purposes.
Part 15 amends the Canada Deposit Insurance Corporation Act to
(a) increase the deposit insurance coverage limit for insurable deposits from $60,000 to $100,000;
(b) repeal the authority of the Corporation to make by-laws respecting standards of sound business and financial practices for member institutions; and
(c) provide that the deposits of a federal institution shall automatically be insured.
Part 16 amends the Canada Student Financial Assistance Act to provide for the termination of the obligations of certain borrowers in respect of student loans in the event of their death or if, as a result of their permanent disability, they are unable to repay their loan without exceptional hardship, taking into account their family income.
Part 17 amends the Currency Act with respect to the Exchange Fund Account and the management of Canada’s foreign exchange reserves. These amendments include authorizing the Minister of Finance to establish a policy concerning the investment of assets held in that Account and to advance funds to that Account on terms and conditions that the Minister considers appropriate.
Part 18 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with responsibility for the procurement of goods and services for the federal government, and to authorize the Minister to negotiate and enter into contracts on behalf of the Government of Canada and to make commitments to a minimum volume of purchases on its behalf.
Part 19 amends the Employment Insurance Act and the Department of Human Resources Development Act to allow the Canada Employment Insurance Commission to set the premium rate under a new rate-setting mechanism. In setting the rate, the Commission will take into account the principle that the premium rate should generate just enough premium revenue to cover payments to be made for that year, as well as the report from the employment insurance chief actuary and any public input. On an as-needed basis, the Commission may also contract for the services of persons with specialized knowledge in rate-setting matters. If it is in the public interest to do so, the Governor in Council may substitute a different premium rate. In any given year, the rate cannot change by more than 0.15% ($0.15 per $100) from the previous year’s rate, and for the years 2006 and 2007 must not exceed 1.95% ($1.95 per $100).
Part 20 amends the Employment Insurance Act, for the purpose of the implementation of a premium reduction agreement between the Government of Canada and a province, to allow for a regulatory scheme to make the necessary adjustments and modifications to that Act as required to harmonize it with a provincial law that has the effect of reducing or eliminating the special benefits payable under that Act. A consequential change is also made to the parental benefits provisions.
Part 21 amends the Financial Administration Act to provide the authority for the President of the Treasury Board to create a shared-governance corporate entity for the purpose of administering group insurance or other benefit programs. In addition, the amendments provide the authority for the Treasury Board to establish or modify those programs not just for employees of the public service but for other persons or classes of persons as well.
Part 22 amends the Old Age Security Act to increase the guaranteed income supplement by $18 a month for single pensioners and by $14.50 a month for each pensioner in a couple, effective January 2006. Also, the amendments increase the allowance by $14.50 a month and the allowance for the survivor by $18 a month, effective January 2006. In addition, the amendments provide for identical increases to the guaranteed income supplement, the allowance and the allowance for the survivor in January 2007.
Part 23 authorizes the Minister of Finance to pay funds directly to the provinces of Quebec, British Columbia and Saskatchewan and to each of the three Territories.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
TABLE OF PROVISIONS
AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE BUDGET TABLED IN PARLIAMENT ON FEBRUARY 23, 2005
SHORT TITLE
1.       Budget Implementation Act, 2005
PART 1
AMENDMENTS IN RESPECT OF INCOME TAX
2-18.       Income Tax Act
19.       Income Tax Application Rules
PART 2
AMENDMENTS IN RESPECT OF THE AIR TRAVELLERS SECURITY CHARGE
20.       Air Travellers Security Charge Act
Coordinating Amendment
21.       Bill C-33
PART 3
AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX
22-24.       Excise Tax Act
PART 4
AMENDMENTS IN RESPECT OF EXCISE TAX ON JEWELLERY, ETC.
25-26.       Excise Tax Act
PART 5
AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
27-28.       Federal-Provincial Fiscal Arrangements Act
Coordinating Amendment
29.       Bill C-39
PART 6
NORTHERN STRATEGY
30.       Payments to trust
PART 7
AUDITOR GENERAL OF CANADA
31-34.       Auditor General Act
35-40.       Financial Administration Act
Consequential Amendments
41-43.       Broadcasting Act
44.       Canada Post Corporation Act
45-46.       Canadian Race Relations Foundation Act
47-49.       Public Sector Pension Investment Board Act
Coordinating Amendments
50.       Bill C-6
51.       Bill C-18
PART 8
PAYMENTS TO CERTAIN ENTITIES
Aboriginal Healing Foundation
52.       Payment of $40,000,000
Asia-Pacific Foundation of Canada
53.       Payment of $50,000,000
Canadian Academies of Science
54.       Payment of $30,000,000
Canadian Cattlemen’s Association
55.       Payment of $50,000,000
Canadian Youth Business Foundation
56.       Payment of $10,000,000
Federation of Canadian Municipalities
57.       Payment of $300,000,000
Genome Canada
58.       Payment of $165,000,000
Precarn Incorporated
59.       Payment of $20,000,000
PART 9
ASIA-PACIFIC FOUNDATION OF CANADA
60-80.       Asia-Pacific Foundation of Canada Act
Coordinating Amendments
81.       2003, c. 22
PART 10
AMENDMENT TO THE BUDGET IMPLEMENTATION ACT, 1998
82.       Budget Implementation Act, 1998
PART 11
PAYMENTS FOR INFRASTRUCTURE
83.       Payments for infrastructure
84.       Bilateral agreement
PART 12
NOVA SCOTIA AND NEWFOUNDLAND AND LABRADOR ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS
85.       Enactment of Act
SHORT TITLE
1.       Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act
INTERPRETATION 
2.       Definitions
PURPOSE
3.       Purpose of the Act
PART 1
ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS FOR NOVA SCOTIA
4.       Definitions
5.       Payment of $830 million
6.       Additional fiscal equalization offset payment of $30.5 million
7.       Additional fiscal equalization offset payments for the 2006-2012 period
8.       Calculation of payments
9.       Restriction
10.       Restriction
11.       Transitional payments for the 2006-2011 period
12.       Additional fiscal equalization offset payments for the 2012-2020 period
13.       Restriction
14.       Transitional payments for the 2012-2020 period
15.       Review of the Canada–Nova Scotia Arrangement
16.       Discussions
17.       Determination
PART 2
ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS FOR NEWFOUNDLAND AND LABRADOR
18.       Definitions
19.       Payment of $2 billion
20.       Additional fiscal equalization offset payment of $133.6 million
21.       Additional fiscal equalization offset payment for the 2006-2012 period
22.       Calculation of payments
23.       Restriction
24.       Restriction
25.       Transitional payments for 2011-2012
26.       Additional fiscal equalization offset payments for the 2012-2020 period
27.       Restriction
28.       Transitional payments for the 2012-2020 period
29.       Review of the Canada–New­foundland and Labrador Arrangement
30.       Discussions
31.       Determination
PART 3
GENERAL PROVISIONS
32.       Appropriation
33.       Regulations
Related Amendment to the Budget Implementation Act, 2004
86.       Budget Implementation Act, 2004
PART 13
CANADA EMISSION REDUCTION INCENTIVES AGENCY
87.       Enactment of Act
SHORT TITLE
1.       Canada Emission Reduction Incentives Agency Act
INTERPRETATION
2.       Definitions
INTERPRETATION
2.1       Interpretation
DESIGNATIONS
3.       Designations
ESTABLISHMENT OF AGENCY
4.       Establishment
5.       Minister responsible
OBJECT
6.       Object
ORGANIZATION AND HEAD OFFICE
7.       Appointment of President
8.       President’s powers
9.       Delegation by President
10.       Remuneration
11.       Head office
ADVISORY BOARD
12.       Appointment of members
EMPLOYEES
13.       Employees
DUTIES AND POWERS OF THE AGENCY
14.       Contracts and agreements
15.       Legal proceedings
16.       Procurement process
17.       Competitive process — eligible domestic credits
18.       Competitive process — eligible Kyoto units
19.       Advance payment for eligible domestic credits
20.       Credits to be recorded
21.       Contracts with Her Majesty
GENERAL
22.       Accident compensation
CORPORATE BUSINESS PLAN
23.       Corporate business plan
AUDIT
24.       Annual audit
ANNUAL REPORT
25.       Annual report
Consequential Amendments
88.       Access to Information Act
89.       Financial Administration Act
90.       Privacy Act
91.       Public Service Staff Relations Act
92.       Public Service Superannuation Act
Coordinating Amendments
93.       2003, c. 22
94.       2003, c. 22
Coming into Force
95.       Order in council
PART 14
GREENHOUSE GAS TECHNOLOGY INVESTMENT FUND ACT
96.       Enactment of Act
SHORT TITLE
1.       Greenhouse Gas Technology Investment Fund Act
INTERPRETATION
2.       Definitions
GREENHOUSE GAS TECHNOLOGY INVESTMENT FUND
3.       Establishment
4.       Amounts to be credited to Fund
5.       Amounts charged to Fund
GRANTS OR CONTRIBUTIONS
6.       Power of Minister
ADVISORY BOARD
7.       Appointment of members
TECHNOLOGY INVESTMENT UNITS
8.       Creation
Coming into Force
97.       Order in council
PART 15
AMENDMENTS TO THE CANADA DEPOSIT INSURANCE CORPORATION ACT
98-108.       Canada Deposit Insurance Corporation Act
Coming into Force
109.       Order in council
PART 16
AMENDMENTS TO THE CANADA STUDENT FINANCIAL ASSISTANCE ACT 
110-112.       Canada Student Financial Assistance Act
PART 17
AMENDMENTS TO THE CURRENCY ACT
113-116.       Currency Act
Transitional Provisions
117.       First fiscal year — payment into C.R.F.
118.       First fiscal year — report to Parliament
Coming into Force
119.       Order in council
PART 18
AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT
120-124.       Department of Public Works and Government Services Act
Coming into Force
125.       Order in council
PART 19
AMENDMENTS RELATED TO THE PREMIUM RATE PROVIDED FOR UNDER THE EMPLOYMENT INSURANCE ACT
126.       Employment Insurance Act
127-128.       Department of Human Resources Development Act
Coordinating Amendments
129.       Bill C-23
PART 20
AMENDMENTS TO THE EMPLOYMENT INSURANCE ACT (PROVINCIAL PLANS)
130-131.       Employment Insurance Act
PART 21
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT
132-133.       Financial Administration Act
Coordinating Amendments
134.       2003, c. 22
135.       Bill C-21
PART 22
AMENDMENTS TO THE OLD AGE SECURITY ACT
136-137.       Old Age Security Act
PART 23
PAYMENTS TO CERTAIN PROVINCES AND TERRITORIES
Payment to Quebec
138.       Payment of $200,000,000
Payment to British Columbia
139.       Payment of $100,000,000
Payment to Saskatchewan
140.       Payment of $6,500,000
Payment to Yukon
141.       Payment of $13,700,000
Payment to the Northwest Territories
142.       Payment of $22,500,000
Payment to Nunavut
143.       Payment of $21,800,000
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53-54 ELIZABETH II
——————
CHAPTER 30
An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005
[Assented to 29th June, 2005]
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Short title
1. This Act may be cited as the Budget Implementation Act, 2005.
PART 1
AMENDMENTS IN RESPECT OF INCOME TAX
R.S., c. 1 (5th Supp.)
Income Tax Act
2. (1) Section 37 of the Income Tax Act is amended by adding the following after subsection (1.2):
SR&ED in the exclusive economic zone
(1.3) For the purposes of this section and section 127 of this Act and Part XXIX of the Income Tax Regulations, an expenditure is deemed to have been made by a taxpayer in Canada if the expenditure is
(a) made by the taxpayer in the course of a business carried on by the taxpayer in Canada; and
(b) made for the prosecution of scientific research and experimental development in the exclusive economic zone of Canada, within the meaning of the Oceans Act, or in the airspace above that zone or the seabed or subsoil below that zone.
(2) Subsection (1) applies to expenditures made after February 22, 2005.
3. (1) The portion of subsection 86.1(2) of the Act before paragraph (a) is replaced by the following:
Eligible distribution
(2) For the purpose of this section, a distribution by a particular corporation that is received by a taxpayer is an eligible distribution if
(2) The portion of paragraph 86.1(2)(f) of the Act before subparagraph (i) is replaced by the following:
(f) the taxpayer elects in writing filed with the taxpayer’s return of income for the taxation year in which the distribution occurs that this section apply to the distribution and provides information satisfactory to the Minister
(3) Subsections (1) and (2) apply to distributions received after 2004.
4. (1) The portion of paragraph 107.4(3)(b) of the Act before subparagraph (i) is replaced by the following:
(b) the transferee trust’s cost of the property is deemed to be the amount, if any, by which
(2) Paragraph 107.4(3)(c) of the Act is repealed.
(3) Subsections (1) and (2) apply to dispositions that occur after 2004.
5. Subsection 118(3.1) of the Act is replaced by the following:
Additions to personal credits — basic personal amount
(3.1) The amount of $7,131 referred to in paragraphs (a) to (c) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is
(a) for the 2006 taxation year, to be replaced by the amount that is the total of $100 and the amount that would be determined for that description for that year in respect of the particular amount if this section were read without reference to this subsection;
(b) for the 2007 taxation year, to be replaced by the amount that is the total of $100 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (a);
(c) for the 2008 taxation year, to be replaced by the amount that is the total of $400 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (b);
(d) for the 2009 taxation year, to be replaced by the amount that is the greater of
(i) the amount that is the total of $600 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (c), and
(ii) $10,000; and
(e) for the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (d).
Additions to personal credits — spouse or common-law partner or wholly dependent person
(3.2) The amount of $6,055 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is
(a) for the 2006 taxation year, to be replaced by the amount that is the total of $85 and the amount that would be determined for that description for that year in respect of the particular amount if this section were read without reference to this subsection;
(b) for the 2007 taxation year, to be replaced by the amount that is the total of $85 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (a);
(c) for the 2008 taxation year, to be replaced by the amount that is the total of $340 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (b);
(d) for the 2009 taxation year, to be replaced by the amount that is the greater of
(i) the amount that is the total of $510 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (c), and
(ii) $8,500; and
(e) for the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (d).
Additions to personal credits — net income threshold
(3.3) The amount of $606 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is
(a) for the 2006 taxation year, to be replaced by the amount that is the total of $8.50 and the amount that would be determined for that description for that year in respect of the particular amount if this section were read without reference to this subsection;
(b) for the 2007 taxation year, to be replaced by the amount that is the total of $8.50 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (a);
(c) for the 2008 taxation year, to be replaced by the amount that is the total of $34 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (b);
(d) for the 2009 taxation year, to be replaced by the amount that is the greater of
(i) the amount that is the total of $51 and the amount that would be determined for that description for that year in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (c), and
(ii) $850; and
(e) for the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying subsection 117.1(1) to the amount determined under paragraph (d).
6. For the purpose of applying section 118.1 of the Act, a gift made by an individual after 2004 and before January 12, 2005 is deemed to have been made by the individual in the individual’s 2004 taxation year and not in the individual’s 2005 taxation year if
(a) the individual claims an amount under subsection 118.1(3) of the Act in respect of the gift for the individual’s 2004 taxation year;
(b) the gift was made to a registered charity listed under the International Humanitarian Assistance program of the Canadian International Development Agency;
(c) the individual directed the charity to apply the gift to the tsunami relief effort; and
(d) the gift was in the form of cash or was transferred by way of cheque, credit card or money order.
7. (1) Paragraph (a) of the description of A in subsection 122.51(2) of the Act is replaced by the following:
(a) $750, and
(2) Subsection (1) applies to the 2005 and subsequent taxation years.
8. (1) The portion of the description of N in the description of M in subsection 122.61(1) of the Act before paragraph (a) is replaced by the following:
N      is the product obtained by multiplying $2,000 by the number of qualified dependants in respect of whom both
(2) Subsection (1) applies in respect of overpayments deemed to arise during months that are after June 2005.
9. Section 123.2 of the Act is replaced by the following:
Corporation surtax
123.2 (1) There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation an amount equal to the corporation’s specified percentage for the taxation year multiplied by the amount, if any, by which
(a) the tax payable under this Part by the corporation for the year determined without reference to this section, sections 123.3, 123.4 and 125 to 126 and subsections 127(3), (5), (27) to (31), (34) and (35) and 137(3) and as if subsection 124(1) did not contain the words “in a province”
exceeds
(b) in the case of a corporation that was throughout the year an investment corporation or a mutual fund corporation, the amount determined for A in the definition “refundable capital gains tax on hand” in subsection 131(6) in respect of the corporation for the year, and
(c) in any other case, nil.
Specified percentage
(2) The specified percentage of a corporation for a taxation year is
(a) if the taxable capital employed in Canada of the corporation for the taxation year is equal to or less than $50,000,000, that pro- portion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year; and
(b) if paragraph (a) does not apply, the percentage determined by the formula
A + B[(C - $50,000,000)/$25,000,000]
where 
A      is that proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year,
B      is that proportion of 4% that the number of days in the taxation year that are after 2007 is of the number of days in the taxation year; and
C      is the lesser of $75,000,000 and the taxable capital employed in Canada of the corporation for the taxation year.
Taxable income
(3) For the purpose of subsection (2), the taxable capital employed in Canada of a corporation for a particular taxation year is
(a) if the corporation is associated with one or more other corporations in the particular taxation year, the total of all amounts each of which is the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation, or of such an associated corporation, for its last taxation year that ended in the calendar year preceding the calendar year in which the particular taxation year ends; and
(b) if the corporation is not associated with one or more other corporations in the particular taxation year, the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation for the particular taxation year.
10. (1) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order:
“specified plan”« régime déterminé »
“specified plan” means an education savings plan 
(a) that does not allow more than one beneficiary under the plan at any one time,
(b) under which the beneficiary is an individual in respect of whom paragraphs 118.3(1)(a) to (b) apply for the beneficiary’s taxation year that ends in the 21st year following the year in which the plan was entered into, and
(c) that provides that, at all times after the end of the 25th year following the year in which the plan was entered into, no other individual may be designated as a beneficiary under the plan;
(2) Clause 146.1(2)(d.1)(iii)(B) of the Act is replaced by the following:
(B) the payment is made in the year in which the plan is required to be terminated in accordance with paragraph (i), or
(3) Paragraphs 146.1(2)(h) and (i) of the Act are replaced by the following:
(h) the plan provides that no contribution (other than a contribution made by way of a transfer from another registered education savings plan) may be made into the plan after
(i) in the case of a specified plan, the 25th year following the year in which the plan was entered into, and
(ii) in any other case, the 21st year following the year in which the plan was entered into;
(i) the plan provides that it must be terminated on or before the last day of
(i) in the case of a specified plan, the 30th year following the year in which the plan was entered into, and
(ii) in any other case, the 25th year following the year in which the plan was entered into;
(4) The portion of paragraph 146.1(6.1)(b) of the Act before subparagraph (i) is replaced by the following:
(b) for the purposes of this paragraph, the definition “specified plan” in subsection (1) and paragraphs (2)(d.1), (h) and (i), the transferee plan is deemed to have been entered into on the day that is the earlier of
(5) Subsections (1) to (4) apply to the 2005 and subsequent taxation years.
11. (1) Paragraph (k) of the definition “money purchase limit” in subsection 147.1(1) of the Act is replaced by the following:
(k) for 2006, the greater of $19,000 and the former limit for the year,
(l) for 2007, the greater of $20,000 and the former limit for the year,
(m) for 2008, the greater of $21,000 and the former limit for the year,
(n) for 2009, the greater of $22,000 and the former limit for the year, and
(o) for each year after 2009, the greater of
(i) the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of
(A) the money purchase limit for 2009, and
(B) the quotient obtained when the average wage for the year is divided by the average wage for 2009, and
(ii) the money purchase limit for the preceding year;
(2) Subsection 147.1(1) of the Act is amended by adding the following in alphabetical order:
“former limit”« ancien plafond »
“former limit” for each calendar year after 2005 and before 2010 means the greater of
(a) the product (rounded to the nearest multiple of $10, or, if that product is equidistant from two such consecutive multiples, to the higher multiple) of
(i) $18,000, and
(ii) the quotient obtained when the average wage for the year is divided by the average wage for 2005, and
(b ) for 2006, $18,000, and for any other of those calendar years, the former limit for the preceding calendar year;
(3) Subsections (1) and (2) apply after 2004.
12. (1) Clauses 204.4(2)(a)(i)(A) and (B) of the Act are replaced by the following:
(A) not fewer than 20 beneficiaries are taxpayers described in any of paragraphs 149(1)(o) to (o.2), (o.4) or (s), or
(B) not fewer than 100 beneficiaries are taxpayers described in paragraph 149(1)(r) or (x),
(2) Subparagraphs 204.4(2)(a)(vi) and (vii) of the Act are replaced by the following:
(vi) the total value of all interests in the applicant owned by all trusts or corporations described in any of paragraphs 149(1)(o) to (o.2), (o.4) or (s) to which any one employer, either alone or together with persons with whom the employer was not dealing at arm’s length, has made contributions does not exceed 25% of the value of all its property,
(vii) the total value of all interests in the applicant owned by all trusts described in paragraph 149(1)(r) or (x) to which any one taxpayer, either alone or together with persons with whom the taxpayer was not dealing at arm’s length, has made contributions does not exceed 25% of the value of all its property, and
(3) Subsection 204.4(4) of the Act is replaced by the following:
Suspension of revocation
(4) Notwithstanding a notification to a taxpayer under subsection (3), for the purposes of sections 204.6 and 204.7, the taxpayer is deemed to be a registered investment for each month or part of a month after the notification during which an interest in, or a share of the capital stock of, the taxpayer continues, by virtue of having been a registered investment, to be a qualified investment for a plan or fund referred to in subsection (1).
(4) Subsections (1) to (3) apply to taxation years that begin after 2004.
13. (1) Clause (b)(iii)(A) of the definition “eligible investment” in subsection 204.8(1) of the Act is replaced by the following:
(A) a debt obligation, issued by the entity, that is prescribed to be a small business security, or
(2) Subsection (1) applies to taxation years that begin after 2004.
14. (1) Part XI of the Act is repealed.
(2) Subsection (1) applies to months that end after 2004.
15. (1) The heading of Part X1.1 of the Act is replaced by the following:
TAX IN RESPECT OF DEFERRED INCOME PLANS AND OTHER TAX EXEMPT PERSONS
(2) Subsection (1) applies to months that end after 2004.
16. (1) Section 207.1 of the Act is amended by adding the following after subsection (4):
Tax payable in respect of agreement to acquire shares
(5) Where at any time a taxpayer whose taxable income is exempt from tax under Part I makes an agreement (otherwise than as a consequence of the acquisition or writing by it of an option listed on a prescribed stock exchange) to acquire a share of the capital stock of a corporation (otherwise than from the corporation) at a price that may differ from the fair market value of the share at the time the share may be acquired, the taxpayer shall, in respect of each month during which the taxpayer is a party to the agreement, pay a tax under this Part equal to the total of all amounts each of which is the amount, if any, by which the amount of a dividend paid on the share at a time in the month at which the taxpayer is a party to the agreement exceeds the amount, if any, of the dividend that is received by the taxpayer.
(2) Subsection (1) applies to months that end after 2004.
17. (1) The definition “automobile” in subsection 248(1) of the Act is amended by adding the following after paragraph (b.1):
(b.2) a clearly marked emergency medical response vehicle that is used, in connection with or in the course of an individual’s office or employment with an emergency medical response or ambulance service, to carry emergency medical equipment together with one or more emergency medical attendants or paramedics,
(2) Paragraph (c) of the definition “disposition” in subsection 248(1) of the Act is replaced by the following:
(c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by paragraph (f) or (k), and
(3) Paragraph (g) of the definition “disposition” in subsection 248(1) of the Act is repealed.
(4) Subsection (1) applies to the 2005 and subsequent taxation years.
(5) Subsections (2) and (3) apply to dispositions that occur after 2004.
18. (1) The portion of subsection 259(1) of the Act before paragraph (a) is replaced by the following:
Proportional holdings in trust property
259. (1) For the purposes of subsections 146(6), (10) and (10.1) and 146.3(7), (8) and (9) and Parts X, X.2 and XI.1, if at any time a taxpayer that is a registered investment or that is described in paragraph 149(1)(r), (s), (u) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,
(2) Paragraph 259(1)(c) of the Act is repealed.
(3) Subsection 259(2) of the Act is repealed.
(4) Subsections 259(3) and (4) of the Act are replaced by the following:
Election
(3) An election by a qualified trust under subsection (1) shall be made by the qualified trust filing a prescribed form with the Minister and shall apply for the period
(a) that begins on the later of
(i) the day that is 15 months before the day on which the election is filed, and
(ii) the day, if any, that is designated by the qualified trust in the election; and
(b) that ends on the earlier of
(i) the day on which the qualified trust files with the Minister a notice of revocation of the election, and
(ii) the day, if any, that is designated by the qualified trust in the notice of revocation and that is not before the day that is 15 months before the day on which the notice of revocation is filed.
Requirement to provide information
(4) Where a qualified trust elects under subsection (1),
(a) it shall provide notification of the election
(i) within 30 days after making the election, to each person who held a unit in the qualified trust at any time in the period before the election was made and during which the election is applicable, and
(ii) at the time of acquisition, to each person who acquires a unit in the qualified trust at any time in the period after the election was made and during which the election is applicable; and
(b) if a person who holds a unit in the qualified trust at any time in the period during which the election is applicable makes a written request to the qualified trust for information that is necessary for the purpose of determining the consequences under this Act of the election for that person, the qualified trust shall provide to the person that information within 30 days after receiving the request.
(5) The definition “qualified corporation” in subsection 259(5) of the Act is repealed.
(6) Subsections (1) to (5) apply to taxation years that begin after 2004.
R.S., c. 2 (5th Supp.)
Income Tax Application Rules
19. (1) Section 65 of the Income Tax Application Rules is repealed.
(2) Subsection (1) applies to months that end after 2004.
PART 2
AMENDMENTS IN RESPECT OF THE AIR TRAVELLERS SECURITY CHARGE
2002, c. 9, s. 5
Air Travellers Security Charge Act
2003, c. 15, s. 44(1)
20. (1) The portion of paragraph 12(1)(a) of the Air Travellers Security Charge Act before subparagraph (i) is replaced by the following:
(a) $4.67 for each chargeable emplanement included in the service, to a maximum of $9.35, if
2003, c. 15, s. 44(1)
(2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the following:
(b) $5.00 for each chargeable emplanement included in the service, to a maximum of $10.00, if
2003, c. 15, s. 44(1)
(3) The portion of paragraph 12(1)(c) of the Act before subparagraph (i) is replaced by the following:
(c) $7.94 for each chargeable emplanement included in the service, to a maximum of $15.89, if
2003, c. 15, s. 44(1)
(4) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the following:
(d) $8.50 for each chargeable emplanement included in the service, to a maximum of $17.00, if
2003, c. 15, s. 44(1)
(5) Paragraph 12(1)(e) of the Act is replaced by the following:
(e) $17.00, if the service includes transportation to a destination outside the continental zone.
(6) The portion of paragraph 12(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) $7.94 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $15.89, if
(7) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the following:
(b) $8.50 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $17.00, if
(8) Paragraph 12(2)(c) of the Act is replaced by the following:
(c) $17.00, if the service includes transportation to a destination outside the continental zone.
(9) Subsections (1) to (8) apply in respect of any air transportation service that includes a chargeable emplanement on or after March 1, 2005 and for which any consideration is paid or becomes payable on or after that day.
Coordinating Amendment
Bill C-33
21. (1) Subsections (2) and (3) apply if Bill C-33, introduced in the 1st session of the 38th Parliament and entitled the Budget Implementation Act, 2004, No. 2 (the “other Act”), receives royal assent.
(2) If the other Act receives royal assent on the same day as this Act, section 2 of the other Act is deemed to have come into force immediately before section 20 of this Act.
(3) If the other Act receives royal assent after this Act, then, on the day on which the other Act is assented to, subsection 2(9) of the other Act is replaced by the following:
(9) Subsections (1) to (8) apply in respect of any air transportation service that includes a chargeable emplanement on or after April 1, 2004 and for which any consideration is paid or becomes payable on or after April 1, 2004 but do not apply in respect of any air transportation service that includes a chargeable emplanement on or after March 1, 2005 and for which any consideration is paid or becomes payable on or after March 1, 2005.
PART 3
AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX
R.S., c. E-15
Excise Tax Act
22. (1) The definition “selected public service body” in subsection 259(1) of the Excise Tax Act is amended by striking out the word “or” at the end of paragraph (d) and by adding the following after paragraph (e):
(f) a facility operator, or
(g) an external supplier;
2004, c. 22, s. 39(1)
(2) Paragraph (b) of the definition “specified percentage” in subsection 259(1) of the Act is replaced by the following:
(b) in the case of a hospital authority, a facility operator or an external supplier, 83%,
(3) Subsection 259(1) of the Act is amended by adding the following in alphabetical order:
“ancillary supply”« fourniture connexe »
“ancillary supply” means
(a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or
(b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding;
“external supplier”« fournisseur externe »
“external supplier” means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority or a facility operator), that makes ancillary supplies, facility supplies or home medical supplies;
“facility operator”« exploitant d’établissement »
“facility operator” means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility;
“facility supply”« fourniture en établissement »
“facility supply” means an exempt supply (other than a prescribed supply) of property or a service in respect of which
(a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process
(i) is undertaken in whole or in part at the public hospital or qualifying facility,
(ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of
(A) a physician acting in the course of the practise of medicine,
(B) a midwife acting in the course of the practise of midwifery,
(C) if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner acting in the course of the practise of a nurse practitioner, or
(D) a prescribed person acting in prescribed circumstances, and
(iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that
(A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(B) a physician or, if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner, be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and
(D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and
(b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier;
“home medical supply”« fourniture de biens ou services médicaux à domicile »
“home medical supply” means an exempt supply (other than a facility supply or a prescribed supply) of property or a service 
(a) that is made
(i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, and
(ii) after a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances, has identified or confirmed that it is appropriate for the process to take place at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility),
(b) in respect of which the property is made available, or the service is rendered, to the individual at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances,
(c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and
(d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier;
“medical funding”« subvention médicale »
“medical funding” of a supplier in respect of a supply means an amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the supplier in respect of health care services for the purpose of financially assisting the supplier in making the supply or as consideration for the supply by 
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made;
“midwife”« sage-femme »
“midwife” means a person who is entitled under the laws of a province to practise the profession of midwifery;
“physician”« médecin »
“physician” means a person who is entitled under the laws of a province to practise the profession of medicine;
“qualifying funding”« subvention admissible »
“qualifying funding” of the operator of a facility for all or part of a fiscal year of the operator means a readily ascertainable amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the operator in respect of the delivery of health care services to the public for the purpose of financially assisting in operating the facility during the fiscal year or part, as consideration for an exempt supply of making the facility available for use in making facility supplies at the facility during the fiscal year or part or as consideration for facility supplies of property that are made available, or services that are rendered, at the facility during the fiscal year or part and is paid or payable by
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made;
“specified activities”« activités déterminées »
“specified activities” means activities referred to in any of clauses (4.1)(b)(iii)(B) to (D), other than the operation of a public hospital;
“specified supply”« fourniture déterminée »
“specified supply” of property of a person means
(a) a taxable supply made to the person at any time after December 31, 2004, of property that was owned on that day by the person or by another person who is related to the person at that time, or
(b) a taxable supply that the person is deemed under subsection 211(4) to have made after December 30, 2004, of property that was, on that day, owned by the person, or by another person who last supplied the property to the person by way of sale and who was related to the person on the day the supply by way of sale was made.
(4) Section 259 of the Act is amended by adding the following after subsection (2):
Qualifying facilities
(2.1) For the purposes of this section, a facility, or part of a facility, other than a public hospital, is a qualifying facility for a fiscal year, or any part of a fiscal year, of the operator of the facility or part, if
(a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition “facility supply” in subsection (1) to “public hospital or qualifying facility” were references to the facility or part;
(b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and
(c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.
2004, c. 22, s. 39(4)
(5) Subparagraphs 259(4.1)(b)(i) to (iii) of the Act are replaced by the following:
(i) the reference in subsection (4) to “specified percentage” were read as a reference to “specified percentage appli­cable to a selected public service body described in whichever of paragraphs (a) to (g) of the definition of that expression in subsection (1) applies to the person minus 50%”,
(ii) the reference in subsection (4) to “specified provincial percentage” were read as a reference to the greater of “specified provincial percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%” and “0%”,
(iii) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of C in subsection (4) to “designated activities” were read as a reference to
(A) in the case of a person determined to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1), activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority,
(B) in the case of a person acting in the person’s capacity as a hospital authority, activities engaged in by the person in the course of operating a public hospital, operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies,
(C) in the case of a person acting in the person’s capacity as a facility operator, activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies,
(D) in the case of a person acting in the person’s capacity as an external supplier, activities engaged in by the person in the course of making ancillary supplies, facility supplies or home medical supplies, or
(E) in any other case, activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution, an elementary or secondary school or a post-secondary college or technical institute, as the case may be, and
(iv) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of F in subsection (4) to “designated activities” were read as a reference to
(A) in the case of a person determined to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1), activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority, or
(B) in any other case, activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution, a public hospital, an elementary or secondary school or a post-secondary college or technical institute, as the case may be.
2004, c. 22, s. 39(4)
(6) The portion of subsection 259(4.2) of the Act before paragraph (a) is replaced by the following:
Exclusions
(4.2) For the purposes of determining a rebate payable to a person, in determining an amount under paragraphs (3)(a) and (4)(a), or under paragraph (4.1)(a) if the applicable specified provincial percentage is 0% and the person is a selected public service body described in any of paragraphs (a) to (e) of the definition “selected public service body” in subsection (1) or in paragraph (f) or (g) of that definition if the person is resident in Newfoundland and Labrador, no tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 payable or deemed to have been paid or collected by the person shall be included
2000, c. 30, s. 76(6)
(7) Subparagraph 259(4.3)(c)(ii) of the Act is replaced by the following:
(ii) in any other case, that it engages in otherwise than in the course of
(A) fulfilling its responsibilities as a local authority,
(B) operating a public hospital, an elementary or secondary school, a post-secondary college or technical institute, a recognized degree-granting institution or a college affiliated with or research body of such a degree-granting institution, or
(C) making facility supplies, ancillary supplies or home medical supplies or operating a qualifying facility for use in making facility supplies,
1993, c. 27, s. 115(3)
(8) Subsection 259(7) of the English version of the Act is replaced by following:
Selected public service bodies
(7) If a selected public service body acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by another selected public service body, for the purpose of determining the amount of a rebate under this section to the body in respect of the non-creditable tax charged in respect of the property or service for any claim period of the body, the body is deemed to be engaged in those activities.
1993, c. 27, s. 115(3)
(9) Subsection 259(8) of the Act is replaced by the following:
Selected public service bodies
(8) If a person acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (g) of the definition “selected public service body” in subsection (1), the amount of any rebate under this section to the person in respect of the non-creditable tax charged in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.
(10) Section 259 of the Act is amended by adding the following after subsection (13):
Application
(14) For the purposes of this section, if a person incurs all or substantially all of the tax that is included in determining the amount of the non-creditable tax charged in respect of property or a service for a claim period of the person acting in the person’s capacity as a hospital authority, a facility operator or an external supplier, the person is deemed to have incurred all of the tax that is included in determining that amount in the course of fulfilling the person’s responsibilities as a hospital authority, a facility operator or an external supplier, as the case may be.
Rules for specified supplies
(15) Despite subsections (3), (4) and (4.1), for the purpose of applying subsection (4.1) to determine a rebate payable under subsection (3) or (4) to a person that is a hospital authority, a facility operator or an external supplier, for a claim period of the person, if the person is required to determine under paragraph (4.1)(b) a particular amount, in respect of a specified supply of property of the person made at any time, that would, if subsection (4) applied to the person, be determined by the formula in paragraph (4)(a) for the claim period and the value of C in that paragraph is the extent to which the person intended, at that time, to consume, use or supply the property in the course of specified activities, the particular amount shall be determined by the formula
A x B
where
A      is the amount that would, in the absence of this subsection, be determined to be the particular amount; and
B      is the amount determined by the formula
(B1 - B2) / B1
where
B1      is the fair market value of the property at the time of the supply, and
B2      is the fair market value of the property on January 1, 2005.
(11) Subsections (1) to (10) apply for the purposes of determining a rebate under section 259 of the Act of a person for claim periods ending on or after January 1, 2005, except that the rebate shall be determined as if those subsections had not come into force for the purposes of determining a rebate of a person for the claim period that includes that day in respect of
(a) an amount of tax that became payable by the person before that day;
(b) an amount that is deemed to have been paid or collected by the person before that day; or
(c) an amount that is required to be added in determining the person’s net tax
(i) as a result of a branch or division of the person becoming a small supplier division before that day, or
(ii) as a result of the person ceasing before that day to be a registrant.
23. Section 295 of the Act is amended by adding the following after subsection (6):
Confirmation of registration and business number
(6.1) On being provided by any person with information specified by the Minister sufficient to identify a single person and a number, an official may confirm or deny that the following statements are both true:
(a) the identified person is registered under Subdivision d of Division V; and
(b) the number is the business number of the identified person.
1997, c. 10, s. 239(1)
24. Subsection 323(1) of the Act is replaced by the following:
Liability of directors
323. (1) If a corporation fails to remit an amount of net tax as required under subsection 228(2) or (2.3) or to pay an amount as required under section 230.1 that was paid to, or was applied to the liability of, the corporation as a net tax refund, the directors of the corporation at the time the corporation was required to remit or pay, as the case may be, the amount are jointly and severally, or solidarily, liable, together with the corporation, to pay the amount and any interest on, or penalties relating to, the amount.
PART 4
AMENDMENTS IN RESPECT OF EXCISE TAX ON JEWELLERY, ETC.
R.S., c. E-15
Excise Tax Act
25. (1) Section 5 of Schedule I to the Excise Tax Act is replaced by the following:
5. Clocks and watches adapted to household or personal use, except railway men’s watches, and those specially designed for the use of the blind,
(a) eight per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 23, 2005 and before March 2006;
(b) six per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2006 and before March 2007;
(c) four per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2007 and before March 2008; and
(d) two per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2008 and before March 2009.
5.1 Articles of all kinds made in whole or in part of ivory, jet, amber, coral, mother of pearl, natural shells, tortoise shell, jade, onyx, lapis lazuli or other semi-precious stones,
(a) eight per cent, applicable after February 23, 2005 and before March 2006;
(b) six per cent, applicable after February 2006 and before March 2007;
(c) four per cent, applicable after February 2007 and before March 2008; and
(d) two per cent, applicable after February 2008 and before March 2009.
5.2 The following articles, namely, articles commonly or commercially known as jewellery, whether real or imitation, including diamonds and other precious or semi-precious stones for personal use or for adornment of the person, and goldsmiths’ and silversmiths’ products except gold-plated or silver-plated ware for the preparation or serving of food or drink,
(a) eight per cent, applicable after February 23, 2005 and before March 2006;
(b) six per cent, applicable after February 2006 and before March 2007;
(c) four per cent, applicable after February 2007 and before March 2008; and
(d) two per cent, applicable after February 2008 and before March 2009.
(2) Subsection (1) is deemed to have come into force on February 24, 2005.
26. (1) Sections 5 to 5.2 of Schedule I to the Act are repealed.
(2) Subsection (1) comes into force on March 1, 2009.
PART 5
AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
R.S., F-8; 1995, c. 17, s. 45(1)
Federal-Provincial Fiscal Arrangements Act
27. The headings before section 24 of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:
PART V.1
CANADA HEALTH TRANSFER, CANADA SOCIAL TRANSFER, HEALTH REFORM TRANSFER AND EARLY LEARNING AND CHILD CARE TRANSFER
Canada Health Transfer
28. The Act is amended by adding the following after section 24.7:
Early Learning and Child Care Transfer
Payments to trust
24.71 (1) The Minister may make direct payments, in an aggregate amount of not more than $700 million, to a trust established to provide the provinces with funding for the purpose of assisting them to invest in early learning and child care in accordance with four key principles: quality, universal inclusiveness, accessibility and development.
Share of a province
(2) The amount that may be provided to a province under this section is to be determined in accordance with the terms of the trust indenture establishing the trust.
Payments out of the C.R.F.
(3) Despite section 24.8, any amount payable under this section may be paid by the Minister out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.
Coordinating Amendment
Bill C-39
29. If Bill C-39, introduced in the 1st session of the 38th Parliament and entitled An Act to amend the Federal-Provincial Fiscal Arrangements Act and to enact an Act respecting the provision of funding for diagnostic and medical equipment (the “other Act”), receives royal assent, then, on the later of the coming into force of section 1 of the other Act and section 27 of this Act, the headings before section 24 of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:
PART V.1
CANADA HEALTH TRANSFER, CANADA SOCIAL TRANSFER, HEALTH REFORM TRANSFER, WAIT TIMES REDUCTION TRANSFER AND EARLY LEARNING AND CHILD CARE TRANSFER
Canada Health Transfer
PART 6
NORTHERN STRATEGY
Payments to trust
30. (1) The Minister of Finance may make direct payments, in an aggregate amount of not more than one hundred and twenty million dollars, to a trust established to provide the territories with funding for the purpose of assisting them to achieve the goals of the Northern Strategy developed jointly by the federal government and the territories.
Share of a territory
(2) The amount that may be provided to a territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust.
Payments out of C.R.F.
(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.
PART 7
AUDITOR GENERAL OF CANADA
R.S., c. A-17
Amendments to the Auditor General Act
31. The heading before section 2 of the French version of the Auditor General Act is replaced by the following:
DÉFINITIONS ET CHAMP D’APPLICATION
32. Section 2 of the Act is amended by adding the following in alphabetical order:
“funding agreement”« accord de financement »
“funding agreement”, in respect of a corporation, means an agreement in writing under which the corporation receives funding from Her Majesty in right of Canada, either directly or through an agent or mandatary of Her Majesty, including by way of a loan, but does not include a construction contract, a goods contract or a service contract;
“not-for-profit corporation”« société sans but lucratif »
“not-for-profit corporation” means a corporation no part of whose income is payable to or otherwise available for the personal benefit of any of its members or shareholders;
“recipient corporation”« société bénéficiaire »
“recipient corporation” means any not-for-profit corporation, or any corporation without share capital, that has, in any five consecutive fiscal years, received a total of $100,000,000 or more under one or more funding agreements, but does not include any such corporation that is
(a) a Crown corporation,
(b) a departmental corporation as defined in section 2 of the Financial Administration Act,
(c) a municipality,
(d) a cooperative, other than a non-profit cooperative,
(e) a corporation that receives, on an ongoing basis, at least half of its funding from a municipality or the government of a province or of a foreign state, or from any agency of a municipality or any such government,
(f) a corporation that is controlled by a municipality or a government other than the Government of Canada, or
(g) an international organization;
33. The Act is amended by adding the following after section 2:
Control
2.1 (1) For the purpose of paragraph (f) of the definition “recipient corporation” in section 2, a municipality or government controls a corporation with share capital if
(a) shares of the corporation to which are attached more than fifty per cent of the votes that may be cast to elect directors of the corporation are held, otherwise than by way of security only, by, on behalf of or in trust for that municipality or government; and
(b) the votes attached to those shares are sufficient, if exercised, to elect a majority of the directors of the corporation.
Control
(2) For the purpose of paragraph (f) of the definition “recipient corporation” in section 2, a corporation without share capital is controlled by a municipality or government if it is able to appoint the majority of the directors of the corporation, whether or not it does so.
34. The Act is amended by adding the following after section 7:
Inquiry and report
7.1 (1) The Auditor General may, with respect to any recipient corporation, inquire into its use of funds received from Her Majesty in right of Canada and inquire into whether
(a) the corporation has failed to fulfil its obligations under any funding agreement;
(b) money the corporation has received under any funding agreement has been used without due regard to economy and efficiency;
(c) the corporation has failed to establish satisfactory procedures to measure and report on the effectiveness of its activities in relation to the objectives for which it received funding under any funding agreement;
(d) the corporation has failed to faithfully and properly maintain accounts and essential records in relation to any amount it has received under any funding agreement; or
(e) money the corporation has received under any funding agreement has been expended without due regard to the environmental effects of those expenditures in the context of sustainable development.
Report
(2) The Auditor General may set out his or her conclusions in respect of an inquiry into any matter referred to in subsection (1) in the annual report, or in any of the three additional reports, referred to in subsection 7(1). The Auditor General may also set out in that report anything emerging from the inquiry that he or she considers to be of significance and of a nature that should be brought to the attention of the House of Commons.
R.S., c. F-11
Amendments to the Financial Administration Act
2001, c. 11, s. 6(1), c. 34, par. 16(c)(E); 2002, c. 17, par. 14(c)
35. Subsection 85(1) of the Financial Administration Act is replaced by the following:
Exempted Crown corporations
85. (1) Divisions I to IV do not apply to the Bank of Canada or the Canada Pension Plan Investment Board.
Exempted Crown corporations
(1.1) Divisions I to IV, except for sections 131 to 148, do not apply to the Canada Council for the Arts, the Canadian Broadcasting Corporation, Telefilm Canada, the International Development Research Centre or the National Arts Centre Corporation.
36. (1) Subsections 134(1) and (2) of the Act are replaced by the following:
Appointment of auditor
134. (1) Subject to subsection (2), the auditor of a Crown corporation shall be appointed annually by the Governor in Council, after the appropriate Minister has consulted the board of directors of the corporation, and may be removed at any time by the Governor in Council, after the appropriate Minister has consulted the board.
Auditor General
(2) The Auditor General of Canada shall be appointed by the Governor in Council as the auditor, or a joint auditor, of each Crown corporation, unless the Auditor General waives the requirement of being so appointed.
(2) Subsections 134(4) to (7) of the Act are replaced by the following:
Criteria for appointment
(5) The Governor in Council may make regulations prescribing the criteria to be applied in selecting an auditor for appointment pursuant to subsection (1).
Re-appointment
(6) An auditor of a Crown corporation is eligible for re-appointment on the expiration of the auditor’s appointment.
Continuation in office
(7) Notwithstanding subsection (1), if an auditor of a Crown corporation is not appointed to take office on the expiration of the appointment of an incumbent auditor, the incumbent auditor continues in office until a successor is appointed.
37. Sections 135 to 137 of the Act are replaced by the following:
Persons not eligible
135. (1) A person is disqualified from being appointed or re-appointed or continuing as an auditor of a Crown corporation pursuant to section 134 if that person is not independent of the corporation, any of its affiliates, or the directors or officers of the corporation or any of its affiliates.
Independence
(2) For the purposes of this section,
(a) independence is a question of fact; and
(b) a person is deemed not to be independent if that person or any of that person’s business partners
(i) is a business partner, director, officer or employee of the Crown corporation or any of its affiliates, or a business partner of any director, officer or employee of the corporation or any of its affiliates,
(ii) beneficially owns or controls, directly or indirectly through a trustee, legal representative, agent or other intermediary, a material interest in the shares or debt of the Crown corporation or any of its affiliates, or
(iii) has been a receiver, receiver-manager, liquidator or trustee in bankruptcy of the Crown corporation or any of its affiliates within two years of the person’s proposed appointment as auditor of the corporation.
Resignation
(3) An auditor of a Crown corporation who becomes disqualified under this section shall resign immediately after becoming aware of the disqualification.
Qualifications preserved
136. Nothing in sections 134 and 135 shall be construed as empowering the appointment, re-appointment or continuation in office as an auditor of a Crown corporation of any person who does not meet any qualifications for such appointment, re-appointment or continuation established by any other Act of Parliament.
Resignation
137. A resignation of an auditor of a Crown corporation becomes effective at the time the corporation receives a written resignation from the auditor or at the time specified in the resignation, whichever is later.
38. Sections 140 and 141 of the Act are replaced by the following:
Special report to appropriate Minister
140. Where the examiner of a parent Crown corporation, or a wholly-owned subsidiary of a parent Crown corporation, is of the opinion that the report under subsection 139(1) contains information that should be brought to the attention of the appropriate Minister, the examiner shall, after consultation with the board of directors of the corporation, or with the boards of the subsidiary and corporation, as the case may be, report that information to the Minister and furnish the board or boards with a copy of the report.
Special report to Parliament
141. Where the examiner of a parent Crown corporation, or a wholly-owned subsidiary of a parent Crown corporation, is of the opinion that the report under subsection 139(1) contains information that should be brought to the attention of Parliament, the examiner shall, after consultation with the appropriate Minister and the board of directors of the corporation, or with the boards of the subsidiary and corporation, as the case may be, prepare a report on that information for inclusion in the next annual report of the corporation and furnish the board or boards, the appropriate Minister and the Auditor General of Canada with copies of the report.
39. Subsections 142(1) to (3) of the Act are replaced by the following:
Examiner
142. (1) Subject to subsection (2), a special examination referred to in section 138 shall be carried out by the auditor of a Crown corporation.
Examiner
(2) Where, in the opinion of the Governor in Council, a person other than the auditor of a Crown corporation should carry out a special examination, the Governor in Council may, after the appropriate Minister has consulted the board of directors of the corporation, appoint an auditor who is qualified for the purpose to carry out the examination in lieu of the auditor of the corporation and may, after the appropriate Minister has consulted the board, remove that qualified auditor at any time.
1991, c. 24, s. 43
40. Section 146 of the Act is replaced by the following:
Qualified privilege
146. Any oral or written statement or report made under this Part or the regulations by the auditor or a former auditor, or the examiner or a former examiner, of a Crown corporation has qualified privilege.
Consequential Amendments
1991, c. 11
Broadcasting Act
41. Subsections 60(1) to (6) of the Broadcasting Act are repealed.
42. Sections 62 to 69 of the Act are repealed.
43. Paragraphs 71(3)(a) and (b) of the Act are replaced by the following:
(a) the financial statements of the Corporation referred to in subsection 131(4) of the Financial Administration Act,
(b) the annual auditor’s report referred to in section 132 of the Financial Administration Act,
R.S., c. 10
Canada Post Corporation Act
1993, c. 44, s. 31
44. Section 33 of the Canada Post Corporation Act is repealed.
1991, c. 8
Canadian Race Relations Foundation Act
45. Subsection 17(3) of the Canadian Race Relations Foundation Act is replaced by the following:
Financial Administration Act
(3) Part X of the Financial Administration Act, except for sections 131 to 148, does not apply to the Foundation.
46. Subsection 25(2) of the Act is repealed.
1999, c. 34
Public Sector Pension Investment Board Act
47. Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following:
Financial Administration Act
(6) Part X of the Financial Administration Act, except for sections 132 to 147, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act.
Reports and special examination
(7) Any report or information in respect of the Board that is provided to the Minister under sections 132 to 147 of the Financial Administration Act shall also be provided to the Minister of National Defence and the Solicitor General of Canada. The Minister may only require a special examination under subsection 138(2) of that Act after consultation with those Ministers.
48. The heading before section 36 and sections 36 to 46 of the Act are repealed.
49. (1) Paragraph 48(4)(b) of the Act is replaced by the following:
(b) the annual auditor’s report referred to in section 132 of the Financial Administration Act;
(2) Paragraph 48(4)(i) of the Act is replaced by the following:
(i) a report of any special examination referred to in subsection 139(1) of the Financial Administration Act; and
Coordinating Amendments
Bill C-6
50. If Bill C-6, introduced in the 1st session of the 38th Parliament and entitled the Department of Public Safety and Emergency Preparedness Act (the “other Act”), receives royal assent, then, on the later of the coming into force of section 1 of the other Act and section 47 of this Act, subsection 3(7) of the Public Sector Pension Investment Board Act is replaced by the following:
Reports and special examination
(7) Any report or information in respect of the Board that is provided to the Minister under sections 132 to 147 of the Financial Administration Act shall also be provided to the Minister of National Defence and the Minister of Public Safety and Emergency Preparedness. The Minister may only require a special examination under subsection 138(2) of that Act if the Minister has consulted with those Ministers.
Bill C-18
51. If Bill C-18, introduced in the 1st session of the 38th Parliament and entitled An Act to amend the Telefilm Canada Act and another Act (the “other Act”), receives royal assent, then, on the later of the coming into force of section 35 of this Act and section 8 of the other Act, the portion of section 85 of the Financial Administration Act before subsection (2) is replaced by the following:
Exempted Crown corporations
85. (1) Divisions I to IV do not apply to the Bank of Canada or the Canada Pension Plan Investment Board.
Exempted Crown corporations
(1.1) Divisions I to IV, except for sections 131 to 148, do not apply to the Canada Council for the Arts, the Canadian Broadcasting Corporation, the International Development Research Centre or the National Arts Centre Corporation.
Exemption for Telefilm Canada
(1.2) Divisions I to IV, except for sections 131 to 148 and subject to subsection 21(2) of the Telefilm Canada Act, do not apply to Telefilm Canada.
PART 8
PAYMENTS TO CERTAIN ENTITIES
Aboriginal Healing Foundation
Payment of $40,000,000
52. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister responsible for Indian Residential Schools Resolution, be paid and applied a sum not exceeding forty million dollars for payment to the Aboriginal Healing Foundation for its use.
Asia-Pacific Foundation of Canada
Payment of $50,000,000
53. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Foreign Affairs, be paid and applied a sum not exceeding fifty million dollars for payment to the Asia-Pacific Foundation of Canada for its use.
Canadian Academies of Science
Payment of $30,000,000
54. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding thirty million dollars for payment to the Canadian Academies of Science for its use.
Canadian Cattlemen’s Association
Payment of $50,000,000
55. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Agriculture and Agri-Food, be paid and applied a sum not exceeding fifty million dollars for payment to the Canadian Cattlemen’s Association for the purpose of establishing a legacy fund to support the Canadian cattle and beef industry and ensure its long-term viability.
Canadian Youth Business Foundation
Payment of $10,000,000
56. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding ten million dollars for payment to the Canadian Youth Business Foundation for its use.
Federation of Canadian Municipalities
Payment of $150,000,000
57. (1) From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of the Environment, be paid and applied a sum not exceeding one hundred and fifty million dollars for payment to the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.
Payment of $150,000,000
(2) From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Natural Resources, be paid and applied a sum not exceeding one hundred and fifty million dollars for payment to the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.
Genome Canada
Payment of $165,000,000
58. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding one hundred and sixty-five million dollars for payment to Genome Canada for its use.
Precarn Incorporated
Payment of $20,000,000
59. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding twenty million dollars for payment to Precarn Incorporated for its use.
PART 9
ASIA-PACIFIC FOUNDATION OF CANADA
R.S., c. A-13
Asia-Pacific Foundation of Canada Act
60. (1) The portion of section 3 of the Asia-Pacific Foundation of Canada Act before paragraph (a) is replaced by the following:
Purpose of Foundation
3. The purpose of the Foundation is to develop closer ties between the peoples and institutions of Canada and the peoples and institutions of the Asia-Pacific region and to promote capacity development in persons and entities that share an interest in the Asia-Pacific region and the building of networks between them by
(2) Section 3 of the Act is amended by adding the following after paragraph (a):
(a.1) promoting dialogue on, and understanding of, foreign policy issues as they relate to Canada and the Asia-Pacific region;
61. Paragraph 4(l) of the Act is replaced by the following:
(l) expend, for the purpose of the Foundation, all amounts received by it as grants, contributions and donations of money for its activities; and
62. Section 7 of the Act is replaced by the following:
Board of Directors
7. The affairs of the Foundation are to be managed by a Board of Directors, in this Act referred to as the “Board”.
63. Section 8 of the Act is repealed.
1995, c. 5, par. 25(1)(a)
64. Section 9 of the Act is replaced by the following:
Appointment to the Board
9. The Board consists of the following directors:
(a) the Chairperson and up to six other directors appointed by the Governor in Council after consultation with the Board by the Minister of Foreign Affairs, in this Act referred to as the “Minister”;
(b) up to eighteen directors appointed by the Board after consultations with the governments of the provinces and any interested individuals, corporations and organizations; and
(c) the President of the Foundation appointed under section 17.
65. Section 10 of the Act is replaced by the following:
Appointments from provinces
10. When considering the appointment to the Board under paragraph 9(b) of any person proposed by the government of a province, the Board, subject to the criteria that it may establish for the purpose, is to have regard to the amounts contributed to the Foundation by that province.
Representation and experience
10.1 The appointment of directors is to be made from persons whose background or experience would assist the Foundation in the fulfilment of its purpose and having regard to the following considerations:
(a) the need to ensure, as far as possible, that at least one half of the membership has experience or expertise concerning relations between Canada and the Asia-Pacific region;
(b) the need for a membership that has sufficient knowledge of corporate governance, investment management, auditing and evaluations; and
(c) the importance of having membership that is representative of Canadian society.
Ineligibility
10.2 A person is not eligible to be appointed as a director if the person is a member of the Senate or the House of Commons.
66. The Act is amended by adding the following after section 12:
Removal from office
12.1 The Chairperson and any director appointed under paragraph 9(a) may be removed for cause by the Governor in Council. Any director appointed under paragraph 9(b) may be removed for cause by the Board.
67. The Act is amended by adding the following after section 16:
Directors without voting rights
16.1 A director who is part of the public service of Canada does not have the right to vote on any matter before the Board or a committee of the Board.
Duty of care
16.2 The Chairperson, the President and every other director of the Foundation, in exercising any of their powers and in discharging any of their duties, shall
(a) act honestly and in good faith with a view to the best interests of the Foundation;
(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances; and
(c) comply with this Act and the by-laws of the Foundation.
Indemnification
16.3 Except in respect of an action by or on behalf of the Foundation to procure a judgment in its favour, the Foundation may indemnify a present or former Chairperson, President or other director or officer of the Foundation against all costs, charges and expenses, including amounts paid to settle an action or to satisfy a judgment, that are reasonably incurred by him or her in respect of any civil, criminal or administrative action or proceeding to which he or she is a party by reason of being or having been a director or officer of the Foundation, if
(a) he or she acted honestly and in good faith with a view to the best interests of the Foundation; and
(b) in the case of a criminal or administrative action or proceeding enforced by a monetary penalty, he or she had reasonable grounds for believing that the impugned conduct was lawful.
Restriction
16.4 The Board or a committee of the Board may not, for the purpose of making a decision other than a decision to appoint a director under paragraph 9(b), be comprised of a majority of directors appointed under paragraph 9(a) who have the right to vote.
Delegation by Board
16.5 (1) The Board may delegate to the Chairperson, a committee of directors or an officer of the Foundation any of the powers or rights of the Board.
Restrictions on delegation
(2) The Board may not, however, delegate any power or right of the Board
(a) to make, amend or repeal by-laws;
(b) to appoint directors to, or fill vacancies on, a committee of the Board;
(c) to appoint officers of the Foundation or fix their remuneration;
(d) to accept grants, contributions and donations; or
(e) to approve the annual financial statements or annual reports of the Foundation.
Both official languages to be used
16.6 The Foundation shall offer its services in both official languages.
68. Section 17 of the Act is replaced by the following:
Appointment and role
17. (1) The Board shall appoint a President of the Foundation who shall have supervision over and direction of the activities and staff of the Foundation.
Experience, expertise and other qualifications
(2) In order to be appointed as President, a person must have experience or expertise concerning relations between Canada and the Asia-Pacific region and must possess any other qualifications specified by the Board.
Transparent and competitive process
(3) The President must be selected through a transparent and competitive process.
1992, c. 1, s. 8
69. Sections 18 and 19 of the French version of the Act are replaced by the following:
Choix au sein du conseil
18. Si le président de la Fondation est choisi parmi les membres du conseil, un autre administrateur peut être nommé à sa place en conformité avec les alinéas 9a) ou b), selon le cas.
Durée du mandat
19. La durée maximale du mandat du président de la Fondation est de trois ans, mais le conseil peut à tout moment le démettre de ses fonctions.
70. Section 20 of the Act is replaced by the following:
Re-appointment
20. A President whose term of office has expired is eligible for re-appointment in that capacity but no person may be appointed as President more than three times.
71. Sections 21 to 23 of the French version of the Act are replaced by the following:
Président intérimaire
21. En cas d’absence ou d’empêchement du président de la Fondation ou de vacance de son poste, le conseil peut autoriser un administrateur ou tout dirigeant ou employé de la Fondation à assurer l’intérim.
INDEMNITÉS ET FRAIS
Président du conseil et autres administrateurs
22. Le président du conseil et les autres administrateurs, sauf le président de la Fondation, n’ont droit à aucune rémunération mais peuvent recevoir des frais de déplacement et de séjour, fixés par règlement administratif, pour leur participation aux activités de la Fondation hors de leur lieu habituel de résidence.
Président de la Fondation
23. Le président de la Fondation reçoit la rémunération et les frais fixés par le conseil.
72. The Act is amended by adding the following after section 25:
Audit and evaluation committee
25.1 (1) The Board shall appoint an audit and evaluation committee consisting of not fewer than three directors and fix the duties and functions of the committee and may, by by-law, provide for the payment of expenses to the members of the committee.
Internal audit
(2) In addition to any other duties and functions that it is required to perform, the audit and evaluation committee shall cause internal audits to be conducted to ensure compliance by the officers and employees of the Foundation with management systems and controls established by the Board.
73. Section 27 of the Act is replaced by the following:
Not agent of Her Majesty
27. The Foundation is not an agent of Her Majesty and the Chairperson, the President and the other directors, as well as the officers and employees of the Foundation are not, by virtue of their office or employment, part of the public service of Canada.
Foundation not owned by Crown
27.1 For greater certainty, the Foundation is not, for the purposes of Part X of the Financial Administration Act or for any other purpose, to be considered to be wholly owned directly by Her Majesty in right of Canada.
1995, c. 5, par. 25(1)(a)
74. Sections 31 and 32 of the Act are repealed.
75. Section 33 of the Act is replaced by the following:
Grants, contributions and donations
33. (1) Subject to subsection (3), the Foundation may accept grants, contributions and conditional or unconditional donations of money from any person, including the Government of Canada and the government of a province.
Use of grants, contributions and donations
(2) All grants, contributions and donations of money received by the Foundation, and any income arising from the investment of those grants, contributions and donations, shall be used by the Foundation in fulfilling its purpose and in accordance with the terms and conditions of any agreement for the provision of funding.
Conditional grants, contributions and donations
(3) The Foundation may not accept a grant, contribution or donation of money that is made on the condition that the Foundation use the grant, contribution or donation, or any income arising from it, for any purpose that is not consistent with the purpose of the Foundation.
Investment policies
33.1 The Board shall establish investment policies, standards and procedures that a reasonably prudent person would apply in respect of a portfolio of investments to avoid undue risk of loss and obtain a reasonable return, having regard to the Foundation’s obligations and anticipated obligations.
Investments
33.2 (1) Subject to any conditions of a grant, contribution or donation restricting the investment of money, the Foundation shall invest its funds, and reinvest any income from those funds, in accordance with the investment policies, standards and procedures established by the Board.
Incorporation of other corporations
(2) The Foundation may not, without the prior written authorization of the Minister, cause any corporation to be incorporated or participate in the incorporation of a corporation or become a partner in a partnership.
76. Section 34 of the Act and the heading before it are replaced by the following:
WINDING-UP
Meaning of “eligible recipient”
34. (1) In this section, “eligible recipient” means an entity that
(a) is established in Canada;
(b) meets the criteria of eligibility established by the Foundation in accordance with any agreement entered into between Her Majesty in right of Canada and the Foundation for the provision of funding by Her Majesty in right of Canada to the Foundation; and
(c) has legal capacity or is composed of organizations each of which has legal capacity.
Property to be divided
(2) If the Foundation is wound up or dissolved
(a) its property remaining after its debts and obligations have been satisfied shall be liquidated;
(b) the moneys arising from the liquidation shall be distributed among all the eligible recipients that have received funding from the Foundation and that are, as of the day the distribution begins, carrying on projects that are consistent with the purpose of the Foundation, to be used by them for those or any other projects that are so consistent; and
(c) each of those eligible recipients shall receive an amount that is the same proportion of the moneys arising from the liquidation as the total funding received by that eligible recipient from the Foundation is of the total of all funding that has been provided by the Foundation to all of those eligible recipients.
Repayment out of remaining property
(3) Despite subsection (2), the Minister may require the Foundation to repay, out of the moneys arising from the liquidation, to the Receiver General for credit to the Consolidated Revenue Fund any amount that is so repayable under the terms or conditions on which public moneys were provided to the Foundation.
77. Section 35 of the Act is replaced by the following:
Auditor
35. (1) The Board shall appoint an auditor for the Foundation and fix the auditor’s remuneration.
Qualifications of auditor
(2) In order to be appointed, the auditor must be
(a) a natural person who
(i) is a member in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province,
(ii) has at least five years experience at a senior level in carrying out audits,
(iii) is ordinarily resident in Canada, and
(iv) is independent of the Board, the directors, the officers and, if any, the members of the Foundation; or
(b) a firm of accountants of which the member or employee, jointly designated by the Board and the firm to conduct the audit of the books and records of the Foundation on behalf of the firm, meets the qualifications set out in paragraph (a).
Audit
35.1 The accounts and financial transactions of the Foundation shall be audited annually and a report of the audit shall be made to the Board.
78. Section 36 of the Act is replaced by the following:
Annual report
36. (1) The Board shall, within four months after the end of each fiscal year of the Foundation, submit to the Minister a report, in both official languages, of the activities of the Foundation for that year. The report shall include
(a) the financial statements of the Foundation for that year, prepared in accordance with generally accepted accounting principles, and the auditor’s report on those financial statements;
(b) a detailed statement of its investment activities during that year and its investment portfolio as at the end of that year;
(c) a detailed statement of its funding activities;
(d) a statement of its plans for fulfilling its purpose for the next fiscal year; and
(e) an evaluation of the overall results achieved by the Foundation.
Tabling in Parliament
(2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives it.
Making report available
(3) The Board shall, as soon as is practicable after it is tabled under subsection (2), make the report available for public scrutiny.
79. Section 37 of the Act is replaced by the following:
Review
37. (1) The Board shall, within five years after the coming into force of this section and every five years after that, review the Foundation’s activities and organization and submit a report to the Minister on the activities and organization, including a statement of any changes the Board recommends.
Tabling in Parliament
(2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives it.
Replacement of “Chairman” and “Vice-Chair­man”
80. The English version of the Act is amended by replacing the expressions “Chairman” and “Vice-Chairman” with the expressions “Chairperson” and “Vice-Chairperson”, respectively, wherever they occur in the following provisions:
(a) sections 12 to 14;
(b) section 16; and
(c) section 22.
Coordinating Amendments
2003, c. 22
81. (1) On the later of the coming into force of section 67 of this Act and section 224 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003 (in this section referred to as the “other Act”), section 16.1 of the English version of the Asia-Pacific Foundation of Canada Act is replaced by the following:
Directors without voting rights
16.1 A director who is part of the federal public administration does not have the right to vote on any matter before the Board or a committee of the Board.
(2) On the later of the coming into force of section 73 of this Act and section 224 of the other Act, section 27 of the English version of the Asia-Pacific Foundation of Canada Act is replaced by the following:
Not agent of Her Majesty
27. The Foundation is not an agent of Her Majesty and the Chairperson, the other directors, the President and the officers and employees of the Foundation are not, by virtue of their office or employment, part of the federal public administration.
PART 10
1998, c. 21
AMENDMENT TO THE BUDGET IMPLEMENTATION ACT, 1998
2001, c. 27, s. 207
82. Paragraph 27(1)(a) of the Budget Implementation Act, 1998 is replaced by the following:
(a) are Canadian citizens or permanent residents within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act or protected persons within the meaning of subsection 95(2) of that Act;
PART 11
PAYMENTS FOR INFRASTRUCTURE
Payments for infrastructure
83. For the fiscal year 2005-2006, pursuant to the Government of Canada’s five-year initiative commonly known as “A New Deal for Cities and Communities”, the Minister of State (Infrastructure and Communities) may, subject to the terms and conditions approved by the Treasury Board, make payments from and out of the Consolidated Revenue Fund in an aggregate amount of not more than six hundred million dollars to provinces, territories and first nations for the purpose of providing funding to municipal and regional governments and related entities, including transit authorities and commissions and first nation communities, for environmentally sustainable infrastructure projects.
Agreement
84. (1) The Minister of State (Infrastructure and Communities) shall not make a payment to a province, territory or first nation under section 83 unless the Government of Canada has entered into an agreement with the recipient province, territory or first nation.
Direct payments
(2) The Minister of State (Infrastructure and Communities) may, at the request of a provincial or territorial government, make payments under section 83 directly to a municipality, a municipal association or a provincial, territorial or municipal entity.
PART 12
NOVA SCOTIA AND NEWFOUNDLAND AND LABRADOR ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS
Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act
85. The Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act is enacted as follows:
An Act respecting additional fiscal equalization offset payments for Nova Scotia and Newfoundland and Labrador relating to revenues from offshore petroleum resources
SHORT TITLE
Short title
1. This Act may be cited as the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act.
INTERPRETATION 
Definitions
2. The following definitions apply in this Act.
“Canada–New­foundland and Labrador Arrangement”« Entente Canada – Terre-Neuve-et- Labrador »
“Canada–Newfoundland and Labrador Arrangement” means the Arrangement between the Government of Canada and the Government of Newfoundland and Labrador on Offshore Revenues signed on February 14, 2005.
“Canada–Nova Scotia Arrangement”« Entente Canada – Nouvelle-Écosse »
“Canada–Nova Scotia Arrangement” means the Arrangement between the Government of Canada and the Government of Nova Scotia on Offshore Revenues signed on February 14, 2005.
“Minister”« ministre »
“Minister” means the Minister of Finance.
PURPOSE
Purpose of the Act
3. The purpose of this Act is to implement the Canada–Newfoundland and Labrador Arrangement and the Canada–Nova Scotia Arrangement.
PART 1
ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS FOR NOVA SCOTIA
Definitions
4. The following definitions apply in this Part.
“additional fiscal equalization offset payment”« paiement de péréquation compensatoire supplémentaire »
“additional fiscal equalization offset payment” means the payment that may be made under section 6, 7 or 12.
“fiscal equalization offset payment”« paiement de péréquation compensatoire »
“fiscal equalization offset payment” means the fiscal equalization offset payment that may be made to the Province for a fiscal year under Part V of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act.
“fiscal equalization payment”« paiement de péréquation »
“fiscal equalization payment” means the fiscal equalization payment that may be made to the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.
“offshore revenue”« recettes extracôtières »
“offshore revenue” in respect of any fiscal year means the aggregate of the following amounts paid to the Province for that fiscal year:
(a) amounts paid under paragraph 219(2)(b) of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act;
(b) amounts paid with respect to the portion of tax under subsection 165(2) and sections 218.1, 220.05, 220.06 and 220.08 of the Excise Tax Act that is attributable to offshore activity in the Nova Scotia offshore area, within the meaning of subsection 123(1) of that Act; and
(c) amounts paid with respect to tax that would be payable under Part III of the Income Tax Act (Nova Scotia), R.S.N.S. 1989, c. 217, as amended from time to time, on taxable capital of a corporation employed in the offshore area within the meaning of section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act if that area were in the land portion of the Province, unless those amounts have been included in paragraph (a).
“petroleum”« hydro­carbures »
“petroleum” has the same meaning as in section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act.
“Province”Version anglaise seulement
“Province” means the Province of Nova Scotia.
Payment of $830 million
5. The Minister shall make a payment to the Province in the amount of $830 million, to allow the Province to reduce its outstanding debt.
Additional fiscal equalization offset payment of $30.5 million
6. (1) For the 2004-2005 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $30.5 million.
Additional fiscal equalization offset payment of $26.6 million
(2) For the 2005-2006 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $26.6 million.
Additional fiscal equalization offset payments for the 2006-2012 period
7. For each fiscal year between April 1, 2006 and March 31, 2012, the Minister shall make an additional fiscal equalization offset payment to the Province calculated in accordance with section 8.
Calculation of payments
8. The additional fiscal equalization offset payment that shall be made to the Province for a fiscal year corresponds to the amount determined by the Minister in accordance with the formula
(A - B) - C
where
A      is the fiscal equalization payment that may be made to the Province for the fiscal year under the equalization formula in effect at that time, calculated as if the Province did not have any offshore revenue or petroleum production;
B      is the fiscal equalization payment that may be made to the Province for that fiscal year under the equalization formula in effect at that time; and
C      is the fiscal equalization offset payment for that fiscal year.
Restriction
9. Despite any other provision of this Act, no payment shall be made under sections 6 to 8 except to the extent that the aggregate of the payments determined under those sections for the fiscal year and the preceding applicable fiscal years exceeds $830 million.
Restriction
10. For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 7 if it does not receive a fiscal equalization payment for that fiscal year.
Transitional payments for the 2006-2011 period
11. (1) For each fiscal year between April 1, 2006 and March 31, 2011 in which the Province does not receive a fiscal equalization payment, the Minister shall make a transitional payment to the Province equal in amount to the sum that would be payable, under section 219 of the Canada–Newfoundland Atlantic Accord Implementation Act, and that would be determined, under section 220 of that Act, as if those sections applied to that Province’s offshore revenue.
Transitional payment for 2011-2012
(2) If the Province does not receive a fiscal equalization payment for the 2011-2012 fiscal year, the Minister shall make a transitional payment equal in amount to the sum that would be payable, under section 219 of the Canada–Newfoundland Atlantic Accord Implementation Act, and that would be determined, under section 220 of that Act, as if those sections applied to that Province’s offshore revenue and the amount determined in accordance with paragraph 220(b) of that Act is equal to zero.
First fiscal year of production
(3) For the purpose of this section, the first fiscal year of offshore production is the fiscal year beginning on April 1, 1999.
Additional fiscal equalization offset payments for the 2012-2020 period
12. (1) For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 8 if
(a) the Province qualified for a fiscal equalization payment in the 2010-2011 or 2011-2012 fiscal year;
(b) the Province’s per capita net debt as of March 31, 2012 was not lower than that of at least four other provinces; and
(c) the Province receives a fiscal equalization payment for that fiscal year.
Determination of per capita net debt
(2) For the purpose of paragraph (1)(b), “per capita net debt” for a province as of March 31, 2012 means the amount determined by the Minister in accordance with the regulations.
Restriction
13. For greater certainty, if the Province does not meet the conditions set out in paragraphs 12(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 12 for any of the fiscal years between April 1, 2012 and March 31, 2020.
Transitional payments for the 2012-2020 period
14. (1) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.
Transitional payments for the 2012-2020 period
(2) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.
Review of the Canada–Nova Scotia Arrangement
15. On or before March 31, 2019, the Minister, on behalf of the Government of Canada, and the minister designated by the Province for the purpose will review the Canada–Nova Scotia Arrangement in accordance with clause 8 of that Arrangement.
Discussions
16. The Government of Canada shall enter into discussions with the Province if requested to do so by the Province under the terms of clause 9 of the Canada–Nova Scotia Arrangement.
Determination
17. A determination, for any fiscal year, of the additional fiscal equalization offset payment for the Province and for any other calculation that is necessary for the purposes of this Part shall be made by the Minister at the same time as the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province is made for that fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.
PART 2
ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS FOR NEWFOUNDLAND AND LABRADOR
Definitions
18. The following definitions apply in this Part.
“additional fiscal equalization offset payment”« paiement de péréquation compensatoire supplémentaire »
“additional fiscal equalization offset payment” means the payment that may be made under section 20, 21 or 26.
“fiscal equalization offset payment”« paiement de péréquation compensatoire »
“fiscal equalization offset payment” means the fiscal equalization offset payment that may be made to the Province for a fiscal year under Part V of the Canada–Newfoundland Atlantic Accord Implementation Act.
“fiscal equalization payment”« paiement de péréquation »
“fiscal equalization payment” means the fiscal equalization payment that may be made to the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.
“offshore revenue”« recettes extracôtières »
“offshore revenue”, in respect of any fiscal year, means the aggregate of the following amounts paid to the Province for that fiscal year: 
(a) amounts paid under paragraph 214(2)(b) of the Canada-Newfoundland Atlantic Accord Implementation Act;
(b) amounts paid with respect to the portion of tax under subsection 165(2) and sections 218.1, 220.05, 220.06 and 220.08 of the Excise Tax Act that is attributable to offshore activity in the Newfoundland offshore area, within the meaning of subsection 123(1) of that Act; and
(c) the royalties paid under the Hibernia Development Project Royalty Agreement signed on September 1, 1990, as amended from time to time.
“petroleum”« hydro­carbures »
“petroleum” has the same meaning as in section 2 of the Canada–Newfoundland Atlantic Accord Implementation Act.
“Province”Version anglaise seulement
“Province” means the Province of Newfoundland and Labrador.
Payment of $2 billion
19. The Minister shall make a payment to the Province in the amount of $2 billion to allow the Province to reduce its outstanding debt.
Additional fiscal equalization offset payment of $133.6 million
20. (1) For the 2004-2005 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $133.6 million.
Additional fiscal equalization offset payment of $188.7 million
(2) For the 2005-2006 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $188.7 million.
Additional fiscal equalization offset payment for the 2006-2012 period
21. For each fiscal year between April 1, 2006 and March 31, 2012, the Minister shall make an additional fiscal equalization offset payment to the Province calculated in accordance with section 22.
Calculation of payments
22. The additional fiscal equalization offset payment that shall be made to the Province for a fiscal year corresponds to the amount determined by the Minister in accordance with the formula
(A - B) - C
where
A      is the fiscal equalization payment that may be made to the Province for the fiscal year under the equalization formula in effect at that time, calculated as if the Province did not have any offshore revenue or petroleum production;
B      is the fiscal equalization payment to the Province for that fiscal year under the equalization formula in effect at that time; and
C      is the fiscal equalization offset payment for that fiscal year.
Restriction
23. Despite any other provision of this Act, no payment shall be made under sections 20 to 22 by the Minister to the Province except to the extent that the aggregate of the payments determined under those sections for the fiscal year and the preceding applicable fiscal years exceeds $2 billion.
Restriction
24. For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 21 if it does not receive a fiscal equalization payment for that fiscal year.
Transitional payments for 2011-2012
25. If the Province does not receive a fiscal equalization payment for the 2011-2012 fiscal year, the Minister shall make a transitional payment equal in amount to the sum that would be payable under section 219 of the Canada–Newfoundland Atlantic Accord Implementation Act, and that would be determined, under section 220 of that Act, as if those sections applied to that fiscal year and the amount determined in accordance with paragraph 220(b) of that Act is equal to zero.
Additional fiscal equalization offset payments for the 2012-2020 period
26. (1) For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 22, if
(a) the Province qualified for a fiscal equalization payment in either of the 2010-2011 or 2011-2012 fiscal years;
(b) the Province’s per capita debt servicing charges as of March 31, 2012 were not lower than those of at least four other provinces; and
(c) the Province receives a fiscal equalization payment for that fiscal year.
Determination of per capita debt servicing charge
(2) For the purpose of paragraph (1)(b), “per capita debt servicing charges” as of March 31, 2012, means the amount determined by the Minister in accordance with the formula
(A - B - C + D) / E
where
A      is the total of a province’s debt servicing charges for the 2011-2012 fiscal year, based on figures published in the fully consolidated audited financial statements presented on a full accrual basis of accounting in the province’s Public Accounts for the 2011-2012 fiscal year, with any necessary adjustments, as required, to include all of the debt charges related to unfunded pension liabilities, post-employment benefits and debt charges of government organizations and entities whose inclusion would be consistent with the accounting principles of full consolidation;
B      is the portion of A, if any, related to borrowings made by a province on behalf of self-supporting government business enterprises that are not dependent on transfers, grants or other direct funding from the province to fund their day-to-day operations or debt repayments;
C      is the portion of A, if any, related to borrowings made by a province on behalf of municipalities that are not in default on their interest payment obligations to the province;
D      is the total of a province’s debt servicing charges for the 2011-2012 fiscal year related to borrowings made by the province on behalf of municipalities that are in default on their interest payment obligations to the province, if these are not already included in A; and
E      is the total population of a province on July 1, 2011 based on the latest Statistics Canada official estimates available as soon as all provinces have released their Public Accounts for the 2011-2012 fiscal year.
Restriction
27. For greater certainty, if the Province does not meet the conditions set out in paragraphs 26(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 26 for any of the fiscal years between April 1, 2012 and March 31, 2020.
Transitional payments for the 2012-2020 period
28. (1) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.
Transitional payments for 2012-2020 period
(2) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.
Review of the Canada–New­foundland and Labrador Arrangement
29. On or before March 31, 2019, the Minister, on behalf of the Government of Canada, and the minister designated by the Province for the purpose will review the Canada–Newfoundland and Labrador Arrangement, in accordance with clause 8 of that Arrangement.
Discussions
30. The Government of Canada shall enter into discussions with the Province if requested to do so by the Province under the terms of clause 9 of the Canada–Newfoundland and Labrador Arrangement.
Determination
31. A determination, for any fiscal year, of the additional fiscal equalization offset payment for the Province and for any other calculation that is necessary to be made for the purposes of this Part shall be made by the Minister at the same time as the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province is made for that fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.
PART 3
GENERAL PROVISIONS
Appropriation
32. The amounts authorized to be paid under this Act shall be paid out of the Consolidated Revenue Fund by the Minister at the time and in the manner, subject to section 33, that the Minister considers appropriate.
Regulations
33. (1) The Governor in Council may make regulations, on the recommendation of the Minister,
(a) prescribing the time and manner of making any payments under this Act;
(b) respecting the determination of the amount referred to in subsection 12(2);
(c) respecting the determination of any matter that under this Act is to be determined by the Minister; and
(d) prescribing anything that is required or authorized to be prescribed by this Act.
Approval of the minister designated by the Province
(2) The Minister may recommend the making of a regulation under paragraph (1)(b) only after receipt by the Minister of the approval of the proposed regulation from the minister designated by the Province for that purpose.
2004, c. 22
Related Amendment to the Budget Implementation Act, 2004
86. Subsections 8(1) to (3) of the Budget Implementation Act, 2004 are replaced by the following:
Payment for 2004-2005
8. (1) For the fiscal year beginning on April 1, 2004, the Minister of Finance may make a cash payment to the Province of Nova Scotia in the amount of thirty-four million dollars.
Payment for 2005-2006
(2) For the fiscal year beginning on April 1, 2005, the Minister of Finance may make a cash payment to the Province of Nova Scotia in the amount of four million dollars.
PART 13
CANADA EMISSION REDUCTION INCENTIVES AGENCY
Canada Emission Reduction Incentives Agency Act
87. The Canada Emission Reduction Incentives Agency Act is enacted as follows:
An Act to establish the Canada Emission Reduction Incentives Agency
Preamble
Recognizing that the reduction or removal of greenhouse gases is necessary to fight climate change and can also result in cleaner air, achieve other environmental objectives and advance the competitiveness and efficiency of Canadian industry;
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
Short title
1. This Act may be cited as the Canada Emission Reduction Incentives Agency Act.
INTERPRETATION
Definitions
2. The following definitions apply in this Act.
“Agency”« Agence »
“Agency” means the Canada Emission Reduction Incentives Agency established by section 4.
“compliance unit”« unité de conformité »
“compliance unit” means a compliance unit within the meaning of the Kyoto Protocol.
“eligible credit”« crédit admissible »
“eligible credit” means an eligible domestic credit or an eligible Kyoto unit.
“eligible domestic credit”« crédit national admissible »
“eligible domestic credit” means a tradeable unit that is of an eligible class designated by order made under paragraph 3(a).
“eligible Kyoto unit”« unité Kyoto admissible »
“eligible Kyoto unit” means any compliance unit that is of an eligible class designated by order made under paragraph 3(b).
“greenhouse gas”« gaz à effet de serre »
“greenhouse gas” means any gas listed in Annex A to the Kyoto Protocol.
“Kyoto Protocol”« Protocole de Kyoto »
“Kyoto Protocol” means the Kyoto Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on December 11, 1997, and includes any decision related to the implementation of that protocol taken by the “Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol”, within the meaning of that protocol.
“Minister”« ministre »
“Minister” means the Minister of the Environment.
INTERPRETATION
Interpretation
2.1 For greater certainty, nothing in this Act limits or affects, expressly or implicitly, the power of a province to provide incentives for the reduction or removal of greenhouse gases through the acquisition, on behalf of the province, before or after they are created, of eligible credits created as a result of the reduction or removal of those gases by any means established by the province.
DESIGNATIONS
Designations
3. The Minister may, for the purposes of this Act, by order, designate
(a) as an eligible class for the purposes of the definition “eligible domestic credit” in section 2, any class of tradeable units issued under any program or measure established under section 322 of the Canadian Environmental Protection Act, 1999 ; and
(b) as an eligible class for the purposes of the definition “eligible Kyoto unit” in section 2, any class of compliance unit.
ESTABLISHMENT OF AGENCY
Establishment
4. (1) There is established a body corporate called the Canada Emission Reduction Incentives Agency, which may exercise powers only as an agent of Her Majesty in right of Canada.
Climate Fund
(2) The expression “Climate Fund” may be used to refer to the Agency.
Minister responsible
5. (1) The Minister is responsible for and has the overall direction of the Agency.
Ministerial direction
(2) The Agency must comply with any general or special direction given by the Minister with reference to the carrying out of its object.
Minister’s power of inquiry
(3) The Minister may inquire into any activity of the Agency and has access to any information under the Agency’s control.
Delegation by Minister
(4) The Minister may delegate to any person any power, duty or function conferred on the Minister under this Act, except the power to make orders under section 3 and regulations under subsection 18(2) and the power to delegate under this subsection.
OBJECT
Object
6. The object of the Agency is to provide incentives for the reduction or removal of greenhouses gases through the acquisition, on behalf of the Government of Canada, of eligible credits created as a result of the reduction or removal of those gases.
ORGANIZATION AND HEAD OFFICE
Appointment of President
7. The Governor in Council shall appoint a President of the Agency to hold office during pleasure for a renewable term of up to five years.
President’s powers
8. The President is chief executive officer of the Agency and has supervision over and direction of its work and staff.
Delegation by President
9. The President may delegate to any person any power, duty or function conferred on the President under this Act.
Remuneration
10. The President is to be paid the remuneration that is fixed by the Governor in Council.
Head office
11. The head office of the Agency is to be at the place in Canada that is designated by the Governor in Council.
ADVISORY BOARD
Appointment of members
12. (1) The Governor in Council shall appoint an advisory board of not more than 12 members to hold office during pleasure for a term of not more than three years, which term may be renewed for one or more further terms.
Role of advisory board
(2) The role of the advisory board is to advise the Minister on any matter within the object of the Agency, including
(a) the types of projects that are most likely to result in significant reductions of greenhouse gas emissions and advance the competitiveness and efficiency of Canadian industry; and
(b) market conditions relating to eligible domestic credits and eligible Kyoto units.
Representation
(3) The Governor in Council may appoint any person with relevant knowledge or expertise to the advisory board, including persons from the agriculture, energy and forest sectors, environmental groups or provincial or municipal governments, and persons with knowledge or expertise in the markets for domestic and international credits relating to reductions or removals of greenhouse gases.
Publication
(3.1) The Minister shall publish the advice given under subsection (2) within 30 days after receiving it from the advisory board.
Chairperson
(4) The Minister shall appoint one of the members as Chairperson of the advisory board.
Remuneration
(5) The members of the advisory board are to be paid, in connection with their work for the advisory board, the remuneration that may be fixed by the Governor in Council.
Travel, living and other expenses
(6) The members of the advisory board are entitled to be reimbursed, in accordance with Treasury Board directives, the travel, living and other expenses incurred in connection with their work for the advisory board while absent from their ordinary place of residence.
Meetings
(7) The Chairperson may determine the times and places at which the advisory board will meet, but it must meet at least four times a year.
EMPLOYEES
Employees
13. The employees that are necessary for the proper conduct of the work of the Agency are to be appointed in accordance with the Public Service Employment Act.
DUTIES AND POWERS OF THE AGENCY
Contracts and agreements
14. The Agency may enter into contracts and other agreements with any person in Canada or elsewhere, or with any organization or government, including an international organization or the government of a foreign state, in the name of Her Majesty in right of Canada or in its own name.
Legal proceedings
15. Actions, suits or other legal proceedings in respect of any right or obligation acquired or incurred by the Agency, whether in its own name or in the name of Her Majesty in right of Canada, may be brought or taken by or against the Agency in the name of the Agency in any court that would have jurisdiction if the Agency were not an agent of Her Majesty.
Procurement process
16. The Agency has the authority to acquire eligible credits through its own procurement process despite any provision of any other Act of Parliament.
Competitive process — eligible domestic credits
17. The Agency must use a competitive process to acquire eligible domestic credits to ensure the cost-effectiveness of the acquisition.
Competitive process — eligible Kyoto units
18. (1) The Agency must use a competitive process to acquire eligible Kyoto units and must be satisfied that the acquisition of those units is of benefit to Canada, taking into account the factors specified in the regulations.
Regulations
(2) The Minister may make regulations specifying factors for the purposes of subsection (1).
Advance payment for eligible domestic credits
19. (1) The Agency may, with the approval of the Treasury Board, make payments to acquire eligible domestic credits before they are created if the Agency exercises due diligence and
(a) the credits are to be created in relation to a project that meets criteria established by the Minister;
(b) the Minister is satisfied that it is reasonable to expect that the project will result in reductions or removals of greenhouse gases in the amounts anticipated in the agreement relating to the acquisition; and
(c) the agreement relating to the acquisition contains a provision requiring the repayment of the proportion of the amounts advanced for which no credits are received by the Agency.
Credits may be in relation to less than anticipated total
(2) If the Agency makes payments to acquire eligible domestic credits before they are created, the amount of reductions or removals of greenhouse gases related to the credits being acquired may be less than or equal to the total amount of reductions or removals of greenhouse gases anticipated from the project for which the credits are created.
Credits to be recorded
20. After acquiring eligible credits in its own name, the Agency must, without delay, take the steps necessary to have them recorded in the name of Her Majesty in right of Canada in any database designated by the Minister.
Contracts with Her Majesty
21. The Agency may enter into contracts, agreements or other arrangements with Her Majesty as if it were not an agent of Her Majesty.
GENERAL
Accident compensation
22. The President and the members of the advisory board are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the public service of Canada for the purposes of any regulations made under section 9 of the Aeronautics Act.
CORPORATE BUSINESS PLAN
Corporate business plan
23. (1) As soon as possible after the Agency is established and every year after that, the Agency must submit a corporate business plan to the Minister for approval and the Minister must cause a copy of the plan to be tabled in each House of Parliament on any of the first fifteen days on which that House is sitting after the Minister approves the plan.
Contents of corporate business plan
(2) The corporate business plan must include a statement of
(a) the Agency’s objectives for the next five years;
(b) the strategies that the Agency intends to use to achieve its objectives, including operational, financial and human resource strategies;
(c) the Agency’s expected performance over that period; and
(d) the Agency’s operating and capital budgets for each year of that period.
AUDIT
Annual audit
24. The Auditor General of Canada is the auditor for the Agency and must
(a) annually audit and provide an opinion to the Agency and the Minister on the financial statements of the Agency; and
(b) provide the Minister and the President with copies of reports of audits carried out under this section.
ANNUAL REPORT
Annual report
25. (1) The Agency must, before December 31 of each year following the Agency’s first full year of operations, submit an annual report on the operations of the Agency for the preceding fiscal year to the Minister, and the Minister must cause a copy of the report to be tabled in each House of Parliament on any of the first fifteen days on which that House is sitting after the Minister receives it.
Form and contents
(2) The annual report must include
(a) the financial statements of the Agency, prepared in accordance with accounting principles consistent with those applied in preparing the Public Accounts referred to in section 64 of the Financial Administration Act, and the Auditor General of Canada’s opinion on them;
(b) information about the Agency’s performance with respect to the objectives established in the corporate business plan; and
(c) any other information that the Minister may require to be included in it.
Consequential Amendments
R.S., c. A-1
Access to Information Act
88. Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:
Canada Emission Reduction Incentives Agency
Agence canadienne pour l’incitation à la réduction des émissions
R.S., c. F-11
Financial Administration Act
89. Schedule II to the Financial Administration Act is amended by adding the following in alphabetical order:
Canada Emission Reduction Incentives Agency
Agence canadienne pour l’incitation à la réduction des émissions
R.S., c. P-21
Privacy Act
90. The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:
Canada Emission Reduction Incentives Agency
Agence canadienne pour l’incitation à la réduction des émissions
R.S., c. P-35
Public Service Staff Relations Act
91. Part I of Schedule I to the Public Service Staff Relations Act is amended by adding the following in alphabetical order:
Canada Emission Reduction Incentives Agency
Agence canadienne pour l’incitation à la réduction des émissions
R.S., c. P-36
Public Service Superannuation Act
92. Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order:
Canada Emission Reduction Incentives Agency
Agence canadienne pour l’incitation à la réduction des émissions
Coordinating Amendments
2003, c. 22
93. (1) On the later of the coming into force of section 87 of this Act and section 11 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003 (in this section referred to as the “other Act”), Schedule IV to the Financial Administration Act is amended by adding the following in alphabetical order:
Canada Emission Reduction Incentives Agency
Agence canadienne pour l’incitation à la réduction des émissions
(2) If section 11 of the other Act comes into force before section 91 of this Act, then, on the later of the day on which that section 11 comes into force and the day on which this Act receives royal assent, section 91 of this Act and the heading before it are repealed.
2003, c. 22
94. On the later of the coming into force of section 87 of this Act and section 224 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003, section 22 of the English version of the Canada Emission Reduction Incentives Agency Act, as enacted by section 87 of this Act, is replaced by the following:
Accident compensation
22. The President and the members of the advisory board are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.
Coming into Force
Order in council
95. This Part, other than sections 93 and 94, comes into force on a day to be fixed by order of the Governor in Council.
PART 14
GREENHOUSE GAS TECHNOLOGY INVESTMENT FUND
Greenhouse Gas Technology Investment Fund Act
96. The Greenhouse Gas Technology Investment Fund Act is enacted as follows:
An Act to establish the Greenhouse Gas Technology Investment Fund for the reduction of greenhouse gas emissions and the removal of greenhouse gases from the atmosphere 
SHORT TITLE
Short title
1. This Act may be cited as the Greenhouse Gas Technology Investment Fund Act. 
INTERPRETATION
Definitions
2. The following definitions apply in this Act.
“eligible contributor” « participant admissible »
“eligible contributor” means a person who is subject to requirements — set out in regulations made under any Act of Parliament — respecting emissions of greenhouse gas from industrial sources, other than a person who is a vehicle manufacturer.
“Fund”« Fonds »
“Fund” means the Greenhouse Gas Technology Investment Fund established in section 3.
“greenhouse gas”« gaz à effet de serre »
“greenhouse gas” means any gas listed in Annex A to the Kyoto Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on December 11, 1997, as amended from time to time, to the extent that the amendments are binding on Canada.
“Minister”« ministre »
“Minister” means the Minister of Natural Resources.
“vehicle”« véhicule »
“vehicle” means any vehicle that is capable of being driven or drawn on roads by any means other than muscular power exclusively, but does not include any vehicle designed to run exclusively on rails.
GREENHOUSE GAS TECHNOLOGY INVESTMENT FUND
Establishment
3. There is established in the accounts of Canada an account to be known as the Greenhouse Gas Technology Investment Fund.
Amounts to be credited to Fund
4. There shall be paid into the Consolidated Revenue Fund and credited to the Fund 
(a) all amounts contributed to Her Majesty in right of Canada by an eligible contributor for the purpose of 
(i) research into, or the development or demonstration of, technologies or processes intended to reduce emissions of greenhouse gases from industrial sources or to remove greenhouse gases from the atmosphere in the course of an industrial operation, or
(ii) creating elements of the infrastructure that are necessary to support research into, or the development or demonstration of, those technologies or processes; and
(b) an amount representing interest of the balance from time to time to the credit of the account at the rate and calculated in the manner that the Governor in Council may, on the recommendation of the Minister of Finance, prescribe.
Amounts charged to Fund
5. There shall be charged to the Fund the amounts paid out under section 6.
GRANTS OR CONTRIBUTIONS
Power of Minister
6. (1) The Minister may, out of the Consolidated Revenue Fund, make grants or contributions in any amount that he or she considers appropriate for any purpose referred to in paragraph 4(a).
Matters to consider
(2) In making a grant or contribution, the Minister shall consider
(a) the competitiveness and efficiency of industry; 
(b) the sustainable development of Canada’s natural resources;
(c) the development of Canadian scientific and technological capabilities; and
(d) any recommendations made by the standing committee of the House of Commons that normally considers matters related to the environment.
Limitation
(3) No grant or contribution may be made in excess of the amount of the balance to the credit of the Fund.
ADVISORY BOARD
Appointment of members
7. (1) The Governor in Council shall appoint an advisory board of not more than 12 members to hold office during pleasure for a term of not more than three years, which term may be renewed for one or more further terms.
Role
(2) The role of the advisory board is to advise the Minister on any matter respecting the making of grants or contributions for any of the purposes referred to in paragraph 4(a), including the types of projects that are most likely to result in significant reductions of greenhouse gas emissions and the matters referred to in paragraphs 6(2)(a) to (d).
Publication
(3) The Minister shall publish the advice given under subsection (2) within 30 days after receiving it from the advisory board.
Representation
(4) The Governor in Council may appoint any person with relevant knowledge or expertise to the advisory board, including persons from industry, institutions of learning and environmental groups.
Chairperson
(5) The Minister shall appoint one of the members as Chairperson of the advisory board.
Remuneration
(6) The members of the advisory board are to be paid, in connection with their work for the advisory board, the remuneration that may be fixed by the Governor in Council.
Travel, living and other expenses
(7) The members of the advisory board are entitled to be reimbursed, in accordance with Treasury Board directives, the travel, living and other expenses incurred in connection with their work for the advisory board while absent from their ordinary place of residence.
Meetings
(8) The Chairperson may determine the times and places at which the advisory board will meet, but it must meet at least once a year.
Accident compensation
(9) The members of the advisory board are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.
TECHNOLOGY INVESTMENT UNITS 
Creation
8. (1) Subject to subsections (2) to (5), the Minister must create technology investment units in respect of contributions made by eligible contributors to Her Majesty in right of Canada or to any fund designated by the Minister for the purposes of this subsection, for any of the purposes referred to in paragraph 4(a).
Units to be recorded in database
(2) The technology investment units are to be created in respect of a contribution by an eligible contributor in a manner that allows them to be recorded in a database established in relation to the emission requirements applicable to the eligible contributor.
When creation of units may begin
(3) Technology investment units may be created only in respect of contributions made on or after January 1, 2008.
Regulations fixing contribution rate and number of units
(4) Subject to subsection (5), the Governor in Council may, on the recommendation of the Minister of the Environment, make regulations
(a) fixing the amount that must be contributed for technology investment units to be created, or the manner of calculating that amount; and
(b) determining the maximum number of those units that may be created in any period specified in the regulations.
Restriction on contribution rate
(5) Until December 31, 2012, the maximum amount that may be contributed for a technology investment unit to be created may not be more than $15.
Use of units
(6) Technology investment units may only be used by the eligible contributor in respect of whom they were created and that eligible contributor may use them only in accordance with any regulations in force that govern the manner in which they may be used to meet requirements relating to emissions of greenhouse gases from industrial sources.
Coming into Force
Order in council
97. This Part comes into force on a day to be fixed by order of the Governor in Council.
PART 15
AMENDMENTS TO THE CANADA DEPOSIT INSURANCE CORPORATION ACT
R.S., c. C-3
Canada Deposit Insurance Corporation Act
1996, c. 6, s. 22
98. Paragraph 7(b) of the Canada Deposit Insurance Corporation Act is replaced by the following:
(b) to promote and otherwise contribute to the stability of the financial system in Canada; and
2001, c. 9, s. 205
99. Paragraph 8(c) of the Act is replaced by the following:
(c) a retail association within the meaning of regulations made under the Cooperative Credit Associations Act.
1992, c. 26, s. 4
100. Paragraph 11(2)(e) of the Act is repealed.
101. Paragraph 12(c) of the Act is replaced by the following:
(c) so much of any one deposit as exceeds one hundred thousand dollars.
102. Subsection 13(2) of the Act is replaced by the following:
Deposits with amalgamated institution
(2) A deposit made by a person referred to in subsection (1) with an amalgamated institution after the day on which the amalgamated institution is formed shall be insured by the Corporation only to the extent that the aggregate of that person’s deposits with the amalgamated institution, exclusive of the deposit in respect of which the calculation is made, is less than one hundred thousand dollars.
1996, c. 6, s. 26(3)
103. Subsection 14(2.4) of the Act is replaced by the following:
Corporation may pay interest
(2.4) Where the Corporation makes a payment pursuant to subsection (2), the Corporation may pay, in addition to the amount the Corporation is obliged to pay, interest on that amount at a rate determined in accordance with rules prescribed by the by-laws for the period commencing on the date of the commencement of the winding-up in respect of the member institution that holds the deposit and ending on the date of the making of the payment in respect of the deposit, but the aggregate of the payments made under this subsection and subsection (2) in relation to the deposit shall in no case exceed one hundred thousand dollars.
R.S., c. 18 (3rd Supp.), s. 54; 1991, c. 45, s. 543
104. (1) Subsection 17(1) of the Act is replaced by the following:
Insurance of federal institutions
17. (1) The Corporation shall insure the deposits held by a federal institution in the manner and to the extent provided in this Act and the by-laws.
Insurance of provincial institutions
(1.1) On the application of a provincial institution, the Corporation may insure the deposits held by the institution in the manner and to the extent provided in this Act and the by-laws, if
(a) the Corporation approves the institution for deposit insurance;
(b) the institution is authorized by the province of its incorporation to apply for deposit insurance;
(c) the institution agrees, in carrying on its business, not to exercise powers substantially different from the powers exercisable by a company to which the Trust and Loan Companies Act applies; and
(d) the Corporation is satisfied that at all times the Corporation will have adequate access to information regarding the institution.
R.S., c. 18 (3rd Supp.), s. 54
(2) Subsection 17(3) of the Act is repealed.
2001, c. 9, s. 210
105. Paragraph 29(1)(b) of the Act is replaced by the following:
(b) comment on the operations of the member institution; and
1992, c. 26, s. 9(E)
106. Paragraph 30(1)(a) of the Act is repealed.
1992, c. 26, s. 10(E)
107. (1) The portion of subsection 31(1) of the Act before paragraph (a) is replaced by the following:
Notice of termination
31. (1) Where a report has been sent or delivered under subsection 30(1) and the progress made by the member institution in remedying the breach is not satisfactory to the Corporation, the Corporation shall, by notice,
R.S., c. 18 (3rd Supp.), s. 62
(2) Paragraph 31(3)(a) of the Act is replaced by the following:
(a) the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates; or
1996, c. 6, s. 36
(3) Subsections 31(4) and (5) of the Act are replaced by the following:
Where report on federal member institution
(4) Where a report has been sent or delivered under subsection 30(1) in respect of a federal member institution and the member institution and the Minister have been informed in accordance with subsection (1) by the Corporation that the Corporation is not satisfied with the member institution’s progress in remedying the breach to which the report relates, the Corporation may, unless the Minister advises the Corporation that the Minister is of the opinion that it is not in the public interest to do so, give the member institution not less than thirty days notice of the termination of its policy of deposit insurance.
Termination of policy
(5) The policy of deposit insurance of a federal member institution shall terminate on the expiration of the period specified in the notice given under subsection (4) or such later period not exceeding sixty days as the Corporation may determine unless, before the expiration of that period, the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates.
R.S., c. 18 (3rd Supp.), s. 73(1)
108. Subsection 3(1.1) of the schedule to the Act is replaced by the following:
Joint owners
(1.1) For greater certainty, where two or more persons are joint owners of two or more deposits, the aggregate of those deposits shall be insured to a maximum of one hundred thousand dollars.
Coming into Force
Order in council
109. (1) Subject to subsection (2), the provisions of this Part come into force on a day or days to be fixed by order of the Governor in Council.
Exception
(2) Sections 101 to 103 and 108 are deemed to have come into force on February 23, 2005.
PART 16
1994, c. 28
AMENDMENTS TO THE CANADA STUDENT FINANCIAL ASSISTANCE ACT
110. The Canada Student Financial Assist­ance Act is amended by adding the following after section 10:
Death of borrower — section 6.1 loan
10.1 (1) All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the borrower dies.
Death of borrower before this section in force
(2) If a borrower dies before this section comes into force, then all obligations of that borrower in respect of such a loan terminate on the day on which this section comes into force.
111. The Act is amended by adding the following after section 11:
Permanent disability of borrower — section 6.1 loan
11.1 All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided to the Minister by or on behalf of the borrower, that the borrower, by reason of the borrower’s permanent disability, is or will be unable to repay the loan without exceptional hardship, taking into account the borrower’s family income.
2003, c. 15, s. 10(1)
112. (1) Paragraph (c) of the description of B in the definition “net costs” in subsection 14(6) of the Act is replaced by the following:
(c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and
2003, c. 15, s. 10(1)
(2) Paragraph (c) of the description of B in the definition “total program net costs” in subsection 14(6) of the Act is replaced by the following:
(c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and
2003, c. 15, s. 10(2)
(3) Paragraph 14(7)(c) of the Act is replaced by the following:
(c) in respect of loans made under an agreement entered into under section 6.1, amounts in relation to a termination of a borrower’s obligations under section 10.1 or 11.1 or to a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15(o), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis; and
PART 17
R.S., c. C-52
AMENDMENTS TO THE CURRENCY ACT
Exchange Fund Account
1993, c. 33, s. 1
113. Section 17 of the Currency Act is replaced by the following:
Exchange Fund Account continued
17. The special account in the name of the Minister known as the Exchange Fund Account, established to aid in the control and protection of the external value of the monetary unit of Canada, is continued and all assets acquired and held by or on behalf of the Minister in the Exchange Fund Account continue to be so held.
Policy
17.1 (1) The Minister may establish a policy concerning the investment of the assets held in the Exchange Fund Account, including concerning the acquisition of assets to be held in the Exchange Fund Account, based on principles that a person of ordinary prudence would apply in dealing with the property of others.
Non-delegation of power
(2) The Minister may not delegate the power to establish the policy.
Statutory Instruments Act
(3) The Statutory Instruments Act does not apply to the policy.
Power to acquire, sell, etc.
17.2 (1) The Minister may acquire or borrow assets to be held in the Exchange Fund Account, and sell or lend those assets, in order to carry out the policy.
Financial transactions
(2) The Minister may carry out any transaction of a financial nature concerning assets held in the Exchange Fund Account that is in accordance with the policy.
Agents and mandataries
(3) The Minister may appoint agents and mandataries to perform services concerning the Exchange Fund Account.
Delegation in writing
(4) The Minister may delegate the powers set out in subsections (1) to (3) only in writing.
Crediting of Account
17.3 All amounts received by the Minister from transactions carried out under subsections 17.2(1) and (2) shall be credited to the Exchange Fund Account.
R.S., c. 3 (4th Supp.), s. 1
114. Sections 19 to 21 of the Act are replaced by the following:
Advances out of C.R.F.
19. The Minister may authorize advances to the Exchange Fund Account out of the Consolidated Revenue Fund on any terms and conditions that the Minister considers appropriate.
Net income credited to C.R.F.
20. (1) Within three months after the end of each fiscal year, the amount of the net income of the Exchange Fund Account for the fiscal year, expressed in dollars, shall be paid into the Consolidated Revenue Fund if the net income for the year is a positive amount, and shall be charged to that Fund if the net income for the year is a negative amount.
Consistency with Public Accounts
(2) The net income of the Exchange Fund Account for a fiscal year shall be determined in accordance with accounting principles consistent with those applied in preparing the Public Accounts referred to in section 64 of the Financial Administration Act.
Report to Parliament
21. (1) The Minister shall cause to be tabled before each House of Parliament a report on the operation of the Exchange Fund Account for each fiscal year within the first 60 days on which that House is sitting after the end of that fiscal year.
Contents of report
(2) The report referred to in subsection (1) shall include
(a) a summary of the policy established under subsection 17.1(1);
(b) the objectives of the Exchange Fund Account for that fiscal year, and a statement of whether those objectives have been met;
(c) the objectives of the Exchange Fund Account for the current fiscal year;
(d) the financial statements of the Exchange Fund Account;
(e) a list of the agents and mandataries appointed by the Minister under subsection 17.2(3); and
(f) the Auditor General of Canada’s report referred to in subsection 22(2).
115. Subsection 22(2) of the Act is replaced by the following:
Audit
(2) In each fiscal year, the Auditor General of Canada shall audit the Exchange Fund Account and the transactions connected with the Account in any manner that he or she thinks proper and report to the Minister on the results of the audit.
116. Section 23 of the Act is repealed.
Transitional Provisions
First fiscal year — payment into C.R.F.
117. The 15-month period that begins after the last calendar year for which the net income of the Exchange Fund Account was paid into or charged to the Consolidated Revenue Fund under section 20 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 20 of that Act, as enacted by section 114 of this Act, applies.
First fiscal year — report to Parliament
118. The 15-month period that begins after the last calendar year for which the Minister of Finance reported to Parliament under section 21 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 21 of that Act, as enacted by section 114 of this Act, applies.
Coming into Force
Order in council
119. This Part comes into force on a day to be fixed by order of the Governor in Council.
PART 18
AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT
1996, c. 16
Department of Public Works and Government Services Act
120. Section 2 of the Department of Public Works and Government Services Act is amended by adding the following in alphabetical order:
“materiel”« matériel »
“materiel” includes goods;
121. Paragraphs 6(b) and (c) of the Act are replaced by the following:
(b) the acquisition and provision of services, including construction services, for departments;
(c) the planning and organizing of the provision of materiel and services, including construction services, required by departments;
122. Paragraphs 7(1)(b) and (c) of the Act are replaced by the following:
(b) acquire materiel and services, including construction services, in accordance with any applicable regulations relating to government contracts;
(c) plan and organize the provision of materiel and related services to departments including construction services, the preparation of specifications and standards, the cataloguing of materiel, the determination of aggregate requirements for materiel, the assuring of quality of materiel, and the maintenance, distribution, storage and disposal of materiel and other activities associated with the management of materiel; and
123. Section 9 of the Act is replaced by the following:
Other authorities
9. Subject to any conditions that may be imposed by the Treasury Board or any regulations that the Treasury Board may make for the purposes of this section, the Minister shall exercise the powers in relation to the acquisition and provision of materiel and services, including construction services but not including legal services, for the use of any department that are conferred on any minister or other authority under any Act of Parliament or any other law, except to the extent that those powers have been delegated by the Minister.
124. Section 20 of the Act is replaced by the following:
Contracts
20. Despite subsection 32(1) of the Financial Administration Act but subject to any conditions that may be imposed by the Governor in Council or the Treasury Board and any regulations that the Governor in Council or the Treasury Board may make for the purposes of this section, the Minister may, on behalf of the Government of Canada, enter into contracts for the performance of any matter or thing that falls within the ambit of the Minister’s powers, duties or functions.
Coming into Force
Order in council
125. This Part comes into force on a day to be fixed by order of the Governor in Council.
PART 19
AMENDMENTS RELATED TO THE PREMIUM RATE PROVIDED FOR UNDER THE EMPLOYMENT INSURANCE ACT
1996, c. 23
Employment Insurance Act
2001, c. 5, s. 9; 2003, c. 15, s. 21; 2004, c. 22, ss. 25 and 26
126. Sections 66 to 67 of the Employment Insurance Act are replaced by the following:
Chief actuary
65.3 (1) The chief actuary referred to in section 31 of the Department of Human Resources Development Act shall determine the premium rate for a year that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.
Changes to payments
(2) If the Minister has announced, on or before October 14 of the previous year, any changes to payments to be made under paragraph 77(1)(a), (b) or (c) for a year, the chief actuary shall, at the request of the Minister, take into account those changes and make another determination of the premium rate that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that would be made under subsection 77(1) during that year if the changes were to commence on the date specified by the Minister.
Report to the Commission
(3) The chief actuary shall provide to the Commission a report setting out the premium rate determined under subsection (1) or (2) for a year, on or before October 14 of the previous year, and the Commission shall, as soon as possible after receiving the report, make it available to the public.
Annual premium rate setting
66. (1) Subject to subsection (2) and sections 66.1 and 66.3, the Commission shall set the premium rate for a year, taking into account
(a) the principle that the premium rate should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year, based on the information provided by the Minister of Finance under section 66.2, taking into account any regulations made under section 69, and considering any changes to payments made under subsection 77(1) that have been announced by the Minister;
(b) the report of the chief actuary to the Commission for that year; and
(c) any public input.
Difference year to year
(2) The premium rate for a year may not be increased or decreased by more than fifteen one-hundredths of one per cent (0.15%) relative to the premium rate for the previous year.
Time limit
(3) The Commission shall set the premium rate for a year on or before November 14 in the previous year.
Cap on rate
66.1 For 2006 and 2007, the premium rate in each year may not be greater than 1.95%.
Forecast values
66.2 The Minister of Finance shall, on or before September 30 of a year, provide to the chief actuary and the Commission the most current forecast values of the economic variables that are relevant to the determination, under section 65.3 or under subsection 66(1), as the case may be, of a premium rate for the following year.
Governor in Council
66.3 Subject to subsection 66(2) and section 66.1, on the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before November 30 in a year, substitute a premium rate for the following year that is different from the one set by the Commission under subsection 66(1), if the Governor in Council considers it to be in the public interest.
Rounding percentage rates
66.4 If the calculation of a premium rate under section 65.3, 66 or 66.3 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one-hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.
Statutory Instruments Act
66.5 The Statutory Instruments Act does not apply in respect of a premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68. However, the premium rates must, as soon as possible, be published by the Commission in Part I of the Canada Gazette.
User Fees Act
66.6 For greater certainty, the User Fees Act does not apply in respect of the premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68.
Employee’s premium
67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66 or 66.3, as the case may be.
1996, c. 11
Department of Human Resources Development Act
127. Section 31 of the Department of Human Resources Development Act is amended by adding the following after subsection (1):
Chief actuary
(1.1) The employee or officer who holds the position of chief actuary shall be under the direction of the Commission in the performance of the chief actuary’s functions under section 65.3 of the Employment Insurance Act.
128. The Act is amended by adding the following after section 31:
Persons who have specialized knowledge
31.1 Despite section 31, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.
Coordinating Amendments
Bill C-23
129. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 1st session of the 38th Parliament and entitled the Department of Human Resources and Skills Development Act (in this section referred to as the “other Act”), receives royal assent.
(2) On the later of the coming into force of section 126 of this Act and section 28 of the other Act,
(a) section 28 of the other Act is amended by adding the following after subsection (1):
Chief actuary
(1.1) The employee or officer who holds the position of chief actuary shall be under the direction of the Commission in the performance of the chief actuary’s functions under section 65.3 of the Employment Insurance Act.
(b) the other Act is amended by adding the following after section 28:
Persons who have specialized knowledge
28.1 Despite section 28, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.
(c) subsection 65.3(1) of the Employment Insurance Act is replaced by the following:
Chief actuary
65.3 (1) The chief actuary referred to in section 28 of the Department of Human Resources and Skills Development Act shall determine the premium rate for a year that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.
(3) If section 28 of the other Act comes into force before sections 127 and 128 of this Act, then, on the day on which this Act receives royal assent, the heading before section 127 and sections 127 and 128 of this Act are repealed.
PART 20
1996, c. 23
AMENDMENTS TO THE EMPLOYMENT INSURANCE ACT (PROVINCIAL PLANS)
130. Section 23 of the Employment Insurance Act is amended by adding the following after subsection (3.4):
Limitation
(3.5) If benefits are payable to a claimant for the reasons set out in this section and any allowances, money or other benefits are payable to the claimant for the same reasons under a provincial law, the benefits payable to the claimant under this Act are to be reduced or eliminated as prescribed.
131. The Act is amended by adding the following after section 153.1:
PART VIII.2
REGULATIONS — PROVINCIAL PLANS
Regulations
153.2 (1) Despite any other provisions of this Act, if the Government of Canada has entered into an agreement with a province in respect of a provincial law that has the effect of reducing or eliminating special benefits payable as described in subsection 69(2), the Commission may, with the approval of the Governor in Council, for the purposes of implementing the agreement and taking into account the application or effect of the provincial law, make any regulations that it considers necessary, including regulations
(a) respecting the manner in which and the extent to which any provision of this Act or the regulations applies; and
(b) adapting any provision of this Act or the regulations.
Regulations
(2) The regulations may provide for
(a) the making of any financial adjustments and for the crediting or charging of the amount of any of those adjustments to the Employment Insurance Account, including
(i) refunds of overpayments with respect to employees’ premiums,
(ii) adjustment payments between the prov­ince and the Government of Canada with respect to premiums, and
(iii) reimbursement by the province of benefits paid by the Government of Canada in accordance with any administrative agreement between the province and the Government of Canada;
(b) the exchange of any information obtained under the provincial law or this Act; and
(c) the administration of benefits payable under this Act to persons employed or residing in the province or who have made a claim under the provincial law, and the increase or decrease in the amount of benefits payable and in the number of weeks for which benefits may be paid under this Act to and in respect of those persons.
PART 21
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT
R.S., c. F-11
Financial Administration Act
1996, c. 18, s. 3
132. Section 7.1 of the Financial Administration Act is replaced by the following:
Group insurance and benefit programs
7.1 (1) The Treasury Board may establish or modify any group insurance or other benefit programs for employees of the public service of Canada and any other persons or classes of persons it may designate to be members of those programs, may take any measure necessary for that purpose, including contracting for services, may set any terms and conditions in respect of those programs, including those relating to premiums, contributions, benefits, management, control and expenditures and may audit and make payments in respect of those programs, including payments relating to premiums, contributions, benefits and other expenditures.
Remainder of Act does not apply
(2) This Act, other than this section, does not apply to any contributions or other payments made or premiums paid by the Treasury Board or the members in respect of any program established or modified pursuant to subsection (1) or any benefits received by the members of such a program.
Incorporation by letters patent
7.2 (1) On the recommendation of the National Joint Council of the Public Service, the President of the Treasury Board may issue letters patent of incorporation that take effect on the date stated in them for a corporation without share capital that is charged with the administration of any group insurance or benefit program described in subsection 7.1(1).
Content of letters patent
(2) The letters patent must set out
(a) the name of the corporation;
(b) the programs described in subsection 7.1(1) in respect of which the corporation is charged with the administration;
(c) the objects and powers of the corporation necessary for it to fulfil its purpose under subsection (1);
(d) the appointment and the operations of the corporation’s board of directors;
(e) the corporation’s reporting obligations;
(f) the corporation’s obligations with respect to audits of its accounts and financial transactions by an independent auditor;
(g) the code of conduct for the corporation’s directors and officers; and
(h) any other provision that is necessary to fulfil the corporation’s purpose.
Supplementary letters patent
(3) The President of the Treasury Board may, on the recommendation of the National Joint Council of the Public Service, after consulting with the board of directors, issue supplementary letters patent amending the corporation’s letters patent and the supplementary letters patent take effect on the date stated in them.
Statutory Instruments Act
(4) The corporation’s letters patent and supplementary letters patent are not regulations within the meaning of the Statutory Instruments Act. However, they must be published in the Canada Gazette.
Capacity of a natural person
(5) The corporation has, subject to its letters patent and this Act, the capacity of a natural person.
Status of corporation
(6) The corporation is neither a Crown corporation nor an agent of Her Majesty.
Board of directors
7.3 The corporation’s board of directors consists of
(a) one director appointed by the President of the Treasury Board, on the recommendation of the National Joint Council of the Public Service, who is the chairperson;
(b) one director appointed by the President of the Treasury Board, on the recommendation of the National Joint Council of the Public Service, who, in the opinion of the President, represents the pensioners;
(c) four directors appointed by the President of the Treasury Board; and
(d) four directors appointed by that portion of the National Joint Council of the Public Service that represents the employees.
Regulations
7.4 The Treasury Board may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of the Canada Business Corporations Act and the Canada Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation.
Replacement of “chairman”
133. The English version of the Act is amended by replacing the expression “chairman” with the expression “chairperson” wherever it occurs in the following provisions:
(a) the definition “chairman” in subsection 83(1);
(b) subsection 102(2);
(c) section 106;
(d) subsection 107(1);
(e) section 108; and
(f) section 154.
Coordinating Amendments
2003, c. 22
134. On the later of the coming into force of section 7 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003, and the coming into force of section 132 of this Act, subsection 7.1(1) of the English version of the Financial Administration Act is replaced by the following:
Group insurance and benefit programs
7.1 (1) The Treasury Board may establish or modify any group insurance or other benefit programs for employees of the federal public administration and any other persons or classes of persons it may designate to be members of those programs, may take any measure necessary for that purpose, including contracting for services, may set any terms and conditions in respect of those programs, including those relating to premiums, contributions, benefits, management, control and expenditures and may audit and make payments in respect of those programs, including payments relating to premiums, contributions, benefits and other expenditures.
Bill C-21
135. If Bill C-21, introduced in the first session of the thirty-eighth Parliament and entitled the Canada Not-for-profit Corporations Act (in this section referred to as the “other Act”), receives royal assent, then, on the later of the coming into force of section 132 of this Act and section 307 of the other Act, section 7.4 of the Financial Administration Act is replaced by the following:
Regulations
7.4 The Treasury Board may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of the Canada Business Corporations Act and the Canada Not-for-profit Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation.
PART 22
R.S., c. O-9
AMENDMENTS TO THE OLD AGE SECURITY ACT
1998, c. 21, s. 108(1); 1999, c. 22, s. 88(1); 2000, c. 12, par. 207(1)(a)
136. Subsections 12(1) and (2) of the Old Age Security Act are replaced by the following:
Amounts on April 1, 2005
12. (1) The amount of the supplement that may be paid to a pensioner for any month in the payment quarter commencing on April 1, 2005 is,
(a) in the case of a person other than a person described in paragraph (b), five hundred and sixty-two dollars and ninety-three cents, and
(b) in the case of a person who, on the day immediately before that payment quarter, had a spouse or common-law partner to whom a pension may be paid for any month in that payment quarter,
(i) in respect of any month in that payment quarter before the first month for which a pension may be paid to the spouse or common-law partner, five hundred and sixty-two dollars and ninety-three cents, and
(ii) in respect of any month in that payment quarter commencing with the first month for which a pension may be paid to the spouse or common-law partner, three hundred and sixty-six dollars and sixty-seven cents,
minus one dollar for each full two dollars of the pensioner’s monthly base income.
Increase on January 1, 2006
(1.1) The amount of the supplement that may be paid to a pensioner for any month in the payment quarter commencing on January 1, 2006 is the amount of the supplement that would otherwise be payable plus
(a) eighteen dollars, in the case of a person described in paragraph (1)(a) or subparagraph (1)(b)(i); and
(b) fourteen dollars and fifty cents, in the case of a person described in subparagraph (1)(b)(ii).
Increase on January 1, 2007
(1.2) The amount of the supplement that may be paid to a pensioner for any month in the payment quarter commencing on January 1, 2007 is the amount of the supplement that would otherwise be payable plus
(a) eighteen dollars, in the case of a person described in paragraph (1)(a) or subparagraph (1)(b)(i); and
(b) fourteen dollars and fifty cents, in the case of a person described subparagraph (1)(b)(ii).
Indexation
(2) Subject to subsections (1.1) and (1.2), the amount of the supplement that may be paid to a pensioner for any month in any payment quarter commencing after June 30, 2005 is the amount obtained by multiplying
(a) the maximum amount of the supplement that might have been paid to the pensioner for any month in the three-month period immediately before that payment quarter
by
(b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter,
minus one dollar for each full two dollars of the pensioner’s monthly base income.
R.S., c. 34 (1st Supp.), s. 5(1); 2000, c. 12, s. 198(1) and par. 208(1)(e)
137. (1) The definitions “supplement equivalent” and “supplement equivalent for the survivor” in subsection 22(1) of the Act are replaced by the following:
“supplement equivalent”« valeur du supplément »
“supplement equivalent” means, in respect of any month in a payment quarter, the amount of the supplement that would be payable for that month under subsection 12(1), (1.1), (1.2), (2), (3) or (4), as the case may be, to a pensioner whose spouse or common-law partner is also a pensioner when both the pensioner and the spouse or common-law partner have no income in the base calendar year and both are in receipt of a full pension;
“supplement equivalent for the survivor”« valeur du supplément pour le survivant »
“supplement equivalent for the survivor” means, in respect of any month in a payment quarter, the amount determined under subsection (4.1), (4.2), (4.3) or (4.4), as the case may be.
(2) Section 22 of the Act is amended by adding the following after subsection (4):
Supplement equivalent for the survivor
(4.1) The amount of the supplement equivalent for the survivor is
(a) four hundred and fifty-four dollars and nine cents, for any month in the payment quarter commencing on April 1, 2005;
(b) the amount of the supplement equivalent for the survivor that would otherwise be payable plus eighteen dollars, for any month in the payment quarter commencing on January 1, 2006; and
(c) the amount of the supplement equivalent for the survivor that would otherwise be payable plus eighteen dollars, for any month in the payment quarter commencing on January 1, 2007.
Indexation of supplement equivalent for the survivor
(4.2) Subject to paragraphs (4.1)(b) and (c), the amount of the supplement equivalent for the survivor for any month in a payment quarter commencing after June 30, 2005 is the amount obtained by multiplying
(a) the amount of the supplement equivalent for the survivor for any month in the three-month period immediately before that payment quarter
by
(b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter.
No decrease
(4.3) Despite subsection (4.2), the amount of the supplement equivalent for the survivor for any month in a payment quarter may not be less than the amount of the supplement equivalent for the survivor for any month in the three-month period immediately before that payment quarter.
Reduction in Consumer Price Index
(4.4) If, in relation to any payment quarter, the Consumer Price Index for the first adjustment quarter is lower than the Consumer Price Index for the second adjustment quarter,
(a) no adjustment of the supplement equivalent for the survivor is to be made under subsection (4.2) in respect of that payment quarter; and
(b) no adjustment of the supplement equivalent for the survivor is to be made under that subsection in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph is deemed to be the second adjustment quarter that relates to that subsequent payment quarter.
PART 23
PAYMENTS TO CERTAIN PROVINCES AND TERRITORIES
Payment to Quebec
Payment of $200,000,000
138. (1) For the purposes of giving effect to the Canada–Quebec Final Agreement on the Quebec Parental Insurance Plan and to support its implementation, the Minister of Finance may make a cash payment of two hundred million dollars to Quebec.
Payment out of C.R.F.
(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Payment to British Columbia
Payment of $100,000,000
139. (1) The Minister of Finance may make a cash payment of one hundred million dollars to British Columbia to assist the province in meeting the costs arising from the mountain pine beetle infestation, including the costs of damages caused by the infestation and of measures to combat the spread of the infestation.
Payment out of C.R.F.
(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Payment to Saskatchewan
Payment of $6,500,000
140. (1) The Minister of Finance may make a cash payment of six million and five hundred thousand dollars to Saskatchewan.
Payment out of C.R.F.
(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Payment to Yukon
Payment of $13,700,000
141. (1) The Minister of Finance may make a cash payment of thirteen million and seven hundred thousand dollars to Yukon.
Payment out of C.R.F.
(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Payment to the Northwest Territories
Payment of $22,500,000
142. (1) The Minister of Finance may make a cash payment of twenty two million and five hundred thousand dollars to the Northwest Territories.
Payment out of C.R.F.
(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Payment to Nunavut
Payment of $21,800,000
143. (1) The Minister of Finance may make a cash payment of twenty one million and eight hundred thousand dollars to Nunavut.
Payment out of C.R.F.
(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada